Terra Announces Acquisition of Alberta Oil Assets

Terra Ventures Inc. announces that its newly incorporated and wholly-owned Calgary based subsidiary, Terrex Energy Inc. (“Terrex”), has entered into a purchase and sale agreement to acquire a 100% interest in a basal quartz oil pool in central Alberta from a private oil and gas company, for a purchase price of $650,000. The pool is currently producing approximately 80 barrels of oil equivalent per day and has produced nearly 5 million barrels of oil to date. The management of Terrex has assessed that this asset has the potential for significant undeveloped long term oil exploitation and is the first step in a larger acquisition and exploitation business plan. Terrex activities will provide an attractive compliment and diversification to the Company’s existing operations.

The Company plans to use Terrex to carry out its proposed spinoff transaction that was originally announced on November 26, 2009. The Company has appointed Kim Davies and Harry Knutson as directors of Terrex and has appointed Norm Knecht Chief Financial Officer. Mr. Knutson is the Chairman of Nova Bancorp Group, an investment banking firm he founded in 1982. He is also a director of Bonavista Energy Trust and Pure Energy Services Ltd. Ms. Davies and Mr. Knecht have extensive oil and gas experience, both having served in a variety of senior positions over the past 15 years. Ms. Davies served as Vice President of Exploration and New Ventures at Compton Petroleum from 1996 until 2006. Mr. Knecht served as Chief Financial Officer of Compton Petroleum from 1997 until 2009. Terrex will add to its management team before completion of the spinoff transaction.

The Company has entered into a letter agreement with Terrex whereby the companies have agreed to work to complete the spinoff transaction, including the completion of additional financing for Terrex. The spinoff transaction will be effected by way of a statutory plan of arrangement pursuant to which all of the Company’s shares in Terrex will be distributed to its shareholders. It is a condition of the spinoff transaction that the shares of Terrex be listed on a stock exchange at the time the transaction is completed. The spinoff transaction is subject to approval by Terra’s shareholders and the TSXV. Terra expects to be able to complete the transaction before the end of March, subject to receipt of all required approvals.