Terraco Gold Intersects 68.4 Meters of 1.3 GPT Gold and Reports the First Results from its 2012 Drilling at its Idaho Project

Vancouver, BC, June 27 2012 � (TSX.V: TEN | US: TCEGF) Terraco Gold Corp. (� Terraco� or the �Company�) is pleased to announce assay results from the first 10 core holes of the 2012 drill program completed at its Almaden (Nutmeg Mountain Gold) Project  in Washington County, Idaho.  In-fill core drilling continues to encounter significant intercepts, including some longer intervals of higher grade gold mineralization than the average resource grade, from surface to 91 meters (�m�) or (300 feet (�ft�)).  

Drill Highlights include:

• Hole MET-1 intersected 68.4 m averaging 1.301 grams per tonne (�gpt�) gold from 1.4 to 69.8 m (224.5 ft averaging 0.038 Troy ounces per short ton (� opt�) gold from 4.5 to 229.0 ft), including 27.4 m averaging 1.820 gpt gold to 35.4 m (90 ft of 0.053 opt gold to 116.0 ft) and 3.2 m averaging 1.905 gpt gold to 63.6 m (10.5 ft of 0.056 opt gold to 208.5 ft);

• Hole TAL-775C intersected 61.6 m averaging 1.223 gpt gold from surface to 61.6 m (202 ft of 0.036 opt gold from surface to 202 ft), including: 39.7 m averaging 1.503 gpt gold to 48.8 m (130 ft of 0.044 opt gold to 160 ft);
  
  

A drill table summarizing results to date may be found at the conclusion of this release.

The 2012 drill program includes close-spaced in-fill core drilling designed to better define resources in areas of older conventional or rotary air blast (�RAB�) and reverse circulation (�RC�) drilling and to continue to test the hypothesis that new core drilling may increase the average grade of the resource over the historical RAB and RC drill results.  Additionally, large diameter core drilling was conducted to obtain sufficient material for metallurgical testwork. The first metallurgical hole (MET-1) of large diameter core returned the best intercept.

Todd Hilditch, President and CEO of Terraco, said: �We are very pleased with this first set of 2012 drill results and believe the program we designed for the Almaden (Nutmeg Mountain Gold) Project is on the right track. We look forward to the remaining results in the weeks to come�.

Drill and Program Summary

The 2012 exploration program was designed to accomplish three goals:

1. Continue to increase the grade of the deposit internally by obtaining better, more representative samples through the use of core drilling instead of reverse circulation 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.
   
   

In 2012, much of Terraco�s core drilling is targeted at improving grade within the resource, by using close-spaced HQ3 core drilling in four different areas of the deposit in the attempt to quantify the degree to which there may be a beneficiation of average resource grade.  Shallow core holes in these areas will replace older RAB and RC drilling in deposit modeling to measure the difference in grades between the various drill techniques.  MET-1 and TAL-775C are good examples. (A table of all the drill intercepts returned to date for the 2011-2012 Almaden (Nutmeg Mountain Gold) programs can be found on Terraco�s website.)

So far in this year�s program, Terraco has drilled 28 HQ3 holes for a total of 2,462.3 m (8,078 ft) and 4 large diameter (4 inch) core holes amounting to 298.7 m (980 ft) for metallurgical purposes. Most 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.

Metallurgical Test Work Underway

Terraco has engaged McClelland Laboratories in Sparks, Nevada to complete multiple column leach and other metallurgical testwork.  Large diameter core was used to provide larger particle size fractions to McClelland for column testwork.  Testing will focus on leach recoveries by ore type and size fractions.  Even though previous metallurgical studies have been performed on a number of samples from the Almaden (Nutmeg Mountain Gold) deposit, few focused on specific mineralization types or left questions about recoveries at larger particle sizes.  Metallurgical results are expected in calendar Q3/4.

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.

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.

Click below for a map of drilling to date:

June 27th, 2012 Terraco Gold Corp. Drill Collars

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.