PanTerra Resource Corp. - Grant of Options

TSX-V: PRC

CALGARY, May 27, 2011 /CNW/ - PanTerra Resource Corp. (TSX.V:PRC) (The "PanTerra" or the "Company") wishes to announce that pursuant to the terms and conditions of its Stock Option Plan, it has granted, in the aggregate, 300,000 incentive stock options (the "Options") to a certain new officer and two new directors of the Company. The Options will be exercisable for a five year period at $0.22 per share and will vest immediately.

PanTerra is a diversified junior public oil and gas company listed on the TSXV (PRC.V) with holdings in both conventional and unconventional projects in Western Canada. The Company has a current operated production base of 75 BOPD and 100 Mcf/d gas with excellent optimization and exploitation potential.  Additionally PanTerra holds 'rights' in approximately 119,000 acres in various properties in Western Canada. PanTerra trades on the TSX Venture Exchange under the symbol "PRC".

Company information can be found at: www.panterraresource.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE PanTerra Resource Corp.

For further information:

Fred P. Rumak P.Geol.   
President and C.E.O. at 403-261-5900 
fred@panterraresource.com