Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

April 02, 2007 08:00 ET

Terraco Announces Private Placement of Up to $2,500,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 2, 2007) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce a non-brokered private placement of up to 5,000,000 units ("Units") at a price of $0.50 per Unit, for total gross proceeds of up to $2,500,000. Each Unit will be comprised of one common share of the Company ("Share") and one-half of one non-transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to purchase one additional Share for a period of 24 months from the date of issuance at a price of $0.75 during the first 12 months and $1.00 thereafter. The expiry date of the Warrants may be accelerated, at the sole option of the Company, to 21 business days following the date on which the Company gives notice that the Company's common shares have closed for 20 consecutive trading days at a price of $1.50 or greater.

Completion of the private placement is subject to regulatory approval.

The proceeds of the private placement will be used for continued exploration activities on Terraco's mineral exploration properties and for working capital.

Terraco is currently focused on its Moonlight Property. Moonlight is located 21 miles northeast of Lovelock, in Pershing County, Nevada in the Humboldt Range and 5 miles north of Coeur d'Alene Mining Company's Rochester Mine. Midway Gold Corp.'s (TSX VENTURE:MDW) ("Midway") Spring Valley Project adjoins Moonlight to the south. At Spring Valley, Midway has reported drill intercepts that include highlights of 105 feet ("ft") of 0.325 opt gold (11.21 gpt Au), 215 ft of 0.137 opt gold (4.72 gpt Au), and 123 ft of 0.169 opt gold (5.83 gpt Au).

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.

ON BEHALF OF THE BOARD

Todd Hilditch, President

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

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