XAG Xtierra Inc

Xtierra Inc. (TSX VENTURE: XAG) ("Xtierra" or the "Company"), is pleased to report the discovery of a new high grade silver zone at its Bilbao project in central Zacatecas, Mexico.

Drill-hole CG-4, undertaken as part of the geotechnical portion of a feasibility study for the proposed open-pit at Bilbao, encountered economically significant silver values in a newly identified brecciated fault zone. The new target occurs stratigraphically above the high grade silver targets subject to investigation by the drilling program previously announced (March 2, 2011) and occurs towards the south-eastern extremity of the proposed open-pit.

The new silver mineralization occurs in a brecciated, manganiferous limestone at least 5.70metresin thickness (core length which is considered to be more or less a true width), from a depth of 120.00m to 125.70m, with an average grade of 247g/t silver. This same horizon has also been identified in drill-hole X-85, previously drilled by Xtierra within the main Bilbao resource, on the projected down dip extension to the zone. The table below shows the mineralization intersected in drill-hole CG4.

----------------------------------------------------------------------------
From              To  Interval    Silver     Gold     Lead     Zinc   Copper
(m)              (m)       (m)       g/t      ppb        %        %        %
----------------------------------------------------------------------------
120.00        125.70      5.70    247.05     6.49     0.33     0.26     0.01
----------------------------------------------------------------------------
217.35        220.90      3.55     11.51     6.48     0.50     0.44     0.05
----------------------------------------------------------------------------

Drill-hole CG4 occurs in a previously untested area of the project, 100m to the east of drill hole X-85 and 50m south of drill hole X-41, indicating continuity of mineralization in the south-eastern sector of the deposit and which is likely to add to the currently defined mineral resource.

The new diamond drilling program investigating the high grade silver zone previously encountered along the western margin of the Bilbao deposit extending over a strike length of at least 300 metres will also investigate this new silver-rich zone which is located approximately 180 metres to the south-southeast. In addition, drilling will be undertaken on several geophysical targets and on a new silver-lead geochemical anomaly target at the Ardillas prospect located 1.5km to the north-east of Bilbao.

Commenting on the results, Xtierra's President and CEO, Terence McKillen said, "The discovery of this new silver-rich zone to the southeast of the proposed Bilbao open pit is an important development and one which could positively impact the Bilbao resource estimate. Results of the current drill program following up on this and the western zone of high grade silver will be awaited with interest."

Analytical Method

Samples from half-core were prepared at the Stewart Group laboratory in Zacatecas and initially analyzed for 38 element content using ICP-MS (inductively coupled plasma - mass spectrometry) by the Stewart Group (Eco-Tech Laboratory) in Kamloops, British Columbia. Values exceeding the limits of detection are automatically re-analyzed by Fire Assay or Atomic absorption spectrometry (AAS) methods respectively. Standards and blanks were used regularly for quality control.

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 and Dr. Anthony C. Gallon, C.Eng., Chief Geologist, both '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 100,619,448 shares issued and outstanding. The Company is conducting a feasibility study on its Bilbao silver-zinc-lead-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 project as well as through exploration, organic growth and M & A opportunities.

For further information visit www.xtierra.ca.

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.

Contacts: Xtierra Inc. Terence McKillen President & Chief Executive +1 (416) 362-8243 Xtierra Inc. Tim Gallagher Director +1 (416) 925-0090 Xtierra Inc. Alejandro Alaniz Director Finance & Administration (Mexico) +52 (492) 925-0804 www.xtierra.ca