Resource Distribution by Category

Gold EquivalentMozIn Situ Value Mil $ PP 8.38 7422 MI 14.01 12409 Inf 3.55 3143 Total 25.94 22974

Berg Project

Country Canada Ownership 100% Stage Exploration Mine/Project Weight 50.4% Cost of Production N/A

• Location: 585 km north of Vancouver, Canada (22 km northwest of Imperial Metals’ Huckleberry copper-molybdenum-silver mine)
• Deposit grade: Cu - 0.31%, MoS2 - 0.036%, Ag - 2.1 g/t
• Cut-off : a conservative 0.30% Cu equivalent per tonne
• Infrastructure: development of Imperial Metals Huckleberry Mine, which is located about 22 kilometers southeast of Berg, positively impacts the economics of the project.
• Commenced a 10,000 metre drilling program in 2007
  
• The drilling program will focus on expanding the resource and testing high grade molybdenum and silver mineralizations
• The mine plan has not been updated for the new infrastructure in the region built in conjunction with the development of the Huckleberry Mine nearby. The key infrastructure recently built includes an access road and gas pipeline
• The Company initiated an environmental baseline campaign including water quality, hydrology, meteorology, waste rock characterization, wildlife and vegetation studies as well as evaluation of waste rock management and open pit design
  

Mount Milligan Project

Country Canada Ownership 100% Stage Feasibility Mine/Project Weight 49.6% Cost of Production -250 $/oz gold

• Location: 155 km northwest of Prince George in central British Columbia, Canada
• Access: road travel to the site is 775 km from Prince Rupert and 254 km from Prince George
  
• Local resources: qualified labor and services are readily available from Prince George, Fort St. James, Mackenzie and Vanderhoof
  
• Electric power: can be accessed from the BC Hydro Kennedy Substation south of Mackenzie (95 km)
• History: a pre-feasibility study by Placer Dome in 1991 indicated the project was not economically viable under conditions prevailing at the time and the project became inactive. In 2004, Placer Dome re-activated the project by compiling historic project data into a GIS, construction a new 3D lithological model, estimating a new mineral resource and initiating an independent pre-feasibility study
• In May 2006, Barrick Gold Corporation purchased Placer Dome Inc and sold Placer Dome’s Canadian assets to Goldcorp Inc, including the Mt Milligan property. Goldcorp in turn sold certain assets (including Mt Milligan) to Atlas Cromwell Ltd. In July 2006, Atlas Cromwell was renamed Terrane Metals Corp.
• The Proven and Probable Mineral Reserve totals 333.7 million tonnes averaging 0.217% Cu and 0.428 g/t Au containing 1.60 billion lb copper and 4.59 million oz gold. The
  
• Mineral Reserve was optimized at a US$4.20/tonne cut-off value using US$1.60/lb copper, US$550/oz gold and an 0.88 US$/C$ exchange rate.
• Mineral resource estimate is based on a 3-D geologic model that incorporated over 180,000 individual assays from 218,701 metres of core drilling in 960 drill holes
• Current plan calls for a 60,000 tonne milling capacity, 15.3 year mine life and capital expenditures of US$917 million
  
• Copper Recovery 84.6%, annual production 88M pounds
  
• Gold Recovery 72.3%, annual production 217,000 ounces
• Average Annual Net Revenue (copper at $3.5, gold at $900) - Copper 61%, Gold 38%, Silver 1%
• At conservative $680/oz gold and $3.20/lb copper, the project economics are estimated as follows:
  • NPV at 0% - $2.66B
  • NPV at 5% - $1.41B
  • NPV at 8% - $0.95B
  • Payback 3.0 years
  • Internal Rate of Return - 22.9%

Other Projects

Howard Pass

• Located: along the Yukon-Northwest Territories border
• Zinc/lead resource identified by Placer and US Steel in the 1970s and 1980s.
  
• Pacifica Resources Ltd (PAX.V) has an option to purchase a 100% interest in the project
  
• Pacifica is required to make $10 million in option payments over a seven year period to the original Joint Venture partners (Terrane - 51% & US Steel - 49%)
• Pacifica is also required to grant a 20% net profits royalty (capped at $10 million), and grant a 1% net smelter royalty to the partners

Maze Lake

• Location: Kivalliq District of Nunavut, Canada
• Consists of five Inuit Owned Lands Mineral Exploration Agreements (EA's) with a total area of The Property: 39,866 hectares
• Resource: Gold, Ownership: 100%
• Drilling under gold mineralized boulders at Haputilik intersected 1.35 g/t Au over 16.5m in the first drill hole and 6.29 g/t Au over 4.8m (including 15.06 g/t over 1.9m) in the second hole
• Terrane has granted Laurentian the right to earn up to a 75% interest in the Maze Lake Project by making $6,000,000 in exploration expenditures over four years and issuing 1,000,000 units of Laurentian to Terrane. Year-1 expenditures are set at a minimum of $1,000,000 and must be made on or before December 31, 2007
• Exploration work at Maze Lake has recently commenced and will be 100% funded by Laurentian. Terrane will be the project operator during the first year of the option. Exploration plans include geological mapping, till and lake sediment sampling, and a minimum 1,500 metre diamond drilling program.
• Drilling continued on the property in the summer of 2007
  

Wildcat

• Location: contiguous with the Company’s Mt Milligan copper-gold property in central British Columbia and is approximately 12 km southwest of the main Mt Milligan deposits
• Resource: Copper/Gold
  
• The initial program to be completed in the summer of 2007 will consist of 4 holes totaling 1,000 m of core drilling
• Latest assay results did not justify continuation of the exploration and as a result the option agreement was terminated on October 31, 2007

Christina Jean

• Location: directly adjacent and contiguous to Terrane's Mt Milligan project in central British Columbia and is approximately 10 kilometers southeast of the main Mt Milligan
• Resource: Copper/Gold
  
• Terrane can earn a 100% interest in the Christina Jean Property by funding a total of $920,000 in exploration expenditures and making $700,000 in option payments over a four-year period. The Option Agreement was entered into on September 15, 2006
• Latest assay results did not justify continuation of the exploration and as a result the option agreement was terminated on October 31, 2007
  

Outlook

The Company

• The Company has a strong financial position with enough cash to continue work on Mt. Milligan and to complete the Berg project resource estimate and a Preliminary Economic Assessment
• The most important challenge for the Company is to receive financing for Mt. Milligan construction once all permits are received. This is most likely going to be accomplished by finding a strategic partner
  
• Goldcorp, a 58% shareholder in Terrane, is probably not going to function in this role since its focus is on high grade gold deposits. Goldcorp will likely look for a buyer of its controlling interest in Terrane in 2008 and 2009. A potential buyer will partner with Terrane or take over the whole Company
  
• Absent any partnership or strategic alliance, Terrane plans to engage Endeavour Capital to arrange financing for the US$917 million capital cost for construction

Mt. Milligan

• The Company plans to have all the permits and certificates in place for development by late 2008, early 2009
• The construction phase is anticipated to take two years and employ 900 people while the mine itself should employ between 300-400 people for another 15 years after that
• Terrane expects the mine to be producing by Q1 2012

• A Delivery of a NI 43-101 compliant resource estimate in anticipated sometime in 2008
  
• A completion of a Preliminary Assessment of the project is expected soon after the resource estimate
• Huckleberry mine located near Berg is scheduled to close in 2010 while Berg could go into production in 2013. Once the economic viability is demonstrated, Berg should attract a great deal interest