Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

May 23, 2005 19:07 ET

Terraco Corporate Update; Terraco Announces Stock Option Extension to Ken Snyder and Tuscarora Property Amendment

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2005) - Terraco Gold Corp. (TSX VENTURE:TEN) is pleased to announce an extension and amendment of options granted to Mr. Ken Snyder, P. Geo, consulting geologist to Terraco. The 100,000 options, with an original grant date of May 16, 2003, have been extended to May 16, 2008 as well as amended in price to $0.20 a share. Terraco looks forward to the continued working relationship with Mr. Snyder.

Terraco is also pleased to announce that the Tuscarora property purchase agreement with Newmont Capital Limited ("Newmont") has been amended effective May 20, 2005. The closing of the Tuscarora transaction was announced August 29, 2003 with the details of the Tuscarora purchase agreement being announced March 6, 2003 and available on Sedar.

The amendment provides for Terraco's second anniversary payment obligations and work commitments under the purchase agreement (scheduled for August 27, 2005) to be extended up to December 31, 2006. In consideration for granting the extension, Terraco has also agreed to issue to Newmont an additional 100,000 common shares of Terraco on or before December 31, 2006, unless Terraco has abandoned the Tuscarora property under, and in accordance with, the purchase agreement provisions prior to that date. The amendment is subject to regulatory approval. Terraco would like to thank Newmont for the opportunity to extend the timeline required under the agreement in order to properly test the property in its Phase II drill program.

Terraco Gold Corp. is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at http://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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