Terraco Gold Corp.

Terraco Gold Corp.

March 31, 2006 14:00 ET

Terraco Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) wishes to announce that planning is currently underway for exploration of the Moonlight property located in Pershing County, Nevada.

Moonlight, which is located 15 miles northeast of Lovelock, Nevada in the Humboldt Range and 5 miles north of Coeur d'Alene Mining Company's Rochester Mine, adjoins Midway Gold Corp.'s (TSX:MDW) ("Midway") Spring Valley Project to the south, where Midway has reported drill intercepts that include highlights of 105 feet ("ft") of 0.325 ounce per ton ("opt"), 215 ft of 0.137 opt, and 123 ft of 0.169 opt.

Exploration activities currently being planned at Moonlight for Spring/Summer 2006 include detailed mapping, sampling and trenching as well as additional geophysical work to augment an existing ground magnetic survey. Permitting is already in place for drilling.

"The Moonlight Property is an extremely exciting opportunity for us. We are very pleased to have acquired such a high-quality project in this area of burgeoning discoveries and past mining activity by other exploration companies," said Charles Sulfrian, VP Exploration.

Tuscarora Update

Terraco, pursuant to a letter dated March 1, 2006, provided notice to Newmont that Terraco intended to abandon its' respective interest in the Tuscarora property. Pursuant to the terms of the Purchase Agreement, Newmont has, within 30 days of receiving the notice, elected in writing to have the property conveyed back to it. Terraco will be delivering to Newmont a quit deed or assignment conveying their entire interest in the property.

Terraco will continue its focus on gold exploration activities on its properties in Nevada and Arizona.

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

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

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