John Greenslade, President of Minterra Resource Corp. (the "Company"), is pleased to provide an update on the drilling program at the Elder Creek Prospect, Nevada.

Elder Creek Drilling

The Elder Creek Property is in the Battle Mountain - Eureka Trend (also known as the "Cortez Trend") and lies about 5 miles northwest of the producing Pipeline/Pipeline South gold deposits owned by the Cortez Joint Venture (Placer Dome Inc. PDG-T / Kennecott Exploration, a subsidiary of Rio Tinto RTP-Z ).

The Company, via its wholly owned Nevada subsidiary, Britannia Gold Corp., received approval from the Nevada Bureau of Land Management for an initial drill program on the Elder Creek Property consisting of five reverse circulation drill holes, of which the Company proposed to drill only an initial two holes with a combined total of approximately 4,000 feet of drilling to test lower plate carbonate rocks as the source of gold mineralization in the historic Elder Creek open pit and in the gold mineralized dikes exposed in the base of the open pit. A National Instrument 43-101 report (the "Russell Report") dated October 1, 2004, on the Elder Creek property (as well as the North Mill Creek and NAD exploration properties), prepared by Rick H. Russell, M.Sc., Licensed Geologist, is available for review under the Company's profile at www.sedar.com. As noted in the Russell Report, the Elder Creek property was placed into production in 1989 on a modest near surface gold resource. The deposit was partially mined in 1989 and 1990 and produced 13,000 ounces of gold from leach pads. Mining was terminated because the uncrushed ore responded poorly to being stacked on heap leach pads. The mining has better exposed dikes, sills and structures which were feeders for the deposit.

The Russell Report concludes that the near surface resource at Elder Creek is a guide to and possibly indicative of a high-grade gold deposit in lower plate carbonate rock. The Elder Creek property has potential for high-grade gold along exposed structures where they intersect lower plate rocks at depth.

Minterra has now completed 2,370 feet of drilling in two vertical, reverse circulation drill holes that were collared in the Elder Creek pit, approximately 400 feet outside the known surface gold resource. Drill hole EC-1 was abandoned at 510 feet because of hole logistics and bit problems due to silicified, extremely abrasive quartzite. EC-2 was collared at a depth of 1860 feet and will be continued using core, as soon as drill casing and a core drill rig are available, to explore for the favorable lower plate.

EC-2 RC drilling to date has intersected upper plate Ordovician Valmy stratigraphy that can be divided into three distinct lithologic packages, with three zones of anomalous gold, and associated, mercury and antimony values (complete list of assay values will be posted on the Company's website in the immediate future). The upper part of the hole (0-1065') is dominantly a coarse-grain quartzite with carbonaceous siltstone and is intruded by a felsic sill at 420. Alteration is extensive, with up to 250 ft of quartz vein stockwork (including minor quartz-calcite veining), remobilized carbon, and fine grained pyrite. The middle of the hole (1065-1365) is primarily siltstone with interbedded quartzite and mudstone; intruded by a highly altered felsic dike within a fault zone at 1365 feet. Strong remobilized carbon and fine-grain sulfides occur in the mudstone layers; zones of quartz stockwork 5 to 20 feet thick have scattered barite as overgrowths on quartz crystals.

The bottom of the hole (1365-1860) is primarily mudstone with interbedded chert and limey siltstone (1400-1430 and 1490-1530). Alteration and faulting is pervasive and persistent, with remobilized carbon and pyrite. Fault zones with brecciation and quartz veining occur with increase towards the bottom of the hole. A highly shattered chert layer with very fine pyrite veinlets is prominent at 1745 to 1780.

Chert layers and increased faulting towards the bottom of drill hole EC-2 is very similar to historic holes drilled west and east of the Elder Creek pit. The west hole intersected the lower plate at approximately 2450 feet and the east hole intersected lower plate at approximately 2200 feet. Both of those holes had increased faulting within a sequence of chert, mudstone, and siltstone immediately above the lower plate assemblage.

A further announcement will be made once a commencement date for the completion of hole EC-2 is known. A further four drill sites are currently permitted at locations which can test favorable structures where they intersect the lower plate rocks.

The Company has an option to acquire up to a 70% interest in the Elder Creek Property from Mill City Gold Corp.

John W. Greenslade, P.Eng., a Qualified Person has reviewed the technical disclosure contained herein and accepts responsibility for such disclosure.

PRIVATE PLACEMENT

The Company is proceeding with a private placement of up to 5,000,000 Units at a price of $0.15 per Unit to raise a total of $750,000. Each Unit will consist of one common share and one share purchase warrant. Two share purchase warrants will entitle the holder to purchase a further common share for a period of two years at a price of $0.20 per common share in the first year after issuance and at a price of $0.25 per share in the second year. Canaccord Capital Corporation will act as agent in regard to a portion of the placement and will receive a commission of 10% of the amount placed with subscribers introduced to the Company by Canaccord, one-half of which will be paid in cash or agent's units (the "Agent's Units"), at the election of the agent. The agents will have the same terms as the clients units. In addition, Canaccord will be issued warrants equal to 10% of the units placed by it, each warrant exercisable for a period of two years from the date of closing for a purchase price of $0.20 per warrant during the first 12 months and at a price of $0.25 per warrant thereafter. Eligible placees introduced to the Company by third parties may also be paid a finders fee, in cash, in accordance with TSX Venture Exchange policy.

ON BEHALF OF THE BOARD OF DIRECTORS OFMINTERRA 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.