Mr. Brian Buchanan reports

PRIVATE PLACEMENT FOR UP TO $144,000

Terra Firma Resources Inc. is proposing a non-brokered private placement of up to 14.4 million units at one cent per unit for total gross proceeds of up to $144,000, subject to approval of the TSX Venture Exchange. Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire one common share at the exercise price of five cents for the first 12 months following the closing date and 10 cents thereafter until expiry on the 60th month following the closing date. The offering is being conducted in accordance with the TSX-V bulletin dated Aug. 17, 2012, regarding private placements: temporary relief from certain pricing requirements, as amended on Dec. 12, 2012. Proceeds of the offering are expected to be used toward payment of outstanding payables, general and administrative expenses, and general working capital of Terra Firma.

All of the securities issued pursuant to the offering will be subject to a restricted period of four months and one day from the date of closing.

We seek Safe Harbor.