VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 8, 2008 -- Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (CDNX:TRX.V - News), is pleased to announce that the Board of Directors of the Company has approved a Modified Project Execution Plan (the "Modified Plan") for its 100% - owned Mt. Milligan Copper-Gold Project (the "Project"), British Columbia, Canada. The 12-month Modified Plan will advance the Project through the completion of key pre-construction-related activities and is supported by Terrane's majority shareholder Goldcorp Inc. (Toronto:G.TO - News)(NYSE:GG - News).

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The Modified Plan is based on a detailed review of the Project Execution Plan (the "Plan") to begin construction in Q3 2009 of an open pit mine and 60,000 tpd copper flotation process plant with forecast average annual production in the first six years of 265,100 oz gold and 97 million lb copper. This review was undertaken in response to the on-going liquidity crisis in global credit and equity markets where traditional sources of financing required by the Plan are not readily accessible at this time.

Key objectives of the Modified Plan are to reduce Project implementation risk, minimize on-going and near-term capital expenditures and to better position the Project for a timely production decision when financial markets improve. In doing so, the Modified Plan calls for work to continue on fundamental pre-construction-related activities including basic and detailed engineering and design, permitting and the Environmental Assessment Review process. In addition, it contemplates a Q4 2009 update of the Feasibility Study Report (see Press Release dated March 31, 2008) to reflect then-current operating and capital costs. The Project will not proceed to construction in Q3 2009 as forecast in the original Plan.

The Modified Plan is fully-funded through a credit facility guaranteed by majority shareholder Goldcorp Inc. (see Press Release dated July 9, 2008) and a current working capital balance of $4.4 million. Previously announced financial commitments to consultants and suppliers of long lead-time equipment are now under review (see Press Releases dated May 14 and October 27, 2008). The Company is pleased to report that it has received the co-operation of these parties to consider restructuring existing commitments and/or delaying others pending completion of the Modified Plan.

Robert Pease, President and CEO of Terrane Metals Corp. stated: "In 30 short months we have added significant value to Mt. Milligan; the Modified Plan will let us add more value. When the liquidity crisis eases Mt. Milligan's well-located and large-scale co-product reserves of copper and gold will be ready for a timely development decision."

Kevin McArthur, President and Chief Executive Officer of Goldcorp Inc. stated: "In these difficult markets we are pleased that our earlier option and credit facility agreements will allow Terrane to continue to make significant progress at Mt. Milligan. We fully support the Terrane Board of Directors' decision to advance the Project through the completion of key pre-construction activities."

About Terrane Metals Corp.

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (Toronto:G.TO - News)(NYSE:GG - News) owns a 59% equity interest in Terrane on a fully diluted basis. In July 2008 Terrane and Goldcorp entered into an agreement which grants Goldcorp an option to convert its equity interest in Terrane into a participating joint venture interest in the Mt. Milligan Project (see press release July 9, 2008).

TERRANE METALS CORP.

Robert Pease, P.Geo, FGAC, President and CEO

Cautionary Note Regarding Forward Looking Statements

Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in applicable Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning Mineral Resource and Mineral Reserve estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the price of metals, the amount of estimated mineralization and of contained metals and the timing of and possible outcome of pending economic evaluations and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities; variations in the underlying assumptions associated with the estimation or realization of Mineral Resources and Mineral Reserves, the conclusions of economic evaluations and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

     Contacts:
     Terrane Metals Corp.
     Ryan King
     Investor Relations
     (604) 681-9930
     Website: http://www.terranemetals.com