Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

June 12, 2007 19:02 ET

Terrane Metals Corp. Clarifies Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2007) -

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

Terrane Metals Corp. (TSX VENTURE:TRX) (the "Company") is issuing this news release in order to identify and summarize the current status of its material mineral property projects in British Columbia in accordance with the provisions of National Instrument 43-101 ("NI 43-101").

Mt. Milligan Project

The Company confirms that its previously disclosed Placer Dome (2005) Mt. Milligan Project resource estimate, as disclosed in the Placer Dome 2005 Fourth Quarter Report, is not a "current" resource estimate as defined under NI 43-101. In the Company's September 21, 2006 news release, and in other news releases and disclosure, the Company referred to the Placer Dome (2005) mineral resource estimate as a current resource estimate. The Company's June 2006 technical report did not audit or estimate current resources and did state that the prior estimate should not be treated as a current estimate. The Company retracts the inference that it has compliant current resource estimate at Mt. Milligan and provides the following cautionary statements regarding the Placer Dome (2005) Mt. Milligan resource estimate.

The Placer Dome (2005) estimate should be considered relevant as it was calculated on the basis of approximately 200,000 metres of diamond drilling in 900 drill holes. This estimate, as disclosed in the Placer Dome 2005 Fourth Quarter Report, was provided by a Qualified Person, then an employee of Placer Dome, who is now an officer of the Company. The Company has not audited or done sufficient work to classify the Placer Dome (2005) estimate as a current resource. It should not be treated as a current resource as defined in section 1.2 of NI 43-101 until it is audited and accepted by an independent qualified person, or a new independent resource estimate is completed and the Placer Dome (2005) estimate is thereby confirmed. The Company has today filed a new 43-101 Technical Report respecting the Mt. Milligan Project which may be viewed electronically at www.sedar.com.

The Company anticipates that current engineering, metallurgical and environmental studies will transition into a feasibility study once a current resource estimate is completed. The Company wishes to clarify that current work programs have not advanced to include formal economic analysis or Feasibility Studies because work of that nature can only be done after current mineral resources are estimated.

The Company's January 18, 2007 news release made reference to new drill results and disclosed dimensions of a new "mineralized block" located outside of the Placer Dome (2005) resource estimate, indicating this block would be evaluated as apart of an open pit design. The Company retracts the implication that this additional volume is part of a current resource, and any additional potential remains conceptual in nature. In addition, it is uncertain if any of the new block of mineralization located by recent drilling will be qualified as a mineral resource.

Berg Project

The Company confirms that its previously disclosed Berg Project historical resource is not a current resource. The Company's October 18, 2006 news release made reference to a current resource, and this was in error. The resource should have been referred to as a historical resource.

The Company's June 2007 technical report did not audit or estimate resources and advised that the prior estimate not be treated as a current estimate. The Company retracts the inference that it has a NI 43-101 compliant current resource estimate at Berg and provides the following cautionary statements regarding the historical Berg resource estimate.

The Company confirms that geological resources for the Berg Project are referenced in the Ministry of Energy, Mines and Petroleum Resources MINFILE Summary and in CIM Special Volume 37, page 1986. This historical resource estimate predates the implementation of NI 43-101 guidelines and is not compliant with current accepted reserve and resource classifications as set forth by Canadian Institute of Mining and Metallurgy, Aug. 20, 2000 ("CIM Guidelines"). While the Berg Project historical resource estimate is considered relevant, as they have been calculated on the basis of 16,907 metres of diamond drilling in 93 drill holes, the Company has not independently verified the resource and investors should not rely on the above historical resource. There is no evaluation that demonstrates the potential economic viability of the stated historical resource.

The preparation of this news release was directed and supervised by Robert Pease, P. Geo., President and CEO of Terrane Metals Corp. and a Qualified Person as defined under National Instrument 43-101.

About the Company

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan gold-copper and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (TSX:G)(NYSE:GG) owns a 70% equity interest in Terrane on a fully diluted basis.

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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