XAG Xtierra Inc

Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company"), announces that it
has received a new independent resource estimate, compliant with National
Instrument 43-101, for the Bilbao zinc-lead-silver-copper-gold deposit located
in Zacatecas, Mexico. 


The new resource estimate shows a 10% increase in Indicated Resources from the
February 2010 estimate to 10.62 million tonnes and represents a 6% increase in
total metal content, as zinc equivalent, from 650,565 tonnes Zneq to 688,258
tonnes Zneq. 


The following table summarises the overall results of the resource estimation
completed for the Bilbao Deposit, using a 3% ZnEq cut off (includes sulphide,
oxide and mixed resource categories):




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Resource Category            Tonnage    Lead    Copper     Zinc     Silver 
                     (million tonnes)     (%)       (%)      (%)      (gpt)
---------------------------------------------------------------------------
Indicated Resources            10.62    2.00      0.19     2.13      53.81 
Inferred Resources              0.43    1.73      0.18     1.44      46.39 
---------------------------------------------------------------------------
---------------------------------------------------------------------------



In the indicated category, sulphide resources represent 50% of the resource (up
from 35% in the 2010 estimate), mixed oxide and sulphide resources represent 15%
(down from 22%) and oxide resources represent 35% (down from 43%) of the total
Indicated Resource. For the purpose of determining resources at various cut-off
grades, zinc equivalent values were determined, based on the average LME metal
prices during the 24 month period January 2009 to January 2011. Such average
prices are given in the table below. When calculating zinc equivalent values,
metallurgical recoveries and net smelter returns are assumed to be 100%.




---------------------------------------------------------
---------------------------------------------------------
Metal                      Price US$                Unit 
---------------------------------------------------------
Silver                         17.89           Ounce (oz)
Lead                            0.88           Pound (lb)
Zinc                            0.87           Pound (lb)
Copper                          3.31           Pound (lb)
---------------------------------------------------------
---------------------------------------------------------



Commenting on the new resource estimate, Terence McKillen, Xtierra's President
and CEO, stated: "We are very pleased to report that substantially all of the
resources have now been moved into the Indicated category. The contained metal
in the current Indicated Resource of 10.62 Mt, in zinc equivalent, represents a
6% increase over that in the 2010 resource estimate and is similar to the total
contained metal, in zinc equivalent, contained in the combined Inferred and
Indicated tonnages from the 2010 resource estimate, indicating that there has
been no loss in total contained metal by moving the previous inferred resources
to the Indicated category. The independent report also concluded that the
potential to identify additional mineralized bodies within Xtierra's large
exploration holdings in the general Bilbao area remains excellent." 


The resource report was prepared by independent consulting mining geologist,
Richard T.G. Parker, C.Eng., a 'Qualified Person' within the meaning of NI
43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators. Mr. Parker also prepared the previously published resource
estimates for the Bilbao project (November 2008 and February 2010). 


The new resource estimate has been calculated at a 3% ZnEq cut off similar to
that in the previous estimate. Results of infill drilling completed in Q4 2010
have been included. An empty block model was created for all of the wireframed
zones. A parent block size of 5m x 5m x 2m was selected, with the vertical
dimension (2m) being the smallest. Sub-blocking down to 2.5m x 2.5m x 1m was
undertaken to maintain good resolution on the wireframe margins. Block
dimensions were selected on the basis of the observed dimensions of the majority
of mineralised lenses and in order to conform to the potential mining method and
proposed open pit bench height.


The Inverse Distance Squared ("ID(2)") estimation technique was utilised. The
"inverse distance" technique belongs to a distance-weighted interpolation class
of methods where the grade of the block is interpolated from several composites
within a defined distance of the block, using the inverse of the distance
between a composite and the block as the weighting factor. 


A search ellipsoid was selected based on axes equal to two thirds of the ranges
derived from variograms (i.e., 40m, 40m, 20m), which is commonly recognised as
appropriate to Indicated resources. Searches using these parameters were applied
to the Core Domains to interpolate block grades Indicated Resources. A small
number of blocks in the Core Domains fell outside the criteria of search. These
blocks were identified and selected for grade interpolation by search, involving
longer axes (i.e., 80m, 80m, 40m) and a decrease in the minimum number of points
from 3 to 1. Grade interpolation into block models was performed for each of the
metals assayed (Pb, Zn, Ag and Cu) and for the calculated value for zinc
equivalent (Zneq), in order to create a grade model for all metals.


Grade model plots were combined with drillhole plots and geological cross
sections in order to enable comparison and visual verification of assigned block
grades by confirming that the block grades in most areas are in close conformity
to the geological interpretation and in particular to the extent and orientation
of interpreted mineral zones. 


Relevant diamond drill data is based on 74 holes, mostly vertical to a maximum
depth of 420 metres, for an aggregate total of 18,820 metres. The 50 metre drill
grid used at Bilbao is considered adequate for geological and grade continuity
between intersections in adjacent drill holes to be reasonably assumed within
the Core Domains. 


The present resource estimate records a higher Indicated tonnage of 10.62 Mt
than the previous 2010 estimate (9.68 Mt) due principally to the inclusion of
the Q4 2010 drilling results allowing conversion of resources previously in the
Inferred category to the Indicated category. The 2011 estimate is considered to
be more reliable than the 2010 estimate in view of the following factors:




--  The 2010 estimate used a larger parent block size, probably resulting in
    excessive 'smearing' of high grades. 
--  Zones were insufficiently constrained by wireframes in the 2010
    estimate, leading to an overestimate of tonnage, especially in the
    Inferred category. 
--  The 2010 estimate did not take fully into account the estimate of 1
    million tonnes of historically mined out oxide material 



Additional Resource Potential 

Potential to increase the Bilbao resource exists, particularly at depth to the
south and southwest where a number of intersections on the margins of the drill
grid indicate untested extensions. The deeper intersections in holes X84B and
X85 comprise vein silver mineralisation rather than carbonate replacement-type
mineralisation. More detailed drilling will be required to define these vein
style targets with sufficient confidence to support a resource. The upper
mineralization in holes X84B and X83 correlate well with an intersection in
drill-hole CG4 (geotechnical) which has been recognized as a new manganese-rich
breccia zone on which drilling is currently being conducted on which 4 holes and
2,100 metres of a planned 3,000 metre program have been completed.


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, 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.


Richard T.G. Parker 

Richard T.G. Parker is an independent consulting mining geologist. He received
the degree of Bachelor of Science in Geology from the University of
Newcastle-upon-Tyne, England in 1968 and is a Chartered Engineer registered with
the Engineering Council (UK), a Professional Member of the Institute of
Materials, Minerals and Mining and a Fellow of the Geological Society of London.
Mr. Parker has practiced as a geologist specializing in Mineral Exploration and
Development for 40 years and as a Chartered Engineer for 27 years. A copy of the
Parker report will be filed on SEDAR.


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 103,262,142 shares
issued and outstanding. The Company is completing 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.

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