Terrane Reports 36% Expansion of Berg Resource

Major Emerging Gold Producer in Central B.C.

LOM average 217,000oz/yr Au , 88 million lbs/yr Cu for 15 years on Flagship property (CAPEX payback 2.9 yrs. at $900/oz Au,$2.50Cu)

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Terrane Reports 36% Expansion of Berg Resource

posted on May 19, 2009 06:04AM

May 19, 2009

Terrane Reports 36% Expansion of Berg Resource

Contained Metals 3.3 Billion lbs Copper, 412 Million lbs Molybdenum, 61 Million ozs Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2009) - Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX), is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for the Company's 100%-owned Berg Project. The updated resource incorporates results from the 31 hole - 11,661 metre core drilling program completed in October 2008.

Measured and Indicated Resources have expanded by 36% over the previously reported resource to 506 million tonnes containing 3.3 billion lbs copper, 412 million lbs molybdenum and 61.4 million ozs silver. Inferred Resources contain 0.7 billion lbs copper, 107 million lbs molybdenum and 11.7 million ozs silver. The NI 43-101 Technical Report will be filed on SEDAR within 45 days.

"This updated resource estimate continues to demonstrate potential to expand the Berg resource," stated Rob Pease, President and CEO of Terrane Metals Corp. "We successfully converted over 700 million pounds of copper and 120 million pounds of molybdenum from previously Inferred Resources to Measured and Indicated categories. The 2008 drilling program also discovered an additional 739 million pounds copper and 107 million pounds molybdenum of new Inferred Resources."

The reported Mineral Resource estimate at a 0.30% copper equivalent cutoff grade is shown in Table I. Copper equivalent grades are calculated using metal prices of US$1.60/lb Cu, US$10/lb Mo, US$10/oz Ag and take into account forecast metallurgical recoveries into separate copper and molybdenum concentrates.

TABLE I

BERG MINERAL RESOURCE ESTIMATE (1)
At 0.30% Copper Equivalent Cutoff Grade

--------------------------------------------------------------------------
              Tonnes     Cu      Mo    Ag     Cu lbs     Mo lbs     Ag ozs
Category   (millions)    (%)     (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured        53.3   0.48   0.030   4.5        559         36        7.7
--------------------------------------------------------------------------
Indicated      452.7   0.28   0.038   3.7      2,783        376       53.7
--------------------------------------------------------------------------
Measured &
 Indicated     506.0   0.30   0.037   3.8      3,342        412       61.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred       144.6   0.23   0.033   2.5        739        107       11.7
--------------------------------------------------------------------------
Note:
  (1) Mineral Resources are not Mineral Reserves and do not have
      demonstrated economic viability.

The updated Mineral Resource estimate utilizes a drill hole database containing assay results from 167 core holes totalling 41,217 metres of which Terrane obtained 57% of the drill hole assay data from the 2007 and 2008 drilling programs. The remaining assay data was collected between the years 1964 and 1980 from core drilling programs operated by Kennecott Canada and Placer Dome.

The reported estimate is based on a 3-D geologic model where individual block grades were interpolated from 3-metre down-the-hole composites using an anisotropy model and ordinary kriging. High grade outliers were capped based on a statistical review of copper, molybdenum and silver assays. Block grades were then classified into the Indicated Mineral Resource category if the block was estimated using data from at least two drill holes. A subset of densely drilled supergene horizon was classified as Measured Mineral Resource as these blocks were estimated with a minimum of two and an average of four drill holes, with an average composite spacing of 30 metres. Inferred Mineral Resource blocks were estimated using data from only a single drill hole. Only blocks within 450 metres of the surface were included in the resource estimate.

Measured, Indicated and Inferred Mineral Resources over a range of copper equivalent cutoff grades are summarized in Table II.

TABLE II

BERG MINERAL RESOURCE ESTIMATES (1)
GRADE - TONNAGE DISTRIBUTION

--------------------------------------------------------------------------
                    MEASURED                         INDICATED
        -------------------------------  ---------------------------------
CuEQ     Ton-                 Cu     Mo     Ton-                 Cu     Mo
Cut-     nes                 lbs    lbs     nes                 lbs    lbs
off    (mill-   Cu     Mo  (mill- (mill-  (mill-   Cu     Mo  (mill- (mill-
(%)     ions)   (%)    (%)  ions)  ions)   ions)   (%)    (%)  ions)  ions)
--------------------------------------------------------------------------
0.20    54.7  0.47  0.030    566     36   586.7  0.25  0.033  3,242    422
--------------------------------------------------------------------------
0.30    53.3  0.48  0.030    559     36   452.7  0.28  0.038  2,783    376
--------------------------------------------------------------------------
0.40    50.6  0.49  0.031    541     35   332.1  0.30  0.043  2,218    317
--------------------------------------------------------------------------
0.50    44.0  0.50  0.034    490     33   218.0  0.33  0.049  1,570    237
--------------------------------------------------------------------------

