NEW YORK, Sept. 8 /PRNewswire-FirstCall/ -- Terra Nova Royalty Corporation (NYSE:TTT - News) (the "Company") is pleased to announce that, further to its news release dated July 27, 2010, that its shareholders rights offering to holders of common shares (the "Shares") of the Company (the "Rights Offering") has expired and is fully subscribed.  A total of 7,571,227 Shares of the Company will be issued under the Rights Offering pursuant to the subscription privileges thereunder, representing total gross proceeds of approximately USD$50.0 million.

Pursuant to the Rights Offering, each holder of record of the Company's Shares received one transferable right (a "Right") for every Share held as of August 6, 2010. Every four Rights entitled a holder to purchase one Share at a price of USD$6.60.

Chairman Michael Smith said, "The preliminary tabulations provide that we have received subscriptions and requests for oversubscription privileges for an aggregate of 19,011,407 Shares, which would have amounted to approximately USD$125.5 million, or well over twice the amount we offered for sale. We appreciate the strong vote of confidence represented by this response."

Under the terms of the Rights Offering, a fixed number of shares were available for sale, and all those shares were sold. As the Rights Offering was oversubscribed,  there are less shares available under the additional subscription privilege then were requested pursuant to such privileges.  Accordingly, such subscribers will receive a refund of any excess funds submitted with their subscription request.

About Terra Nova Royalty Corporation

Terra Nova Royalty Corporation is active in the mineral royalty and natural resources industry.

Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect our management's expectations regarding our future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits we will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions and speak only as of the date hereof. These assumptions, which include management's current expectations, estimates and assumptions about our business and the markets we operate in, the global economic environment, interest rates, exchange rates and our ability to manage our assets and operating costs, may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (i) changes in iron ore and other commodities prices; (ii) the performance of the properties underlying our interests; (iii) decisions and activities of the operator of our royalty properties and other interests; (iv) unanticipated grade, geological, metallurgical, processing or other problems experienced by the operators of our royalty properties and other interests; (v) economic and market conditions; and (vi) the availability of royalties for acquisition or other acquisition opportunities and the availability of debt or equity financing necessary to complete such acquisitions. There is a significant risk that our forecasts and other forward-looking statements will not prove to be accurate. Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additional information about these and other assumptions, risks and uncertainties are set out in our MD&A filed with Canadian securities regulators and filed on Form 6-K with the SEC and our Form 20-F for the year ended December 31, 2009.