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Teras Announces Positive Results from Geochemical Sampling Program at Cahuilla Project

Teras Resources Inc. ("Teras" or the "Company") is very pleased to report results from its recent geochemical sampling program at the Cahuilla project in Imperial County, California. A total of 130 samples were collected in the northeast section of the project area considerable distances from known precious metal mineralization resulting in the substantial expansion of the favorable epithermal system. Consequently, the Company has significantly increased the exploration potential of Cahuilla in the northeast portion of the project area.

The plan map below illustrates the anomalous sample locations in the northeast project area and their proximity to the defined NI 43-101 precious metal resource. Surface geochemical samples were collected along the far northeast exposure of the Modoc Fault which eventually extends under shallow pediment cover more than one kilometer northeast of the known resource boundary. Samples were collected in strongly silicified sediments, intrusive and volcanic breccia outcrops before becoming covered by the shallow surface gravels.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/854120.jpg.

All 130 surface geochemical samples collected (yellow) were anomalous in precious metal mineralization, while the sample locations indicated in purple assayed greater than 1.0 g/t gold and those shown in red ran between 0.5 and 1.0 g/t gold. Surface gold and silver values as high as 1.85 g/t and 37.1 g/t respectively were encountered. Historic exploration holes (green) drilled in the northeast pediment that host anomalous precious metal mineralization are also illustrated. Values of up to 3.40 g/t gold and 95.0 g/t silver were detected in these historic drill holes within strongly silicified rocks beneath the shallow gravel cover.

Peter Leger, President and CEO of Teras Resources commented, "We are very pleased with the new assays results from the recent geochemical sampling program. All samples collected from the northeast extension of the Modoc Fault contained anomalous precious metal mineralization while many indicated impressive gold/silver grades which significantly extend drill targets for more than one kilometer from our current NI 43-101 resource. We look forward to conducting additional field work in the near future to further increase the size of our already extensive precious metal system."

Dale A Vitone P. Eng., registered with the Association of Professional Engineers of Ontario, Alberta and North West Territories and a Director for Teras, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Vitone has reviewed and verified the technical information contained in this news release.

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