X-Terra closes a $400,000 private placement with MineralFields



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    VANCOUVER, Oct. 9 /CNW Telbec/ - X-Terra Resources Corporation (XT-TSXV)
is pleased to announce that the company has closed a private placement with
the MineralFields Group for gross proceeds of $400 000. In total, the
corporation issued 426 666 flow-through units at a price of 75 cents per unit,
with each unit consisting of one flow-through common share and one non
flow-through common share purchase warrant. Each warrant entitles the holder
thereof to purchase one non flow-through common share of the corporation until
October 2, 2009 at an exercise price of one (1) dollar per share. The
corporation also issued 133 333 non flow-through units at a price of 60 cents
per unit, with each unit consisting of one common share and one common share
purchase warrant. Each warrant entitles the holder thereof to purchase one
common share of the corporation until October 2, 2009 at an exercise price of
75 cents per share.
    Limited Market Dealer Inc. received a cash finder's fee of 5 per cent of
the gross proceeds and non-transferable finder's fee units entitling it to
purchase up to 27 999 non flow-through units at a price of 60 cents per unit,
with each unit consisting of one common share and one common share purchase
warrant. Each warrant entitles the holder thereof to purchase one common share
of the corporation until October 2, 2009 at an exercise price of 75 cents per
share.
    All securities issued pursuant to the private placement offering are
subject to a four-month hold period expiring February 3, 2008.

    About MineralFields

    MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged superflow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at its website. First Canadian Securities, a division of Limited
Market Dealer, is active in leading resource financings (both flow-through and
hard-dollar financings) on competitive, effective and service-friendly terms,
with investors both within and outside of MineralFields Group.

    About X-Terra Resources:

    X-Terra is a mineral resources company focused on acquiring and exploring
gold and uranium properties in Canada. X-Terra has active gold/uranium
exploration projects in province of Quebec, Canada.

    Forward-looking Statements

    This news release contains certain forward-looking statements. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond the ability of X-Terra to control or predict, which could cause actual
events or results to differ materially from those anticipated in such
forward-looking statements, including risks disclosed in filings with the
Canadian securities regulators made by X-Terra. Accordingly, readers should
not place undue reliance on forward-looking statements.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00004590E




For further information:

For further information: Laurent Hallé, President and CEO, (819)
762-0609, Fax: (819) 762-0097, info@terraxmanagement.com

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X-Terra Resources Corporation

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