Xtierra Inc. - Results of in-fill drilling at Bilbao project; Completion of special warrant conversion



    TORONTO, Sept. 10 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra"), is
pleased to announce results of a 4,138 metre in-fill diamond drilling
programme at its 100% owned Bilbao silver-zinc-lead-copper project, in
Zacatecas, Mexico. The 15 hole programme has confirmed the nature and extent
of the Bilbao deposit and the earlier resource estimate with greater
confidence and has indicated some spectacular thicknesses and grades of
mineralisation as well as opening up continuity of mineralisation to the
northwest. An independent, NI-43-101 compliant, resource estimate is currently
being prepared by consulting geologist Richard T.G. Parker, (Eur. Geol.).
    Hole X-33, located in the centre of the deposit, returned mineralisation
over 140 vertical metres in three sections comprising oxide, mixed oxide and
sulphide mineralisation and primary sulphide bodies (refer table attached).
The results of hole X-33 also indicate a significant copper and gold zone at
the base of the main sulphide body at that location which may be related to a
discrete feeder zone.
    Hole X-42, a step-out hole collared 130 metres northwest of the western
limit of the currently known deposit intersected four separate zones of
mineralization including 8.75m of massive fine-grained pyrite with low base
metal values (between 149.25 and 157.00m) and three further zones of
mineralisation between 1m and 5m in width containing 1.54 to 3.76% combined
zinc and lead and a further zone of one metre width (between 181.00 and
182.00m) with 170g/t silver, 7.32% lead and 0.64% zinc. This hole appears to
be located adjacent to a major northwest-trending structure believed to
control the distribution of the replacement style mineralisation at Bilbao. Of
particular note is that the mineralization discovered in X42 lies in limestone
beneath 46 metres of granite.
    Further drilling will be focused in the area of hole X-42 to explore the
potential for developing additional resources. The mineralisation at Bilbao
also remains open to the southwest where it dips below Tertiary volcanic cover
rocks. Xtierra is planning an additional 4,000 to 6,000 metres of step-out and
condemnation drilling at Bilbao.

    Comment
    -------
    Commenting on the results of the in-fill drilling programme, Mr. Terence
N. McKillen, President & CEO said, "We are very pleased that the results of
the 15 hole in-fill drilling programme at Bilbao have not only confirmed the
nature and extent of the previous preliminary resource estimate but have added
significant tonnage to the deposit which we anticipate will be reflected in
the independent NI-43-101 compliant resource estimate currently in
preparation. We are particularly excited about the prospects being opened up
to the northwest by hole X-42 and an associated geochemical anomaly in soils
which extends for over 1,000 metres to the northwest. We believe that there is
the potential to significantly increase the resource potential at Bilbao."
    Dr. Anthony C. Gallon, C.Eng. and Mr. Terence N. McKillen, P.Geo.,
Qualified Persons (as defined in National Instrument 43-101) who, unless
otherwise indicated, supervised the preparation of the scientific and
technical information reflected in this press release. Preparation and
assaying of the above-reported samples was performed at SGS Laboratories in
Durango, Mexico using industry standard preparation procedures; fire assay
analysis with gravimetric finish for gold and silver; initial ICP-EOS finish
with aqua regia digestion for base metals; and ICP-OES finish by sodium
peroxide fusion for reassays of significant base metal values. Under Xtierra's
QA/QC program, duplicate samples, blanks and standards are submitted to
BSi/Inspectorate Laboratories in Durango, Mexico, for preparation and onward
shipment to BSi/Inspectorate's analytical laboratory located in Reno, Nevada,
with acceptable results to date.

    Completion of Special Warrant Conversion
    ----------------------------------------
    Xtierra also announces the completion yesterday of the automatic exercise
of 17,612,000 previously issued special warrants of Xtierra's wholly-owned
subsidiary, Orca Minerals Limited, resulting in the issue of 17,612,000 common
shares of Xtierra and 8,806,000 warrants to purchase common shares of Xtierra.
Each warrant entitles the holder to purchase one common share of Xtierra for
$0.75 per share at any time from September 3, 2008 to September 3, 2009 and
thereafter for $1.00 per share up to September 3, 2010. Included in this issue
was the issue of 6,108,000 common shares and 3,054,000 warrants upon exercise
of 6,108,000 special warrants of Orca Minerals Limited previously placed
through Union Securities Inc. on March 26, 2008 which completes the placement
and has resulted in the release to Xtierra of escrowed funds in the amount
$1,523,865.13, being the balance of the placement proceeds.
    As a result of this special warrant conversion, Xtierra now has
49,862,003 shares and 8,806,000 warrants issued and outstanding.

    About Xtierra Inc.
    ------------------
    Xtierra Inc. is a Toronto based exploration and development company
listed on the TSX Venture Exchange. Xtierra's shares trade under the symbol
"XAG". Xtierra has recently completed $8.8 million in private placement
financings and has 49,862,003 shares issued and outstanding.
    Xtierra's objective is to become a mid-tier producer of silver and base
metals through the development of its Bilbao and Laguna projects, both located
in the Central Mexican Silver Belt in the State of Zacatecas, as well as
through organic growth and M & A opportunities.

    ON BEHALF OF THE BOARD OF DIRECTORS OF XTIERRA INC.

    
    "Terence N. McKillen"
    President and CEO

    Cautionary Notes: This press release may contain "forward-looking
information" within the meaning of applicable Canadian securities legislation.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this
    release.


