John Greenslade, President of Minterra Resource Corp. (the "Company"), is pleased to advise that a drill crew from Lang Exploratory Drilling, a Division of Boart Longyear Company, Elko, Nevada, arrived on site late last week at the Elder Creek Property, Lander County, Nevada. . An initial hole was commenced on a major northwest - southeast structural feature that is believed to be one of the gold feeder systems that enriched the upper plate Valmy formation rocks that were the subject of the original Elder Creek mine. Unfortunately, problems in drilling the first hole resulted in a decision to abandon the hole at a depth of approximately 550 feet. A second hole, as of Wednesday May 18^th, was down approximately 965 feet (1,200 feet as of Monday, May 23, 2005). From a depth of approximately 400 feet, drill cuttings are exhibiting hydrothermal pyrite and carbon veining and minor barite veining. The bottom of the hole is in intensely silicified carbon flooded Valmy quartzite. The drill crew is working one 12 hour shift per day and expects to drill 200-300 feet per day.

The Company, via its wholly owned Nevada subsidiary, Britannia Gold Corp., has 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 plans to drill only an initial two holes (in addition the abandoned hole) with a combined total of approximately 4,000 feet of drilling to test lower plate carbonate rocks. The Elder Creek Property is in the Battle Mountain - Eureka Trend (also know 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 ).

A National Instrument 43-101 report (the "Russell Report") dated October 1, 2004, on the Elder Creek, 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 rocks. The lower plate assemblage at the Pipeline/South Pipeline deposits hosts several million ounces of gold, including high-grade gold feeder structures. The Elder Creek property has potential for high-grade gold along exposed structures where they intersect lower plate rocks at depth.

The depth to the lower plate rocks is not currently known but has been estimated from regional geologic and gravity data to be approximately 1,500 feet from the base of the Elder Creek open pit. The current drill program is designed to test the potential of the lower plate carbonate rocks as the source of gold mineralization in the historic open pit and in the gold mineralized dikes exposed in the base of the open pit.

The Company has an option to acquire up to a 70% interest on 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.

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.