Xtierra Raises $500,000 as Second Tranche of Private Placement

* Reuters is not responsible for the content in this press release.

Tue Apr 6, 2010 5:00pm EDT

  TORONTO, ONTARIO, Apr 06 (MARKET WIRE) -- 
Xtierra Inc. (TSX VENTURE: XAG) ("Xtierra" or the "Company"), announces
it has closed the second tranche of a previously announced (January 19,
2010) non brokered private placement for additional gross proceeds of
$500,000 consisting of 2,500,000 units ("Units") at $0.20 per Unit. Each
Unit consists of one common share and one-half of a common share purchase
warrant, with each whole warrant entitling the holder to purchase one
common share at $0.30 for a term of one year.

    This portion of the placement was purchased by TayCon Capital
Corporation, a capital pool company under Policy 2.4 of the TSX Venture
Exchange, which is completing the transaction as its qualifying
transaction under such policy. The shares and warrants acquired will be
distributed to the approximately 300 shareholders of TayCon Capital
Corporation in proportion to their shareholdings and TayCon will be
subsequently dissolved. Accordingly such securities will not be subject
to a hold period under applicable securities laws and the requirements of
the TSX Venture Exchange. 

    An aggregate of 1,496,926 shares and 748,460 warrants will be placed in
escrow with Equity Transfer & Trust Company as escrow agent as
substituted securities for securities of TayCon Capital Corporation
placed in escrow at the time of its initial public offering. Shares will
be released from escrow over an 18 month period from April 1, 2010.

    Proceeds of this issue, together with the $3.955 million raised in the
first tranche closed on March 1, 2010, will be used by Xtierra to fund
further metallurgical testing and feasibility work on Xtierra's Bilbao
silver-zinc-copper project in Zacatecas, Mexico, and for expenses of the
offering, general corporate purposes and working capital. 

    Following closing of this transaction Xtierra will have 69,137,003 shares
and 18,682,140 warrants outstanding.

    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 69,637,003 shares issued and outstanding.
Xtierra is conducting a feasibility study on its 100% owned Bilbao
silver-zinc-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 and Laguna projects, both
located in the Central Mexican Mineral Belt in the State of Zacatecas, as
well as through exploration, organic growth and M & A opportunities.

    For further information visit www.xtierra.ca.

    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.

Contacts:
Xtierra Inc.
Terence McKillen
President & Chief Executive
(416) 362-8243

Xtierra Inc.
Tim Gallagher
Director
(416) 925-0090

Xtierra Inc.
Alejandro Alanis
Director Finance & Administration (Mexico)
+52 (492) 925-0804
www.xtierra.ca

Copyright 2010, Market Wire, All rights reserved.

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