Valterra Resource Corporation: Financing Announced; Bobcaygeon Project Expanded

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 1, 2013) - Valterra Resource Corporation ("Valterra") (TSX VENTURE:VQA)(OTCBB:VRSCD)(FRANKFURT:3VA) reports that it has entered into a share exchange agreement with Global Resources Investments Ltd. ("GRIL"), an arm's length party to Valterra.

GRIL has been established to exploit investment opportunities in the junior mining and natural resources sectors worldwide, with an investment objective to generate medium and long-term capital growth. GRIL will re-register as a public company and be constituted as an investment trust with the name Global Resources Investment Trust Plc ("GRIT") and seek admission of its ordinary shares on the main market for listed securities on the London Stock Exchange.

Pursuant to the share exchange agreement, GRIT will issue and deliver to Valterra 186,069 ordinary shares of GRIT at a deemed price of £1.00 per share (the "GRIT Shares") in exchange for the issuance of 6,000,000 units of Valterra at a deemed price of £0.031 (approximately $0.05) per unit. Each unit consists of one common share and one common share purchase warrant exercisable at $0.07 per share for a period of 2 years. Valterra will, at its election, sell the GRIT Shares through the facilities of the London Stock Exchange to realize proceeds of the transaction.

Closing of the transaction is subject to a number of conditions precedent, including approval of the TSX Venture Exchange, and GRIT successfully listing on the London Stock Exchange.

Bobcaygeon Project

Valterra has added 9 new claims totalling 55 units to the Bobcaygeon project located in Southeast Ontario. The claims have now been processed and registered with the Ontario government. The property now totals 172 claims, 9 patents and 4 leases for a total of 19,506 hectares (195.1 sq km), located within the Galway, Cavendish, Glamorgan, Anstruther, Cardiff and Monmouth townships.

The new claims reflect the continued expansion of the claim group on its northern boundary and in particular the areas around the newly identified Crystal and Salerno graphite occurrences located 10 km and 23 km respectively along strike and to the northeast of the Discovery trench. Assay Results from reconnaissance sampling on these occurrences (as reported in NR-11-13, June 5^th, 2013) returned both high-grade graphite (up to 15% Cg over 1.5 metres) and multiple values greater than 1%Cg. Historical geological data indicates widespread accessory graphite throughout the host stratigraphy including the visual identification of graphite in diamond drill holes and suggests strong exploration potential within these areas.

Initial sampling in the Discovery Zone area returned assays of up to 69.1% Cg in grab sample and up to 36.8%Cg over 1.5 metres in channel sampling.

The Salerno and Crystal zones are associated with the Salerno Creek Deformation Zone (SCDZ) that forms a major tectonic boundary between the Bancroft Terrane and Harvey-Cardiff Arch. The terrane contact hosts the majority of past-producing graphite mines and significant graphite occurrences in the belt; and, the deformation zones are within major regional-scaled fault complexes.

Project Milestones

Since the identification of high-grade graphite on the property in late 2012, Valterra has continued to advance the project through the early exploration stage and metallurgical evaluation. Completed work includes reconnaissance mapping and prospecting resulting in the identification of four new discoveries including the 1.75km-long Corridor zone, located 1 km to the north of the original graphite discovery and the Crystal and Salerno Occurrences referred to in the proceeding text.

Surface IP geophysics over a 10 line-kilometre grid covering the initial graphite discovery has identified an 800m x 400m chargeability anomaly which remains a primary drill target. Several shallow drill holes were completed in the area of the discovery trench in order to better define the geology, structural controls and lens geometry in this overburden dominated area. High-grade, near surface drill results (6.36% Cg over 3.38m; including 31.90% Cg over 0.53m in hole BOB13-004, see NR-08-13) suggest that the target graphite horizon may be flat-lying or gently undulating; or that multiple target horizons exist in this area. Valterra is planning to conduct additional drilling, geophysics and prospecting in the area near the Discovery Zone and regionally within the district-scaled property.

