Terrace announces completion of convertible note exchange

VANCOUVER, Oct. 16, 2014 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF, Germany: 2TR) is pleased to announce that it has completed its previously announced plan of arrangement, pursuant to which the Company's outstanding 8% convertible unsecured notes due April 2, 2018 were exchanged for new notes. The Notes are expected to commence trading on the TSX Venture Exchange under the symbol "TZR.DB" at the open of the market on October 20, 2014, or as soon as possible thereafter.

Pursuant to the terms of the notes, the Company may redeem the notes, in whole or in part, for common shares upon at least 30 days' notice, as more fully described in the indenture governing the notes, and in the Company's management information circular dated September 15, 2014, copies of which are available on SEDAR.

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 with a particular focus on South Texas.

ON BEHALF OF THE BOARD OF DIRECTORS

"Dave Gibbs"

Dave Gibbs, President and 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.

Cautionary Statement and Forward-Looking Information

This press release includes forward-looking information and forward-looking statements (together, "forward-looking information") within the meaning of applicable Canadian and United States securities laws. Forward-looking information includes statements regarding the listing of the Notes on the TSX Venture Exchange. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information disclosed in this press release. The material risk factors that could cause actual results to differ materially from the forward-looking information contained in this press release include: no market may develop for trading the Notes or such market may lack liquidity; the trustee under the indenture to govern the Notes may fail to efficiently administer the Notes or effectively act on behalf of the holders thereof; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in the Company's most recent Annual Information Form and other documents filed with Canadian securities regulators at www.sedar.com.

The Company does not assume the obligation to update any forward-looking information, except as required by applicable law.

SOURCE: Terrace Energy Corp.

[email protected]; www.terraceenergy.net; Canadian Address, Suite 1012 - 1030 West Georgia St., Vancouver, B.C., V6E 2Y3, Ph: 604 282-7897, Fax: [phone]; US Address, Suite 400-202 Travis Street, Houston, Texas, 77002, Ph: 713 227 0010