Terrane Metals Corp.

Terrane Metals Corp.

October 18, 2006 11:35 ET

Terrane Provides Update on 100% Owned Berg Copper-Molybdenum-Silver Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) - Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX) is pleased to provide an update on the Company's 100% owned Berg Project. The Berg porphyry copper-molybdenum-silver deposit is located 84 kilometres ("km") southwest of Houston, British Columbia and 20 km northwest of Imperial Metals Corp's Huckleberry copper-molybdenum-silver mine. The Berg deposit was discovered by Kennco Explorations (Western) Ltd. in the 1960's. In 1972 exploration of the project was taken over by Canex Placer Limited (Placer Dome Inc.). Historic drilling on the property defined a geological resource at a 0.25% Cu cut-off of 238 million tonnes grading 0.40% Cu, 0.052% MoS2 and 2.84 g/t Ag containing 2.1 billion pounds of copper and substantial resources of molybdenum and silver (see Terrane News Release dated September 13, 2006).

Mineralization at the Berg deposit is hosted within two quartz monzonite intrusions and in the surrounding Hazelton Group volcanic rocks. Hydrothermal alteration zones are spatially related to the quartz monzonite stocks and extend for up to 1,000 metres from the intrusive contacts. A well-developed supergene enrichment blanket is superimposed on primary copper-molybdenum-silver mineralization and has been documented in diamond drill holes to be up to 150 metres in thickness. To date, a total of 93 drill holes totaling 16,908 metres have been completed on the Berg property by previous owners Placer Dome and Kennco Explorations with documented copper-molybdenum intercepts at a 0.25% copper cutoff grade including: 0.57% Cu, 0.083% MoS2 (0.82% CuEQ) over 193.5 metres in drill hole BRG009 and 0.98% Cu and 0.096% MoS2 (1.27% CuEQ) over 97.5 metres in drill hole BRG117. A significant number of drill holes were stopped in strong primary copper-molybdenum mineralization.

Berg Copper-Molybdenum-Silver Deposit
Selected Historic Drill Intersections

Drill Hole From To Length Cu MoS2 CuEQ
---------- ---- -- ------ -- ---- ----
(m) (m) (m) (%) (%) (%)

BRG009 36.6 230.1 193.5 0.57 0.083 0.82
BRG074 24.4 231.7 207.3 0.48 0.035 0.59
BRG117 24.4 121.9 97.5 0.98 0.096 1.27
S24 21.3 182.0 160.7 0.54 0.025 0.61
BRG023 30.5 189.0 158.5 0.52 0.042 0.64
BRG036 39.6 182.9 143.3 0.56 0.062 0.75
BRG123 9.1 150.9 141.8 0.57 0.042 0.69

1. Historic copper/molybdenum drill intercepts are for total Cu and
MoS2 and were calculated using a 0.25% copper cut-off grade.
2. Copper equivalent (CuEQ) calculations used metal prices of US$2.00
per pound for copper, and US$10.00 per pound for molybdenum. CuEQ
equals Cu% + (MoS2 x 3.0). Adjustment factors to account for
differences in relative metallurgical recoveries for copper and
molybdenum will depend upon the completion of definitive
metallurgical testing.

Terrane is currently compiling all of the technical data on the Berg deposit with a view to establishing a number of potential development scenarios for the project. The Company is also planning to conduct a multi-rig diamond drilling program during 2007 in order to upgrade and expand the current geological resources, to collect samples for further metallurgical testing and for open pit design optimization.

Terrane Metals Corp. is an exploration and mine development company focused on the acquisition, advancement and development of Canadian precious and base metal assets including the Mt. Milligan gold-copper deposit and the Berg copper-molybdenum-silver deposit. On a fully diluted basis Goldcorp Inc. (TSX:G)(NYSE:GG) owns a 75% equity interest in the Company.


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

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, silver, copper or other metals, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company 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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