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
the companies have entered into a binding letter agreement dated October 29,
2010 (the "Letter Agreement"), providing for Terraco to acquire all of the
outstanding securities of Western in an all-share transaction, by way of a plan
of arrangement.


Under the plan of arrangement, Western shareholders will receive 0.75 common
shares of Terraco for each Western common share held. The outstanding Western
warrants will be adjusted so that, upon exercise subsequent to completion of the
transaction, for each Western share that would previously have been issued, the
warrantholder will receive 0.50 of a common share of Terraco. In accordance with
their terms, the outstanding options to purchase Western shares will be adjusted
so that, upon exercise subsequent to completion of the transaction, for each
Western share that would previously have been issued, the optionholder will
receive 0.75 of a common share of Terraco. Based on the currently issued and
outstanding common shares of Western, Terraco will issue approximately 38.41
million common shares to acquire all of the currently outstanding Western common
shares and approximately 22.75 million Terraco warrants and options to acquire
all of the currently outstanding Western warrants and options. As a result,
Western shareholders will hold approximately 40% of the combined entity. The
post-merger issued and outstanding common shares of Terraco will be
approximately 102.43 million. The transaction has been approved and recommended
by the Board of Directors of each company.


The transaction is to be effected pursuant to a court approved plan of
arrangement under the Business Corporations Act (British Columbia), which will
require approval of at least 662/3% of the votes cast by securityholders of
Western at a securityholders' meeting, expected to be held in January, 2010 (the
"Meeting"), with the transaction closing shortly thereafter. Completion of the
transaction is subject to a number of other conditions precedent, including
receipt by Western of a favorable fairness opinion from an independent financial
advisor, due diligence reviews and receipt of all necessary securityholders,
stock exchange, court and regulatory approvals. Terraco intends to retain the
Terraco Gold Corp. name and trading symbol TEN on the TSX Venture Exchange after
completion of the transaction.


The Letter Agreement sets out the the terms upon which the proposed acquisition
will be implemented and requires that the parties promptly negotiate a
definitive agreement to implement the acquisition on or before December 6, 2010.
Under the Letter Agreement, both Western and Terraco have agreed to pay the
other party a break fee of $450,000 in certain circumstances.


Full details of the transaction will be included in the Management Information
Circular to be filed with the regulatory authorities and mailed to Western
securityholders in accordance with applicable securities laws.


Todd Hilditch, Terraco's President and CEO commented that, "Combining with
Western creates a strong platform to implement our business plan and continue an
aggressive exploration program on the combined companies' advanced and earlier
stage properties."


Zahir ("Zip") Dhanani, Western's Chairman, added, "This transaction delivers
excellent value to our shareholders while allowing them to share in the upside
of an impressive portfolio of exploration projects through their Terraco shares.
The Terraco management team, led by Todd Hilditch, has experience, skills and
access to capital in order to advance its projects into production. We look
forward to our continued involvement as shareholders of Terraco."


Terraco (TSX VENTURE:TEN) is a junior exploration company with exploration
properties in Nevada, USA. Terraco's Moonlight property adjoins the Barrick Gold
Corp. / Midway Gold Corp. Spring Valley joint venture.


Western (TSX VENTURE:WSM) is a Canadian based company with a focus on
acquisition, exploration and development of gold properties in North America.
Western recently acquired a 100% interest in the Almaden Gold Project in Idaho.


This release was prepared by management of Terraco and Western, who take full
responsibility for its contents.


Forward-Looking Statements

This release contains "forward-looking statements" which reflect the current
expectations of the companies. These statements reflect managements' current
beliefs with respect to future events and are based on information currently
available to management. 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, the companies cannot assure
investors that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking statements are made
as of the date of this release and the companies do not assume any obligation to
update or revise them to reflect new events or circumstances.

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