Terraco Gold Corp.

Terraco Gold Corp.

December 14, 2006 07:00 ET

Terraco Increases Moonlight Land Package by 400%

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 14, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to report the acquisition of additional mining claims significantly increasing the size of the Moonlight Project, Pershing County, Nevada.

Terraco has nearly quadrupled its land package at Moonlight through additional claim staking and the lease of private lands. Terraco has increased the size of the property from the original 1,100 acres (445 hectares) to more than 4,400 acres (1,780 hectares), or nearly 7 square miles.

Todd Hilditch, President of Terraco stated, "The acquisition program successfully added additional land that management believed was required in order to properly explore the current alluvium covered basin and significant new target areas in the now larger Moonlight Project. The new project land package covers targets generated from mapped alteration zones, and geochemical and magnetic anomalies from exploration this summer as well as geophysics completed this fall."

Ground exploration over most of the added mineral rights has been initiated and will continue as Terraco begins detailed follow-up exploration of target areas generated to date. Terraco management is currently using GIS (Geographic Information System) software to combine results of geophysics work completed to date with the geological review in order to spot specific drill holes within identified target zones. Drilling is expected to begin in early 2007.

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 to 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 Terraco's expectations. Certain risk factors may also affect the actual results achieved by Terraco.

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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