Terra Nostra Resources Corp. has announced successful production trials and the commencement of sales and distribution at its recently opened stainless steel facility in China. The Company had previously announced the grand opening of the 180,000MT stainless steel casting mill in Zibo City, Shandong Province, China, which took place on 22 January 2006. The initial trial production results have been very positive, with all three electric arc furnaces, two AOD furnaces and casting line operating, presently producing 100 metric tons of stainless steel billet per day, and representing a production ramp up to approximately 17% of the operating capacity of the mill. Construction also remains on schedule for the rolling mill production lines, including the 200,000MT strip line that is scheduled to commence production trials in the second quarter of this year. The Company is currently selling the stainless steel billets produced to factories throughout China, but plans to use the billets as feedstock for the rolling mill once the strip line becomes operational.