Terraco Gold Announces New Drill Results from its Idaho Gold Project, Including 60.4 m of 1.065 gpt Gold and 76.8 m of 0.939 gpt Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2012) - Terraco Gold Corp. (TSX VENTURE:TEN) ("Terraco" or the "Company") is pleased to report additional assay results from the 2012 drill program completed at its Almaden (Nutmeg Mountain) Project located in Washington County, Idaho. The Company is reporting the remaining 6 holes of the spring 2012 core drilling program. Assay results from this in-fill core drilling again encountered significant intercepts from surface to 76.8 metres ("m") or 252 feet ("ft"). Many holes intersected gold grades exceeding the average grade of the deposit and include shorter sections assaying up to 10.80 grams per tonne ("gpt") gold.

Drill Highlights Include:

• Hole TAL-787C intersected 60.4 m averaging 1.065 gpt gold, including 21.3 m averaging 1.881 gpt gold with 13.7 m of 2.246 gpt gold;
  
• Hole TAL-792C intersected 76.8 m averaging 0.939 gpt gold, including 12.2 m averaging 1.435 gpt gold, 4.6 m of 1.209 gpt gold, 7.6 m of 1.662 gpt gold and 1.5 m averaging 2.270 gpt gold;
  
• Hole TAL-793C intersected 48.8 m averaging 0.944 gpt gold, including 18.3 m averaging 1.373 gpt gold and 3.0 m averaging 1.625 gpt gold;
  
• Hole TAL-794C intersected 24.4 m averaging 1.000 gpt gold, including 10.7 m averaging 1.409 gpt gold, and an additional 13.7 m of 1.794 gpt gold; including 1.5 m of 10.800 gpt gold.

A table summarizing this round of drill results can be found at the conclusion of this news release.

Todd Hilditch, President and CEO of Terraco, stated: "We are very pleased with the success of the spring 2012 drill program. Today's drill results continue to show good gold grade over longer widths within the deposit. In addition, this round of drilling encountered some very interesting higher grade, sulfide rich breccia which could represent a broader network of near vertical discrete feeders along high angle structures. This interpretation deserves further study and will form part of the ongoing decision-making process for further exploration."

Drill Program Summary

The 2012 exploration program was designed to accomplish 3 goals:

1. continue to test continuity and confirm the grade of the deposit internally by obtaining better, more representative, samples through the use of core drilling instead of reverse-circulation ("RC") drilling;
   
2. obtain large diameter core samples for metallurgical testwork that will address specific questions unanswered in prior metallurgical studies; and
   
3. explore for high grade feeder zones below and laterally away from the known resource.

Terraco's 2012 drill program utilized HQ3 core drilling in mostly shallow holes in 4 different areas of the deposit aimed at:

• better defining resources in the areas of older conventional rotary and RC drilling; and
  
• compare grades between various drilling techniques.

Assay results are summarized in the table below.

Drill Hole Number	Area		Interval (m)	Gold (gpt)	From (m)	To (m)	Interval (ft)	Gold (opt)	From (ft)	To (ft)
TAL-786C	Main Zone		21.3	0.483	6.1	27.4	70	0.014	20	90
		Including	4.6	0.925	7.6	12.2	15	0.027	25	40
			13.7	0.734	32.0	45.7	45	0.021	105	150
		Including	1.5	1.780	35.1	36.6	5	0.052	115	120
TAL-787C	Main Zone		60.4	1.065	3.7	64.0	198	0.031	12	210
		Including	21.3	1.881	16.8	38.1	70	0.055	55	125
		with	13.7	2.246	18.3	32.0	45	0.066	60	105
			1.5	0.514	67.1	68.6	5	0.015	220	225
			3.0	0.488	71.6	74.7	10	0.014	235	245
TAL-788C	South Pit		53.3	0.687	3.0	56.4	175	0.020	10	185
		Including	9.1	0.991	25.9	35.1	30	0.029	85	115
TAL-792C	Main Zone		76.8	0.939	0.0	76.8	252	0.027	0	252
		Including	12.2	1.435	4.6	16.8	40	0.042	15	55
		Including	4.6	1.209	36.6	41.1	15	0.035	120	135
		Including	7.6	1.662	61.0	68.6	25	0.048	200	225
		Including	1.5	2.270	74.7	76.2	5	0.066	245	250
TAL-793C	Main Zone		48.8	0.944	9.1	57.9	160	0.028	30	190
		Including	18.3	1.373	18.3	36.6	60	0.040	60	120
		Including	3.0	1.625	44.2	47.2	10	0.047	145	155
			1.5	0.835	68.6	70.1	5	0.024	225	230
TAL-794C	Main Zone		24.4	1.000	9.1	33.5	80	0.029	30	110
		Including	10.7	1.409	13.7	24.4	35	0.041	45	80
			13.7	1.794	41.1	54.9	45	0.052	135	180
		Including	1.5	10.800	47.2	48.8	5	0.316	155	160
			1.5	0.398	67.1	68.6	5	0.012	220	225
			1.5	0.538	89.9	91.4	5	0.016	295	300

The table above shows only those assay results greater than or equal to 1.5 m of ≥ 0. 340 gpt gold or 5 ft of ≥ 0.010 Troy ounces per ton ("opt") gold. Intervals were calculated using a 0.34 gpt (0.010 opt) gold cut-off and may include short intervals of values below the cut-off grade. Intervals are converted from ft to m. Rounding to metres may affect interval values.

Assay determinations for gold were made by 50 gram fire assay, using an AA finish. Analyses were performed by ALS Minerals USA, Inc. of Reno Nevada.

Please click on the link below for a map of the 2012 drilling results, including those of today's,, which is also available on Terraco's website at www.terracogold.com.

http://www.TerracoGold.com/i/projects/05sept2012_dh_map_pr.jpg

Almaden Gold Resource

The National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"), compliant resource has an average grade of 0.02 opt (0.7 gpt) in the near surface flat-lying tabular resource. The majority of previous drilling was completed using conventional rotary (RAB) and RC drilling. The NI 43-101 compliant resource is based on cut-off grades of 0.008 opt, 0.012 opt and 0.023 opt for the oxide, mixed and sulfide mineralization, respectively:

• Measured resource of 239,000 ounces of gold (10,810,000 tons grading 0.022 opt);
• Indicated resource of 625,000 ounces of gold (32,240,000 tons grading 0.019 opt);
• Inferred resource of 84,000 ounces of gold (5,270,000 tons grading 0.016 opt); and
• Total gold resource of 948,000 ounces (48,320,000 tons grading 0.020 opt).

Drilling during 2012 at the Almaden (Nutmeg Mountain) Project was conducted by Marcus and Marcus Exploration of Coeur d'Alene, Idaho, and National EWP, Inc. of Hayden, Idaho.

The technical information in this release has been reviewed and approved by Charles Sulfrian, CPG., Vice President, Exploration, of Terraco and a 'qualified person', as defined by National Instrument 43-101,Standards of Disclosure for Mineral Projects.

Terraco is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN".

Forward-Looking Statements

Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.