Terra Firma Acquires Beidelmann-Lyall Graphite Property, in Ontario

VANCOUVER, British Columbia, April 26, 2012 /PRNewswire/ -- Terra Firma Resources Inc. (TSX-V: TFR) (the "Company" or "Terra Firma") is pleased to announce that it has signed a Mineral Property Option Agreement (the "Option Agreement") with Standard Graphite Corp. ("Standard Graphite") pursuant to which Terra Firma has been granted an option (the "Option") to earn a 100%-interest in the Beidelmann-Lyall Graphite Property located in Ontario.

Beidelmann-Lyall Graphite Property:

The Beidelmann-Lyall Graphite Property (the "Property") consists of two claim blocks totaling approximately 625 hectares located approximately 23 kilometers west of the past-producing Black Donald Mine. The Black Donald Graphite Mine was one of the largest and richest Graphite deposits in North America. It had reported historic ore grades of up to 80% Cg (Carbon Graphite). During the last 10 years of mine life the average reported grade was 25-30% Cg. 94% of the total value of Ontario graphite production during that time came from the Black Donald Mine. The Beidelmann-Lyall Graphite Property is accessible via paved and logging roads.

The Company intends to conduct an exploration campaign on the Property commencing immediately, with a complete compilation of historic geologic work followed by surface work, trenching and diamond drilling.

The Option Agreement:

Pursuant to the terms of the Option Agreement, Terra Firma may acquire a 100%-interest in the Property by making the following cash payments on or before the dates indicated below:

This news release has been reviewed and approved Victor A. Jaramillo P.Geo. He supervised the preparation of the technical information in this news release. Victor A. Jaramillo is a Qualified Person as defined by National Instrument 43-101.

A finder's fee will be paid in connection with the transaction in accordance with the policies permitted by the TSX.V. The transaction is subject to a number of conditions and approvals, including, but not limited to, required corporate approvals and TSX.V acceptance.

About Graphite:

The commercial market for graphite is diverse worldwide. The graphite industry is experiencing an increase in demand from numerous industrial sectors, spanning both developing and developed economies. Traditional uses of Graphite include steelmaking, electrodes in electric arc furnaces, brake linings, pebble bed reactor linings, and dry lubricants. There has been an escalation in the use of graphite in clean energies such as lithium ion batteries and fuel cells, which power hybrid and electric vehicles. The outlook for high-quality graphite demand is strong due to the development of new technologies, which use graphite as an essential component. The United States, Europe and China have included graphite among a short list of critical materials.

About Terra Firma Resources Inc.

Terra Firma is a mineral exploration company and its objective is to develop a balanced portfolio of properties that exhibit good mineral indicators for Graphite and Precious Metals, through a combination of grassroots prospecting, property acquisitions and the formation of strategic relationships. The Company is currently investigating a number of potential Graphite prospects.

For further information please contact: Tom Steer, Investor Communications
Tel: (604) 681-5566 E-mail: [email protected]

On Behalf of the Board,
Brian Buchanan, Chief Executive Officer and Director

This Terra Firma Release contains certain "forward-looking" statements and information relating to Terra Firma that are based on the beliefs of Terra Firma's management as well as assumptions made by and information currently available to Terra Firma's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Terra Firma does not assume the obligation to update any forward-looking statement.

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 news release

SOURCE Terra Firma Resources Inc.