Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

June 11, 2008 07:00 ET

Terraco Starts Phase II Drilling at Moonlight

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that Phase II drilling starts today at its 100% owned Moonlight Property in Pershing County, Nevada.

The fully-funded Phase II drilling program will include up to 25 reverse circulation (R-C) drill holes ranging in target depths from 150 to 450 meters (500 to 1,500 feet), for a total of up to 11,000 meters (approximately 37,000 feet). Drilling is being conducted by Eklund Drilling Company, Inc. of Elko, Nevada.

The Phase II drill program includes targets on properties added to the Moonlight Project in late 2007, east of the Phase I drilling, as well as additional areas delineated by prior mapping, rock sampling and aeromagnetic survey. Follow-up drilling to 2007's Phase I drilling (see News Release 2008-01 dated January 31, 2008) is also planned. The Moonlight Property now comprises over 5,900 acres. Moonlight is located 21 miles northeast of Lovelock, Nevada in the Humboldt Range, 5 miles north of Coeur d'Alene Mining Company's Rochester Mine.

Middlegate Update

The initial Phase I drill program of 8 R-C drill holes at the Middlegate Property was completed yesterday, June 10, 2008, with a total of 7,500 feet drilled. Samples have been submitted for assay to American Assay Laboratories of Sparks, Nevada. The results, when received, will be reviewed along with additional information from soil sampling, rock sampling and mapping programs in order to identify further targets. Terraco is permitted for additional drilling at Middlegate.

The exploration and drill programs for Moonlight and Middlegate were designed by Charles Sulfrian, P.Geo., Vice President, Exploration for Terraco and Ken Snyder, P. Geo., consulting geologist. 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, Standards for Disclosure of Mineral Projects.

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.

ON BEHALF OF THE BOARD

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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