Terra Nostra Resources Corp. Completes Deals

Terra Nostra Resources Corp. announced the formal closing and acquisition of a 51 percent ownership stake in two major copper and stainless steel operations in China: Shandong Terra Nostra Jinpeng Metallurgical Company, Ltd. and Shandong Quanxin Stainless Steel Co. through two Sino-Foreign Joint Venture Agreements.

Terra Nostra's Sino-Foreign Joint Venture partner in copper is Shandong Jinpeng Copper Co., a major producer of electrolytic copper cathode and oxygen-free rod. SJCC's scrap recycling centers and electrolytic copper mills began in 1994 and SJCC emerged as one of the top-ten converters of scrap into high-grade copper finished product in China. SJCC and its affiliates recorded 2004 net earnings of $22.4 million on sales that exceeded US$280 million.

Terra Nostra, through its current joint venture partnership with SJCC, is in advanced construction of a fifth copper mill to produce 80,000 metric tons of electrolytic copper cathode a year. This expansion will more than double current capacity and allow STJMC to qualify, subject to other conditions, for warehousing and trading of its electrolytic copper on the London Metal Exchange. Finished copper production for 2004 at SJCC and its affiliates was comprised of 53,000 metric tons of electrolytic copper cathode, 18,000 metric tons of oxygen-free copper rods/wire, and 25,000 metric tons of low oxygen rods.

STJMC sources its scrap from a network of more than 200 Chinese scrap suppliers.

Terra Nostra's Sino-Foreign Joint Venture partner in Shandong Quanxin Stainless Steel Co. is also SJCC. The integrated stainless steel plant employs electric-arc furnaces and will have a casting mill with initial production capacity of 180,000 metric tons. The stainless steel mill is scheduled to be operational by the end of this year, with a downstream rolling mill to be phased in over the next two years. It will have a design capacity comprising 90,000 metric tons of stainless steel rod, 60,000 metric tons of stainless steel strip, and 30,000 metric tons of stainless steel welded tube.