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Terra Nostra Resources Announces Commencement of Production for 180,000 Ton Casting Mill at Its New Stainless Steel Facility

Posted on: Tuesday, 31 January 2006, 06:00 CST

LOS ANGELES, Jan. 31 /PRNewswire-FirstCall/ -- Terra Nostra Resources Corporation (BULLETIN BOARD: TNRO) has officially commenced production at the 180,000 ton casting mill in its new state- of-the-art stainless steel production facility, through its majority- owned joint venture company Shandong Quanxin Stainless Steel Co. Ltd., situated in the Zibo City High Tech Zone, Shandong Province, China. The commencement of stainless operations is a major milestone in Terra Nostra's overall growth strategy in the copper and stainless steel industries.

The production output from the casting mill will be utilized in the rolling mill, presently under construction. The rolling mill will initially be comprised of a stainless steel strip line that is expected to be operational in the second quarter of 2006, and the company is planning to phase in new production lines for stainless steel rods and welded pipes over the next 12 to 18 months. The total design capacity of the rolling mill is 450,000 tons per annum.

Located on a 90 acre land parcel, the present facilities occupy 1.3 million sq. ft. under roof, with a further 165 acres of land available for future expansion. Shandong Quanxin currently employs over 600 people, and a total of 1,000 will be required upon startup of the rolling mill.

In addressing the opening, Mr. Zhang Ke, Vice-Chairman of Shandong Quanxin, stated, "The objective of the Company is to reach a casting capacity of 500,000 tons by 2008, to further integrate with domestic and international customers, and to strategically develop downstream value added fabrication of stainless steel products."

Shandong Quanxin has taken a leadership role in the domestic industry by utilizing advanced emissions management systems, and thereby exceeding international standards for remediation. Mr. Joseph Cannon, in representing Terra Nostra at the opening ceremonies for the facility, praised the joint venture company for its success in establishing one of the most efficient, modern, internationally comparable, and environmentally sound stainless steel mills in China.

Strategically located in Zibo City, the joint venture company draws upon a 4.2 million regional population base for its skilled workforce, and is targeting its marketing at manufacturers located in the highly industrialized and fast growing Shandong Province. These operations have been designed within the framework of becoming an industry leader in the growing Chinese market and positioning itself for the international markets.

About Terra Nostra Resources Corporation

Terra Nostra Resources Corporation owns a 51% interest in Shandong Quanxin Stainless Steel Co. Ltd., with a state-of-the-art stainless steel facility that commenced production with its 180,000 ton casting mill in January 2006, and has the first phase of a 450,000 ton rolling line under construction. The Company is also emerging as a leading copper producer in China through its 51% interest in Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd., having existing and under construction production capacity of 170,000 tons of electrolytic copper, in addition to value-added copper tubes and wire. Both joint venture companies are located in the industrial, coastal Province of Shandong, China. More information on the company can be found at http://www.tnr-corp.com/ .

Forward Looking Statements

This press release, summarizing the commencement of production of the stainless steel casting mill, the construction progress for the additional rolling and welded pipe lines in Zibo, and the business and future potential of Terra Nostra Resources Corporation ("TNR"), a company dedicated to the production of ferrous, non-ferrous, and precious metals, contains certain forward-looking statements. Such forward-looking statements are based certain assumptions and estimates, including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to metals prices; (ii) estimates of future metals production and sales, (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to the other metals prices as well as, but not limited to, fluctuations in fuel prices, scrap prices, and the availability of both; (v) statements regarding future dividend distributions; (vi) estimates of future capital expenditures; (vii) statements related to projects underway or under consideration; and (viii) statements regarding modifications to TNR's hedge position, if any. Where TNR expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, the forward-looking statements included herein are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, completion of TNR's capital contributions to the joint venture companies, metals price volatility, competition for projects, reserve acquisition costs, currency 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, as well as political and operational risks in the countries in which TNR may operate and governmental regulation and judicial outcomes. 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 to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

First Call Analyst: FCMN Contact: dnicholson@tnr-corp.com

Terra Nostra Resources Corporation

CONTACT: Investor Relations: +1-626-821-1836

Web site: http://www.tnr-corp.com/

Source: PRNewswire-FirstCall

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