LOS ANGELES and ZIBO, China, Jan. 24 /PRNewswire-FirstCall/ -- Terra Nostra Resources Corporation (OTC:TNRO) (BULLETIN BOARD: TNRO) , a majority owner of two joint venture companies in the copper and stainless steel industries in China, is pleased to announce financial results and highlights for the second fiscal quarter ended November 30, 2007. Second Quarter Highlights (for Period Ended November 30, 2007) -- Gross revenues of $127.6 million, up 153% from the same period a year ago; -- Gross profits of $9.6 million, up 556% from the same period a year ago; -- Operating loss of $45.7 million, including one-time non-cash charges of $49.8 million; -- Further $14.8 million of capital contributions to the copper joint venture for working capital; and -- Completed environmental and technical upgrade at Jinpeng copper facility. Revenues for the fiscal quarter ended November 30, 2007 were $127.6 million, as compared to $52.5 million for the same period a year ago. Gross profit for the period was $9.6 million, as compared to a gross profit of $1.5 million for the same period a year ago. Operating losses were $45.7 million, as compared to a loss of $0.8 million for the same period a year ago. Operating losses for the period include one-time non-cash charges of $49.8 million related to the accounting treatment required in relation to the Company's convertible note financings, outstanding share purchase warrants, and stock options. In accordance with Generally Accepted Account Principles (GAAP), these derivative financial instruments are initially and subsequently carried at fair market values. The market price of our common stock significantly affects the fair value of the derivative financial instruments. Higher stock prices during the period had the effect of significantly increasing the fair value of our derivative liabilities and, accordingly, the Company was required to adjust the derivatives to these higher values with charges to its income. Further detailed discussion of accounting policies for derivative financial instruments can be found in the Company's most recent 10Q. "This has been another quarter of considerable year-over-year growth for the Company," said Mr. Don Nicholson, Terra Nostra's CFO. "The successful execution of our financing, growth, and operating strategies has strongly positioned the Company to take advantage of significant opportunities within the fast moving Chinese marketplace." 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 rolling mill. The two joint venture companies, with total assets in excess of US$225 million and over 1,000 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. Terra Nostra has entered into an agreement to increase its majority ownership in both joint ventures from 51% to 90%. More information on Terra Nostra can be found at http://www.tnr-corp.com/. 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 November 30, 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: Investor Contact, Mercantile Ascendency, Tom Collins, +1-214-559-9885, for Terra Nostra Resources Corporation Web site: http://www.tnr-corp.com/

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