X-Terra Resources completes Québec Lowlands gas shale farm out with Brownstone Ventures Corp.


    ROUYN-NORANDA, QC, Oct. 29 /CNW Telbec/ - X-Terra Resources Corporation
(XT-TSXV) and Brownstone Ventures Inc. (BWN-TSXV) are pleased to announce that
they have received confirmation from the Ministère des Ressources Naturelles
et de la Faune of the Province of Québec that the final permits for the
exploration licenses for petroleum and natural gas on its shale properties
located in the Québec Lowlands (namely, Shawinigan, Rimouski and Rimouski
North) (the "Québec Shale Licenses") have been received and the parties have
now completed the previously announced acquisition by Brownstone of a 50%
interest in the Québec Shale Licenses. Pursuant to the assignment agreement
dated June 10, 2008, Brownstone issued 2,000,000 common shares and
2,000,000 common share purchase warrants to X-Terra. Each warrant entitles
X-Terra to purchase one common share of Brownstone at a price of $2.00 per
share until October 28, 2010. The common shares, warrants and common shares
underlying the warrants are subject to a four month hold period expiring on
March 1, 2009. Subsequent to the transfer of the 50% interest in the Québec
Shale Licenses, X-Terra and Brownstone will entered into an operating
agreement pursuant to which Brownstone shall become the operator of an
exploration program for the territory covered by the Québec Shale Licenses.
    In connection with this transaction, X-Terra will issue, subject to
regulatory approval, 150,000 units to PowerOne Capital Markets Limited of
Toronto, Ontario, as a finder's fee. Each unit will be comprised of one common
share of X-Terra and one common share purchase warrant. Each warrant will
entitle PowerOne to purchase an additional common share of X-Terra for a
period of two years at a price of $1.50 per share. Under applicable securities
legislation and policies of the TSX Venture Exchange, the common shares and
warrants issued in connection with this transaction will be subject to a four
months hold period.
    The Québec Shale Licenses cover a total of 159,991 hectares in the Québec

    About X-Terra Resources:

    X-Terra is a resource company focused on acquiring and exploring energy
properties in Canada. X-Terra Resources has 12,078,069 shares outstanding.

    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: Martin Dallaire, President and CEO, (819)
762-0609, Fax: (819) 762-0097, info@xterraresources.com,

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