Xtierra Inc.: Bilbao Project Update

Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company"), is pleased to
announce that 1,725,476 of outstanding warrants (representing 98.6%) with an
expiry date of April 15, 2011 have been exercised to raise further proceeds of
US$517,642, bringing the total proceeds of recently exercised warrants to US$3.8
Million. 


With the exercise of the warrants, the issued and outstanding share capital of
the Company is now 103,262,142 shares. There are 14,331,210 warrants and
4,755,000 share options currently outstanding and "in the money." The proceeds
of the warrant conversion brings Xtierra's current working capital to
approximately US$9.5 Million. 


Bilbao Update

Drilling - Current drilling at Bilbao is focussed on several silver-rich zones
in the southern and southwestern margins of the deposit. The first drill-hole
was sited to confirm whether there was continuity of the silver-rich breccia
zone intersected by drill-holes CG4 and X85. Drill-hole X92, located mid-way
between the holes has been completed to a depth of 278.45m and encountered a
similar brecciated limestone with disseminated sulphides over a thickness of
5.25m, between 139.35 and 144.60m. 


Extremely rich silver mineralization encountered previously in drill-hole X26 at
a depth of 382m is the target of drill-hole X86A which is currently in progress
at a depth of 190m. The main objective of this angled hole is to determine the
structural elements of the mineralised veins and to locate a possible feeder
conduit.


In addition to the planned 2,000m of drilling on the high grade silver zones,
further exploration drill-holes will test geophysical anomalies (ground
magnetic) south of the Bilbao deposit as well as at the Ardillas silver-lead
prospect, situated 1.5km north-east of Bilbao.


Feasibility Study-An updated and independent NI-43-101 compliant resource
estimate, final hydrological and geotechnical (rock mechanics) reports, mine
plans and power supply reports will be completed during May.


Metallurgical test work on the oxide ore is still in progress. The milling and
wet high intensity magnetic separation (WHIMS) processes are currently being
optimized in order to obtain maximum payable metal in the pre-concentrate at
optimum acid consumption. These tests are being conducted at the SGS Mineral
Service's Laboratory in Durango, Mexico. Upon completion, locked cycle test work
will also be conducted at the SGS facilities. Pilot plant testing, also to be
conducted at SGS, will allow finalised industrial design to be completed and the
tailings and geochemical characteristics generated by the pilot plant will
facilitate the completion of an environmental assessment report, risk analysis
and tailings management final design. The final feasibility study should be
completed within three months after completing the pilot plant test work.


Incentive Stock Options

Pursuant to the Company's stock option plan, the board of directors has granted
4,225,000 options to purchase common shares in the capital stock of the Company
to directors, officers, consultants and employees of the Company at an exercise
price of $0.51 per share for a period of five years. Of the total grant,
2,000,000 options were granted to directors, 1,400,000 to officers and senior
employees and the balance to employees and consultants.


Qualified Person 

Information of a scientific or technical nature contained in this release has
been prepared by or under the supervision of Terence N. McKillen, P.Geo., Chief
Executive Officer, Gerald J. Gauthier, P.Eng., Chief Operating Officer and Dr.
Anthony C. Gallon, C.Eng., Chief Geologist, all 'qualified persons' within the
meaning of National Instrument 43-101 - Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators.


About Xtierra Inc.

Xtierra Inc. is a Toronto based exploration and development company listed on
the TSX Venture Exchange under the symbol "XAG". There are 103,262,142 shares
issued and outstanding. The Company is conducting a feasibility study on its
Bilbao silver-zinc-lead-copper project in Zacatecas, Mexico. Xtierra's objective
is to become a mid-tier producer of precious and base metals through the
development of its Bilbao project as well as through exploration, organic growth
and M & A opportunities.


For further information visit www.xtierra.ca.