Overview

Xtierra Inc. (CVE:XAG) is a Toronto-based company that  has focused its attention on the Mexican states of Zacatecas and San Luis Potosi, which are the center for Mexican precious and base metal production. Xtierra's key properties are the Bilbao, Laguna, and the Pinos projects. Pacific Road Resource Funds, comprising two Australian-based and one international private equity funds, have an option to provide up to US$32.5 million of project construction capital for the Bilbao and Laguna projects.

Investment Highlights

• Near term production opportunities - targeting production in 2012 or sooner
• Drilling at Pinos Gold Project started in January 2010
• >20,000 hectares of exploration licenses in the Central Mineral Belt of Mexico

Chief Properties

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Bilbao Project: Zinc-Lead-Silver

Located in the  Panfilo Natera mining district, in the state of Zacatecas, the Bilbao project consists of nine exploitation concessions, covering approximately 1,400 hectares.

In January 2010, Xtierra has completed the first phase of a Feasibility Study on the property. The study focused primarily on the metallurgy of the near-surface oxide mineralization and the development of a flow-sheet and process providing acceptable recoveries of lead, zinc, silver, copper and gold. In February 2010, as part of the Feasability Study,  Xtierra announced a new resource estimate of 9,680,000 tonnes indicated resource at an average grade of 2.43% zinc, 2.09% lead, 0.21% copper and 59.4 g/t silver and 4,040,000 tonnes of inferred resources averaging 1.43% zinc, 1.55% lead, 0.18% copper and 53.64 g/t silver. The new independent NI 43-101 compliant resource estimate was preapred Richard T.G. Parker, C.Eng.

The Resource Estimate as at February 10, 2010 (3% zinc equivalent cut-off) is:

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The Company continues drilling the limits of the mineralization at Bilbao to the south and northwest through a programme of step-out drilling as well as to search for additional, replacement lenses at greater depth.

The Company has now commenced the second phase of the Feasibility Study. On July 7th, 2010, Xtierra reported that nine holes totally 2,132 meters, as part of a 5,000 meter drill program, were completed. The Company announced that the mineralization in the first two step-out holes (X-84 and X-85), extended the outer limits of the Bilbao deposit for at least additional 50 meters. Both of the holes encountered higher grade zinc and lead values than for the deposit as a whole.

Xtierra plans to drill a total of about 40 holes - to be completed in four parts: (1) step-out drilling to the south and southwest of the existing silver-zinc-lead-copper deposit to define additional sulphide resources and to follow up previously intersected high silver vein mineralization; (2) in-fill drilling within the current resource to upgrade resource categorization and for geotechnical data; (3) condemnation drilling in the area of the proposed mine installations; and (4) initial exploration drilling at the Gaby Marina and Cata Negra prospects, both within 5km of Bilbao. The Company will complete a revised NI 43-101 Resource Estimate following the completion of drilling. The current NI 43-101 resource estimate includes 28 million ounces silver or 140 million silver equivalent ounces.

La Laguna Pedernalillo (Laguna) Project: Silver-Gold-Mercury

The Laguna project is located  near the city of Zacatecas. The project is the subject of a bankable feasibility study completed by Micon International which contains an estimated mineral reserve of 6,799,000 t, containing an average of 57.92 g/t silver, 0.31 g/t gold and 328.92 g/t mercury.

Xtierra has entered in to an Option & Sale Agreement with respect to the Laguna project with Indo Gold Ltd. of Brisbane, Australia who are conducting preliminary due diligence prior to an election to bring the project into production.

Pinos Project - Gold

In April 2010, Xtierra announced the results of a preliminary diamond drilling program at El Dorado. Five inclined holes were drilled at angles between -35 and -45 degrees for a total of 1,384.55 meters. The project is located 7 km northeast of the historic Pinos gold district. Historic records show grades of more than 200 grams per tonne (g/t) gold, and suggest the average mine grade was 97 g/t silver and approximately 58 g/t gold.

The El Dorado project is an early exploration phase project. Further work will be undertaken in order to ascertain the full potential of the prospect, which has potential for high grade epithermal gold and silver veins as well as lower grade stockwork mineralization.

