Valterra Resource Corporation

Valterra Resource Corporation

June 12, 2009 13:42 ET

Valterra Closes First Tranche of Private Placement to Fund June/July Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2009) - Valterra Resource Corporation (CNSX:VTA)(FRANKFURT:3VA) reported that the company has closed a first tranche of the two previously announced non-brokered private placements for gross proceeds of C$379,000.

Combination Flow-through and Non Flow-through Unit

Each "combination flow-through and non flow-through unit" issued in the first tranche priced at $0.20 consists of one flow-through common share priced at $0.11 per share and one non flow-through common share priced at $0.09 per share with one share purchase warrant exercisable to purchase one additional non flow-through common share at an exercise price of $0.15 per share for a period of two years. The first tranche of this private placement consisted of 850,000 units for gross proceeds of $170,000.

Non Flow-through Unit

Each "non flow-through unit" issued in the first tranche consists of one common share priced at $0.09 per share and one share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.15 per share for a period of two years. The first tranche of this private placement consisted of 2,322,222 units for gross proceeds of $209,000.

All securities issued pursuant to these two private placements, including common shares, share purchase warrants and finders' warrants issued as finders' fees, carry a legend restricting trading of the securities until October 13, 2009.

The private placements and any finders' fees may be subject to regulatory approval.

Proceeds will be for working capital and to fund the initial phase of diamond drilling on the company's Star Project. The Phase I exploration program will focus on verification of several of the historical drill-intercepts contained within a 3.5 kilometre long mineral belt. Initially, the centrally located Alma N zone target will be the focal point for drilling having reported many wide intercepts highlighted by drill hole GWS-89-01. This hole returned a near surface intercept of 5.12 g/t Au and 4.45 g/t Ag over 14.62 metres, which includes a higher grade intercept of 12.87 g/t Au and 9.67 g/t Ag over 4.43 metres. In 2008, Valterra tested the southern region of the zone where no prior drilling had been conducted and discovered a new zone grading 18.77 g/t Au and 11.55 g/t Ag over 4.0 metres in hole VST08-006.

About Valterra Resource Corporation

Valterra is focused on exploration of mineral properties in the Kootenay Region of British Columbia where it controls approximately 9,005 hectares. The Star gold-silver claims, located southwest of Nelson, BC and the recently acquired Toughnut gold-silver-copper-lead-zinc claim block adjoins the company's Star claims ("Star Project"); the Swift Katie porphyry copper-gold project is in the same southeast region of British Colombia. Since 2007, the company has actively explored and expanded its claim blocks within the Nelson-Salmo corridor by completing over 5,750 metres of diamond drilling, conducting 505 line-kilometres of heli-borne geophysics, undertaking a variety of mapping-prospecting-sampling programs, and most recently claim staking and acquisitions.

Star Project

The company completed initial diamond drill testing during 2008 at its Star project located southwest of Nelson, BC. A total of 1,672 metres of drilling in six core holes were completed on two high priority targets with all holes intersecting anomalous gold, silver and copper mineralization. The results of a six hole drill program were highlighted by an Alma N zone intercept of 18.77 g/t Au and 11.55 g/t Ag over 4.0 metres (see NR-01-09).

The company's 2008 exploration results on the Star property confirm the presence of a widespread precious-metal enriched mineralizing system that warrants further investigation. Valterra's primary focus for the 2009 exploration program will be directed to:

- Further delineation of zones of gold-silver-copper mineralization drill-intersected during the 2008 exploration program

- Drilling of the main Toughnut occurrence, where approximately 1,500 metres of diamond drilling is anticipated, and

- Additionally 2,000-2,500 metres of drilling is anticipated within the 3.5 kilometre long belt; as defined by a combination of previous wide-spaced drilling, geochemical and geophysical surveys.

The 1,010 hectare gold-silver-copper-lead-zinc Toughnut property was recently acquired (see NR-04-09). This property adjoins the Star claim block to the immediate southeast, and collectively the company now controls an expanded mineralized region of over 1,940 hectares within an historical belt that boasts BC's first lode mine in the nearby ca. 1888 Silver King Mine.

The Toughnut property is underlain by Early Jurassic Upper Elise Formation Rossland Group volcanics that are cut by the Middle Jurassic Silver King intrusions. These structurally controlled units are deformed by the regionally prominent Silver King shear zone that is up to two kilometres wide and forms the core of the Hall Creek syncline.

Swift Katie Project

The 7,064 hectare Swift Katie property is located seven kilometres southwest of Salmo and is host to five known Cu-Au and/or Au mineral systems occurring within a 7,000 metre-long trend. The property is underlain by rocks of the Rossland Group that are considered favourable for hosting polymetallic mineralization. Previous exploratory work includes: numerous geological, geochemical and geophysical surveys and the drilling of 68 core holes for a total of 15,992 metres that resulted in the identification of several exploration targets, with the most significant being the Katie, the 17, the West and the Swift zones.

Valterra is currently conducting data evaluation and is planning for future exploratory work on the Swift Katie project in 2009. Approximately 1,000 metres of diamond drilling is anticipated; targeting the Katie, the West, the 17 and the Swift zones where prioritization of the drill targets is ongoing.

Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical results reported in this release.

On behalf of the Board of Directors,

Lawrence Page, Q.C., President, Director, Valterra Resource Corporation

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Valterra Resource Corporation relies upon litigation protection for forward looking statements.

The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

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