Release: Interra Resources: Drilling update

(21 January 2009)?Interra Resources Limited wishes to inform shareholders of the current drilling and completion status of development wells in Indonesia

Development well TMT-51 is being drilled by the operator of the Tanjung Miring Timur (?TMT?) oil field in Indonesia. Interra owns a 70% interest in the TMT Technical Assistance Contract. The TMT oil field is onshore and is located in South Sumatra. The owner of the remaining 30% and operator of the field is PT Retco Prima Energi.

As announced in November 2008, well TMT-51 is the first of three development wells originally scheduled to be drilled in 2008 by an external drilling contractor. Progress has been slower than anticipated due to significant mechanical problems with the drilling rig. It is anticipated that the results of this well will be available in approximately 3 weeks time. The remaining two wells will be drilled back to back after completion of well TMT-51. (end of edited release)