Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

October 18, 2006 20:15 ET

Terrane Announces $10.0 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX), is pleased to announce that a financing has been arranged with a syndicate of investment dealers led by Haywood Securities Inc. (the "Agent") to sell by way of private placement up to 13,400,000 Units (the "Units") at a price of $0.75 per Unit for gross proceeds of $10,050,000. Each Unit will consist of one common share and one half of a transferable common share purchase warrant ("Warrant"). Each whole Warrant shall be exercisable into common shares of the Company at a price of $1.00 for the first twelve months after closing and at a price of $1.25 for the second twelve months after closing. The Agent will be paid a commission of 6% of the gross proceeds received by the Company under the financing and will receive compensation options to subscribe for that number of shares equal to 6% of the number of Units to be issued by the Company. Such compensation options shall be exercisable into common shares at a price of $0.75 per common share for a period of 24 months from the closing.

The proceeds raised under the financing will be used by the Company to further advance its exploration-development properties and for general working capital. The offering is scheduled to close on or about October 30, 2006. The offering is subject to all required regulatory approvals, including acceptance for filing by the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a resale restrictions in accordance with applicable securities laws.

Terrane Metals Corp. is an exploration and mine development company focused on developing the Mt. Milligan gold-copper deposit and the Berg copper-molydenum-silver project in British Columbia. Goldcorp Inc. (TSX:G)(NYSE:GG) owns a 75% equity interest in Terrane on a fully diluted basis.

This news release is not an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold in the United States unless they have been registered under the 1933 Act, or are otherwise exempt from such registration.

TERRANE METALS CORP.

Robert Pease, P.Geo, FGAC, President and CEO

Cautionary Note Regarding Forward Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements". Such forward-looking statements including but not limited to those with respect to the proposed use of proceeds anticipated to be raised by the financing involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Terrane to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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

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