VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2011) - Terrace Energy Corp. (TSX VENTURE:TZR) (the "Company") announces the closing of the non-brokered private placement announced on November 17, 2011. A total of 9 million shares were issued for $0.25 per share, raising aggregate gross proceeds of $2.25 million. No commissions or finders' fees were paid by Terrace in respect of the private placement.

The proceeds of the private placement will be used to fund the Company's initial financial commitments under the agreements with Lightning Oil Company and Whittier Energy Company that were also announced on November 17, and for general working capital purposes.

The shares are subject to a hold period and may not be traded until March 31, 2012 except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.

APPROVED BY THE BOARD OF DIRECTORS

Eric Boehnke, President

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