PanTerra Resources Corp. (PANNF)

[Tr8dervic]

PanTerra to Begin Pre-Frac Testing; Signs Investor Relations Agreement
Friday January 19, 10:00 am ET


PAN - TSXV
CALGARY, Jan. 19 /CNW/ - PanTerra Resource Corp. (The "Company") is pleased to report that it has received results from its Foam Lake core analysis and is now preparing a "Pre-Frac Testing Program". This testing program will commence within the next few weeks.

The results of the "Pre-Frac Testing" will then be integrated with all drilling, logging, and lab analyses results and a selective fracture stimulating program will be developed and implemented. The results of the fracture stimulating program, which should be completed by the end of the 1st quarter, 2007, will provide further details on formation pressures and potential flow rates.

PanTerra is also pleased to announce that it has entered into a one-year independent contract with SPIRE Financial Communications ("SPIRE") to provide investor relations services for the Company. This contract may be renewed annually.

SPIRE is a Calgary-based full service investor relations firm that provides corporate and investor relations services to Canadian public companies. The services to be provided include increasing the Company's visibility to current shareholders and to reach out to potential shareholders via the introduction of the Company to money managers and institutional fund managers.

Pursuant to the agreement, SPIRE will receive a retainer fee of $5,000 per month and the reimbursement of pre-approved expenses. These fees will be paid out of the Company's general working capital. Additionally, SPIRE will receive 300,000 incentive stock options granted pursuant to the terms and conditions of the Company's 2006 stock option plan. The options are exercisable over a two-year period at $0.22 per share.

Further the Company announces that pursuant to the terms and conditions of its 2006 stock option plan, it has granted, in the aggregate, 600,000 incentive stock options to the two newly appointed Directors of the Company. The options are exercisable over a three year period at $0.22 per share.

PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas. The Company holds three permits and one license for a total of 1.1-million acres (550,000 acres net) on four properties in Saskatchewan. PanTerra trades on the TSX Venture Exchange under the symbol "PAN". Further information can be found at www.panterraresource.com.


The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.

For further information

Fred P. Rumak, P.Geol., President and C.E.O., at [phone], Email: [e-mail]
or SPIRE Financial Communications, Ron Matthews, Tel: [phone], Email: [e-mail]