Terraco Gold Corp.

Terraco Gold Corp.

November 30, 2007 07:00 ET

Terraco Acquires Option on Middlegate and Increases Claim Block

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2007) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce it has entered into an Exploration and Option to Purchase Agreement ("EA") with Mr. Thomas Bonn ("Bonn") on the Middlegate property consisting of the Thunder and Lightning unpatented mining claims (the "Middlegate Claims"). Terraco's wholly-owned Nevada subsidiary, TGC Holdings Ltd., has significantly increased the surrounding claim block by staking an additional 96 unpatented mining claims (the "TGC Claims" and collectively with the Middlegate Claims, the "Middlegate Property") totaling approximately 3 square miles. The Middlegate Property is located in Churchill County, Nevada, approximately 5 miles southwest of the town of Middlegate and is easily accessible.

Todd Hilditch, President of Terraco, said: "Based on our review and additional staking, management is excited about the opportunity to explore for gold and silver on the combined land package of the Middlegate Property. Terraco has conducted surface sampling on the Middlegate Property and will report results once they become available."

Terms of the EA

Pursuant to the terms of the EA, Terraco has an option to earn an undivided 100% interest in the Middlegate Claims by spending a minimum of US$480,000 in exploration expenditures on the Middlegate Property within a four-year period. The commitment and timing for exploration expenditures is structured as follows: US$30,000 by the first anniversary of the EA; an additional US$50,000 by the second anniversary; an additional US$150,000 by the third anniversary; and US$250,000 by the fourth anniversary of the EA and every year thereafter. All annual excess expenditures can be applied to the commitment for the following year. Under the terms of the EA, the first exploration expenditure of US$30,000 is a firm commitment. Terraco may terminate the EA at any time after incurring the initial first year's committed exploration expenditure.

The EA allows for Bonn to hold a 5% Net Smelter Return ("NSR") on the Middlegate Claims which, on or before the third anniversary of the EA at Terraco's option, can be reduced to 2% by Terraco buying down the NSR for a total of US$65,000, structured as follows: purchase first 1% by paying US$15,000; second 1% by paying US$25,000; and third 1% by paying US$25,000. The additional TGC Claims hold to Bonn's benefit a 3% NSR which Terraco may buy down to 2% by paying a one-time fee of US$50,000 on or before the third anniversary of the EA.

Property Overview

The Middlegate Property is located in a region that has historic success and includes notable mines such as those of the Wonder, Fairview, Paradise Peak and Rawhide districts.

The general geology of the Middlegate Property consists of a thick sequence of layered volcanic rocks which have been folded into a broad north-south trending antiform. Associated with the western part of this fold is a widespread chalcedonic sinter breccia at the top and locally moderate amounts of visible cinnabar. Along the south face of the main hill are exposures of east-west trending faulted vein-breccia zones.

A small open pit follows one of the east-west breccia zones. Gold-silver mineralization extends beyond the pit to the east and west, and may occur in as many as three more sub-parallel, vein-breccia zones. Host rocks to the mineralization are generally latite in composition and consist of variably welded, lithic ash flow tuff units.

Based upon initial observations, Middlegate alteration and mineralization commences at a very high level, at or near paleo-surface. Targets at the Middlegate Property include volcanic-hosted, epithermal stockwork, breccia, and/or vein gold-silver deposits.

Qualified Persons

This release and its contents has been reviewed and approved by Charles Sulfrian, P.Geo., Vice President, Exploration of Terraco and Ken Snyder, PhD, P. Geo, both considered a 'qualified person', as defined by NI 43-101.

Terraco Gold Corp. is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at www.terracogold.com for additional information.


Todd Hilditch, President and CEO

Certain of the statements made and information contained herein is "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forwardlooking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forwardlooking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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