Terrain Minerals Limited (ASX:TMX) Announce Bundarra Resource Increased by 60% To 321,000 oz Of Gold

Perth, Aug 29, 2008 AEST (ABN Newswire) - Terrain Minerals Limited (ASX:TMX) Announce Bundarra Resource Increased by 60% To 321,000 oz Of Gold. Highlights of the announcement are:

- New resource estimate of 4.96mt @ 2.0 g/t gold (321,000 oz)

- Resource grade cut off 1g/t gold

- New resources have been outlined at the Wonder North, Bluebush, Great Western and Black Cat deposits.

- All the resources remain open down dip and down plunge.

- Terrain on track to define interim target of 400 - 600,000 oz of gold.

Following the completion of a 16,000m RC and Diamond drilling program in May 2008 geological consultants CSA Global Pty Ltd have undertaken resource estimates on a cluster of deposits within the Bundarra project area. These deposits include: Wonder North, Bluebush, Great Western and Black Cat. Additional resources have previously been defined at the Celtic deposit. At a grade cut off of 1g/t gold the resources total 4.96mt @ 2.0g/t gold (321,000 oz) (see below).

All the deposits remain open down dip and down plunge. In addition there are a number of other prospects: Garden Well, Katalina, Craig and Wilsons Win, with drill intercepts up to 37.8 g/t gold. All these prospects require further drilling.

With deposit extensions and a number of other attractive targets still to be tested, the directors are confident that the new resource estimate demonstrates significant progress towards the interim target of 400 - 600,000 oz of gold#.

Planning for follow up drilling programs are well advanced.

# The target is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and that it is uncertain that further exploration will result in a Mineral Resource.

Further information regarding Terrain's projects and exploration programs can be found on the Company's website, www.terrainminerals.com.au.

Figure 2: Bundarra Resources (at 1 g/t gold cut off)

---------------------------------------------------------Deposit  Resources Measured Indicated Inferred   TotalsWonderNorth    Tonnes    354,000  872,000  1,314,000  2,540,000         Grade g/t     2.3     2.4         1.9        2.1         Ounces     26,000   66,500     80,200    172,600---------------------------------------------------------Bluebush Tonnes    726,000  726,000         Grade         1.7      1.7         Ounces     38,900   38,900---------------------------------------------------------BlackCat      Tonnes    134,000  134,000         Grade         2.5      2.5         Ounces     10,600   10,600---------------------------------------------------------GreatWestern  Tonnes     58,000  284,000    131,000    473,000         Grade         3.0      2.8        2.3        2.7         Ounces      5,600   25,800      9,500     40,900---------------------------------------------------------Totals   Tonnes    412,000 1,156,000 2,305,000   3,873,00         Grade         2.4      2.5        1.9        2.1         Ounces     31,600   92,300    139,200    263,100---------------------------------------------------------Celtic*  Tonnes    683,900  199,400    204,400  1,087,700         Grade         1.8      1.5        1.5        1.7         Ounces     39,300    9,300      9,500     58,100---------------------------------------------------------TOTALS   Tonnes  1,095,900 1,355,400  2,509,400 4,960,700         Grade         2.0       2.4       1.9        2.0         Ounces     70,900   101,600   148,700    321,200---------------------------------------------------------

* - Celtic Resource previously published in Terrain Prospectus dated March 2006

About Terrain Minerals Limited

Terrain Minerals Ltd (ASX:TMX) is a West Australian based minerals exploration company focused on the world class mineral provinces in Western Australia. Terrain is actively looking for opportunities within other states of Australia and internationally.