Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the
"Company") (TSX VENTURE:TRX), is pleased to provide an update on the activities
of the Company. In December 2008, the Company announced a Modified Project
Execution Plan (the "Modified Plan") for its 100%-owned Mt. Milligan Project
(the "Project"). Key objectives on the Modified Plan are to reduce Project
implementation risk, minimize on-going and near-term capital expenditures and to
better position the Project for a timely construction start-up. The Modified
Plan is proceeding on budget and on schedule (see Terrane Press Release Dec 8,
2008, for more details).


FEASIBILITY UPDATE STUDY

As part of the Modified Plan, Terrane initiated a Feasibility Update Study (the
"Update Study") to incorporate current capital and operating expenditures based
on detail design work undertaken since completion of the March 2008 Feasibility
Study. Updated design work includes revisions to the tailings storage facility,
power line, access road and engineering drawings for the 60,000 tonnes per day
process plant. In addition, reserves and mine design will be
recalculated/revised using metal prices of $1.60/lb copper and $690/oz gold; the
March 2008 Feasibility Study used prices of $1.60/lb copper and $550/oz gold.


The Update Study will be coordinated by Wardrop Engineering Inc. ("Wardrop"). In
addition to Wardrop, Terrane has appointed technical, engineering, and finance
specialists in ore reserve estimation and mine design, environmental and
socioeconomic studies, mineral processing and metallurgy, geotechnical,
infrastructure and capital and operating cost estimation. The team includes:
Independent Mining Consultants Inc., AMEC Earth and Environmental, G&T
Metallurgical Services Ltd., Knight Piesold Ltd., and Merit Consultants
International Inc. Terrane expects that the Update Study will be completed in Q4
2009.


EXPLORATION PROGRAM

Terrane has initiated a 70 line-km Induced Polarity ("IP") ground geophysical
survey to investigate the numerous geophysical targets identified by the June
2008 1,452 line-km airborne HeliGEOTEM magnetic-electromagnetic survey. Twelve
of these targets are within 4 km of the MBX and Southern Star deposits and
display similar magnetic signatures. Results from the IP survey will be used to
prioritize and guide future drilling programs as required.


In conjunction with the IP program, field crews have been mobilized to conduct
soil and stream geochemistry programs to expand upon and infill earlier surveys
in the Project area.


PERMITTING

On March 19, 2009, the Company announced receipt of an Environmental Assessment
("EA") Certificate from the Province of British Columbia for its Mt. Milligan
Project. Receipt of the EA Certificate followed a comprehensive 180-day review
led by the Province's Environmental Assessment Office. The Company continues to
work with provincial ministries on mine operating permits which are expected in
Q4 2009.


On May 15, 2009, the federal Minister of the Environment announced that the EA
review of the Mt. Milligan Project under the Canadian Environmental Assessment
Act will continue as a comprehensive study. The public comment period on
Terrane's EA application concluded on June 23, 2009. Next steps in the federal
EA process include the federal responsible authorities preparing a comprehensive
study report, followed by a final public comment period on this report. A
federal EA decision is expected in Q4 2009.


On June 24, 2009, the Nak'azdli First Nation from Fort St. James, BC filed a
petition with the Supreme Court of British Columbia against the province of
British Columbia regarding the proposed development of the Mt. Milligan Project.
Terrane regrets the action taken by Nak'azdli and continues to have an 'open
door' policy with the Nak'azdli community with respect to training, jobs and
contracting opportunities.


BERG PROJECT

On May 19, 2009, the Company reported a 36% expansion of the resource at its
Berg Copper-Molybdenum-Silver Project (see Terrane Press Release dated May 19,
2009). The Company has filed a NI 43-101 Technical Report with SEDAR in support
of the updated resource estimate.


Metallurgical studies, including a 5-tonne pilot plant to produce copper and
molybdenum concentrates, and studies to investigate and optimize project
development scenarios are underway.


APPOINTMENT OF DIRECTOR AND RESIGNATION OF DIRECTOR

Terrane is pleased to announce Mr. Timo Jauristo (AusIMM), Vice President
Corporate Development of Goldcorp Inc., has been appointed to the Board of
Directors. Mr. Jauristo will replace Mr. Chuck Jeannes, President and CEO of
Goldcorp. Mr. Jeannes stated: "My time as a Director afforded me the opportunity
to observe and work closely with the Terrane Board and management team. I remain
confident that our investment in Terrane is in good hands and I look forward to
the completion of the Modified Plan and Update Study in Q4 2009."


OUTLOOK

The Modified Plan is fully funded through a $40 million credit facility
guaranteed by majority shareholder Goldcorp Inc. As of June 30, 2009, the
Company had drawn down $14.5 million from the credit facility and forecasts to
draw down an additional $7.0 million by the end of 2009 to complete the Modified
Plan. The Company is also pleased to report that financial commitments to
consultants and suppliers of long lead-time equipment have been successfully
restructured. Terrane has engaged a Project Finance Advisor to assess strategic
financing and debt market options in order to advance Mt. Milligan through to a
construction decision.


ABOUT TERRANE METALS CORP.

Terrane Metals Corp. is an exploration and mine development company focused on
the development of the Mt. Milligan copper-gold and Berg
copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc.
(TSX:G)(NYSE:GG) owns a 59% equity interest in Terrane on a fully diluted basis.
In July 2008 Terrane and Goldcorp entered into an agreement which grants
Goldcorp an option to convert its equity interest in Terrane into a
participating joint venture interest in the Mt. Milligan Project (see press
release July 9, 2008).


TERRANE METALS CORP.

Robert Pease, P.Geo, FGAC, President and CEO

Cautionary Note Regarding Forward Looking Statements

Except for the statements of historical fact contained herein, the information
presented in this News Release constitutes "forward-looking statements" as such
term is used in applicable Canadian laws. These statements relate to analyses
and other information that are based on forecasts of future results, estimates
of amounts not yet determinable and assumptions of management. In particular,
statements concerning Mineral Resource and Mineral Reserve estimates should be
viewed as forward-looking statements to the extent that they involve estimates
of the mineralization that will be encountered if the property is developed. Any
statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or
be achieved) are not statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements, including but not
limited to, those with respect to the price of metals, the amount of estimated
mineralization and of contained metals and the timing of and possible outcome of
pending economic evaluations and other factors and events described in this News
Release, involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such risks and other
factors include, among others, the actual results of exploration activities;
variations in the underlying assumptions associated with the estimation or
realization of Mineral Resources and Mineral Reserves, the conclusions of
economic evaluations and possible variations in ore grade or recovery rates;
costs and timing of the development of new deposits; availability of capital to
fund programs and the resulting dilution caused by the raising of capital
through the sale of shares; accidents, labour disputes and other risks of the
mining industry including without limitation those associated with the
environment, delays in obtaining governmental approvals, permits or financing or
in the completion of development or construction activities, title disputes or
claims limitations on insurance coverage.

Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements contained in this News Release and in any document
referred to in this News Release.


Forward looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Company undertakes no
obligation to update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change, except as required by applicable
law.