Canterra Announces $2 Million Financing

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION INTO THE USA 

Canterra Minerals Corporation (TSX VENTURE:CTM) ("Canterra") wishes to announce
that it has arranged a non-brokered private placement of up to 14,285,714 units
(the "Units") at a price of $0.07 per Unit and up to 10,000,000 common shares to
be issued as "flow-through" shares for the purposes of the Income Tax Act
(Canada) (the "Flow-Through Shares") at a price of $0.10 per Flow-Through Share
for gross proceeds of up to $2,000,000. Each Unit will consist of one common
share ("Common Share") of the Company and one-half of one common share purchase
warrant (each whole warrant being a "Warrant") of the Company. Each Warrant will
entitle the holder thereof to purchase one Common Share at $0.10 and will be
exercisable for a period of 24 months after the closing date ("Warrant Expiry
Date"), provided however, that in the event that the Common Shares trade at a
closing price on the TSX Venture Exchange (the "TSXV") of greater than $0.20 per
Common Share during any twenty consecutive trading-day period at any time after
the expiry of the four month hold period, the Company may accelerate the Warrant
Expiry Date by giving notice to the holders thereof and in such case the
Warrants will expire on the 21st business day after the date on which such
notice is given to the holders by the Company.


The Units and Flow-Through Shares are collectively referred to herein as the
"Offering".


A finders' fee may be payable on a certain portion of the Offering. The finders'
fee, where applicable, will be payable in cash equal to 6% of the proceeds
raised from the Offering. In addition, the Finders' will receive compensation
warrants ("Compensation Warrants") exercisable for non-flow-through common
shares equal to 6% of the total number of certain Flow-Through Shares and Units
sold. The Compensation Warrants will be exercisable at a price of $0.10 per
share for a period of 12 months after the Closing Date.


The net proceeds from the private placements will be used by the Company for
property acquisition, exploration and for general corporate purposes. 


Closing of the private placements is subject to the receipt of applicable
regulatory approvals including approval of the TSX Venture Exchange. The
securities issued will be subject to a standard four month hold period. 


CANTERRA MINERALS CORPORATION

Randy Turner, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the content of this news release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canterra Minerals Corporation
Randy Turner
President
604-687-6644