Terrace announces exercise of underwriters' over-allotment option

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, July 29, 2014 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF; FRANKFURT: 2TR) is pleased to announce that Canaccord Genuity Corp. ("Canaccord"), on behalf of a syndicate of underwriters comprising Canaccord, Cormark Securities Inc., GMP Securities L.P. and Salman Partners Inc., has provided notice of the exercise of the underwriters' over-allotment option to purchase 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 "Prospectus").

The closing of the exercise of the over-allotment option is scheduled to take place on Thursday, July 31, 2014. The underwriters will receive a cash commission equal to 6.5% of the gross proceeds raised.

Aggregate gross proceeds raised from the base offering of 10,820,000 common shares completed on July 23, 2014 and the over-allotment option will total $23,019,550.

The Company plans to use the net proceeds from the offering towards exploration and evaluation work on its Maverick County, Big Wells and Northwest AWP projects, and for general corporate purposes, as disclosed in the Prospectus.

About Terrace Energy

Terrace Energy is an oil & gas development stage company that is focused on unconventional oil & gas extraction in onshore areas of the United States, particularly in Southern Texas.

ON BEHALF OF THE BOARD OF DIRECTORS

"Dan Carriere"
Dan Carriere, Chairman

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward-Looking Information

This news release includes certain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact included in this news release, including statements regarding the Company's use of proceeds from its Prospectus offering, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are based on a number of assumptions, including that the Company will be able to access equipment and personnel for its planned exploration and evaluation work on its projects, and other assumptions set out in the Prospectus and in the Company's Annual Information Form for the year ended January 31, 2014 (the "AIF"). Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, including the possible failure to realize the anticipated benefits of the use of proceeds of the offering, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such statements reflect the current views of the Company with respect to future events and operating performance, and speak as of the date of this document. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory reviews and approvals; risks inherent in the oil and gas exploration and production industry; and other risks detailed herein, in the Prospectus, under the heading "Risk Factors" in the AIF and from time to time in the filings made by the Company with securities regulators. The risks outlined herein should not be considered exhaustive. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. 

SOURCE Terrace Energy Corp.