Terraco Gold Announces Results of the Second Set of Drill Hole Assays from its Idaho Project, Including the Best Intersection Drilled to Date by Terraco - 76.2 Metres of 1.19 gpt Gold

Vancouver, BC, July 25, 2012 � (TSX Venture: TEN).  Terraco Gold Corp. (� Terraco� or the �Company�) is pleased to report additional assay results from the 2012 drill program completed at its Almaden (Nutmeg Mountain) Project located in Washington County, Idaho.  The Company is reporting 8 drill holes in this release and has now reported 18 of the 32 core holes drilled this year. In-fill and metallurgical core drilling continues to encounter significant intercepts in these holes from surface to 76.2 metres (�m�) or 250 feet (�ft�).

Drill Highlights Include:

• Hole MET-2 intersected 76.2 m averaging 1.195 grams per tonne (�gpt�) gold from surface to 76.2 m (250 ft averaging 0.035 Troy ounces per short ton (� opt�) gold from surface to 250.0 ft), including 27.0 m averaging 2.168 gpt gold to 40.9 m (88.5 ft of 0.063 opt gold to 134 ft), with 5.0 m of that inclusion averaging 3.220 gpt gold to 29.4 m (16.5 ft of 0.094 opt gold to 96.5 ft);

• Hole TAL-781C intersected 61.6 m averaging 1.100 gpt gold from surface to 61.6 m (202 ft of 0.032 opt gold from surface to 202 ft), including 7.6 m averaging 1.488 gpt gold to 18.3 m (25 ft of 0.043 opt gold to 60 ft), and 18.3 m averaging 1.408 gpt gold to 39.6 m (60 ft of 0.041 opt gold to 130 ft); and

• Hole TAL-785C intersected 44.2 m averaging 1.182 gpt gold from 3.0 to 47.3 m (145 ft of 0.034 opt gold from 10 to 155 ft), including 18.3 m averaging 2.032 gpt gold to 29.0 m (60 ft of 0.059 opt gold to 95 ft).

A table summarizing this round of drill results can be found at the conclusion of the news release.

Todd Hilditch, President and CEO of Terraco, said:  �We are excited about this second set of results, from our Idaho advanced �stage project, which include the best intercept of grade and thickness drilled by Terraco to date.  Terraco looks forward to the results of the remaining drill holes to be released in the coming weeks�.

Drill Program Summary

The 2012 exploration program was designed to accomplish three goals:

1. Continue to test continuity and confirm the grade of the deposit internally by obtaining better, more representative, samples through the use of core drilling instead of reverse-circulation (�RC�) drilling;
2. Obtain large diameter core samples for metallurgical testwork that will address specific questions unanswered in prior metallurgical studies; and
3. Explore for high grade feeder zones below and laterally away from the known resource.
   

Terraco�s 2012 drill program utilized HQ3 core drilling in mostly shallow holes in 4 different areas of the deposit aimed at:

• Better defining resources in the areas of older conventional or rotary air blast and RC drilling; and

• Measuring the difference in grades between the various drill techniques.

Metallurgical Testing

Drilling also included large diameter core to provide sufficient material / larger particle size fractions for column test work sent to McClelland Laboratories in Sparks, Nevada.  Two of the 3 drilled metallurgical holes (MET-1 and MET-2) have returned the best intercepts of Terraco�s designed program.  Sample compositing and testwork are currently underway. Testing will focus on leach recoveries by ore type and size fractions and should be completed in calendar Q3/4.

Terraco, for the 2012 program to date, has drilled 28 HQ3 holes for a total of 2,462.3 m (8,078 ft) and 4 large diameter (4 inch) core holes for metallurgical purposes amounting to 298.7 m (980 ft).  The majority of the HQ3 holes were drilled to target depths of 90 m (300 ft) or less.  A few holes, drilled as deep as 610 m (2,002 ft), tested for gold mineralization down dip along structures, and explored for deeper feeder zones.

Assay results are summarized in the table below.

Intersections were composited using a 0.34 gpt (0.010 opt) gold cut-off and may include short intervals of values below the cut-off grade. Intervals are converted from feet to metres. Rounding to metres may affect interval values.

Assay determinations for gold were made by 50 gram fire assay, using an AA finish.  Analyses were performed by ALS Minerals USA, Inc. in Reno, Nevada.

Please click on the link below for a map of the 2012 drilling released to date:

http://www.TerracoGold.com/i/misc/23july2012_dh_pr.jpg

Drilling during 2012 at the Almaden (Nutmeg Mountain) Project was conducted by Marcus and Marcus Exploration of Coeur d�Alene, Idaho and National EWP, Inc., of Hayden, Idaho.

To view this entire press release please visit:
July 25th, 2012 Terraco Gold Press Release

Matt W. Johnston
960-1055 West Hastings St.
Vancouver, BC Canada
V6E 2E9
Tel: 604.443.3835
Toll-Free: 1.877.792.6688 Ext: 4
www.terracogold.com

Safe Harbor Statement

The material herein is for informational purposes only and is not intended to and does not constitute the rendering of investment advice or the solicitation of an offer to buy securities. The foregoing discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The Act). In particular when used in the preceding discussion the words �plan,� confident that, believe, scheduled, expect, or intend to, and similar conditional expressions are intended to identify forward-looking statements subject to the safe harbor created by the ACT. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward looking statements. Such risks and uncertainties include, but are not limited to future events and financial performance of the company which are inherently uncertain and actual events and / or results may differ materially. Johnston-Sequoia Capital Corp. is a paid advisor and owns shares of Terraco gold Corp. Mr. Johnston owns shares in Terraco Gold Corp.  We cannot attest to nor certify the correctness of any information in this e-mail. Please consult your financial advisor and perform your own due diligence before considering the company mentioned in this informational e-mail.