Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

July 08, 2005 08:30 ET

Terraco Completes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 8, 2005) - NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO A UNITED STATES NEWS WIRE SERVICE.

Terraco Gold Corp. (TSX VENTURE:TEN) is pleased to announce the closing of the first tranche of a brokered private placement, announced May 17, 2005, led by Pacific International Securities Inc. ("PI") for the sale of 5,299,992 units (the "Units"), raising gross proceeds of $794,998.80. In addition, the company raised $60,000.00 on a non-brokered private placement basis for total aggregate gross proceeds of $854,998.80.

Each Unit was offered at a price of $0.15 and is comprised of one (1) common share ("Share") and one-half (1/2) of one transferable share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one 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 private placement, PI has received a Corporate Finance fee of $10,000 (plus GST), a commission equal to 8.0% of the total gross proceeds placed by PI of which $34,343.90 was received in cash and the remainder in the form of 195,040 Units, and 529,999 compensation options ("Compensation Options"). Each Compensation Option is exercisable to purchase one Unit ("Agent's Unit") at a price of $0.20 per Agent's Unit with each Agents' Unit being comprised of one (1) Share and one -half (1/2) of a warrant ("Agent's Warrant"). Each whole Agent's Warrant will be exercisable to purchase one additional Share at a price of $0.30 for a period of eighteen (18) months from the closing date.

All securities issued pursuant to the brokered and non-brokered financing will be subject to a four month hold period expiring November 8,2005.

The proceeds from the private placement will be used for exploration on Terraco's Nevada and Arizona properties and working capital purposes. Explorations activities include additional sampling and mapping, geophysical surveying and drilling.

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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