Terreno Resources Corp. is to acquire, from a private vendor, 100% of the Jatuarana Phosphate Project, the Nova Olinda Potash Project and the Manaus Bauxite Project, all located in Amazonas State, Brazil. The transaction is subject to certain due diligence conditions and to approval by the TSX Venture Exchange.

Philip Williams Terreno Resources Corp. President and CEO reiterated his excitement over the acquisition of the portfolio of projects in Brazil. Each project has been targeted for its prospective geology and for commodities with attractive fundamentals globally and within Brazil specifically, said Williams.

According to Williams, the Jatuarana Phosphate project is drill ready and Terreno sees potential to generate an initial resource in a short time frame. Williams further stated that at the Nova Olinda Potash project, Terreno’s focus will be on interpreting existing data and commissioning additional geophysical programs to identify drill targets. At the Manaus Bauxite project, Terreno intends to undertake a surface sampling program this summer to assess the grade and thickness of the target horizon, he added.

Terreno will pay an initial US$100,000 option fee which provides for a 90 day period to complete certain due diligence. Once the option is exercised, Terreno will have 30 days to settle the transaction at which point it will make a US$300,000 payment followed by two separate US$250,000 payments on the 6 month and 12 month anniversaries of the settlement date.

A further US$100,000 is payable to the vendor 14 days following the grant of the last tenements comprising the Nova Olinda Potash Project. On settlement Terreno will also issue to the vendor 7,500,000 shares subject to a minimum 1 year escrow and conditions of regulatory approvals.

A further 1,500,000 shares will be issued to the vendor 14 days following the grant of the last tenements comprising the Nova Olinda Potash Project also subject to a minimum 1 year escrow and conditions of regulatory approvals.

The project Jatuarana Phosphate Project consists of 18 tenements covering 1770 km2 of the Jatuarana Sedimentary Basin in Amazonas State, north-western Brazil.

The Nova Olinda Potash Project consists of 5 tenement applications in the Amazon potash basin. The tenements are located to the west of the Fazendinha and Arari sylvinite deposits which are owned by Petrobras and contain reserves of in excess of 1 billion tons at a grade of 18.5% K2O.

The Manaus Bauxite Project consists of two tenements north of the Amazon River and floodplain. The bauxite formation has been identified in 12 plateaus on the project covering 34 km2.