Step-out drilling commences at Bilbao project, Zacatecas

Xtierra Inc. announce that planned step-out drilling has commenced at its Bilbao zinc-silver-copper-lead project in Zacatecas, Mexico. The drilling will comprise of approximately 4,000 metres to evaluate the continuity of the mineralization to the northwest of the existing deposit where recently completed hole X-42 identified significant mineralization. Drilling will also concentrate to the southwest where the deposit also remains open as it dips below Tertiary volcanic cover rocks. Drilling will be carried out under the supervision of Dr. Anthony Gallon, C.Eng., Chief Geologist, who is a ‘qualified person’ within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

A NI 43-101 compliant resource estimate is currently being prepared on the existing oxide and sulphide resources at Bilbao and metallurgical test work on optimizing metal recoveries from the oxide mineralization is being conducted at SGS Lakefield and the University of San Luis Potosi.

Xtierra expects to complete a full feasibility study on the Bilbao project early in 2009.

Xtierra Inc. is a Toronto based exploration and development company listed on the TSX Venture Exchange. Xtierra’s shares trade under the symbol “XAG”. Xtierra has recently completed $8.8 million in private placement financings and has 49,862,003 shares issued and outstanding.

Xtierra’s objective is to become a mid-tier producer of silver and base metals through the development of its Bilbao and Laguna projects, both located in the Central Mexican Silver Belt in the State of Zacatecas, as well as through organic growth and M & A opportunities.