Xtierra Commissions Feasibility Study at Bilbao

Oxide Ore Pilot Plant Update

TORONTO, ONTARIO -- (Marketwire - July 29, 2010) - Xtierra Inc. (TSX VENTURE: XAG) ("Xtierra" or the "Company"), is pleased to report that it has retained Dowding, Reynard and Associates (DRA), a recognized leader in the field of mine design, mine engineering, mineral process design, project management and mine construction to prepare a feasibility study on its Bilbao polymetallic deposit located in the Central Mexican Mineral Belt in the State of Zacatecas. DRA has particular expertise in Process Plant Design, Metallurgical Process Engineering, and Metallurgical Consulting and will be intimately involved in the preparation for and commissioning and operation of the pilot plant designed to test the recovery process for the near surface oxide ores at Bilbao.


Comment

Terence McKillen, CEO of Xtierra said, "Bringing in DRA at this stage to manage and complete the feasibility study prior to the completion of the second phase of the in-house managed study should lead to a significant saving in time when Xtierra starts to seek project financing. Commissioning of the pilot plant test work on the near surface oxide ores at Bilbao will be a very important part of the ongoing feasibility study which is nearing completion and we are pleased to have the expertise and guidance of DRA in finalizing the process protocols and in the construction and supervision of the plant. Metal recoveries from the oxide ores on a continuous process base will be used in the final economic studies which form a key component part of the feasibility study."

Feasibility Study: - Xtierra has retained Dowding, Reynard and Associates to prepare a feasibility study on its Bilbao project. DRA will now be involved in oversight of all of the component parts of the feasibility study which was originally initiated by Xtierra last year as a two-phase, in-house managed study. Xtierra has also retained Golder Associates for tailings disposal design work related to the Bilbao development.

Pilot Plant: - The proposed test work comprises several component parts, including: (1) bulk sampling and preparation of composite samples; (2) crushing, milling and pre-concentration; (3) process stage of acid leaching, flotation and cyanidation; (4) confirmation of recovered grades and marketing of the reject magnetic material.

Composite Sampling - Four composite samples have been prepared representing approximately 20 tonnes of material obtained from within the oxide body from surface as well as from the 40 and 76 levels of the old mine workings.

Crushing, Milling and Pre-Concentration Stage - Installation of civil, mechanical and electrical facilities for the milling and pre-concentration production have been completed on location nearby the Bilbao project site, including the installation of a crusher, ball mill, classifier and wet, high intensity electromagnetic separator (WHIMS).

The four, 5 tonne sample composites will be batch processed to produce four, non-magnetic concentrates of approximately 3 tonnes each which will contain the payable zinc, silver, lead, copper and gold. The magnetic material, containing a high percentage of iron oxide, will remain on site at Bilbao and marketing of this reject material to the cement industry will be pursued.

Process Stage - Fabrication and installation of the tanks, agitators, pumps and electric controls for the processing plant is in the process of completion at the Institute of Metallurgy, University of San Luis Potosi. The plant has a design capacity of 20 kg/hr, 24 hr/day and will be operated over a 15-20 day period.

Once the non-magnetic concentrates are prepared, they will be transported to the Institute of Metallurgy for the acid leach, flotation and cyanidation process and determination of ultimate metal recoveries.


Qualified Person

Information of a scientific or technical nature contained in this release has been prepared by or under the supervision of Gerald Gauthier, P.Eng., the Chief Operating Officer of the Company, and a 'qualified person' 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. Xtierra's shares trade under the symbol "XAG." Xtierra has 75,637,003 shares issued and outstanding. Xtierra 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.


About DRA

Established in 1984, DRA is a leading multi-disciplinary mineral projects engineering and project management group. With offices in Australia, Canada, China, India, Kazakhstan, UK, South Africa and Botswana, DRA has a world class track record of delivery of over 150 large and small projects, turning resources into wealth.

DRA is able to provide clients globally with integrated solutions covering all aspects from concept to production, treating minerals from Andalusite to Zircon and also offers the option of contracted operations and maintenance to international quality and safety standards.

For further information about DRA's Canadian office please visit www.draa.ca.



For more information, please contact

DRA Americas
Pierre Fourie, Chief Executive Officer
(705) 742-3721
pierref@draa.ca
or
DRA Americas
Stuart Lawrence, President, Director
(705) 742-3721
stuartl@draa.ca
www.draa.ca
or
Xtierra Inc.
Terence McKillen, President & Chief Executive
+1 (416) 362-8243
or
Xtierra Inc.
Tim Gallagher, Director
+1 (416) 925-0090
or
Xtierra Inc.
Alejandro Alaniz, Director Finance & Administration (Mexico)
+52 (492) 925-0804
www.xtierra.ca