BonTerra Files Technical Report to Support Inferred Gold Resource of 492,000 Ounces on Its Eastern Extension Property in Quebec

VANCOUVER, BC -- (Marketwire) -- 07/27/12 -- BonTerra Resources Inc. (TSX VENTURE:BTR) (FRANKFURT:9BR) (the "Company" or "BonTerra") has filed a technical report pursuant to National Instrument 43-101 ("NI 43-101") entitled "BonTerra Resources Inc.: Eastern Extension Property Project No. V1216 NI43-101 Technical Report" dated July 26, 2012 (the "Report") prepared by Abolfazl Ghayemghamian, MSc, P.Geo., APEGBC, Senior Consultant with Snowden and Walter A. Dzick, B.Sc. (Geology), M.B.A, CPG #11458, MAusIMM, MAIPG, Principal Consultant with Snowden Mining Industry Consultants Inc. ("Snowden"). Both authors of the Report are independent of BonTerra and are Qualified Persons as defined by NI 43-101.

The purpose of the Report is to provide a resource estimate for the Company's 100% owned Quebec gold property, the Eastern Extension Property (the "Property") which is located approximately 170 kilometers northeast of Val d'Or, Quebec in the Urban-Barry belt, and to support BonTerra's news release dated June 13, 2012 which disclosed that, using a 1.0 g/t cut-off grade, the Property contains an inferred gold resource of 4,337,000 tonnes, grading 3.53 g/t for 492,000 ounces. The full-text of the Report should be referred to in conjunction with this news release and is incorporated herein by reference.

The Report includes all work BonTerra has completed on the Property up until the end of 2011. Of a total of 21,559.50 metres of drilling completed by BonTerra to date, only 15,642.60 metres of this is included in the resource estimate. This 15,642.60 metres was drilled on the Property in 2010 and 2011 in 49 drill holes which averaged 319 metres in length. In addition to this 15,642.60 metres of drilling, historical drilling by Xemac resources was also used. Xemac drilled 59 holes totaling 8,727 metres in 1997, 1998, 2000 and 2001. After hitting significant gold at depths of approximately 600 metres, management believes there is significant down-dip potential. This assertion is further strengthened by the fact that the veins are vertical to sub-vertically dipping.

In addition to BonTerra's inferred resource estimate on the Property, Eagle Hill Exploration Corporation ("Eagle Hill") has defined inferred mineral resources and indicated mineral resources on its Windfall Lake Property which is also in the Urban-Barry belt and is located approximately 8 kilometers north of the Property. Eagle Hill disclosed in its news release dated July 25, 2012 that, using a 3.0 g/t of gold cut-off grade, the Windfall Lake Property contains an indicated gold resource of 538,000 ounces (1,665,000 tonnes @ 10.05 g/t of gold) and an inferred resource of 822,000 ounces (2,906,000 tonnes @ 8.76 g/t). Eagle Hill's disclosure in its July 25, 2012 news release updates the disclosure in its November 2011 technical report which is referenced in the Report. Results obtained on the Windfall Lake Property are not necessarily indicative of results on the Property. Based on, among other things, the Report and the results reported in Eagle Hill's public disclosure, management believes that the Urban-Barry gold camp is an area of merit.

Navjit Dhaliwal, President, states, "BonTerra is very motivated to continue advancing the Property. We also want to thank Snowden for completing the resource estimate and the Report. Management believes that there is potential for expansion of BonTerra's inferred gold resource. The highlight of our Rivage Zone, situated 700 metres along strike to the southwest, was assaying 220 g/t gold over one metre in drill core. None of the drilling from the Rivage Zone is included in the current inferred gold resource. Additionally BonTerra defined another large southern magnetic anomaly which has yet to be explored by diamond drilling. With all this in mind we are confident in the potential the Property offers."

The inferred mineral resource at the Property that is disclosed in the Report was prepared using the following steps: compilation and verification of drillhole data, including independent data verification, and database verification (data validation was undertaken by Snowden); analysis of drillhole sample QAQC data; verification of BonTerra geology and mineralization models against drillhole information; coding of drillhole data within mineralized estimation domains; sample length compositing; analysis of extreme data values and application of top cuts, where necessary; exploratory analysis of gold grades within mineralized estimation domains; variogram analysis; creation of block models and application of density values; estimation of gold grades into blocks using ordinary kriging; validation of estimated block grades against input sample composite grades; confidence classification of estimates with respect to CIM guidelines; and resource tabulation and reporting.

A Vulcan block model with cell dimensions of 2 metres (X), 2 metres (Y), 2 metres (Z) was coded to reflect surface topography, syenite porphyry dykes, and the quartz vein domain solids.

Gold grades were estimated from 1 metre length weighted composites into the interpreted mineralized blocks by ordinary kriging using parameters established from analysis of the variography within each domain. Based on the variographic analysis, search ellipses were created to enable a three pass approach, to interpolate gold grades into the blocks. The minimum and maximum numbers of composites were set to 2 and 12 per block, respectively. A top cut of 58 g/t Au was applied. Discretization was set to 2 x 2 x 1. A density of 2.78 g/cc was assigned to the mineralized veins based on 10 measurements of specific gravity performed by BonTerra.

Snowden has applied an inferred classification to all blocks in the mineral resource. Snowden has not classified any measured blocks after considering the relatively short ranges of gold grade continuity, the current drill hole spacing, the relatively high nugget environment, and use of assigned densities.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. Estimates are rounded since the figures are not precise calculations. Mineral resource estimates are reported for the Property above a range of Au cut-off grades (see Table 1-1 of the Report). To date, no analysis has been made to determine the economic cut-off grade that will ultimately be applied to any mineral resources. As stated in the Report, management is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the inferred mineral resource.

The technical information in this news release is based upon the Report, unless expressly stated otherwise. The authors of the Report verified the data disclosed in the Report. A description of the data verification process and the limitations on the verification process is included in the full text of the Report and incorporated by reference.

This technical content of this press release has been reviewed and accepted by Thomas Clarke, Pr.Sci.Nat., a Director of BonTerra. Mr. Clarke is a Qualified Person under NI 43-101.


About BonTerra Resources

BonTerra is a Canadian gold exploration company based in Vancouver, BC. BonTerra is focused on continuing to expand the drill defined gold zones on its Eastern Extension property, part of the world famous Abitibi Greenstone Belt in mining friendly Quebec. BonTerra has a total of three gold properties in the Urban-Barry belt, the Eastern Extension, Lavoie and Urban-Barry properties which are all located approximately 170 km NE of Val-d'Or and 125 km SW of Chibougamau in the Urban, Barry and Bailly townships in Québec.

The Company owns 100% of the Property subject to a 2% NSR which is held by three individuals, 1% of which can be purchased for a sum of $500,000.


ON BEHALF OF THE BOARD BONTERRA RESOURCES INC.

Navjit Dhaliwal
President and Director



This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company, such as the statement that: (i) management believes there is potential for expansion of BTR's inferred gold resource; and (ii) management believes in the potential for significant down-dip potential. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) delays with respect to drilling and receipt of drill results; (iii) accuracy and reliability of inferred mineral resource calculations; (iv) regulatory reviews and comments related to the Report; and (v) general uncertainties with respect to mineral exploration. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

Neither 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 accuracy of this release.



Contact

BonTerra Resources Inc.
Navjit Dhaliwal, President and Director
(604) 678-5308
info@bonterraresources.com
www.bonterraresources.com