Mr. Darren Blaney reports

NEWTERRA RESOURCES ENTERS INTO OPTION AGREEMENT TO ACQUIRE WILLANS GOLD PROPERTY LOCATED IN THE RED LAKE MINING CAMP OF ONTARIO

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

The Willans gold property is a large, strategic, contiguous land position exceeding 5,700 hectares within the projected eastern extension of the main Red Lake mine trend. The property is located approximately 15 kilometres east of Evolution Mining's Red Lake mine and approximately 10 kilometres north of Kinross's Great Bear Dixie deposit. The Willans gold property is immediately adjacent to, and borders on three sides, Kinross's Sobel project.

The highly prospective geological contact between the Balmer and Confederation assemblages is interpreted to intersect through the Willans property. Historically, the most significant gold deposits in the Red Lake camp have been discovered within several hundred metres of this specific contact.

The Willans gold property is highly accessible, with the southern boundary located only eight kilometres from paved Highway 105 into Red Lake and an extensive network of forest service logging roads and logging cutblocks covering much of the property.

Darren Blaney, chief executive officer, commented: "We are very pleased to have secured a second highly prospective gold property in the Red Lake mining camp. The combination of the Willans gold property's close proximity to the Red Lake mine complex, along with it being on trend and with similar underlying geology, make it a highly strategic piece of ground. We look forward to getting on the property this spring."

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 (the optionors), pursuant to which the company may acquire a 100-per-cent interest in the Willans gold property. In order to fully exercise its option and acquire the Willans gold property, over a three-year period, the company will pay an aggregate of $101,050 and issue 300,000 common shares of the company. The optionors will retain a 1.5-per-cent net smelter return 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 CSE and applicable securities laws.

About Newterra Resources Inc.

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

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

The company also holds an optioned interest in the Ferdinand gold project, located in the Red Lake mining district of Northwestern Ontario.

We seek Safe Harbor.