/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, Dec. 16, 2013 /CNW/ - Terrace Energy Corp. ("Terrace" or the "Company") (TSX-V: TZR), (OTCQX: TCRRF); (FRANKFURT: 2TR) is pleased to announce it has obtained a receipt for its preliminary short form prospectus dated December 16, 2013, filed with the securities regulatory authorities in British Columbia, Alberta, and Ontario, with respect to a public offering (the "Offering"), on a "commercially reasonable efforts" basis, of common shares (the "Common Shares") through Canaccord Genuity Corp. (the "Agent"). The pricing of the Common Shares and the size of the Offering will be determined in the context of the market.

The Offering is expected to close in early January 2014 and is subject to certain conditions, including, but not limited to completion of due diligence by the Agent, and receipt of all necessary approvals, including approval of the TSX Venture Exchange.

The Company plans to use the net proceeds from the Offering to fund the Company's 2014 exploration and development programs and for general working capital purposes.

About Terrace

Terrace Energy is an oil & gas development stage company that is focused on unconventional oil extraction in onshore areas of the United States, particularly in South Texas.

ON BEHALF OF THE BOARD OF DIRECTORS

"Dan Carriere"

Dan Carriere, Chairman

Caution to Reader

Forward-Looking Information and Statements

This news release includes certain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Company's proposed Offering, the timing thereof and the intended use of proceeds from the Offering, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, including the possible failure to realize the anticipated benefits of the use of proceeds of the Offering, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such statements reflect the current views of the Company with respect to future events and operating performance, and speak as of the date of this document. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory reviews and approvals; risks inherent in the oil and gas exploration and production industry; and other risks detailed herein, in the preliminary prospectus, under the heading "Risk Factors" in the Company's Annual Information Form for the year ended January 31, 2013 and from time to time in the filings made by the Company with securities regulators. The risks outlined herein should not be considered exhaustive. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. The Common Shares may be sold in eligible foreign jurisdictions to qualified investors in accordance with applicable regulations such that no prospectus, registration statement or similar document is required to be filed in any jurisdiction outside of Canada.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Terrace Energy Corp.

Copyright 2013 Canada NewsWire

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