Pan Terra Industries Provides Update on Congo Namibia Acquisition and Private Placement

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, Dec. 30, 2011 /CNW/ - Pan Terra Industries Inc. ("Pan Terra" or the "Company") (TSX.V: PNT) is pleased to announce that it will be closing in January its previously announced acquisition of 80% of the common shares of Congo Namibia Trading (PTY) Limited (see October 7, 2011 news release) as the Company has now received approval from the Namibian Competition Commission.

Also, Pan Terra announces that it will be closing next week its previously announced non-brokered private placement (see October 25 and October 31, 2011 news releases) of units (the "Units") and is increasing the placement by an additional 857,143 Units to accommodate over-subscriptions. As a result of the increase in the placement to accommodate over-subscriptions, a total of 6,857,143 Units will be issued at a price of $0.35 per Unit for aggregate proceeds of $2,400,000. All other terms of the private placement remain the same as previously announced.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ON BEHALF OF THE BOARD OF DIRECTORS

PAN TERRA INDUSTRIES INC.
"Alexander Helmel"
President

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.

All statements in this news release, other than statements of historical fact, that address events or developments that Pan Terra expects to occur, are "forward-looking statements". Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause Pan Terra's actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. Pan Terra expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.