Terraco Gold Announces Additional Results from its Idaho Gold Project

Vancouver, BC, August 23, 2012 � (TSX.V: TEN | US: TCEGF).  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 26 of the 32 core holes drilled this year.  In-fill and metallurgical core drilling continues to encounter significant intercepts from surface to 90.8 metres (�m�) or 250 feet (�ft �).  Multiple holes have long intercepts with gold grades that exceed the average grade of the deposit and include shorter sections with higher gold grades of up to 4.91 grams per tonne (�gpt�).

Drill Highlights Include:

• Hole MET-4 intersected 81.4 m averaging 0.754 gpt gold, including 26.7 m averaging 1.020 gpt gold with 13.0 m of 1.229 gpt gold ;

• Hole TAL-779C intersected 38.7 m averaging 0.998 gpt gold , including  4.6 m averaging 2.123 gpt gold and 3.0 m averaging 2.023 gpt gold;

• Hole TAL-780C intersected 21.3 m averaging 1.189 gpt gold , including 1.5 m averaging 4.910 gpt gold and 1.5 m averaging 4.760 gpt gold;

• Hole TAL-789C intersected 39.6 m averaging 1.034 gpt gold , including 4.6 m averaging 1.942 gpt gold and 17.4 m of 0.935 gpt gold; and

• Hole TAL-790C intersected 38.1 m averaging 1.114 gpt gold , including 6.1 m averaging 2.454 gpt gold.

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

Charles Sulfrian, Vice President, Exploration of Terraco stated:  �Drill results continue to meet or exceed expectations at our Almaden (Nutmeg Mountain Gold) Project.  Upon receipt of the last batch of assays (expected shortly) from the spring 2012 drill program, emphasis will be shifting to metallurgical testing and initial project economic review and evaluation.�

Metallurgical Testing

Four large diameter core holes were completed to provide sample material for metallurgical testwork.  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.

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 rotary and RC drilling; and

• Compare grades between various drilling techniques.

Assay results are summarized in the table below.

The table above shows only those assay results greater than or equal to 1.5 m of = 0.0340 gpt gold or 5 ft of = 0.010 Troy ounces per ton (�opt�) gold.  Intervals were calculated 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 ft to m.  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. of Reno Nevada.

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

To view the entire press release please visit:

August 23rd, 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.