Mr. Darren Blaney reports

NEWTERRA RESOURCES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Newterra Resources Inc. has arranged a non-brokered private placement of flow-through (FT) common shares and non-flow-through (NFT) units for aggregate gross proceeds of up to $176,000.

The FT shares will be offered at a price of 16 cents per FT share, for gross proceeds of up to $120,000. Each FT share will be issued as a flow-through share within the meaning of the Income Tax Act (Canada). The company intends to use the proceeds from the sale of the FT shares to incur eligible Canadian exploration expenses that are intended to qualify as flow-through mining expenditures (as those terms are defined in the tax act) related to the company's mineral properties in Ontario.

The NFT units will be offered at a price of 14 cents per NFT unit, for gross proceeds of up to $56,000. Each NFT unit will comprise one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one non-flow-through common share of the company at a price of 20 cents for one year. The company intends to use the proceeds from the sale of the NFT units for general working capital purposes.

The FT shares and NFT units will be offered to qualified investors in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The company may pay finders' fees to eligible finders in connection with the offering, subject to compliance with applicable securities laws and the policies of the Canadian Securities Exchange.

All securities issued and sold under the offering 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.

Directors and officers may participate in the offering. Participation by directors and officers will constitute a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Such participation is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities that may be acquired by the insiders, nor the consideration for the securities that will be paid by such insiders, is expected to exceed 25 per cent of the company's market capitalization.

About Newterra Resources Inc.

Newterra Resources 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 and an optioned interest in the Willans gold property, both of which are located in the Red Lake mining district of Northwestern Ontario.

We seek Safe Harbor.