December 04, 2008

Terra Nostra increasing ownership of copper and SS JV in China to 90%

Terra Nostra Resources Corporation recently announced that it has undertaken additional steps to increase its majority ownership in both Shandong Terra Nostra Jinpeng Metallurgical Co Ltd and Shandong Quanxin Stainless Steel Co Ltd from 51% to 90%.

Terra Nostra is increasing its ownership in the two joint ventures under the framework of an Equity Transfer Agreement entered into with its Joint Venture partners in April 2007. The Company is moving forward with an independent valuation of the respective operations, which will form the basis for final negotiations between the parties. The transaction is expected to be completed not later than December 31st 2007.

Mr Sun Liu James Po CEO of Terra Nostra said that "Overall market conditions remain strong, with the joint venture operations continuing to ramp up production levels to meet customer demand, maximize manufacturing efficiencies, and deliver top and bottom line growth for shareholders, and we therefore believe this to be an opportune moment to work towards completing this transaction."

Terra Nostra is a leading copper and stainless steel producer in China through its 51% majority interests in two JV companies in China. Shandong Terra Nostra Jinpeng Metallurgical Co Ltd has an existing and under construction total production capacity of 170,000 tonnes of electrolytic copper and 20,000 metric tonnes of low oxygen copper, together with value added copper rod and wire capabilities. Shandong Quanxin Stainless Steel Co Ltd operates a modern stainless steel production facility with a 230,000 tonnes capacity casting mill and a 150,000 metric tonnes rolling mill. The two JV companies, with total assets in excess of USD 180 million and over 1,000 employees are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai.