Terrane Awards Engineering and Procurement Contract at Mt. Milligan

Robert Pease, President and CEO of Terrane Metals Corp. announce that Wardrop Engineering Inc. has been awarded the detailed engineering design and procurement contract for the Mt. Milligan Copper-Gold Project in British Columbia, Canada. Wardrop recently completed a Feasibility Study Report for the construction and operation of a conventional truck-shovel open pit mine and 60,000 tpd copper flotation process plant at Mt. Milligan. Construction startup, subject to financing and regulatory approvals, is scheduled for Q3 2009; commercial production would follow in Q1 2012.

Robert Pease, President and CEO of Terrane stated: “We are pleased to have awarded this milestone contract to Wardrop and to have them continue as a key part of the Mt. Milligan development team.” Shayne Smith, CEO of Wardrop, stated: “In our Report we were able to design a development and operations plan for Mt. Milligan that successfully combined commercial viability and environmental stewardship. With the award of the EP Contract we are pleased to have the opportunity to carry out the next steps in that plan.”

Terrane has awarded two additional contracts at Mt. Milligan. Following a competitive tendering process a Letter of Award has been signed with ABB Switzerland Ltd. to supply process plant drive motors for one SAG Mill and two Ball Mills. Siemens AG has been contracted to deliver three transformers for mine site substations.

Robert Pease, President and CEO of Terrane stated: “With the award of these contracts we have not only secured timely delivery of long lead-time equipment but have also locked-in some 15% of the estimated capital cost of the Project.”

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. owns a 58% equity interest in Terrane on a fully diluted basis. Terrane and Goldcorp recently 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.