Valterra Resource Corporation

Valterra Resource Corporation

May 21, 2009 14:58 ET

Valterra Arranges Non Brokered Private Placements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - Valterra Resource Corporation (CNSX:VTA)(FRANKFURT:3VA) reported today that the company has agreed to issue a total of 15.0 million common shares in two non-brokered private placements for total gross proceeds of C$1,450,000.

Combination Flow-through and Non Flow-through Unit

The company has agreed to issue 5.0 million units in a non brokered private placement at a price of C$0.20 per unit to raise C$1.0 million. Each unit offering will consist of one flow-through common share at $0.11 per share and one non flow-through share 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 C$0.15 per share for a period of two years.

Non Flow-through Unit

The company has also agreed to issue 5.0 million units in a non-brokered private placement at a price of C$0.09 per unit to raise C$450,000. Each unit offering will consist of one non flow-through common share and one share purchase warrant exercisable to purchase one additional non flow-through common share at an exercise price of C$0.15 per common share for a period of two years.

Finder's fees may be payable for both offerings.

The proceeds from both private placements will be for working capital and the advancement of the company's projects in SE British Columbia. The private placements and finder's fees are subject to regulatory approval.

2009 Star-Toughnut Project Exploration Plan

Initial exploratory work will focus on the recently acquired Toughnut gold-silver-copper-lead-zinc property (see NR-04-09), that adjoins the Star gold-silver property to the southeast forming a contiguous land package covering approximately 1,375 hectares. Exploration results during 2008 on the Star property, located southwest of Nelson in south-eastern British Columbia, confirmed the presence of a widespread precious-metal enriched mineralizing system that warrants an expanded drilling program. The claims are within a highly metallogenic area of British Columbia that historically has hosted several important mining districts including +1.0 million ounce past-producing mines at the Rossland Au-Cu camp, located 50 kilometres to the southwest and the adjacent Ymir-Sheep Creek Au-Ag camp that is currently being explored by Duncastle Gold Corp. (DUN-V).

Valterra's primary focus will be directed to:

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

- further delineation of zones of gold and silver mineralization drill-intersected during the 2008 exploration program on the Star project, and

- drilling of additional exploration targets within a 3.5-kilometre long mineralized trend as defined by a combination of previous wide-spaced drilling, geochemical and geophysical surveys.

2008 Results

Drilling highlights from the 2008 exploration program included;

- Drill hole VST08-006 (Alma N zone) 5.94 g/t Au and 3.78 g/t Ag over 12.97 metres, which includes a higher grade intercept of 18.77 g/t Au and 11.55 g/t Ag over 4.0 metres, and

- Drill hole VST08-004 (Star zone) 6.28 g/t Au and 7.20 g/t Ag over 2.0 metres.

The Company completed a total of 1,672 metres of drilling in six core holes on two high priority targets during the 2008 drill campaign. Drilling tested the Alma N and Star zones down to a depth of 300 metres, with all holes intersecting anomalous gold, silver and copper mineralization.

2009 Swift Katie Project Exploration Plan

Valterra also 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.

About the Swift Katie Property

The Swift Katie copper-gold claims are underlain by rocks of the Rossland Group, which is considered very favourable for the discovery of 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 and the Swift zones.

In 2008, a total of 2,954 metres of drilling was completed in ten holes that tested the primary Katie Zone target at the headwaters of Hellroaring Creek. The drill pattern tested the broad mineralized system over an approximate area measuring 600 metres of strike length by 400 metres width and up to 300 metres depth. Highlights from the recent drilling are summarized below:

- 119.0 metres grading 0.17% Cu and 0.11 g/t Au in hole VKT08-064

Includes: 6.00 metres grading 0.58% Cu and 0.37 g/t Au

- 91.52 metres grading 0.15% Cu and 0.20 g/t Au in hole VKT08-068

Includes: 7.90 metres grading 0.21% Cu and 1.25 g/t Au

- 101.48 metres grading 0.19% Cu and 0.12 g/t Au in hole VKT08-069

Includes: 12.80 metres grading 0.43% Cu and 0.15 g/t Au

- 64.02 metres grading 0.16% Cu and 0.29 g/t Au in hole VKT08-071

Includes: 33.07 metres grading 0.25% Cu and 0.47 g/t Au,

and 7.07 metres grading 0.05% Cu and 1.73 g/t Au

About Valterra Resource Corporation

Valterra is a Manex Resource Group Company with a primary focus on exploration of mineral properties in the Kootenay Region of British Columbia. In 2008, the company completed an initial 1,672 metre drill program at its Star gold-silver project located southwest of Nelson, BC and a further 2,954 metres at the Swift Katie porphyry copper-gold project in the same southeast region of British Columbia.

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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