--------------------------------------------------------------------------
             MEASURED AND INDICATED                   INFERRED
        -------------------------------  ---------------------------------
CuEQ     Ton-                 Cu     Mo     Ton-                 Cu     Mo
Cut-     nes                 lbs    lbs     nes                 lbs    lbs
off    (mill-   Cu     Mo  (mill- (mill-  (mill-   Cu     Mo  (mill- (mill-
(%)     ions)   (%)    (%)  ions)  ions)   ions)   (%)    (%)  ions)  ions)
--------------------------------------------------------------------------
0.20   641.5  0.27  0.032  3,808    458   248.6  0.20  0.026  1,109    141
--------------------------------------------------------------------------
0.30   506.0  0.30  0.037  3,342    412   144.6  0.23  0.033    739    107
--------------------------------------------------------------------------
0.40   382.6  0.33  0.042  2,759    352    74.0  0.26  0.042    423     69
--------------------------------------------------------------------------
0.50   262.0  0.36  0.047  2,059    269    30.8  0.30  0.050    202     34
--------------------------------------------------------------------------
Note:
  (1) Mineral Resources are not Mineral Reserves and do not have
      demonstrated economic viability.

SUPERGENE ENRICHED COPPER HORIZON

The 2008 program better defined the near-surface, flat-lying supergene-enriched copper horizon. The supergene horizon is extensive across the Berg resource area with a vertical thickness ranging from 40 to 200 metres. Supergene mineralization is typically covered by less than 40 metres of leached cap and overburden, and underlain by +700 metres of hypogene mineralization. Preliminary metallurgy work indicates that copper, molybdenum and silver will report to separate copper and molybdenum concentrates. Average recoveries from the supergene-enriched horizon are estimated at 83% Cu, 61% Mo, and 67% Ag.

The geometry and near-surface nature of the supergene-enriched copper horizon offers the opportunity for a high-grade starter pit. Table III summarizes the Berg Mineral Resource for the supergene-enriched horizon at a 0.30% copper equivalent cut off.

TABLE III

BERG MINERAL RESOURCE - SUPERGENE HORIZON (1)
At 0.30% Copper Equivalent Cutoff Grade

--------------------------------------------------------------------------
              Tonnes     Cu      Mo    Ag     Cu lbs     Mo lbs     Ag ozs
Category   (millions)    (%)     (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured        53.3   0.48   0.030   4.5        559         36        7.7
--------------------------------------------------------------------------
Indicated       82.6   0.37   0.026   3.4        679         47        9.0
--------------------------------------------------------------------------
Measured &
 Indicated     135.9   0.41   0.028   3.8      1,239         83       16.7
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred        17.7   0.33   0.021   1.8        128          8        1.0
--------------------------------------------------------------------------
Note:
  (1) Mineral Resources are not Mineral Reserves and do not have
     demonstrated economic viability.

MOLYBDENUM-RICH MINERALIZATION

The 2008 drilling program successfully expanded the molybdenum-rich core zone, defining a steeply-inclined 2 km long panel adjacent to the Berg Stock with an estimated true width ranging from 50 to 120 metres. Molybdenum-rich mineralization has been drill tested to a vertical depth of 850 metres and is open to depth. Notable drill holes that intersected molybdenum-rich mineralization included: Hole 167 with 65.7 metres grading 0.125% Mo, Hole 176 with 75.0 metres grading 0.100% Mo, and Hole 197 with 57.7 metres grading 0.109% Mo. Drill Hole 194 is also notable in that it is the deepest hole completed to date at Berg and returned 844.5 metres grading 0.048% Mo. The hole bottomed in similar mineralization 850 vertical metres below surface.

Geometry of the molybdenum-rich core zones and grade distribution within them offers a number of higher grade-lower tonnage development scenarios. Table IV summarizes the Berg Mineral Resource estimate at a 0.030% molybdenum cut off, representative of the molybdenum-rich core zone within 450 metres of surface.

TABLE IV

BERG MINERAL RESOURCE ESTIMATE - MOLYBDENUM RICH CORE ZONE (1)
At 0.03% Molybdenum Cutoff Grade

--------------------------------------------------------------------------
              Tonnes     Cu      Mo    Ag     Cu lbs     Mo lbs     Ag ozs
Category   (millions)    (%)     (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured        22.4   0.48   0.048   5.0        236         24        3.6
--------------------------------------------------------------------------
Indicated      285.3   0.26   0.050   3.7      1,613        313       33.9
--------------------------------------------------------------------------
Measured &
 Indicated     307.7   0.27   0.050   3.8      1,848        336       37.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred        96.3   0.17   0.046   2.4        369         97        7.6
--------------------------------------------------------------------------
Note:
  (1) Mineral Resources are not Mineral Reserves and do not have
     demonstrated economic viability.

Mr. Stewart Harris, P.Geo. of Equity Exploration Consultants Ltd., Mr. Darin Labrenz, P.Geo., Chief Geologist, Terrane Metals Corp. and Mr. Paul Hosford, P.Eng., VP Engineering, Terrane Metals Corp., all Qualified Persons as defined by National Instrument 43-101, have reviewed and approved of the contents of this news release.

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. (TSX:G)(NYSE:GG) 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

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