        FIGURE 1. INTERSECTIONS & GRADES OF MINERALISED CORE FROM THE
                          INFILL DRILLING AT BILBAO
    -------------------------------------------------------------------------
    DDH    FROM        TO   WIDTH      TYPE    Pb %     Zn %  Ag g/t    Cu %
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    X28  126.00    131.00    5.00     MIXED    9.15     2.30     112    0.03
         --------------------------------------------------------------------
         158.00    164.00    6.00  SULPHIDE    2.96     1.79      50    0.24
    -------------------------------------------------------------------------
                            11.00
                          --------

    -------------------------------------------------------------------------
    X29   16.00     21.00    5.00     OXIDE    2.30     2.10      48    0.19
         --------------------------------------------------------------------
          24.00     28.00    4.00     OXIDE    1.81     0.03     136    0.01
         --------------------------------------------------------------------
          46.00     47.00    1.00     OXIDE    4.54     0.02      16    0.01
         --------------------------------------------------------------------
          93.00    122.00   29.00     MIXED    4.36     2.14      59    0.35
         --------------------------------------------------------------------
         125.85    138.45   12.60  SULPHIDE    0.45     3.64      79    0.14
    -------------------------------------------------------------------------
                            51.60
                          --------

    -------------------------------------------------------------------------
    X30   17.50     23.00    5.50     OXIDE    2.04     3.64     116    0.26
         --------------------------------------------------------------------
          51.00     90.00   39.00     OXIDE    2.28     3.27      93    0.30
    -------------------------------------------------------------------------
                            44.50
                          --------

    -------------------------------------------------------------------------
    X31  104.00    105.00    1.00     MIXED    1.63     2.41      78    0.40
    -------------------------------------------------------------------------
                             1.00
                          --------

    -------------------------------------------------------------------------
    X32  124.45    130.00    5.55     MIXED    2.12     7.56       7    0.19
         --------------------------------------------------------------------
         157.35    160.00    2.65     MIXED    2.59     3.21      26    0.06
         --------------------------------------------------------------------
         179.00    230.00   51.00  SULPHIDE    2.61     2.93      85    0.27
    -------------------------------------------------------------------------
                            59.20
                          --------
    -------------------------------------------------------------------------
    X33  38.10     70.00    31.90     OXIDE    4.89     2.72     124    0.36
        ---------------------------------------------------------------------
         76.00     85.00     9.00     OXIDE    1.75     5.10      80    0.24
        ---------------------------------------------------------------------
        127.00    175.90    48.90     MIXED    3.01     1.97      59    0.21
        ---------------------------------------------------------------------
        175.90    226.00    50.10  SULPHIDE    0.17     3.40       0   35.00
    -------------------------------------------------------------------------
                           139.90
                          -------
    -------------------------------------------------------------------------
    X34 229.00    231.00     2.00  SULPHIDE    3.82     1.77      32    0.03
        ---------------------------------------------------------------------
        311.00    313.00     2.00  SULPHIDE    0.33     0.33     711    0.04
    -------------------------------------------------------------------------
                             4.00
                          -------

    -------------------------------------------------------------------------
    X35 135.00    144.55     9.55     MIXED    8.82     1.69     147    1.16
        ---------------------------------------------------------------------
        220.40    221.40     1.00  SULPHIDE   24.20    16.60     290    0.42
    -------------------------------------------------------------------------
                            10.55
                          -------

    -------------------------------------------------------------------------
    X36 183.00    194.00    11.00  SULPHIDE    3.88     3.13     106    0.20
        ---------------------------------------------------------------------
        198.00    199.00     1.00  SULPHIDE    2.79     3.69     159    0.26
        ---------------------------------------------------------------------
        201.00    202.00     1.00  SULPHIDE    2.80     1.04     177    0.07
        ---------------------------------------------------------------------
        204.00    206.00     2.00  SULPHIDE    1.26     0.84     122    0.21
    -------------------------------------------------------------------------
                            15.00
                          -------

    -------------------------------------------------------------------------
    X37 138.00    139.00     1.00     MIXED    3.53     0.04     383    0.13
        ---------------------------------------------------------------------
        236.00    240.00     4.00  SULPHIDE    2.58     1.09      49    0.17
        ---------------------------------------------------------------------
        320.00    322.00     2.00  SULPHIDE    0.13     0.22     330    0.01
    -------------------------------------------------------------------------
                             7.00
                          -------

    -------------------------------------------------------------------------
    X38 224.00    233.00     9.00  SULPHIDE    2.97     2.62     145    0.08
        ---------------------------------------------------------------------
        243.00    247.00     4.00  SULPHIDE    1.64     3.15      85    0.48
    -------------------------------------------------------------------------
                            13.00
                          -------

    -------------------------------------------------------------------------
    X39 NSI
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    X40 242.10    255.50    13.40  SULPHIDE    5.99     5.12      80    0.33
        ---------------------------------------------------------------------
        281.70    285.40     3.70  SULPHIDE    3.33     2.13      44    0.06
    -------------------------------------------------------------------------
                            17.10
                          -------

    -------------------------------------------------------------------------
    X41 226.00    238.00    12.00  SULPHIDE    2.64     2.71      73    0.29
    -------------------------------------------------------------------------
                            12.00
                          -------

    -------------------------------------------------------------------------
    X42 181.00    182.00     1.00  SULPHIDE    7.32     0.64     170    0.06
    -------------------------------------------------------------------------
                             1.00
                          -------

        FIGURE 1. INTERSECTIONS & GRADES OF MINERALISED CORE FROM THE
                          INFILL DRILLING AT BILBAO

    




For further information:

For further information: www.xtierra.ca or contact: Terence McKillen:
President & Chief Executive, (416) 362-8243; Tim Gallagher: Director, (416)
925-0090; Alejandro Alaniz: Director Finance & Administration (Mexico), +52
(492) 925-0804

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