Mr. Dan Carriere reports

TERRACE CLOSES UNDERWRITERS' OVER-ALLOTMENT OPTION

Canaccord Genuity Corp., on behalf of Terrace Energy Corp.'s syndicate of underwriters comprising Canaccord, Cormark Securities Inc., GMP Securities LP and Salman Partners Inc., has completed the exercise of the underwriters' overallotment option. The underwriters purchased an additional 1,623,000 common shares of the company at a price of $1.85 per share for total gross proceeds of $3,002,550 under the company's short form prospectus dated July 17, 2014.

The underwriters received a cash commission equal to 6.5 per cent of the gross proceeds raised.

Aggregate gross proceeds raised from the base offering of 10.82 million common shares completed on July 23, 2014, and the overallotment option total $23,019,550.