Pan Terra signs exclusivity agreement to acquire Kombat copper/lead/silver mine, Namibia Africa

VANCOUVER, Dec. 7, 2011 /CNW/ - Pan Terra Industries Inc. ("Pan Terra" or the "Company") (TSX.V: PNT) is pleased to announce that it has entered into an exclusivity and confidentiality agreement with Manila Investments (PTY) Ltd. ("Manila"), and certain individuals in order to negotiate the acquisition of 80% of the issued and outstanding common shares of Manila, a private company incorporated under the laws of Namibia, Africa.

Manila's principal asset is the agreement made in October 2011 among Manila, Grove Mining Namibia (Proprietary) Limited and others in respect of acquisition of the Kombat Mine and related assets, including all mining surface infrastructure and equipment, prospecting licenses, and intellectual property related thereto.  The Kombat mine was placed on care and maintenance in 2008.  Pan Terra is attracted to the findings in recent independent reports showing robust economic potential to extract known copper, lead and silver resources from within the existing mine workings.  Pan Terra also forms the opinion that there exists excellent exploration potential to discover new zones of copper, lead and silver within the land package and a possibility to extract significant manganese resources not previously evaluated by historical owners.

Manila is in talks with Epangelo Mining Company (Pty) Ltd (fully owned by the Government of the Republic of Namibia) with a primary objective to enter into a strategic partnership and to jointly reactivate the Kombat project into an operational mining facility while providing jobs and beneficiation for both the local community and Namibia.

Pan Terra has accelerated its due diligence investigations during the exclusivity period and will provide an update on the status of the acquisition negotiations in due course.

Neither the 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 of accuracy of this news 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. Such factors include, without limitation: results of due diligence investigations, the ability to enter into legally binding agreements in respect of the Kombat Assets, significant capital requirements and the ability to raise equity capital; the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements in, Namibia; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law. 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.