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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) - Terraco Gold Corp. the "Company" or "Terraco") (TSX VENTURE:TEN) 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.

The Company is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN". Please visit the Company's website at www.terracogold.com for additional information.

Forward-Looking Statements

This news release contains forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).