XAG Xtierra Inc

Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company"), is pleased to
announce receipt of regulatory approval for a 2,000 metre 8-hole programme of
infill drilling on the main Bilbao deposit with a view to improving confidence
in the resource blocks that would be mined within the first three to four years
of underground production. Down-the-Hole Electromagnetic ('DHEM') testing of the
sulphide intersections of the infill drill holes has been commissioned as well
as on a further five previously drilled holes. The DHEM testing will endeavour
to provide a possible geological "signature" which could assist in the search
for potential lateral and depth extensions to the deposit. A drill contractor
has been mobilised to the project site.


The potential to identify additional mineralized bodies at the Bilbao property
is believed to be excellent. The occurrence of stacked lenses of mineralization
in sediments close to the contact of the La Blanca granodiorite suggests that
similar bodies may also occur along that contact elsewhere on the Company's
property or district-wide in a similar geological context. As part of the Bilbao
development plan and in conjunction with the ongoing Feasibility Study, the
Company has continued exploration work in and around the Bilbao deposit area, as
well as in other mineral claims it holds within the immediate Panfilo Natera
Mining District in the search for Bilbao-type mineralization.


Silver-Rich Zone 

In particular, the Company has focused recent exploration in the southern part
of the Bilbao project to investigate two types of silver-rich targets situated
immediately to the south of the main Bilbao deposit. The targets, all with high
grade silver content, comprise high angle hydrothermal veins and more massive
stratiform, brecciated limestone horizons. In a program of drilling in June and
July, 2011, six separate mineralized veins and/or fault-fillings were
identified. Four of the mineralized fault structures trend NNW-SSE while another
two veins strike NNE-SSW. The former have strong base-metal values while the
latter contain silver values of up to 664g/t silver. The width of these
structures varies, with veins averaging about 1m true thickness and
fault-fillings up to 12m in thickness. 


A programme of five drill holes (1,928 metres) was completed in April 2012 and
confirms the down dip continuity of the argentiferous breccia zone for a further
one hundred metres to the south, with a particularly strong development in
drill-hole X96 which intersected 5.10m at a grade of 372.5g/t Ag. The remaining
four holes intersected narrow widths of greater than 200 g/t Ag. The
silver-enriched zone at Bilbao is now known to extend over an area 350 x 100m in
a north-south direction and appears to occupy a brecciated zone within the
limestone sequence, the thickness of which is variable from about four to 20
metres. The resource estimate for Bilbao does not include these newly found
silver rich veins and 'flats' which are expected to eventually contribute to the
silver resource at Bilbao. 


Qualified Person

Information of a scientific or technical nature contained in this release has
been prepared by or under the supervision of Terence N. McKillen, P.Geo., Chief
Executive Officer, Gerald J. Gauthier, P.Eng., Chief Operating Officer and Dr.
Anthony C. Gallon, C.Eng., Chief Geologist, all 'Qualified Persons' within the
meaning of National Instrument 43-101 - Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators.


About Xtierra Inc. 

Xtierra Inc. is a Toronto based exploration and development company listed on
the TSX Venture Exchange under the symbol "XAG". There are 103,272,142 shares
issued and outstanding. The Company is completing a feasibility study on its
Bilbao silver-zinc-lead-copper project in Zacatecas, Mexico which is expected to
be completed in Q3 2012. Xtierra's objective is to become a mid-tier producer of
precious and base metals through the development of its Bilbao project as well
as through exploration, organic growth and M & A opportunities. 


For further information visit www.xtierra.ca.

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