Xtierra commences drilling at Pinos gold project

TORONTO , Jan. 11 /CNW/ - Xtierra Inc. (TSXV - XAG) ("Xtierra" or the "Company"), is pleased to announce that drilling has commenced on its El Dorado gold project located in the historic Pinos gold district of the Central Mexican Mineral Belt, in southeastern Zacatecas State. The drilling is being carried out by Tecmin Servicios, S.A. de C.V. 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. The program comprises an initial 2,000 metres of surface and underground drilling.

The El Dorado Property

The El Dorado gold project comprises 2,890 hectares in southeast Zacatecas, about 80km southeast of Xtierra's Bilbao silver-zinc development project. Gold mineralization at El Dorado occurs as veins and in quartz stockworks related to late-stage extensional faulting developed within an intrusive quartz-eye rhyolite. Xtierra has discovered an extensive gold-bearing stockwork encompassing the El Dorado vein and several other parallel vein structures. The stockwork is open-ended to the northeast and trends directly into a second stockwork body, located over 300 metres away from the El Dorado vein which appears to have a strike of at least 1,000 metres.

The El Dorado gold-silver vein system and surrounding quartz stockworks do not appear to have been previously tested by drilling. A similar first ever drill program in 2006 led to the discovery of Xtierra's Bilbao silver-zinc deposit and reinforces the prospectivity of the Central Mexican Mineral Belt to host new mineral discoveries in historic mining areas.

About Xtierra Inc.

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 49,862,003 shares issued and outstanding. Xtierra is conducting a feasibility study on its 100% owned Bilbao silver-zinc-copper project in Zacatecas, Mexico . Xtierra's objective is to become a mid-tier producer of precious and base metals through the development of its Bilbao and Laguna projects, both located in the Central Mexican Mineral Belt in the State of Zacatecas, as well as through exploration, organic growth and M & A opportunities.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

For further information: visit www.xtierra.ca or contact: Terence McKillen, President & Chief Executive, [phone]; Tim Gallagher, Director, [phone]; Alejandro Alaniz, Director Finance & Administration (Mexico), [phone]