Metallurgical Testing Summary

Several stages of Metallurgical testing were conducted on a +20kg sample from the Discovery Zone area in order to help evaluate the marketability of potential graphite products from the Bobcaygeon property and resulted in the identification of an ultra-high-purity, fine-flake graphite concentrate grading 99.97% C and medium to jumbo flake concentrates grading +94% Cg. The fine-flake flotation concentrate was subjected to a two-stage leach process followed by LOI analyses on the leach residue.

Previously reported highlights from metallurgical work conducted at SGS Lakefield includes:

• 55.9% of the concentrate separates into the fine-flake category (-150 mesh) which through further leach testing produced the ultra-high purity analysis reported above.
• 31.7% of the concentrate separates into the large and jumbo flake categories (+80 mesh or >0.178mm) grading 94.9% C by LOI. This includes 14.6% of the concentrate at a +48 mesh (jumbo flake) grading 94.7% C by LOI.
• 12.4% of the concentrate separates into the medium-flake category (-80 to +150 mesh) grading 96.3% C by LOI.
• 34% Cg head-grade was returned in trench float sampling of primarily flake graphite with flakes of up to 3mm in length.

These Preliminary flotation and leaching test results demonstrate the potential to produce marketable, very high-margin natural graphite products utilizing industry-standard processing techniques from the entire concentrate, including the ultra-high-purity fine-flake fraction. Only flake graphite with purity of 99.9% is suitable for Li- ion battery manufacturing which is currently dominated by high-cost synthetic graphite. Current synthetic prices range from US$7,000-20,000 per tonne and Valterra is targeting this market with natural graphite products that may provide a distinct cost advantage.

Future Exploration at Bobcaygeon

Year-one successes from prospecting, trenching, metallurgy, geophysics and diamond drilling have defined numerous targets property-wide that merit exploration in 2013/14. Valterra has budgeted C$500,000 to $750,000 and is planning to conduct additional exploration in the Discovery Zone area and regionally within the district-scaled property. Preliminary plans are highlighted by diamond drilling of between 2,000 to 2,500m.

Recent metallurgical reports, ground-geophysical data, updated corporate presentations and photographs are available on Valterra's website at www.valterraresource.com.

About Graphite

Graphite is a naturally occurring form of carbon with wide-ranging and unique physical properties. Graphene is derived from graphite and is one of the strongest known substances with a tensile strength 200 times the strength of steel. The industrial development of graphene is at an early stage but will eventually become a replacement for several expensive electronic components such as silicon semi-conductors. There are three natural primary graphite occurrences - vein, flake, and amorphous where the highest quality product can command prices in excess of $2,000 per tonne. In pricing graphite, the flake size is a key factor with the large flake (>.178mm) ores commanding the highest prices in markets dominated by multi-national eco-automobile manufacturers, high-tech industries and nuclear energy companies. Recent pricing and demand increases have accelerated numerous exploration and investment opportunities in the graphite market.

The Province of Ontario is an excellent locale to explore owing to superior geology, geoscience knowledge, infrastructure, political stability and tax incentives. Several projects are advancing in the graphite field including Northern Graphite Corp., Zenyatta Ventures Inc. and Ontario Graphite Ltd.

The Bobcaygeon property is hosted in rocks of the Grenville geological province which hosts most of the known significant graphite deposits in Canada.

Corporate News

Frederick Sveinson has tendered his resignation as President of Valterra in order to pursue other opportunities. The board of directors thanks Mr. Sveinson for his valuable contributions to Valterra and wishes him every success in the future. Lawrence Page Q. C., Chairman, will act as interim President pending designation of a President with specific knowledge of development and marketing in the graphite industry.

About Valterra Resource Corporation

Valterra is a Manex Resource Group Company. The group provides expertise in exploration, administration, and corporate development services for Valterra's mineral properties located in British Columbia and Ontario. Valterra is focussed on early stage properties with the potential to host large deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and is exploring several key projects including "Star-Toughnut", "Swift Katie" and "Bobcaygeon" which are located near roads, rail, power, and resource communities in Canada.

Robert Macdonald, MSc., P.Geo., is the Qualified Person responsible for reviewing the technical information presented in this release.

On behalf of the Board of Directors,

Lawrence Page, QC, Chairman, Valterra Resource Corp.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Valterra Resource Corp.'s projects, and the availability of financing for Valterra Resource Corp.'s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Valterra Resource Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.