Mr. George Brown reports

TERRENO RESOURCES CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

Terreno Resources Corp. has closed the second tranche for the notice of proposed share issuance/financing news released Oct. 26, 2017. The proposed financing is for up to $150,000 consisting of up to three million units at five cents. Each unit will consist of a common share plus one share purchase warrant. Each warrant will be exercisable at five cents for a common share until the expiry date to be 12 months from the financing closing date. Insiders are subscribing for 20 per cent of the private placement.

The first tranche with proceeds of $62,000 closed Nov. 14 for 1.24 million units consisting of 1.24 million common shares with a legend date of March 15, 2018, being four months plus a day from the Nov. 14, 2017, closing date. The company also issued 1.24 million warrants exercisable at five cents until Nov. 14, 2018, being 12 months from the closing date.

The second tranche with proceeds of $65,000 closed Nov. 30, 2017, for 1.3 million units consisting of 1.3 million common shares with a legend date of April 1, 2018, being four months plus a day from the Nov. 30, 2017, closing date. The company also issued 1.3 million warrants exercisable at five cents until Nov. 30, 2018, being 12 months from the closing date. The company now has 16,775,506 common shares issued and outstanding.

A third and final tranche is expected to close on or by Dec. 8, 2017.

George A. Brown, president and chief executive officer, stated: "The company continues to evaluate potential projects to acquire in order to apply to graduate to the TSX Venture Exchange and is pleased that this financing provides us with the graduation requirements of Policy 2.5 for working capital of the greater of $50,000 or the amount required to maintain operations and cover general and administrative expenses for a minimum of six months."

The proceeds will be used for general working capital requirements to maintain a listed public company and to conduct due diligence on potential property of merit projects with the intention to apply to graduate to the TSX-V.

We seek Safe Harbor.