Terra Nostra Chairman update to shareholders

Mr Sun Liu James said that “This has been an extraordinary year for Terra Nostra, where we achieved a number of our key objectives and have made considerable progress on others. With these accomplishments, we believe the road map to realize the full potential of our Company and the means to achieve it are well established.”

Mr Sun Liu said that “The most significant event for the Company during this past year was the December 2007 completion of a USD 24,925,000 round of financing through convertible debentures. The proceeds from this financing were primarily used to complete Terra Nostra’s capital contribution of USD 27,234,000 into our copper joint venture. This, together with the USD 13,566,000 capital contribution into our stainless steel joint venture, completed in June 2006, fully secured the Company’s rights under the joint-venture agreements and Chinese joint venture law. This has created a strong foundation for taking the Company to the next level of growth, creating a world-class operation and maximizing value for all shareholders.”

Mr Sun Liu added that “The challenge now lies in the opportunity itself the Company has 170,000 tonne of copper production capacity and 230,000 tonnes of stainless steel production capacity and a clear plan to bring both operations to their optimal production levels. We believe our plan will continue on course to meet the extraordinary demand for these essential metals created by the unabated transformation and urban migration in China.”

Moving forward, Mr Sun Liu said that Terra Nostra is pursuing an aggressive multi facetted growth strategy to become a fully integrated one-stop supplier for a significant share of China’s market for high end specialty stainless steel products, as well as international standard refined copper products;

1. Continued ramp-up of both copper and stainless steel facilities to optimal levels of production
2. Expand downstream copper production to include new value-add products, as well as upgrade the existing wire / tube production lines.
3. Expand stainless steel downstream operations to enable the production of higher-value / higher-margin products such as seamless and welded pipes, rods, and wide cold-rolled strip.
4. Seek out acquisition and expansion opportunities of both copper and stainless steel production with wider geographic distribution to better meet local needs.
5. Strengthen the supply chain, both by expanding the scrap collection network and obtaining ownership of producing or advanced development stage mines, together with primary ore processors.
6. Attract additional experienced management to bring further depth and expertise to the operations.
7. Actively develop relationships with possible strategic partners in the copper and stainless industries.