Bilbao Project update - Preliminary metallurgical tests indicate excellent metal recoveries from oxide ores

    TORONTO, Jan. 22 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra"), is
pleased to provide a further update on its Bilbao Silver-Zinc-Lead-Copper
Project in Zacatecas, Mexico.
    Preliminary metallurgical test work on the oxide facies mineralization at
Bilbao indicates that a high intensity magnetic separation process results in
the creation of a pre-concentrate that is amenable to acid leaching and from
which silver, lead, zinc, copper and gold can be successfully recovered.

    Metallurgical Testing

    Metallurgical test work, carried out at the Metallurgical Institute of
the University of San Luis Potosi by Dr. Alejandro Lopéz Valdivieso and Dr.
Shaoxian Song, using a process of high intensity magnetic concentration (HIMC)
on oxide mineralization considered to be of average deposit grade, resulted in
a marked pre-concentration of silver, lead, zinc and copper with no
significant loss of any of these metals. Recoveries in the pre-concentrate
were 86% for silver, 95% for lead, 88% for zinc and 70% for copper with the
percentage of iron being reduced from 22% to 7.2%.
    With such a major reduction of iron oxide in the concentrate, the
sulphuric acid consumption will be greatly reduced in the zinc and copper
leaching process. The residue, containing 35% iron, may also be a marketable
product to the cement industry.
    Earlier test work on the deeper sulphide mineralization indicates
excellent metal recoveries and the production of normal zinc, lead and copper
flotation concentrates.

                          % wt   Grade g/t   %        %        %        %
                                    Ag       Pb       Zn       Cu       Fe
    Feed                 100.00    80.50     3.74     1.96     0.27    22.28
     Pre-Concentrate      45.12   153.00     7.87     3.82     0.42     7.23
    Magnetic Residue      54.88    21.00     0.35     0.43     0.14    34.67

                                       Distribution %
                           Ag       Pb       Zn       Cu       Fe
    Feed                 100.00   100.00   100.00   100.00   100.00
     Pre-Concentrate      85.70    94.94    87.94    70.19    14.64
    Magnetic Residue      14.30     5.06    12.06    29.81    85.36

    Table 1: Pre-concentrate upgrade of Oxide Mineralization from Bilbao by
                     High Intensity Magnetic Separation
       (all analyses carried out at the University of San Luis Potosi)

    Xtierra plans to conduct more extensive metallurgical test work on the
oxide, sulphide and mixed ores at Bilbao as part of a planned feasibility
study to be carried out during 2009 which will include optimization of the
operating parameters for the HIMC process.
    The Bilbao project is owned 100% by Xtierra's Mexican operating
subsidiary. An independent NI-43-101 resource estimate was recently completed
comprising 3.6 million tonnes indicated resources at an average grade of 3.53%
zinc, 2.75% lead, 0.29% copper and 88.23g/t silver and 2.4 million tonnes
inferred resources at an average grade of 2.52% zinc, 2.79% lead, 0.28% copper
and 83.08g/t silver. The deposit remains open to the northwest and to the

    Comment by CEO

    Commenting on the update, Xtierra's President & CEO, Terence McKillen,
said, "We are very pleased by the preliminary metallurgical test results for
the oxide mineralization which suggest that an upgraded pre-concentrate can be
produced through a process of high-intensity magnetic separation. This
pre-concentration process is used extensively in the mineral sands industry
and will reduce overall consumption of reagents, improve metal recoveries and
lead to operating cost efficiencies."

    Qualified Person

    Mr. Terence N. McKillen, P.Geo., and Mr. Gerald J. Gauthier, P.Eng.,
Qualified Persons (as defined in National Instrument 43-101) supervised the
preparation of the scientific and technical information reflected in this
press release, unless otherwise indicated.

    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 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.


    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.

For further information:

For further information: visit 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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