Terraco Announces 2012 Drilling Underway with Two Core Rigs at the Almaden (Nutmeg Mountain) Project in Idaho

Drilling Includes One Core Rig Specific to Metallurgical Testing

Vancouver, BC , March 28, 2012 � (TSX.V: TEN | US: TCEGF)  Terraco Gold Corp. the � Company� or �Terraco�) is pleased to announce that its 2012 exploration program is now underway, beginning with two core rigs drilling at its 100% owned Almaden (Nutmeg Mountain) gold project, located in Washington County, Idaho.

Terraco�s 2012 Phase I campaign will consist of a program combining HQ3 infill and development core drilling, using Marcus & Marcus of Coeur d�Alene, Idaho, together with a program of large (4�) diameter core drilling, using National EWP of Elko, Nevada, for metallurgical testwork.

The Phase I infill-development portion of this year�s core drilling will begin with a 4,000 metre (13,000 feet) program (approximately 25 holes) designed to better determine the interior continuity of the gold resource, fill in areas where sampling from older drilling is either missing or is questionable, and test for higher grades versus older RAB drilling in different parts of the resource area.  

Exploration drilling is also planned to include deep holes exploring for feeder zones as well as drilling along strike from the resource including the Cove Creek area, some 400 to 600 metres south-southeast of the present gold resource.  Previous drilling at Cove Creek intersected as much as 38.1 metres (m) averaging 0.75 grams gold per metric tonne (gpt) (125 feet of 0.022 Troy ounces gold per ton (opt)) including 12.2 m of 1.30 gpt (40 ft of 0.038 opt) in hole CC-8.  The area around CC-8 has had little follow up drilling. Mineralization encountered in CC-8 is open in three directions.

The 2012 program also includes up to 460 metres (1,500 feet) of 10.28 cm (4 inch) diameter core drilling for metallurgical test work.   The metallurgical holes will average 100 metres (300 feet) in depth and are designed to provide oxide and transitional ore grade material for metallurgical testing from the outcropping, flat-lying, tabular deposit.  Three or four holes will be drilled at differing targets within the resource for material for column and bottle roll testwork.  

�Terraco�s initial goals at Almaden, since the acquisition in January 2011, were to move toward confirmation of known, near surface gold mineralization as well as the discovery of new high-grade gold in veins at depth.  The 2011 core drilling program was very successful. We now look forward to utilizing the information garnered last year to help define the 2012 program in an effort to move this project towards a production decision,� stated Charles Sulfrian, Vice-President Exploration.

The Almaden (Nutmeg Mountain) Project

The advanced stage project has excellent access and infrastructure and now includes over 66,140 metres (217,000 feet) of drilling in 903 drill holes.  The project is host to a low-sulphidation, epithermal gold deposit drilled extensively from 1978 to 1992 by a number of companies including Homestake and Amax Gold.

The Almaden project is a flat-lying outcropping ore body that, within surface to approximately 300 feet, hosts a NI 43-101 compliant measured resource of 239,000 ounces of gold (10,810,000 tons grading 0.022 opt), an indicated resource of 625,000 ounces of gold (32,240,000 tons grading 0.019 opt) and an inferred resource of 84,000 ounces of gold (5,270,000 tons grading 0.016), at the cut-off grades of 0.008 opt, 0.012opt, and 0.023 opt for the oxide, mixed, and sulfide mineralization, respectively.

The technical information in this release has been reviewed and approved by Charles Sulfrian, C.P.G., Vice President, Exploration of Terraco and a �qualified person�, as defined by NI 43-101, unless otherwise noted.

Terraco Gold Corp. (TSX.V: TEN | US: TCEGF), ("Terraco") project portfolio includes an advanced-stage gold project in Idaho, a Royalty Option on an evolving Nevada gold discovery and a neighbouring early-stage gold/silver project in Nevada, USA.
         
The 100% owned Almaden Project is located 126 kilometres north of Boise, Idaho. The project hosts a National Instrument 43-101 compliant measured plus indicated and inferred resource of 948,000 ounces of gold within 90 m of surface. The advanced- stage Almaden project has excellent access with good infrastructure and includes over 66,000 m of drilling in 903 drill holes. Terraco has completed a drill program to explore the extension of the near surface mineralization that is open to the north and south, as well as test for high-grade, bonanza-style structurally controlled gold mineralization at depth. Project comparisons for Almaden are The Ken Snyder "Midas Mine" (Newmont) and the Hollister Mine (Great Basin Gold) located in northeast Nevada.

Terraco has the option to acquire a 2.5% net smelter royalty ("NSR royalty") on The Spring Valley Gold Project ("Spring Valley"), located in Pershing County, Nevada. Spring Valley is a joint venture between Barrick Gold Corp. ("Barrick") and Midway Gold Corp., where Barrick has the right to earn 60% interest in the project by completing work expenditures totalling US $30 million before December 31, 2013. Terraco's 100%-owned Moonlight Project, which currently encompasses over 5,000 acres, is located along trend and adjoins the north side of Spring Valley.

The 100% owned Moonlight Project is located 380 kilometres northeast of Reno, Nevada and approximately 8 kilometres north of the Coeur d'Alene Rochester silver-gold mine. The Rochester Mine has produced over 125 million ounces of silver and 1.2 million ounces of gold in its 25 year history and has recently returned to production.

Terraco's exploration is conducted by Charles Sulfrian , CPG (Vice President, Exploration) and Ken Snyder , PhD (Lead Consulting Geologist). Both Mr. Sulfrian and Dr. Snyder were instrumental in the discovery of major Nevada gold mines including Barrick's Goldstrike Mine and Newmont's Ken Snyder Midas Mine respectively.   
               

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.