TSX-V TZR.V last: 0.01 vol: 4000 OTCQX TCRRF last: 0.01 vol: 4000

2013 news releases

Terrace Completes $25m Convertible Note Offering

Vancouver, BC April 2, 2013 – Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF; FRANKFURT: 2TR) is pleased to announce it has completed the non-brokered private placement of convertible, unsecured promissory notes (the "Notes") in the aggregate principal amount of $25,000,000 disclosed in the Company's March 14, 2013 news release.

The Notes and any shares issued upon the conversion thereof are subject to a hold period and may not be traded until August 3, 2013 except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.  The Notes are non-transferable unless otherwise agreed by the Company.

The Company paid a 5% finder's fee to certain eligible brokers, in an aggregate amount of $704,250, in connection with the private placement.

Certain of the directors of the Company purchased Notes in the aggregate principal amount of $1,290,000.  The Company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close the private placement on an expedited basis for sound business reasons.

The proceeds from the sale of the Notes will be used to fund current and proposed financial commitments, including those arising from the proposed agreement announced on February 26, 2013, if closed, and for general working capital purposes.

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

ON BEHALF OF THE BOARD OF DIRECTORS

“Eric Boehnke”

Eric Boehnke, Chief Executive Officer

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.

For further information please contact: terrace@terraceenergy.net

Canadian Address
Suite 270 - 666 Burrard St.
Vancouver B.C. V6C 2X8
Ph: 604 628-4552
Fax: 604 687-0885
US Address
Suite 407-202 Travis Street,
Houston Texas 77002
Ph: 713.227.0010