January 2006

Terra Nostra update on expansion

Terra Nostra Resources Corporation, a copper producer in China through its 51% joint venture interest in Shandong Terra-Nostra Jinpeng Metallurgical Co. Ltd., located in Shandong Province in China, reported that it has received an update on the progress of construction at the joint venture company’s new electrolytic copper production facility.

The joint venture reports that the first phase of the expanded facility is scheduled for completion in November 2005 with production to begin by the end of the calendar year. This is expected to add approximately 40,000 metric tons (MT) annually to the total electrolytic production capacity of the joint venture.

In addition, the second phase is expected to commence operations in the second quarter of 2006, bringing another 40,000 MT to the existing production line. This will add a total of 80,000 MT to the existing annual capacity.

Upon completion of this construction the joint venture anticipates having an annual electrolytic production capacity of 130,000 MT. The Company also utilizes its scrap recycling to produce high value-added cable wire, rod and tubing from its Shandong facility and continues to make further improvements to its production capacity.

With a combination of the current spot price of electrolytic copper being more than US $4,000/MT, and the increased capacity coming online, future revenues are expected to be substantially increased.

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