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Bonterra Resources Commences Phase II Drilling at its Eastern Extension Property, Quebec

BonTerra Resources Inc. (TSX VENTURE:BTR) (FRANKFURT:9BR) has received complete assays for the recently completed Phase I drilling and commenced Phase II of drilling on the Company's 100% owned Eastern Extension property.

The Company is currently drilling 3 BTW sized core holes located in and around the known discovery zone announced by the Company on November 9, 2010. The Company intends to complete drilling operations and ship core to the assay lab for assay prior to Christmas break. Concurrently, the Company is building a winter camp for January Phase III operations.

The Company is in receipt of its final gold assays and ICP geochemistry results from its drill program on the Eastern Extension property, Quebec. A total of 1,525.14 metres were drilled in Phase I of its work in the Urban-Barry area. The final four holes were drilled to test various targets in the area on the Eastern Extension Property, particularly with the aim to aid the Company to understand the direction and extent of the high-grade gold bearing system.

The three holes being drilled this month will aim to step out and continue to develop a resource and follow the continuity of the vein system. The assays demonstrate a very high grade system which appears to run from a dept of approximately 25 metres depth in hole BA-10-01 to as deep as 134 metres as shown in hole BA-10-03. The next three holes will allow the Company to get a greater idea of the lateral direction and to develop a working model for the Phase III January winter drill Campaign.

Of note is the fact that these gold bearing veins have not yet been tested to any great depth. The deepest high grade gold sample reported on the Eastern Extension property to date was discovered by Xemac Resources in their 1998 drill program (BL-98-10). This historical drill hole returned a gold value of 89.73 grams/tonne (449.58-450.19 metres down hole). The Company has raised funds in excess of $3.6 million and intends to expend approximately $1.5 to $2.0 million drilling this system and developing a NI 43-101 potential resource, which would then be detailed in a NI 43-101 compliant technical report.

After receipt of final assays from Phase I, BonTerra is also announcing an increase of 3.11 grams/tonne to 15.81 grams/tonne from 12.70 grams/tonne in the gold grade for the lower intercept in BA-10-03. Originally the lower mineralized zone intercept for BA-10-03 was reported as 12.70 grams/tonne over 6.75 metres (127.25m to 134.00m). The Company is pleased to announce this lower intercept has been revised to 15.81 grams/tonne over 6.00 metres (128.00m-134.00m). BonTerra is very encouraged by BA-10-05. Although BA-10-04 did not return significant values, the fact that BA-10-05 which was drilled east of BA-10-04 and returned gold values as high as 11.85 grams/tonne indicates a second eastern gold target on the property. This second gold target is east of the one identified by holes BA-10-01, BA-10-02 and BA-10-03. This second eastern gold target adds to the potential of the Eastern Extension property.

The outcome of the ICP geochemistry shows silver and copper mineralization is also associated with high grade gold zones. Drill hole BA-10-03 returned the highest silver intercepts. The upper zone (83.80-85.60 metres) returned silver values of 23.73 grams per tonne. The lower intercept (128.00-134.00 metres), also in BA-10-03 returned a silver grade of 39.28 grams per tonne. Copper values were highest in BA-10-01 (25.30-38.80 metres) at 0.266%.

Mitchell Adam, President, states, "We are very pleased to have completed Phase I and come out with such high grade results. As a result, the market allowed us to raise a significant amount of money to continue to drill this exciting property and expand our property holdings in the area. Our aim is to develop our holdings in one of Canada's best-known gold regions. The last round of drilling was a very exciting time for the Company and as demonstrated in the assays, we have further targets to drill and the funds in place test them. We are also looking forward to drill testing this property at greater depth and have had numerous discussions within the community about the possibility of a high grade system on Bonterra's ground to hold even greater potential at the depth which Xemac reached in the 90's."

The Company has chosen to employ a full quality assurance and quality control (QAQC) system for every batch of samples submitted to the lab. The QAQC samples include a standard, duplicate and blank. Geologica Inc. of Val d'Or, Québec is responsible for overseeing the drill and sampling program on behalf of the Company.

The Eastern Extension property is located approximately 170 km NE of Val-d'Or and 125 km SW of Chibougamau in the Barry and Bailly townships in the Abitibi Greenstone Belt, Québec. BonTerra's Urban-Barry property is situated just west of the Eastern Extension property. Neighboring companies in the region are Metanor, Amseco, Beaufield, Eagle Hill, Glen Eagle, Urbana and Freewest, Murgor and Noront. The Company has an option to earn 100% of the Eastern Extension property subject to a 2% NSR.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Thomas Clarke, Pr.Sci.Nat, a qualified person and a Director of the Company.


BonTerra Resources Inc.


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