BonTerra Resources Inc.
TSX VENTURE : BTR
FRANKFURT : 9BR

BonTerra Resources Inc.

September 06, 2012 17:06 ET

BonTerra Announces Brokered Private Placement & Drill Holes From the Rivage Zone Submitted For Assay

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2012) - BonTerra Resources Inc. (TSX VENTURE:BTR) (FRANKFURT:9BR) (the "Company" or "BonTerra") is pleased to announce it intends to undertake a brokered private placement financing of up to $1,000,000 (the "Private Placement").

The Private Placement consists of the issuance of up to 5,454,545 flow-through units of the Company (each, a "FT Unit"), at $0.11 per FT Unit for proceeds of $600,000, with each FT Unit consisting of one flow-through common share of the Company and one-half (1/2) of one non-transferable common share purchase warrant (each, a "Flow-Through Warrant"). Each Flow-Through Warrant entitles the holder to purchase one non-flow through common share of the Company at a price of $0.15 for a period of 18 months following the closing date. The Private Placement also consists of the issuance of up to 4,705,882 non-flow through units of the Company (each, a "Unit"), at $0.085 per Unit for proceeds of $400,000, with each Unit consisting of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Hard Dollar Warrant"). Each Hard Dollar Warrant entitles the holder to purchase one Common Share at a price of $0.12 for a period of 18 months following the closing date.

The Company intends to compensate Industrial Alliance Securities Inc. (the "Agent") at Closing with cash commission equal to 8% of the gross proceeds raised from the Private Placement and that number of warrants (the "Agent's Warrants") equal to 8% of the number of Units and FT Units sold pursuant to the Private Placement, with each Agent's Warrant exercisable in whole or in part at the price of Units for a period of 18 months after closing.

All of the securities issued pursuant to the Private Placement will be subject to a restricted period of four months and one day from the date of closing.

The Company intends to use the proceeds from the sale of the FT Units to incur exploration expenditures on the Company's properties and intends to use proceeds from the sale of the Units for its properties and general corporate purposes. The Private Placement is subject to approval from the TSX Venture Exchange.

Drilling Update- Samples Submitted for Assay from the Rivage Zone

BonTerra has submitted drill core samples from 2 drill holes at the Rivage Zone ("Rivage") to ALS Labs in Val d'Or, Quebec ("ALS") for assay. The samples from the Rivage are prospective due to the presence of visible gold and persistent sphalerite seen in BA-12-12 in the mineralized, smoked and altered quartz veins. The Rivage is a new zone which was not incorporated into the resource estimate recently completed for the Property. The first hole drilled at the Rivage assayed 73.82 g/t gold over 3.0 metres including one metre assaying 220 g/t gold.

NI 43-101 Compliant Gold Resources in the Urban-Barry Gold Camp, Quebec

BonTerra- 4,337,000 tonnes @ 3.53 g/t for 492,000 ounces of gold inferred
Eagle Hill- 1,665,000 tonnes @ 10.05 g/t for 538,000 ounces of gold indicated
2,906,000 tonnes @ 8.76 g/t for 822,000 ounces of gold inferred
Metanor- 7,701,000 tonnes @ 1.29 g/t for 309,500 ounces of gold indicated
10,411,000 tonnes @ 1.65 g/t for 471,950 ounces of gold inferred

This technical content of this press release has been reviewed and accepted by Thomas Clarke, Pr.Sci.Nat., and 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) the Company may close the Private Placement; (ii) the Company intends to compensate the Agent as set out in the release; and (iii) the Company intends to use the proceeds from the sale of the FT Units to incur exploration expenditures on the Company's properties and intends to use proceeds from the sale of the Units for its properties and general corporate purposes. 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) risks inherent in the mineral exploration industry in general; (iii) receipt of approval from the TSX Venture Exchange; and (iv) the ability of the Company to close the Private Placement for any reason. 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 Information