2020-01-07

X-TERRA RESOURCES COMMENCES DRILLING OVER ITS HIGH PRIORITY TARGETS ON THE GROG AND NORTHWEST PROPERTIES

Rouyn-Noranda, Québec, January 13, 2020 –X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) is pleased to announce that diamond drilling has commenced over its high priority targets on the Northwest and Grog properties located in Restigouche county in the province of New Brunswick. The drilling was kicked off over the Northwest vein system at the northwest Trench No. 26 target situated in an orogenic quartz vein mineralized environment. It is important to note that all six high priority targets identified by X-Terra Resources including the Northwestern Trench No. 26 have seen no historical drilling, see X-Terra Resources’ press release dated January7, 2020 for details on the six high priority targets. Also see X-Terra Resources press release dated December5, 2018 for details of the results of the grab samples collected on the Grog and Northwest properties, including the gold enrichment values up to 207.6 g/t Au from chip samples and boulder samples mentioned in the X-Terra Resources dated January7, 2020.

X-Terra Resources has hired the Logan Drilling group based out of Stewiacke in Nova Scotia, who have been recognized for completing itsprojects in a safe, productive and efficient manner to carry out the inaugural drill program. X-Terra Resources is also planning to publish a drilling update throughout the program as it progresses.

Qualified Person

Jeannot Théberge, P. Geo registered in the Provinces of Québec and New-Brunswick, a consultant to X-Terra Resources, a qualified person under National Instrument 43‑101 Standards of Disclosure for Mineral Projects (“NI43-101”)has reviewed the technical contents of this news release, and has approved the disclosure of the technical information contained herein.

About X-Terra Resources Inc.

X-Terra Resources is a resource company focused on acquiring and exploring precious metals and energy properties in Canada.

Forward-Looking Statements

This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra Resources, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the exploration programs and development (including any drilling programs) of the Grog and Northwest Properties, or if it does so, what benefits X-Terra Resources will derive from the Grog and Northwest Properties. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources’ control. These risks, uncertainties and assumptions include, but are not limited to, thosedescribed under “Financial Instruments” and “Risk and Uncertainties in X-Terra Resources’ Annual Report for the fiscal year ended December 31, 2018, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differmaterially from those projected in any forward-looking statements. X-Terra Resources does not intend, nor does X-Terra Resources undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

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 or accuracy of the release.

For further information:

X-Terra Resources Inc.

Michael Ferreira, President and Chief Executive Officer

139 Québec Avenue, Suite202

Rouyn-Noranda, Québec, J9X6M8

Telephone: 819-762-4101 | Fax: 819-762-0097

E-mail: info@xterraresources.com

Website: www.xterraresources.com