Terra Ventures Inc.

Terra Ventures Inc.

April 03, 2007 12:41 ET

Terra to Acquire 8% Carried Working Interest in Certain of Hathor Exploration's Athabasca Basin Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2007) -

Greig Hutton Reports:

Terra Ventures Inc. (TSX VENTURE:TAS) is pleased to announce that it has entered into an agreement with Bullion Fund Inc. ("Bullion"), a corporation that is at arms-length to the Company, to purchase 80% of its 10% carried working interest (equal to an 8% carried working interest) in seven claims comprising 56,360 acres in two separate projects: the Midwest and the Russell Lake South located in the Athabasca Basin, Saskatchewan. The 90% remaining working interest in the property is held by Roughrider Uranium Corp. ("Roughrider"), which is a wholly owned subsidiary of Hathor Exploration Ltd. (TSX VENTURE:HAT).

Roughrider's 90% interest in the claims was acquired from Bullion pursuant to an agreement dated September 10, 2004, which provides that the carried working interest shall be completely carried in all respects through to the completion of a feasibility study and the public announcement that the claims will be put into commercial production.

The consideration payable by Terra to Bullion to acquire this interest is $2,300,000. The agreement with Bullion is subject to various conditions, including a due diligence review. A finder's fee of $69,000 is payable with respect to this transaction.

Work plans and a description of the geology of the Midwest project are described in a Hathor press release dated March 19, 2007, which states:

"Hathor Exploration Ltd. has commenced the first phase of diamond drilling on its 90-per-cent-owned Midwest northeast uranium project, located in the eastern Athabasca basin region of Northern Saskatchewan.

The start of drilling at the Midwest northeast project is a significant milestone for Hathor as it is the first of our 10 Athabasca-area properties to be drilled by us," remarked Hathor's president, Stephen Stanley. "With the price of U3O8 reaching $90 (U.S.) per pound, Hathor plans to be the most aggressive junior company exploring for uranium in Saskatchewan. We should start drilling on at least four of our projects by the end of the year, and, other than for spring breakup and winter freeze-up, we plan to keep at least one drill turning for quite some time."

Boart Longyear Inc., a global drilling company that is also the primary drill services provider for both Cameco Corp. and Areva Resources Canada Inc. in Saskatchewan, has been contracted to drill 15 holes totaling about 5,000 metres at Midwest northeast. Proximity to the regional service centre at Points North Landing and Saskatchewan Highway No. 905, which is about five kilometers south of the Midwest northeast property, will allow for year-round drilling.

The geological setting of the eastern Athabasca basin region of Northern Saskatchewan hosts the richest uranium ore deposits in the world and accounts for approximately 28 per cent of the world's annual mine production of uranium. Favorable lithostructural settings (ductile-brittle to brittle fault zones) that once carried and trapped uranium-rich fluids are one of the key geological factors that were required for the genesis of this type of uranium deposit. Today, the best way to identify and define in detail these structural geochemical traps at depth is through the use of seismic exploration methods similar to what is used in the oil and gas industry.

Since 2003, Hathor has become a leader in the high-tech application of innovative seismic methods to uranium exploration. At Midwest northeast, through the field services of Kinetex Inc., a subsidiary of First Growth Capital Inc., Hathor recently completed data acquisition for the first true high-resolution, 3-D reflection seismic survey to ever be undertaken in the Athabasca basin. The principal objectives of this survey were to:

- Provide a definitive map of structural features and the basin/basement unconformity (approximate depth of 200 metres);

- Enhance correlation efforts of previously identified regional north-northeast- and northeast-trending conductors with basement features; and

- Better define structural geochemical traps, the prime locus for the deposition of uranium mineralization, as prospective targets for drilling.

By better defining structural drill targets, Hathor should be able to implement significant cost-savings in its drill programs.

Midwest northeast drill holes are targeted on structural features that are believed to be the east-northeast extension of the 2005 Mae zone discovery, located about 900 metres from Hathor's Midwest northeast property on the adjacent Midwest property of Areva, Denison Mines Corp. and OURD Canada Co. Ltd. Regarding its Mae zone discovery, at its April, 2006, shareholders meeting, Peter Farmer, president and chief executive officer of Denison, stated, "As Areva has informed us, this area is their best discovery in Saskatchewan, if not in the world, over the last several years." Denison has reported Mae zone drill results including:

- 6.2 per cent eU3O8 over 7.1 metres;

- 11.7 per cent eU3O8 over 7.7 metres;

- 1.1 per cent eU3O8 over 17.7 metres;

- 9.5 per cent eU3O8 over 7.2 metres;

- 12.4 per cent eU3O8 over 6.1 metres; and

- 15.3 per cent eU3O8 over 12.5 metres.

Hathor's Midwest northeast 3-D seismic program involved the collection of about 20 million seismic traces of high-frequency "digital three-component full-wave data imaging". Preliminary analysis of these data using the processing capabilities and interpretive skills of the University of Saskatchewan's seismology laboratory and the Saskatchewan Research Council (SRC) shows the unconformity varying from moderately well defined to highly broken up and breached. As well, the preliminary processed 2-D seismic stacks from the 3-D survey show west-northwest and north-northwest dips, respectively, on major north-northeast- and east-northeast-trending crustal structures within the southern part of the property. In contrast, on the northern part of the property, the major north-northeast- and east-northeast-trending crustal structures show east-southeast and south-southeast dips. Also notable, Ikonos satellite imagery, aeromagnetic and seismic data all show that the outline of the lake on the eastern side of the property appears to be controlled by reactivated basement features, some of which will be tested in this first phase of drilling.

Drilling at Midwest northeast is conducted under the supervision of Dr. Irvine Annesley, PGeo, of the SRC. Samples collected for geochemical analysis will be sent to the SRC's Geoanayltical Laboratories in Saskatoon. This facility has been providing quality uranium analysis for over 35 years and employs ISO/IEC 17025:2005-certified quality assurance and quality control practices.

Greig Hutton, President of Terra Ventures, comments: "This acquisition is part of Terra's ongoing strategy of acquiring interests in projects which have the potential to host world class uranium deposits."

Mike Magrum, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.

On behalf of the board of directors of TERRA VENTURES INC.

Greig Hutton, President

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

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