Pan Terra Announces Stock Option Grants

PAN TERRA INDUSTRIES INC.

PAN TERRA ANNOUNCES STOCK OPTION GRANTS

FOR IMMEDIATE RELEASE

September 2, 2010 Calgary, Alberta

PAN TERRA INDUSTRIES INC. ("Pan Terra" or the "Corporation") (TSX Venture Exchange TSXV - “PNT.H”), Mr. David Heighington, Director of the Corporation announces the granting of incentive stock options to its directors and officers to purchase an aggregate of 750,000 common shares pursuant to its Stock Option Plan. The options are for a five-year term, and are exercisable at a price of $0.10 per share. The transaction is subject to customary exchange approval.

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: (403) 237-0018 Attention: Mr. David D. Heighington, Director

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."