LOS ANGELES, Dec. 12 /PRNewswire-FirstCall/ -- Terra Nostra Resources Corporation (OTC:TNRO) (BULLETIN BOARD: TNRO) , http://www.tnr-corp.com/, is pleased to announce the filing last week with the US Securities and Exchange Commission the audited financial statements for Shandong Terra-Nostra Jinpeng Metallurgical Co. Ltd., a Chinese copper processing company of which Terra Nostra is the 51% joint venture owner. This milestone event marks the formal completion of the legal and accounting activities concerning the acquisition of Shandong Jinpeng, and provides a clear indication of the revenue and profit potential for Shandong Jinpeng, a well established company operating in the strategically important copper processing industry in the fast growing Shandong province in China. In the fiscal year ending May 31 2006, Shandong Jinpeng earned revenues of US$101 million, with a comprehensive net income of $10.7 million, yielding a 10.6% net margin. The gross profit margin was 19.5% for the year. These revenue figures were based on the plant operating at approximately half of its design capacity of 30,000 metric tonnes (MT) of electrolytic copper and 20,000 MT of low oxygen copper. Terra Nostra's Chief Operating Officer, George Chua, comments, "It is worth noting that the market price for electrolytic copper is presently nearly double the average price observed for the prior fiscal year, with last week's spot price on the Shanghai Futures Exchange being over US$8,300 per MT. Mr. Chua adds, "With an additional 140,000 MT of cathode copper capacity expected to be added to the production capacity of Shandong Jinpeng in 2007, the prospects for a substantial growth in revenues are very promising." About Terra Nostra Resources Corporation Terra Nostra owns a 51% interest in Shandong Quanxin Stainless Steel Co. Ltd., a state-of-the-art stainless steel production facility that commenced operations in 2006 with the startup of a 180,000 MT casting mill. A 150,000 MT strip rolling line is presently undergoing trial production runs. The Company is also emerging as a leading copper producer in China through its 51% interest in Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd., having existing and under construction production capacity of 170,000 MT of electrolytic copper, 20,000 MT of low-oxygen copper, and value-added copper rods and wire facilities. Both joint venture companies are located in the highly industrialized coastal province of Shandong, China. Terra Nostra is presently in the process of raising approximately $50 million in new equity, to be used to complete the remaining $25 million capital contribution to Shandong Jinpeng, and with the remainder to be used as operating capital. More information on the company can be found at http://www.tnr-corp.com/. Investor Relations: 1-866-626-0088 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. DATASOURCE: Terra Nostra Resources Corporation CONTACT: Investor Relations: 1-866-626-0088 Web site: http://www.tnr-corp.com/

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