Xtierra Inc (XAG)

[NYBob]

Bilbao Project update - Preliminary metallurgical tests indicate excellent metal recoveries from oxide ores
TORONTO, Jan. 22 /CNW/ -

Xtierra Inc. -
(TSXV - XAG) ("Xtierra"), is pleased to provide a further
update on its Bilbao Silver-Zinc-Lead-Copper Project in
Zacatecas, Mexico.

Preliminary metallurgical test work on the oxide facies mineralization at Bilbao indicates that a high intensity magnetic separation process results in the creation of a pre-concentrate that is amenable to acid leaching and from which silver, lead, zinc, copper and gold can be successfully recovered.

Metallurgical Testing
---------------------


Metallurgical test work, carried out at the Metallurgical Institute of the University of San Luis Potosi by Dr. Alejandro Lopéz Valdivieso and Dr. Shaoxian Song, using a process of high intensity magnetic concentration (HIMC) on oxide mineralization considered to be of average deposit grade, resulted in a marked pre-concentration of silver, lead, zinc and copper with no significant loss of any of these metals. Recoveries in the pre-concentrate were 86% for silver, 95% for lead, 88% for zinc and 70% for copper with the percentage of iron being reduced from 22% to 7.2%.

With such a major reduction of iron oxide in the concentrate, the sulphuric acid consumption will be greatly reduced in the zinc and copper leaching process. The residue, containing 35% iron, may also be a marketable product to the cement industry.

Earlier test work on the deeper sulphide mineralization indicates excellent metal recoveries and the production of normal zinc, lead and copper flotation concentrates.

-------------------------------------------------------------------------
% wt Grade g/t % % % %
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Ag Pb Zn Cu Fe
-------------------------------------------------------------------------
Feed 100.00 80.50 3.74 1.96 0.27 22.28
-------------------------------------------------------------------------
Non-Magnetic
Pre-Concentrate 45.12 153.00 7.87 3.82 0.42 7.23
-------------------------------------------------------------------------
Magnetic Residue 54.88 21.00 0.35 0.43 0.14 34.67
-------------------------------------------------------------------------


----------------------------------------------------------------
Distribution %
----------------------------------------------------------------
Ag Pb Zn Cu Fe
----------------------------------------------------------------
Feed 100.00 100.00 100.00 100.00 100.00
----------------------------------------------------------------
Non-Magnetic
Pre-Concentrate 85.70 94.94 87.94 70.19 14.64
----------------------------------------------------------------
Magnetic Residue 14.30 5.06 12.06 29.81 85.36
----------------------------------------------------------------

Table 1: Pre-concentrate upgrade of Oxide Mineralization from Bilbao by
High Intensity Magnetic Separation
(all analyses carried out at the University of San Luis Potosi)


Xtierra plans to conduct more extensive metallurgical test work on the oxide, sulphide and mixed ores at Bilbao as part of a planned feasibility study to be carried out during 2009 which will include optimization of the operating parameters for the HIMC process.

The Bilbao project is owned 100% by Xtierra's Mexican operating subsidiary. An independent NI-43-101 resource estimate was recently completed comprising 3.6 million tonnes indicated resources at an average grade of 3.53% zinc, 2.75% lead, 0.29% copper and 88.23g/t silver and 2.4 million tonnes inferred resources at an average grade of 2.52% zinc, 2.79% lead, 0.28% copper and 83.08g/t silver. The deposit remains open to the northwest and to the southwest.

Comment by CEO
--------------

Commenting on the update, Xtierra's President & CEO, Terence McKillen,
said, "We are very pleased by the preliminary metallurgical test results for
the oxide mineralization which suggest that an upgraded pre-concentrate can be
produced through a process of high-intensity magnetic separation. This
pre-concentration process is used extensively in the mineral sands industry
and will reduce overall consumption of reagents, improve metal recoveries and
lead to operating cost efficiencies."

Qualified Person
----------------

Mr. Terence N. McKillen, P.Geo., and Mr. Gerald J. Gauthier, P.Eng.,
Qualified Persons (as defined in National Instrument 43-101) supervised the
preparation of the scientific and technical information reflected in this
press release, unless otherwise indicated.

About Xtierra Inc.
------------------

Xtierra Inc. is a Toronto based exploration and development company listed
on the TSX Venture Exchange. Xtierra's shares trade under the symbol "XAG".
Xtierra has 49,862,003 shares issued and outstanding.
Xtierra's objective is to become a mid-tier producer of silver and base
metals through the development of its Bilbao and Laguna projects, both located
in the Central Mexican Silver Belt in the State of Zacatecas, as well as
through organic growth and M & A opportunities.

ON BEHALF OF THE BOARD OF DIRECTORS OF XTIERRA INC.

Terence N. McKillen
President and CEO

Cautionary Notes:
-----------------


This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.

For further information

visit
http://www.xtierra.ca or
contact:
Terence McKillen, President & Chief Executive, [phone]

Tim Gallagher, Director, [phone]

Alejandro Alaniz, Director Finance &
Administration (Mexico), [phone]

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