WSM Western Standard Metals Ltd

Terraco Gold Corp. (TSX VENTURE: TEN) ("Terraco" or the "Company") and Western Standard Metals Ltd. (TSX VENTURE: WSM) ("Western") are pleased to announce that Western has received final approval from the Supreme Court of British Columbia regarding the previously announced plan of arrangement (the "Arrangement") to merge with Terraco.

The Arrangement remains subject to certain conditions, including the final approval of the TSX Venture Exchange. Completion of the Arrangement is expected to occur on or shortly after January 22, 2011.

Further details regarding the terms of the Arrangement are set out in the management information circular of Western (the "Circular") issued in connection with its meeting held on January 18, 2011, at which securityholders approved the Arrangement. The Circular is available on Western's profile on SEDAR at www.sedar.com.

Forward-Looking Statements

This release contains "forward-looking statements" which reflect the current expectations of Terraco and Western. These statements reflect managements' current beliefs with respect to future events and are based on information currently available to management of Terraco and Western. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what the companies believe to be reasonable assumptions, Terraco and Western cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release and Terraco and Western do not assume any obligation to update or revise them to reflect new events or circumstances.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Terraco Gold Corp. Bryan McKenzie CFO (604) 443-3834 or Toll free: (877) 792-6688 (604) 682-3860 (FAX) www.terracogold.com Western Standard Metals Ltd. Zip Dhanani Chairman (604) 568-4653 or Toll Free: (888) 500-4587 (604) 569-2575 (FAX) www.westernstandardmetals.com