Mr. Darren Blaney reports

NEWTERRA RESOURCES ENTERS INTO OPTION AGREEMENT TO ACQUIRE FERDINAND GOLD PROPERTY LOCATED IN RED LAKE DISTRICT OF ONTARIO

Newterra Resources Inc. has entered into an option agreement to acquire a 100-per-cent interest in the Ferdinand gold property, located within the Red Lake mining district in the province of Ontario, Canada.

The Ferdinand gold property is a large strategic land position exceeding 15,000 acres, located within the prolific Confederation-Uchi greenstone belt and straddling the Fry-Bamaji Deformation zone. The project is located near First Mining's Springpole gold project and in the same region as the Kenorland/Auranova South Uchi project.

This portion of the Red Lake greenstone belt has recently seen significant staking activity in the last several weeks with companies such as Kenorland, Elemental Royalty, Kinross and First Mining all now holding significant land packages in the area.

Darren Blaney, chief executive officer, commented: "We are very pleased to have secured the Ferdinand gold property as we believe it has great potential. Even though the property is located within a highly prospective geological region, very little known historic exploration has occurred on the property due to past inaccessibility challenges. Very recent logging operations have now opened access considerably with new logging roads and cutblocks potentially exposing previously unsampled bedrock structures. We look forward to getting boots on the ground."

Terms of the transaction

The company has signed a three-year option agreement with Gravel Ridge Resources Ltd. and a private company owned by Perry English, pursuant to which the company may acquire a 100-per-cent interest in the Ferdinand gold property. In order to fully exercise its option and acquire the Ferdinand gold property, over a three-year period, the company will pay an aggregate of $77,000 and issue 300,000 common shares of the company. The optionors will retain a 1.5-per-cent net smelter return (NSR) production royalty. The company or its assigns will have the right to purchase a 0.5-per-cent royalty for $600,000, leaving the optionors with a 1.0-per-cent royalty. All securities issued in connection with the agreement will be subject to a hold period expiring four months and one day from their date of issuance in accordance with the policies of the Canadian Securities Exchange and applicable securities laws.

About Newterra Resources Inc.

Newterra is a gold and silver exploration company lead by experienced management with a record of discovery.

The company holds a 100-per-cent interest in the Iron Horse project, located near Kelowna, in the province of British Columbia.

We seek Safe Harbor.