Mr. Dave Gibbs reports

TERRACE ANNONCES EFFECTIVE DATE OF SHARE CONSOLIDATION

Further to Terrace Energy Corp.'s press release on Feb. 4, 2025, Terrace Energy Corp. is proceeding with a consolidation of the issued and outstanding common shares of the company on the basis of postconsolidated share for every three preconsolidated shares. No fractional shares will be issued as any fractional share will be rounded to the nearest whole number. The new Cusip number will be 88103m409 and the new ISIN (international securities identification number) will be CA88103M4092. The company's name and stock symbol will remain unchanged following the consolidation.

The consolidation will be effective at the opening of markets on Feb. 11, 2025. As a result of the consolidation, the 7,728,448 shares that are currently issued and outstanding will be reduced to approximately 2,576,149 shares, subject to rounding. The consolidation is subject to final confirmation by the TSX Venture Exchange.

Shareholders who hold their shares through a securities broker or other intermediary and do not have shares registered in their name will not be required to take any measures with respect to the consolidation. Letters of transmittal with respect to the consolidation will be mailed to all registered shareholders of the company. All registered shareholders who submit a duly completed letter of transmittal, along with their respective share certificate(s) representing the preconsolidated shares to the company's transfer agent, Computershare Trust Company of Canada, will receive a certificate representing the postconsolidated shares.

We seek Safe Harbor.