Management

Terence N. McKillen - President & CEO, Director
A professional geologist (P.Geo) and business executive with 40 years of experience in the mining industry. Mr. McKillen has extensive exploration and development experience in North and South America, Europe, Africa and Southeast Asia. He has been involved in the discovery and/or development of a number of precious, base metal and strategic mineral deposits worldwide. He is currently Chief Executive of Minco Plc and Executive Vice-President of Labrador Iron Mines Holdings Limited and a Director, President & CEO of Conquest Resources Limited. He was formerly Vice-President Exploration of Northgate Exploration Limited and Campbell Resources Inc.

John F. Kearney - Chairman & Director
Age 59, Mr. Kearney has 30 years experience in the mining industry. He is currently the Chairman and President of Labrador Iron Mines Holdings Limited and Chairman of Canadian Zinc Corporation, Conquest Resources Limited, Sulliden Exploration Inc., Minco plc., and Anglesey Mining plc. In addition, Mr. Kearney is currently a director of Avnel Gold. Mining Limited. Previously, he was Chairman, President and Chief Executive Officer of Northgate Exploration Limited; Campbell Resources Inc. and Sonora Gold Corp. He also currently serves as a director of the Mining Association of Canada. Mr. Kearney holds degrees in law and economics from University College Dublin and an M.B.A. degree from Trinity College Dublin. He qualified as a solicitor in Ireland and as a chartered secretary with the Institute of Chartered Secretaries and Administrators in London. Mr.Kearney is also a member of the Canadian Institute of Mining and Metallurgy, the Prospectors and Developers Association of Canada and the Law Society of Ireland.

Danesh . Varma - Chief Financial Officer
Danesh Varma (FCA, ATII) has over 30 years experience in the international finance and mining sectors. Mr. Varma is currently CFO of Candian Zinc Corporation and Minco plc. He is currently a director and CFO of Anglesey Mining plc, Conquest Resources Limited and Minco plc and Corporate Finance Partner in Beer & Partners Limited. Mr. Varma was formerly President and Managing Director of American Resource Corporation Limited, Dundee Bancorp, Dundee Investment Management and Research Ltd. and Dundee Mutual Funds India in addition to holding the post of director and Vice President of the Dundee Bank Cayman. He was formerly a director of Northgate Exploration Limited and Westfield Minerals Limited

Tim Gallagher - Director
Tim Gallagher is a graduade in commerce from McMaster University, and holds a Master of Business Administration from York University and is a Chartered Financial Analyst. He has been Chief Executive Officer and Chief Financial Officer of Antamena Capital Corp. since incorporation in March 2007. He has been a director or senior officer of a number of public and private companies including Inflection Capital Inc., Water Capital Inc., Eminence Capital Inc. and Biorem Inc. Previously he was in institutional sales for Loewen Ondaatje McCutcheon and Union Bank of Switzerland (Canada). Mr. Gallagher has assisted a number of companies implement their growth plans primarily through the TSXV's Capital Pool Program since 1997.

Lee A. Graber- Director
Lee is a professional mining engineer with over 30 years experience in the mining industry. He is currently Investment Director with Pacific Road Capital Management, based in San Francisco. Lee spent 23 years with Homestake Mining Company where as Vice President responsible for Corporate Development, he initiated, managed and closed major acquisition and divestment transactions totaling US$9.2 billion. Subsequent to Homestake, Lee was Managing Director, Mergers and Acquisitions for Endeavour Financial Ltd. in Vancouver advising junior resource companies on financings, mergers and acquisitions and project development and is, or has been a director of a number of public resource companies including Scorpio Mining Corp., AuEx Ventures, Inc., Atacama Minerals Corp., and Asia Pacific Resources Ltd.

Mr. Steenberg has over 25 years experience in the practise of securities and mining law. Mr. Steenberg currently operates an independent business law practise. Prior to December 31, 2003, Mr. Steenberg was a Partner in the law firm of Gowling Lafleur Henderson LLP where he served as Chair of the firm's national corporate finance and securities practice group. He is currently Secretary of Labrador Iron Mines Holdings Limited and Secretary & Director of Conquest Resources Limited.

Neil J.F. Steenberg - Secretary & DirectorMr. Steenberg has over 25 years experience in the practise of securities and mining law. Mr. Steenberg currently operates an independent business law practise. Prior to December 31, 2003, Mr. Steenberg was a Partner in the law firm of Gowling Lafleur Henderson LLP where he served as Chair of the firm's national corporate finance and securities practice group. He is currently Secretary of Labrador Iron Mines Holdings Limited and Secretary & Director of Conquest Resources Limited.

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