Caiterra International Energy Updates Drilling Program on Faust Property

CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX
VENTURE:CTI) is pleased to announce an update on its planned three well program
on its property in the Faust area of north central Alberta (the "Faust
Property"). The Faust Property is located just north of the prolific Swan Hills
oil field and west of Black Pearl Resources Inc.'s Mooney producing oil field
and south of the Town of Slave Lake. CaiTerra currently holds a 50% working
interest in the Faust Property.


The Company drilled its first well vertically through the Bluesky formation to
test the presence of the Bluesky sand oil zone and logged the well to determine
reservoir characteristics. The Bluesky zone has been identified as an economic
oil producing zone in the Mooney oil field located to the east of the Faust
Property. The well was then drilled horizontally. The first well was drilled at
5-28-72-10-W5M, with a bottom-hole target of 5-29-72-10-W5M and reached a total
depth of 1,986 metres. Completion of the well has commenced.


The Company is currently drilling a second well, located at 5-29-71-10-W5M, and
has reached a depth of 1,055 metres. This well was also drilled vertically
through the Bluesky formation and proved the presence of the Bluesky sand oil
zone. Procedures have now begun to prepare the second well for horizontal
drilling. 


The third well is planned for 1-33-72-10-W5M however timing will be dependent on
weather conditions and accessibility prior to spring breakup. 


Cautionary Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


A Note Regarding Forward-Looking Information

This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "will", "expects", "believe", "plans", "potential" and similar
expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this press release contains forward
looking statements and information concerning the plans and timing for the
Company's drilling program. The Company cautions that there are no assurances or
guarantees that the transaction will be completed as proposed or at all. 


Although the Company believes that the expectations and assumptions on which
such forward looking statements and information are based are reasonable, undue
reliance should not be placed on the forward-looking statements and information
because the Company can give no assurance that they will prove to be correct.


Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to, the risks
associated with the oil and gas industry in general such as operational risks in
development, exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the uncertainty
of reserve and resource estimates; the uncertainty of estimates and projections
relating to reserves, resources, production, costs and expenses; health, safety
and environmental risks; commodity price and exchange rate fluctuations;
marketing and transportation; loss of markets; environmental risks; competition;
incorrect assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; ability to access sufficient capital from
internal and external sources; changes in legislation, including but not limited
to tax laws, royalties and environmental regulations, actual production from the
acquired assets may be greater or less than estimates; failure to obtain the
necessary regulatory approval, stock exchange and other regulatory approvals on
the timelines planned. Management has included the above summary of assumptions
and risks related to forward looking information provided in this press release
in order to provide security holders with a more complete perspective on the
Company's future operations and such information may not be appropriate for
other purposes.


The forward-looking statements and information contained in this press release
are made as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements or information, whether
as a result of new information, future events or otherwise, unless so required
by applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CaiTerra International Energy Corporation
Craig Robson
Chief Executive Officer and Director
[phone]