Terraco Gold Corp.

Terraco Gold Corp.

January 31, 2008 09:30 ET

Terraco Reports Initial Results From Drilling at Moonlight

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2008) - Terraco Gold Corp. (TSX VENTURE:TEN) ("Terraco") wishes to announce that all assays have been received from the 2007 drilling program at its 100%-owned Moonlight Property in Pershing County, Nevada. Terraco completed 15 holes of reverse circulation drilling on December 12, 2007 for a total of 9,990 feet in its Phase I program. This program was designed to test geophysical anomalies and several structural targets in the alluvium-covered Moonlight Basin and adjacent areas with no outcrop.

Results from drilling the Moonlight Basin indicate that anomalous gold and silver mineralization spans the Basin. Highlights of the drilling include anomalous silver in 8 of the 15 holes drilled, to a high of 15.54 grams per tonne ("gpt") silver over 1.5 meters (m) in TML-04 and 1.018 gpt silver over 16 m in TML-07. Gold was assayed in two holes to a high of 0.155 gpt over 1.5 meters. Selected drill hole intercepts are tabulated below.

"This first drilling ever conducted on the Moonlight Property was within an area of approximately 170 hectares (420 acres), which constitutes less than 10% of the entire Moonlight Property. The information obtained from this first 15-hole drill program has greatly improved the understanding of this grassroots project as well as the underlying geology in the Basin. Based on our interpretation of the drill data, we are able to generate new and enhanced targets for our next round (Phase II) of drilling scheduled for spring 2008. Phase II drilling will test additional targets within the remaining property position as well as follow up on areas that returned values to a high of 4.0 gpt gold and 2,510 gpt silver in previous sampling," stated Todd Hilditch, President and CEO of Terraco.

Total drilling for Phase II is budgeted for 22 to 25 drill holes ranging in target depths of 150 to 450 meters or more, for a total of approximately 9,000 meters (nearly 30,000 feet). The drill program is being designed by Charles Sulfrian, P.Geo., Vice President, Exploration for Terraco and Ken Snyder, P. Geo, consulting geologist.

Terraco is fully funded for its Phase II drill program which is planned to follow up on:

1. select Phase I targets drilled to date;

2. additional holes not completed under the Phase I program due to weather;

3. additional geophysically-anomalous structural trends and traps detailed during mapping and sampling in late 2007; and,

4. areas of outcrop that have returned favourable samples.

Moonlight Basin - Selected Drill Hole Intercepts

Gold Interval From To Silver Interval From To
Hole ID gpt meters meters gpt meters meters

TML-01 0.154 1.5 16.8 18.3 2.1 9.1 96.1 105.2

TML-04 1.1 1.5 0.0 1.5(1)
3.7 7.6 4.6 12.2(1)
Including 15.5 1.5 9.2 10.7(1)
1.0 3.0 24.4 27.4(1)

TML-05 1.1 1.5 94.5 96.0

TML-06 1.5 1.5 41.2 42.7
1.1 7.6 56.4 64.0

TML-07 0.129 1.5 10.7 12.2 1.2 7.6 7.6 15.2
3.3 4.6 41.1 45.7
1.0 16.8 62.5 79.3
1.1 3.0 120.4 123.4

TML-09 1.2 1.5 18.3 19.8

TML-13 1.2 24.4 4.6 29.0(1)
2.6 6.1 59.4 65.5
Including 5.9 1.5 61.0 62.5
4.1 1.5 74.7 76.2
2.5 1.5 121.9 123.4
1.0 1.5 224.1 225.6

TML-15 1.0 1.5 9.2 10.7(1)

Holes with no significant mineralization have been omitted from the table.
(1) Denotes drill sample intervals within alluvium.

The gold and silver mineralization encountered during the drilling was generally associated with somewhat bleached, de-carbonatized, silicified or argillized structural zones within the Limerick Greenstone of the Permo-Triassic Koipato Formation. Quartz and quartz-tourmaline veining are also present in some mineralized intervals. Several intercepts with anomalous silver values, such as those in TML-04, occur in the alluvium.

Assay determinations for gold were by 60 gram Fire Assay (detection limit of 0.003 gpt Au). Assay determinations for silver were by specific analyses (0.5 gram sample, 2 acid digest/AA finish; detection limit of 0.1 gpt Ag). All assays, repeats, and check assays were provided by American Assay Laboratories of Sparks, Nevada.

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 Moonlight Property is located 25 miles northeast of Lovelock, Nevada in the Humboldt Range, 5 miles north of Coeur d'Alene Mining Company's Rochester Mine.

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 and CEO

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.

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

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