Terraco Gold Corp.

Terraco Gold Corp.

November 30, 2006 08:00 ET

Terraco Generates Additional Targets at Moonlight With Air Mag Survey

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to report that the Aeromagnetic ("Air Mag") survey completed on its Moonlight Property located in Pershing County, Nevada, produced positive preliminary results, including the generation of additional targets.

The Air Mag survey was conducted by Edcon-PRJ of Denver CO, and the survey was flown by El Aero Flight Services of Elko and Carson City, NV. The lines were spaced 150 meters apart and the survey was flown at an average altitude of 50 meters. This close spacing and low flight altitude (or drape) ensured that sufficient detail would be obtained for the area surveyed. Richard Fox of Practical Geophysics, Spring Creek, NV, is currently carrying out an independent review of all data generated by the survey and will provide additional interpretations in early December.

"The initial results of the Air Mag survey appear very exciting. The data strongly support previous work within the primary target area of the alluvium-covered Moonlight Basin, as well as identifying new targets outside the basin. The Air Mag, together with this summer's mapping program and Gradient Array Resistivity (GAR) - Self Potential Gradient (SPG) survey, will allow us to focus on specific drill targets," reported Charles Sulfrian, P. Geo., Terraco's Vice President, Exploration.

Air Mag Background

Magnetic surveys involve the measurement of the earth's magnetic field at a series of different locations over an area of interest with the purpose of mapping variations in magnetic field strength. Magnetic field strength of a given rock type is primarily a function of its magnetite content. Magnetite is the principal magnetic mineral in most rocks. Individual rock types can often be identified by their magnetic characteristics (e.g., intrusive bodies associated with magnetic positive anomalies). While different rock types have differing magnetic characteristics, hydrothermal alteration often destroys magnetite. Magnetite destruction is associated with local weakening of magnetic field strength of a given rock type(s) defined by relative magnetic low areas in the contoured magnetic survey measurements. Fault boundaries between rock types with contrasting magnetic properties are defined by linear features of field strength contour maps. Hydrothermal destruction of magnetite within a given rock type is a primary characteristic of alteration possibly associated with precious metal mineralization.

Charles Sulfrian and consulting geologist Ken Snyder, P.Geo., will finalize specific drill hole locations in the next few weeks for Terraco's first phase of drilling expected in early 2007. The drilling is subject to Bureau of Land Management approval of a revised Notice and drill rig availability.

Moonlight is located 21 miles northeast of Lovelock, Nevada in the Humboldt Range and 5 miles north of Coeur d'Alene Mining Company's Rochester Mine. Midway Gold Corp.'s (TSX:MDW) ("Midway") Spring Valley Project adjoins Moonlight on the south. There, Midway has reported drill intercepts that include highlights of 105 feet ("ft") of 0.325 ounce per ton ("opt") Au, 215 ft of 0.137 opt Au, and 123 ft of 0.169 opt Au.

The technical information in this release has been reviewed and approved by Charles Sulfrian, P.Geo., Vice President, Exploration of Terraco and a 'qualified person', as defined by NI 43-101.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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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