PanTerra Resources Corp. (PANNF)

[tr8dervic]

PanTerra Closes $5 Million Private Placement
Thursday May 8, 2:56 pm ET

PAN - TSXV
CALGARY, May 8 /CNW/ - PanTerra Resource Corp. (the "Company") wishes to announce that it has closed its previously announced private placement financing with Paradigm Capital Inc. as co-lead agent, together with Becher McMahon Capital Markets Inc. (collectively, the "Agents") on May 8, 2008 (the "Offering"). The Offering was comprised of 4,286,000 common flow-through shares of the Company issued at a price of $0.35 per share and 11,667,000 units ("Units") of the Company issued at a price of $0.30 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant is exercisable into one common share of the Company at a price of $0.40 per share until November 8, 2009. Gross proceeds realized by the Company from the Offering totaled $5,000,200.00.

The Agents received an aggregate commission of 8% and Agent's Options exercisable to purchase such number of Units as is equal to 8% of the aggregate number of Units and Flow-Through Shares purchased under the offering.

The Company intends to use such funds to further develop its Shale Gas properties in the Province of Saskatchewan and for general and administrative purposes.

PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas and its deeper rights potential in the Province of Saskatchewan. The Company holds 'all rights' in three Exploration Permits for a total of approximately 1.1 million acres in the Province of 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 Herve B. Collet, V.P. Operations/C.O.O., at [phone], Email: [e-mail]



--------------------------------------------------------------------------------
Source: PanTerra Resource Corp.