Pan Terra Industries Inc.
TSX VENTURE : PNT

Pan Terra Industries Inc.

October 13, 2005 09:37 ET

Pan Terra Closes Sale of Class 1B Waste Disposal Facility and Project Updates

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2005) - Pan Terra Industries Inc. (TSX VENTURE:PNT) is pleased to announce that the Company has sold its Atlee Buffalo Class 1B Waste Disposal Facility (Waste Disposal Facility) located at 7-13-22 8W4 to S.V.C. Resources Inc. of Calgary, an arms length third party. The sale enables Pan Terra to focus entirely on its construction services strategy as a site redevelopment and innovative construction solutions company.

Financially, the Company benefits through elimination of a $235,000 letter of credit with the EUB and enables Pan Terra to retire $500,000 in loans with HSBC. In consideration for the sale of the Waste Disposal Facility the Company received $500,000 of which $300,000 was in cash and $200,000 is payable upon payment of a demand Promissory Note. This sale represents a key milestone, as the asset was the final legacy asset related to the former Tathacus Resources Inc., the public company that acquired Pan Terra on April 1, 2004 and subsequently changed its business and name to Pan Terra Industries Inc.

Pan Terra continues its growth in key areas in Calgary and southern Alberta with a number of projects recently awarded and underway. Key projects include the following:

Trenchless Technology

Pan Terra announces the successful completion of its innovative underground trenchless project in the Town of Okotoks and the commencement of its previously announced trenchless project at the Town of Cochrane on October 15, 2005. These trenchless projects are demonstrating Pan Terra's ability to become a leader in environmentally friendly and cost effective solutions for the replacement and upgrading of pipelines in a variety of sectors.

Transportation Sector

Several transportation projects including Stoney Trail bridge abutements, the widening of Crowchild Trail at Sarcee Trail and the upgrading of 16th Avenue between 14th Street and 4th Street N.W. are nearing completion.

Health Sector

The Company announces $3 million in new-awarded contracts in the health care sector with three major projects at the Rockyview, Peter Lougheed, and Foothills Hospitals in Calgary. Services include preconstruction and relocation and installation of new underground services. These projects are scheduled to be completed within the Company's current fiscal year.

Other News:

In line with sharpening its focus on site redevelopment the Company also announces that it has terminated its distributorship agreement with Stanley Hydraulic Tools as an exclusive distributor and service centre for mounted hydraulic tools used in the construction industry in the Province of Alberta. Pan Terra will remain as a valued customer of Stanley.

About Pan Terra

Pan Terra is an innovative construction solutions contractor that develops new sites and redevelops existing sites to the point where an owner, developer, or general contractor can proceed with building construction. The focus of the Company is site preparation and underground utility installations and rehabilitation. The Company offers packaged services in industrial, commercial, retail and residential markets. Pan Terra's major clients include leading General Contractors, Owners and Developers. The Company has extensive relationships with architects, engineers, and consultants. Pan Terra's growth plan includes: acquisition of successful companies, leveraging of environmental and trenchless technology solutions and total dedication to exceptional operational performance and achievement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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