File: '\\swfile\EmailIn\20250207 112649 Attachment News Release re Announcing Effective Date of Consolidation.docx'

PRESS RELEASE

TERRACE ANNONCES EFFECTIVE DATE OF SHARE CONSOLIDATION

Vancouver, B.C., February 7, 2025 - Terrace Energy Corp. ("Terrace" or the "Company") (TSXV: TZR) announces that, further to the Company's press release on February 4, 2025, it is proceeding with a consolidation of the issued and outstanding common shares of the Company (the "Shares") on the basis of (1) post-consolidated Share for every three (3) pre-consolidated Shares (the "Consolidation"). 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 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 February 11, 2025. As a result of the Consolidation, the 7,728,448 Shares which 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 pre-consolidated Shares to the Company's transfer agent, Computershare Trust Company of Canada, will receive a certificate representing the post-consolidated Shares.

On behalf of the Board of Directors,

"Dave Gibbs"

Dave Gibbs, President, CEO and Director

Tel: 713 822-0141

Email: dgibbs@missioncrk.com

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 news release.

This news release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and plans of the Company. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the effective date of the Consolidation; the number of Shares outstanding following the Consolidation; and the treatment of fractional shares in the Consolidation.

Such forward-looking statements are based on a number of assumptions of management, including, without limitation, the number of post-Consolidation Shares being different from the number set out herein and the treatment of fractional Shares in the Consolidation being different from what is set out herein, and that the Company will complete the Consolidation on the anticipated effective date.

Additionally, forward-looking information involve a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: that the Company will be unable to complete the Consolidation on the expected effective date; that the treatment of fractional shares will differ for the treatment set out herein; and that the number of issued and outstanding shares following the Consolidation will differ for the number statement herein. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Neither the Company nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither the Company nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this news release by you or any of your representatives or for omissions from the information in this news release.

The forward-looking statements herein speak only as of the date they were originally made. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.