Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

July 12, 2005 15:00 ET

Terraco Closes Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2005) - Terraco Gold Corp. (TSX VENTURE:TEN) - NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO A UNITED STATES NEWS WIRE SERVICE.

Terraco Gold Corp. ("Terraco") is pleased to announce the closing of the second and final tranche of its brokered private placement that was the subject of news releases dated May 17, 2005 and July 7, 2005.

Pacific International Securities Inc. ("PI") sold 266,666 units (the "Units"), raising gross proceeds of $39,999.90 in the second tranche. Each Unit was offered at a price of $0.15 and is comprised of one (1) common share ("Share") and one-half of one (1/2) transferable share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one (1) additional Share at a price of $0.25 per Share for a period of eighteen (18) months from the closing date of the private placement. In consideration for the services performed by PI in connection with the second tranche of the private placement, PI received a commission equal to 8.0% of the total gross proceeds placed by PI of which $2,463.94 was received in cash and the remainder in the form of 4,907 Units, and 26,667 compensation options with the same terms as outlined in the press release dated July 7, 2005.

The securities issued pursuant to the brokered second tranche of the financing will be subject to a four month hold period expiring November 13, 2005.

Additional information regarding the Company can also be accessed through the corporate web site www.terracogold.com.

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

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

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