Corporate Update

PAN TERRA INDUSTRIES INC.

CORPORATE UPDATE

FOR IMMEDIATE RELEASE

January 20, 2010 Calgary, Alberta

PAN TERRA INDUSTRIES INC. ("Pan Terra" or the "Corporation") (TSX Venture Exchange TSXV - “PNT.H”), Mr. Murray Tildesley, Director of the Corporation announces a non-brokered private placement consisting of 4,000,000 units at a price of $0.05 per unit for total proceeds of $200,000. Each unit will consist of one common share and one purchase warrant, with each full warrant entitling the holder to purchase an additional common share of the Corporation at a price of $0.10 within 12 months of issuance. The common shares and warrants will be subject to a four month hold period. The proceeds from the private placement will be used for general working capital to support continuous disclosure requirements. It is expected that the private placement will close shortly, subject to customary exchange approvals. The private placement will not result in a change of control.

The Corporation will remain listed on NEX until it acquires new assets or businesses, which would result in the Corporation once again meeting the TSX Venture Exchange’s minimum listing requirements.

For further information, please contact:

Pan Terra Industries Inc.

4304 – 19 Avenue SW Calgary, Alberta T3E 0G8 Ph: (250) 380-6939 Attention: Mr. Murray Tildesley, Chairman

Forward-Looking Statements

This press release may include forward-looking statements including opinions, assumptions, estimates and expectations of future results, cash flow and earnings. Forward-looking statements are subject to a wide range of risks and uncertainties and although the Corporation believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized.

“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."