Mr. David Suda reports

TERRAX EXPANDS GIANT/CON GOLD SYSTEM IN THE GULL AND RATER LAKE AREAS, SAMPLES UP TO 171 G/T AU

Terrax Minerals Inc. has released further assay results from the company's summer field program on the Yellowknife City gold project.

High-grade gold assays from grab sampling have extended the strike of the Gull and Rater Lake zones. As previously reported these new targets are in the same mafic volcanic geology that also hosted the Giant and Con mines, and are within Terrax's Core gold exploration area. The highlight assays are 171.0 grams per tonne gold, 5.60 g/t Au, 5.29 g/t Au and 4.49 g/t Au on the Rater Lake zones, and 72.0 g/t Au, 52.5 g/t Au, 29.0 g/t Au and 12.95 g/t Au on the Gull Lake zone.

David Suda, president and chief executive officer, stated, "The results of our summer fieldwork continue to feed our pipeline of drill targets." Mr. Suda further stated, "It is highly encouraging to see surface results which extend potential strike to the Giant mine structure."

These gold zones are interpreted as being the continuation of the Giant mine gold system. The Rater Lake structure has been followed for 300 metres north and then appears to be offset to the west on the Akaitcho fault, possibly continuing as the Gull Lake structure for another 1,200 metres north. A second subparallel zone appears on the south side of Rater Lake with high-grade values up to 171 g/t Au. The multiple gold-bearing structures in this area enhance the expanding resource potential of the Northbelt Core gold area.

Assay values from grab sampling at Gull Lake and Rater Lake range from nil to a high of 171.0 g/t Au. Sampling included insertion of certified standards and blanks into the stream of samples for chemical analysis. Samples were prepared at ALS Chemex's laboratory in Yellowknife and shipped to its Vancouver facility for gold analysis by fire assay and other elements by inductively coupled plasma analysis. ALS is a certified and accredited laboratory service. It should be noted that, due to their selective nature, assay results from grab samples may not be indicative of the overall grade and extent of mineralization on the subject area.

The technical information contained in this news release has been approved by Joseph Campbell, executive chairman of Terrax, who is a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About the Yellowknife City gold project

The Yellowknife City gold (YCG) project encompasses 772 square kilometres of contiguous land immediately north, south and east of the city of Yellowknife in the Northwest Territories. Through a series of acquisitions, Terrax controls one of the six major high-grade gold camps in Canada. Being within 10 km of the city of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydroelectric power and skilled tradesmen.

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