TERREX ENERGY INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT FINANCING

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

CALGARY, Oct. 21 /CNW/ - Terrex Energy Inc. (TSX-V - TER) ("Terrex") announces that it has closed its previously announced private placement financing of 1,247,750 units (the "Units") at a price of $0.40 per Unit for gross proceeds of $499,100 (the "Offering").  Each Unit consists of two common shares of Terrex (the "Common Shares") and one common share purchase warrant (the "Warrants").  Each Warrant entitles the holder to acquire one Common Share at any time prior to 4:30 p.m. (Calgary time) on the date that is two years from the closing date upon payment of the exercise price of $0.25 per Common Share.  If, at any time prior to the date that is two years from the closing date, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds $0.30 for at least 30 consecutive trading days, Terrex may, within 30 days of such occurrence, give an expiry acceleration notice to the holders of Warrants and, if it does so, the Warrants will, unless exercised, expire on the 30th day after the expiry acceleration notice is given.

Terrex paid a cash payment finder's fee of $8,500 to Raymond James Ltd. and $3,750 to Leede Financial Markets Inc. in connection with the private placement. 

The Units (including the Common Shares and Warrants) will be subject to a hold period that will expire four months and a day after the closing of the Offering.  The Units (including the Common Shares and Warrants) will not be registered in the United States. 

Terrex intends to use the net proceeds from the Offering: (i) to develop its Strathmore property, primarily using enhanced oil recovery techniques, (ii) to acquire interests in additional properties, and (iii) for general corporate capital.

Terrex Energy Inc. is a Calgary, Alberta based company engaged in the exploration for, and development and production of petroleum and natural gas in the Western Canadian Sedimentary Basin. The Company is primarily focused on a strategy of growing reserves and production through applying proven, improved and enhanced oil recovery technologies to existing under exploited, large original oil in-place medium and light oil reservoirs. Terrex shares are listed and trade on the TSX Venture Exchange under the trading symbol "TER".

Neither the TSV Venture Exchange nor its Regulation Service Providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur.

There can be no assurance that the plans, intentions or expectations upon which forward looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Terrex and its shareholders. Forward-looking statements are based on Terrex's current beliefs as well as assumptions made by, and information currently available to, Terrex concerning business prospects, strategies, and market conditions. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. These factors may be found under the heading "Business Risks" in Terrex's management's discussion and analysis dated August 18, 2010, a copy of which is available at www.sedar.com. Readers are cautioned that this list of factors that may affect future results is not exhaustive.

The forward-looking statements contained in this press release are made as of the date hereof and Terrex does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

For further information:

For further particulars about Terrex, please contact Kim Davies, President & CEO or Norm Knecht, VP Finance & CFO at [phone] or visit Terrex's website at www.terrexenergy.ca.