Xtierra Inc. Reports on Drilling at Bilbao

- Deposit Extends to SW and NW With High Grade Zinc and Lead
- New Emerging Zone of High Grade Silver

TORONTO, ONTARIO -- (Marketwire - Sept. 24, 2010) - Xtierra Inc. (TSX VENTURE: XAG) ("Xtierra" or the "Company"), is pleased to report results from a 6,000 metre diamond drilling program recently completed at its Bilbao project, Zacatecas, Mexico.

Twenty-nine holes were completed for a total of 6,077 metres in four distinct parts: (1) step-out drilling to the south and southwest of the existing silver-zinc-lead-copper deposit to define additional sulfide resources and to follow up previously intersected high grade silver vein mineralization; (2) in-fill drilling within the current oxide 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 other identified prospects within the vicinity of Bilbao.

Results of drilling completed in the first three parts of the program indicate that the Bilbao resource extends further to the south, west and northwest of the existing resource and importantly, remains open to the southwest. The additional mineralization discovered will add to the existing resource base. Of particular note are the higher grades of zinc and lead encountered in the southwest area and the discovery of high grade silver and gold mineralization along the western flank of the deposit. Drilling also confirmed the presence of thick zones of oxide mineralization near to surface and amenable to open-pit extraction in the northern part of the deposit.

Type DDH's From To Width
m Cu% Pb% Zn% Pb+Zn Ag
g/t Au
g/t
Sulfide X81 188.45 194.60 6.15 0.49 1.45 1.56 3.01 60
Sulfide X82 229.00 230.30 1.30 0.06 0.68 0.58 1.26 263
Sulfide X82 362.00 363.00 1.00 0.00 0.04 0.08 0.12 119
Sulfide X82 431.00 432.00 1.00 0.01 0.06 0.12 0.18 136
Sulfide X84 282.30 284.50 2.20 0.21 6.28 4.75 11.03 71
Sulfide X84B 201.00 205.00 4.00 0.15 4.01 0.39 4.40 125 0.62
Sulfide X84B 357.30 360.55 3.25 0.01 0.13 1.34 1.47 412
Sulfide X85 155.00 175.00 20.00 0.01 0.18 0.14 0.32 90
Sulfide X85 198.50 200.30 1.80 0.65 2.68 4.66 7.34 54
Sulfide X85 270.95 275.60 4.65 0.04 1.10 1.12 2.22 20

Oxide X64 14.10 27.00 12.90 0.21 0.81 9.64 10.45 40
Oxide X65 0.00 11.00 11.00 0.08 2.79 1.86 4.65 18
Oxide X67 0.00 89.00 89.00 0.14 1.63 1.46 3.09 30
Oxide X68 0.00 121.00 121.00 0.06 1.47 0.60 2.07 18
Oxide X68 61.00 97.35 36.35 0.03 3.48 0.08 3.56 37
Oxide X69 8.50 34.05 25.78 0.07 2.82 1.74 4.56 25
Oxide X69 61.00 74.00 13.00 0.23 1.45 3.16 4.61 41
Oxide X77 131.70 136.30 4.60 1.13 2.62 6.08 8.70 139
Oxide X73 158.00 162.90 4.90 0.08 2.80 1.80 4.60 87
Oxide X73 240.00 241.25 1.25 0.01 0.05 0.14 0.19 194
Oxide X75A 252.30 254.00 1.70 0.37 4.78 2.70 7.48 848
Oxide X75A 252.30 253.00 0.70 0.89 10.40 5.51 15.91 2047
Oxide X75A 300.50 301.00 0.50 0.13 0.18 0.12 0.30 20 0.61


Step-out Drilling (Sulfide)

This phase of drilling sought to identify extensions of the Bilbao mineralized body to the south and west of the existing resource. New mineralization was discovered resulting in extensions to the width and length of the body by at least 50 metres in both directions. The mineralization remains open at depth in a south-westerly direction. Of particular interest, are the prevailing high silver grades with a 20.00 m wide zone averaging 90g/t Ag intersected in drill hole X85. High silver grades have also been found in drill holes X81, X82 and X84B, the latter with 860g/t Ag, between 358.00 and 359.00 m as well as a further zone between 202.00 and 203.00 m grading 1.23g/t Au, together with 102g/t Ag, and 2.80% Pb. The data suggest the presence of at least two parallel zones with elevated precious metal values and confirms and complements the native silver and stromeyerite mineralization found previously in DDH X26. The silver-enriched zone is now known to extend over an area 350 x 100m in a north-south direction and appears to occupy a brecciated zone within the limestone sequence, the thickness of which is variable from about 4 to 20 metres. The high silver values demonstrate the presence of a precious metal-enriched fracture zone within the western part of the Bilbao deposit.


Oxide Resource Definition

Three east-west sections were drilled across the Bilbao deposit to refine the morphology of the oxide part of the deposit and assist in the planning for open pit mining. Drill holes in the central sector have intersected very thick zones of oxide mineralization adding reassurance to the open-pit oxide resource in that area. Specifically X67 contained 89.00 m of 3.09% combined Pb+Zn, X68 had 121.00 m at 2.07% Pb+Zn and X69 displayed two zones, respectively of 25.78 m and 13.00 m, with 4.56% and 4.61% combined Pb+Zn. To the west of the old Main Shaft area, drill holes X73, X75 and X77 have demonstrated an extension to the previously known mineralized body in the northwestern sector which provides a connection with the exploration holes X42 and X43 where mineralization was found previously. In particular drill holes X73 and X77, which are spaced 75m apart, have shown strong mineralization with X77 containing a 4.60 m zone with 1.13% Cu, 2.62% Pb, 6.08% Zn and 139g/t Ag.

Drill hole X75A, located 50m further west, has encountered extremely high grades of silver in a thin zone between 252.30 and 253.00 m with 2,047g/t Ag, 10.4% Pb, 1.13% Cu and 5.51% Zn in oxidized limestone breccias. This zone is probably correlative with the silver-rich zones encountered in the step-out drilling to the southwest of the deposit.

This part of the program confirms the presence of thick mineralized oxides near to surface and amenable to open-pit extraction in the northern part of the body, it also affirms a continuity of mineralization towards the north-west of previously discovered mineralization, and finally it suggests that there is a silver-enriched fracture zone extending between DDHs X85 and X73, a distance of 320m.


Condemnation Drilling

In order to assist in the mine planning necessary for completion of the Feasibility Study currently being undertaken, a series of condemnation holes have been drilled to ensure that mineralization is not sterilized beneath any proposed mine facilities and that the foundations for any buildings or processing plant facilities is structurally stable. Holes X87 and X90 were drilled in the area proposed for the Tailings Disposal Facility (TDF) to the east of the proposed open-pit and holes EP 1 and EP 2 were drilled in the area over a proposed Waste Dump. No significant mineralization was intersected in any of these holes and consequentially the sites are suitable for the chosen purpose.

Commenting on the results of the latest drilling campaign, Mr. Terence McKillen, CEO of Xtierra Inc., said "We are extremely pleased that the latest drilling campaign at Bilbao had successfully demonstrated additional resource potential to the south, west and northwest of the existing resource which will add to the indicated and inferred resources. The discovery of a north trending structural lineament containing high grade silver and gold values appears to be particularly promising as enriched silver values have now been indicated over a strike length of at least 300 metres. Results of the exploration drilling will be available shortly."

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. 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.



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 more information, please contact

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