Drill Results At Almaden Project  

VANCOUVER, BC - Terraco Gold Corp. reporsted assay results from the last 6 core holes of the drill program completed at its Almaden Project in Washington County, Idaho. Core drilling at Almaden for these and other holes in continued to encounter significant gold mineralization from surface to 91 metres (300 feet), including drill holes in the main resource area that showed improvement over the average gold grade of the Almaden deposit. The 2012 exploration planning for advancement of the Almaden project is currently underway.

Todd Hilditch, President and CEO said, "These results and the previously announced results at Almaden are very encouraging. Terraco is on the right track in growing the gold resource and has shown in several holes an improvement in grade thickness of up to 28% compared to nearby historic drilling. Terraco is currently planning its 2012 exploration program and is excited to move the Almaden project forward."

Terraco's core drilling, targeted at improving grade within the resource, has been largely successful. Gold values in most of the holes announced to date generally continue to show better gold mineralization than the current resource in the Main Zone (either higher grade or better mineralization as indicated by grade times thickness ("GT"). Holes TAL-751C, 754C and 763C noted above are good examples.

Deep drilling has found additional gold intercepts below and in close proximity to the resource. Drill hole TAL-753C intersected 7.6 m averaging 0.984 gpt gold from 112.8 m to 120.4 m (25 feet averaging 0.029 opt gold to 395 feet), which is within 30 m (98 ft) of the known deposit but not included in the resource calculation.

Core holes drilled at Stinking Water included TAL-759C, 761C, and 762C. These holes revealed that gold mineralization there is contained predominantly in landslide material. Highlights of TAL-759C, 761C and 762C are given above.

"Expanding the known resource and increasing the grade of the resource will be 2 of Terraco's primary objectives in 2012. Through drilling, Terraco's geologists are gaining a better understanding of Almaden, including its structure, mineralization and genesis. Terraco plans to use this better understanding to gain its objectives," said Hilditch.

The company's address is 960-1055 W. Hastings Street, Vancouver, BC V6E 2E9, 604-443-3830, fax: 604-682-3860, email: [email protected].