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Terra Nostra to Significantly Increase Ownership of Copper and Stainless Steel Joint Ventures in China

Posted on: Thursday, 12 April 2007, 09:00 CDT

Terra Nostra Resources Corporation (OTCBB:TNRO), today announced that it has entered into an Equity Transfer Agreement with its Chinese Joint Venture partner whereby Terra Nostra can increase its ownership position to a maximum of 90% in both the Copper and Stainless Steel joint venture companies.

"As a result of Terra Nostra's increased ownership, we expect to see a very substantial increase in earnings per share due to the increase of Terra Nostra's percentage of net profits and the ramp up of production to optimal levels at the various plants", said Mr. Sun Liu James Po, Terra Nostra's CEO.

Presently, the Company owns a 51% interest in two Chinese Joint Venture companies in the strategic copper and stainless steel industries; Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd. and Shandong Quanxin Stainless Steel Co. Ltd. The Agreement calls for an increase in ownership of both Joint Ventures to an additional 19% initially, followed by a further 20% position, resulting in a 90% ownership position in both joint venture companies by Terra Nostra.

The consideration for this transaction will be restricted common shares of Terra Nostra, the quantity of which is to be negotiated by the parties in conjunction with independent mutually agreed upon valuations of operations.

Terra Nostra is strategically positioned to benefit from the continually increasing demand for both copper and stainless steel from major growth sectors in China including the automotive, high technology, infrastructure development and construction industries.

About Terra Nostra Resources Corporation

Terra Nostra is one of the leading copper producers in China through its 51 percent interest in Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd., which has an existing and under construction production capacity of 170,000 MT (metric tons) of electrolytic copper, 20,000 MT of low-oxygen copper and value-added copper rod and wire facilities. Terra Nostra is also emerging as a leading stainless steel producer in China through its 51 percent interest in Shandong Quanxin Stainless Steel Co., Ltd., a modern stainless steel production facility that commenced operations in early 2006 with a now expanded 230,000 MT casting mill, and a recently commissioned 150,000 MT rolling mill. The two joint venture companies, with total assets exceeding US$ 200 million and having over 800 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. More information on Terra Nostra can be found at www.tnr-corp.com.

Forward Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements with respect to expectations concerning (i) projects underway or under consideration, including production capacity and completion schedules, (ii) business and future potential of Terra Nostra Resources Corporation ("TNR"); (iii) estimates or implications of future earnings, profits EBIDTA, and the sensitivity of earnings to metals prices; (iv) estimates of future metals production, sales and profitability; (v) estimates of future cash flows, and the sensitivity of cash flows to the other metals and ore costs as well as, but not limited to, fluctuations in fuel prices, scrap prices, and the availability of both, are all forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Further risks, uncertainties and other factors, which affect the forward-looking statements included herein, and could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements include, but are not limited to, completion of TNR's capital contributions to the joint venture companies, working capital financing, metals price volatility, competition for projects, reserve acquisition costs, currently fluctuations, international economic uncertainty, sovereign risk, force majeure, changes in tax law or concession law, project scheduling delays, labor disputes, increased production costs and variances in ore grade, scrap grade or recovery rates from those assumed in production plans, political and operational risks in the countries in which TNR may operate and governmental regulation and judicial outcomes, and other risks detailed from time to time in TNR's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended November 2006. Copies of each filing may be obtained from TNR or the SEC. Furthermore, metals operation, by their very nature, entail cyclical, sectoral, and commodity risk and could expose an investor to the entire loss of all capital invested. TNR does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Source: Business Wire

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