IPO Targeted to Raise US$120 Million LOS ANGELES and HONG KONG, Dec. 14 /PRNewswire-FirstCall/ -- Terra Nostra Resources Corporation (OTC:TNRO) (BULLETIN BOARD: TNRO) is pleased to announce that it has agreed to undertake an initial public offering ("IPO") of its copper joint venture in conjunction with a listing on the Main Board of the Stock Exchange of Hong Kong Limited (the "Hong Kong Exchange) which is targeted to raise a total of US$120,000,000. The anticipated date for listing on the Hong Kong Exchange is mid-2008. The Company is presently proceeding with the incorporation of Sino Strategic Metals Ltd. ("Sino Metals"), a wholly owned subsidiary, to undertake the IPO. Subject to tax and legal advice received, Sino Metals intends to have a Hong Kong company as its wholly owned subsidiary to hold its interest in Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd. (the "Copper Joint Venture"). The IPO is expected to raise a targeted US$120,000,000 by way of an initial offering of approximately 25% of the issued ordinary shares of Sino Metals, providing substantial new capital to Sino Metals for working capital and production/supply chain development. The Company has entered into a formal agreement with Kingsway Capital Limited ("Kingsway") to act as the Company's sole sponsor for the listing on the Hong Kong Exchange and the IPO. The Company plans to spin off the remaining shares of Sino Metals to the shareholders of Terra Nostra Resources Corp. Under this plan, the Terra Nostra shareholders of record would receive by way of a dividend, shares of Sino Metals tradable on the Hong Kong Exchange. The record date for the spin off will be determined by the Board of Directors. The spin off will be required to meet the regulatory requirements of both the Hong Kong Exchange, the Securities and Exchange Commission and the laws of the State of Nevada, Terra Nostra's state of incorporation. "This is a unique opportunity to accelerate the Company's growth on favorable terms and to seize opportunities available to us in the dynamic and growing China market", stated Mr. Sun Liu James Po, the Company's Chief Executive Officer. "With the higher earnings multiples generally found on the Hong Kong Exchange for mainland China investments, this listing is designed to unlock the value of our Copper joint venture operations. It is designed to provide Terra Nostra and its shareholders the benefit of a non-dilutive equity raise and a potential increase in shareholder value when the offering proceeds are invested directly to expand operations". The final share distribution will be based on the pricing of the IPO at the time of listing. Completion of the proposed IPO and the Hong Kong listing is subject to the submission of listing application documents, approval from the Hong Kong Stock Exchange and general market conditions. This press release does not constitute an offer to sell or the solicitation of any offer to buy, and there shall not be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. About the Hong Kong Stock Exchange The Hong Kong Stock Exchange is one of the most active stock exchanges in the world, ranked 3rd by total equity funds raised, 2nd by new listings' funds raised and 6th by market capitalization among members of the World Federation of Exchanges as at the end of 2006. About Kingsway Capital Limited Kingsway is a member of Hong Kong-based investment bank Kingsway Financial Services Group Limited which specializes in bringing quality China projects to the Hong Kong and Global markets. Established in 1990, the Kingsway Group provides a wide range of investment banking services including corporate finance advisory, equity capital markets, institutional brokerage and equity research. Kingsway has developed an extensive network of institutional investors and has acted as sponsor, manager, co-manager of public offerings and financial adviser to listed companies in Hong Kong for over 400 fund raising or corporate advisory assignments in recent years. About Terra Nostra Resources Corporation Terra Nostra is a leading copper and stainless steel producer in China through its 51% majority interests in two joint venture companies in China. Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd. has an existing and under construction total production capacity of 170,000 MT of electrolytic copper and 20,000 MT 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 MT capacity casting mill, and a 150,000 MT capacity rolling mill. The two joint venture companies, with total assets in excess of US$180 million and over 1,000 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. More information on Terra Nostra can be found at http://www.tnr-corp.com/. Investor Contact: Mercantile Ascendency, Tom Collins, (214) 559 9885 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 ("TNRO"); (iii) estimates or implications of future earnings, profits, EBITDA, and the sensitivity of earnings to metals prices; (iv) estimates of future metals production, sales and profitability; (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, and statements related to these matters or which use words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology 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 TNRO'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 TNRO's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-QSB for the year ended August, 31, 2007. Copies of each filing may be obtained from TNRO or the SEC. Furthermore, metals operation, by their very nature, entail inherent cyclical, sectoral, and commodity risk and could expose an investor to the entire loss of all capital invested. TNRO 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: Investors, Tom Collins of Mercantile Ascendency, +1-214-559-9885, for Terra Nostra Resources Corporation Web site: http://www.tnr-corp.com/

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