| August 13, 2004 Trading Symbol: MTR John Greenslade, President of Minterra Resource Corp. (the "Company"), is pleased to advise of the following developments: Private Placement The Company has received conditional approval, and has filed for final acceptance, of a private placement of 1,250,000 Units at a price of $0.20 per Unit to gross proceeds of $250,000. Each Unit consists of one share and a warrant to purchase a further share for a further two years at a price of $0.20 per share. The placement is subject to a finders fee to Sandstone Ventures Corp. (Sandstone) of 10% of the private placement proceeds, of which 5% will be paid in cash and 5% will be paid in shares (62,500 shares) at a deemed price of $0.20 per share. Sandstone is arms-length to the Company. Proceeds of the placement will be utilised to fund a 1300 meter drill program to test geophysical (IP) anomalies identified at the Company's Star property in northwestern British Columbia in accordance with the recommendations of Ronald Wells, P.Geo., in a report dated January 24, 2004. It is anticipated that drilling will not commence until late August or early September 2004 as a result of drill rig availability. Escrow share cancellation The Company has received TSX Venture Exchange approval to cancel 1,500,000 shares in the capital stock of the Company owned by its wholly owned Nevada subsidiary and that are currently held in escrow by the Company's transfer agent. The cancellation of such shares will reduce the Company's current issued capital (prior to the transactions disclosed herein) to 10,217,377 shares. Minterra enters the Cortez Area, Battle Mountain Eureka Trend, Nevada Area The Company has entered into a letter agreement dated July 26, 2004 with Golden Patriot, Corp., a Nevada corporation the shares of which are traded on the NASD:OTC.Electronic Bulletin Board, pursuant to which it has the option, subject to TSX Venture Exchange approval, to acquire a 50% interest in each of two prospects, the Gold View Claims and the Dun Glen Prospect, located in the Battle Mountain Eureka Trend, Nevada. In order to earn a 50% interest in each property, the Company must (after TSX approval): (a) reimburse Golden Patriot it's out-of pocket costs on such prospect up to a maximum of US$30,000; (b) issue Golden Patriot 100,000 shares in the capital of the Company for each prospect; (c) maintain the properties in good standing while under option; and (d) incur aggregate expenditures on each property as follows: (i) CDN$125,000 in the first 12 months from TSX approval; (ii) CDN$600,000 within 24 months of TSX approval; and (iii) CDN$1,000,000 within 36 months of TSX approval. The Dun Glen prospect is held under 4 separate leases that have underlying net smelter royalties of 3-4% and that require minimum annual advance royalty payments, which for 2004 total US$13,000, plus annual Bureau of Land Management assessment payments. The Company can drop the optioned ground at any time after TSX approval and the initial payments in (a), (b) and (c) above, without penalty. The Dun Glen Prospect is the more advanced of the two properties. It is located in Pershing County, Nevada, approximately 25 miles southwest of Winnemucca Nevada and consists of 57 unpatented claims held under 4 separate leases. The Dun Glen prospect was the subject of historic gold production in the mid 1800's from small underground mines. During 2002, Newmont Exploration is reported to have undertaken a short drilling program of five reverse circulation drill holes. Four of the five holes failed to reach the target depth. One hole intersected the targeted geological sequence but did not yield significant assay results. Notwithstanding this program, surface sampling, mapping and geological interpretation suggests the prospect has the geological potential for a possible bulk tonnage gold target. The Gold View claims consist of 83 unpatented claims in Eureka County, Nevada and were staked to cover favourable geology in the vicinity of the Red canyon property of Victoria Resources. The Company currently has a consulting geologist conducting site visits to the Dun Glen prospect and the Gold View claims to review all available data in order to provide recommendations for initial work programs and for the purpose of preparing geological reports in accordance with NI 43-101. It is anticipated that approval for and the funding of the Dun Glen and Gold View Prospects will be requested in accordance with a Short Form Offering Document; which is currently being finalized in anticipation of filing the same with the TSX Venture Exchange.
Further information in regard to these prospects will be provided once the Company has received the preliminary reports of its consulting geologist.
ON BEHALF OF THE BOARD OF DIRECTORS OF MINTERRA RESOURCE CORP. "JOHN W. GREENSLADE" JOHN W. GREENSLADE, PRESIDENT
For further information please contact John Greenslade, President, at (604) 687-6690
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. | 
