Terraco Gold Corp.

Terraco Gold Corp.

March 21, 2006 07:30 ET

Terraco and Metallic Ventures Sign Exploration Agreement on Moonlight Property; Moonlight Adjoins Midway's Spring Valley Claims in Pershing County, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that pursuant to a Letter of Intent ("LOI") announced on February 6, 2006, Terraco has entered into the Exploration Agreement with an Option to Joint Venture ("EA") with Metallic Ventures (U.S.), Inc. ("Metallic"), a subsidiary of Metallic Venture Gold Inc. (TSX:MVG) pursuant to which Terraco has the right to earn up to a 70% interest in the Moonlight Property ("Moonlight") mining claims 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.

Property Overview

The Moonlight project area was identified by Cordilleran Exploration Company ("Cordex"), on behalf of Metallic. The Cordex principals, who identified the project area, are John Livermore, who is credited with the discovery of the Carlin deposit in Nevada and the discovery and development of the Pinson and Dee mines, and Andy Wallace, who is credited with a major role in the discoveries of the Marigold and Stonehouse/Lone Tree gold deposits as well as the Daisy (Secret Pass) mine.

Gold and silver mineralization occurs along a north-northeast trending structure at the original Moonlight Mine. The high angle structure cuts Permo-Triassic Rochester Rhyolite and Limerick Greenstone of the Koipato Group. According to the Midway website, it is the same sequence of rocks that host gold mineralization discovered at Midway's Spring Valley Project, which adjoins the Moonlight property on the south. Similarly to Spring Valley, alluvial gravels cover the projection of the Moonlight structure and the Permo-Triassic host rock package south and south-east of the original Moonlight and Bluebird mines. The projection of the Moonlight structure is generally parallel in strike with the north-northeast-trending Black Ridge Fault Zone that extends from the Coeur Rochester mine northerly through the Midway Spring Valley discovery. The Moonlight structure may be the northerly extension of the Black Ridge Fault Zone, as minor offsets of the district-scale Black Ridge structure may have occurred across west-northwesterly striking cross faults. High-grade silver ore was produced from the Moonlight mine during the 1860's. The targets at Moonlight consist of breccia hosted and stockwork-related gold-silver mineralization hosted by the Rochester Rhyolite. Cordex conducted ground magnetometer and soil geochemical surveys across part of the alluvium-covered zone. Soil and ground mag anomalies require additional work to define the best drill targets. The target model is similar to that of Midway's Spring Valley Project.

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

Metallic Ventures Gold Inc. is an Ontario incorporated gold company trading on the Toronto Stock Exchange under the trading symbol MVG. The Company is focused on major past-producing mining districts in Nevada and controls two advanced projects with considerable near-term production potential: Converse and Goldfield.

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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