Mr. Todd Hilditch reports

TERRACO GOLD CLOSES FINANCING WITH OVERSUBSCRIPTION

Terraco Gold Corp., further to its news release of July 17, 2015, has closed its non-brokered private placement by issuing 8,841,397 units at a price of 7.5 cents per unit for gross proceeds of approximately $663,105. The proceeds are an oversubscription of $63,105, or 10.52 per cent, from the July 17, 2015, announcement.

"Terraco is pleased to close this financing with the support of long-term shareholders, including directors and management. We recognize that the public mining sector is currently going through difficult times, and appreciate the confidence investors and shareholders have placed in Terraco. We believe that the assets of the company give strong credence to long-term value, in particular the gold royalty division. Our current net smelter return royalty assets apply distinctively to the federal and private lands that make up the majority of the currently outlined gold resource at the Spring Valley, Nev., project, which is 75 per cent owned and operated by Barrick Gold Corp. in a joint venture. Terraco has a Nevada cornerstone royalty asset by controlling up to a 3-per-cent NSR from the potential life of mine cash flow on the Spring Valley mining claims," stated Todd Hilditch, chief executive officer of Terraco.

Each unit comprises one common share of the company and one-half of one share purchase warrant. Each whole warrant will entitle the holder thereto to purchase, for a period of 24 months expiring July 31, 2017, one additional share at an exercise price of 10 cents per warrant share. The securities issued under the private placement will be subject to a hold period until Dec. 1, 2015. No finder's fees were paid in connection with this private placement. Directors and management subscribed for $157,570, or 23.8 per cent, of the private placement.

The closing of this private placement is subject to TSX Venture Exchange final approval.

We seek Safe Harbor.