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Terra Nostra Chairman of the Board
Reports to Shareholders
June 30, 2008
Terra Nostra Resources Corporation (OTCBB: TNRO) a majority owner of
two joint venture companies in the copper and stainless steel
industries in China, is pleased provide all shareholders with this
report from Terra Nostra's Chairman, Mr. Sun Liu James Po, as
presented at the Company's Annual General Meeting held June 23,
2008.
Report to Shareholders
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.
The most significant event for the Company during this past year was
the December 2007 completion of a $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 $27,234,000 into our copper joint-venture. This, together with
the $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.
The challenge now lies in the opportunity itself - the Company has
170,000 MT of copper production capacity, and 230,000 MT 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, 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;
Finally, I would like to express my sincere gratitude and
appreciation to our joint-venture partner, Mr. Zhang Ke, and all of
the Terra Nostra and joint venture company employees, customers,
suppliers and shareholders. Without their support, our success is
not possible. We remain committed to increasing our revenues and
earnings, producing the highest quality product, and exceeding our
customer expectations - all of which are key components to building
shareholder value.
Sun Liu James Po
Chairman and Chief Executive Officer
About Terra Nostra Resources Corporation
Terra Nostra is a leading copper and stainless steel producer in
China through its 51% majority interests in two joint venture
companies in China. Shandong Terra Nostra Jinpeng Metallurgical Co.,
Ltd. has an existing and under construction total production
capacity of 170,000 MT of refined copper, together with value-added
copper rod and wire capabilities. Shandong Quanxin Stainless Steel
Co., Ltd. operates a modern stainless steel production facility with
a 230,000 MT capacity casting mill, and a 150,000 MT rolling mill.
The two joint venture companies, with total assets in excess of
US$263 million and over 1,000 employees, are located in the highly
industrialized coastal province of Shandong, midway between Beijing
and Shanghai. Terra Nostra has entered into an agreement to increase
its direct majority ownership in both joint ventures from 51% to
90%. More information on Terra Nostra can be found at
http://www.tnr-corp.com.
Forward Looking Statements
Except for the historical information contained herein, the matters
set forth in this press release, including statements with respect
to expectations concerning (i) projects underway or under
consideration, including production capacity and completion
schedules; (ii) business and future potential of Terra Nostra
Resources Corporation ("TNRO"); (iii) estimates or implications of
future earnings, profits, EBITDA, and the sensitivity of earnings to
metals prices; (iv) estimates of future metals production, sales and
profitability; (v) estimates of future cash flows, and the
sensitivity of cash flows to the other metals and ore costs as well
as, but not limited to, fluctuations in fuel prices, scrap prices,
and the availability of both, and statements related to these
matters or which use words such as "may," "might," "should,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," and the negative of these terms and other
comparable terminology are all forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Further risks, uncertainties and
other factors, which affect the forward- looking statements included
herein, and could cause actual results to differ materially from
future results expressed, projected or implied by such
forward-looking statements include, but are not limited to, raising
additional funds for working capital, obtaining final approval for
tax holidays, metals price volatility, competition for projects,
reserve acquisition costs, currency fluctuations, international
economic uncertainty, sovereign risk, force majeure, changes in tax
law or concession law, project scheduling delays, labor disputes,
increased production costs and variances in ore grade, scrap grade
or recovery rates from those assumed in production plans, political
and operational risks in the countries in which TNRO may operate and
governmental regulation and judicial outcomes, and other risks
detailed from time to time in TNRO's filings with the Securities and
Exchange Commission, including its Quarterly Report on Form 10-QSB
for the period ended February 29, 2008. Copies of each filing may be
obtained from TNRO or the SEC. Furthermore, metals operation, by
their very nature, entail inherent cyclical, sectoral, and commodity
risk and could expose an investor to the entire loss of all capital
invested. TNRO does not undertake any obligation to publicly release
any revisions to any forward-looking statements to reflect events or
circumstances after the date of this release or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws.
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