Terra Closes $5,600,000 Strategic Non-Brokered Private Placement Through Peninsula With Lundin-Controlled Corporations as the Principal Investors

VANCOUVER, BRITISH COLUMBIA–(EMWNews – Aug. 21, 2008) –

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Terra Ventures Inc. (TSX VENTURE:TAS) is pleased to announce that it has closed its private placement announced on August 11, 2008, consisting of 7 million units at $0.80 per unit raising gross proceeds of $5,600,000. Each unit consists of one share and one warrant to buy one share for $1.20 on or before August 21, 2010. The proceeds of the offering will be used for general corporate purposes, for continued exploration and development of the Company’s existing properties, and to finance any future property acquisitions that the Board of Directors of the Company deem appropriate.

Peninsula Merchant Syndications Corp., a private merchant bank controlled by Sam Magid, a former founding partner of Salman Partners, has received a strategic advisory fee in respect of the financing of 318,000 units.

Of the 7 million units, an aggregate 4 million have been purchased by private corporations owned by a Trust whose settlor is the Estate of Adolf H. Lundin.

All securities are subject to resale restrictions which expire on December 22, 2008.

Terra Ventures is a junior exploration company focused on acquiring and developing quality uranium projects which have world class potential. The Company is dedicated to building shareholder value by acquiring strategic uranium properties in this period of strengthening global demand for uranium supply. The Company’s combination of strategic land positions, advanced stage projects and no risk carried interest projects – combined with technical expertise and management’s fundraising ability – are the foundation for growth in the uranium business.

On behalf of the board of directors of TERRA VENTURES INC.

Gunther Roehlig, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.