Copper

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Terra Nostra Announces Completion of Second Phase Construction and Expansion of Stainless Steel Mill

Saturday December 16, 8:08 am ET

LOS ANGELES, Dec. 16 /PRNewswire-FirstCall/ -- Terra Nostra Resources Corporation (OTC Bulletin Board: TNRO - News), www.tnr-corp.com, is pleased to announce the successful completion of production trials for the stainless steel strip rolling mill and the expanded casting mill at Shandong Quanxin Stainless Steel Co. Ltd., its 51% owned joint venture company in China.

The new 150,000 metric tonne (MT) rolling mill has commenced production, and is operating at design specifications, meeting all quality standards. The casting mill, which produces feedstock for the rolling mill, is now capable of operating at a peak capacity rate of 230,000 MT per annum, an increase of 50,000 MT from the original design specifications, as a result of the successful upgrade to the mill's three Electric Arc Furnaces.

Don Nicholson, President and CEO, after completing a site inspection last week, commented, "We are very pleased with the results of both the rolling mill commissioning and the casting mill upgrade. The facility is now capable of achieving production rates in accordance with the Company's marketing plans."

About Terra Nostra Resources Corporation

Terra Nostra is one of the leading copper producers in China through its 51% interest in Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd., which has an existing and under construction production capacity of 170,000 MT 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% 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 the company can be found at: http://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, and the sensitivity of earnings to metals prices; (iv) estimates of future metals production and sales; (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, 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, 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 August, 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 to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.




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Source: Terra Nostra Resources Corporation