2021-02-17

X-TERRA RESOURCES DRILLS LONGEST GOLD INTERCEPT ON GROG PROJECT TO DATE

Rouyn-Noranda, Québec, February17, 2021 – X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) (“X-Terra”) is pleased to announce the results of the Grog drilling program which was carried out in the fall of 2020. The primary objective was tobegin defining the geometry and extension of the Grog showing and to identify newperipheral mineralization zones towards the definition of a large epithermal gold system.

Prior to this drill program the Company has carried out exploration activities that support the presence of a large epithermal gold system on the Grog Project, including the discovery hole GRG-20-012which intersected a mineralized interval of 0.41 g/t Au over 36 metres (See X-Terra press release dated May 5, 2020 for more information). Further data integration and modeling was completed usingstructural observationsfrom trenches, drilling data, and geophysical patterns generated by magnetic and IP surveys. In addition, a geochemical sampling program completed prior to this drill program, outlined atwo square kilometre arsenic anomaly very closelyaligned withthe known extent of thesandstone and quartz pebble conglomerate Grog sequence.

The drill program was completed following an East-West grid to follow up on the primary gold and arsenicsoil anomalies which overlayimportant structural trends. The drilling grid covered approximately one kilometre from north to southwhileusing a minimum step out space of 50 metres where appropriate. The holesreached vertical depths ranging from 115 metres to 180metres.

GRG-20-29 returned the longest gold bearing intercept on the Grog project to date (See Table 1 for complete drill results). Cross-cutting the Grog sequence it returned 0.29 g/t Au over 52.75 metres. The hole cross-cut a mineralized sequence over 53 metres, cross cutting the Grog sequence following a south to south-west orientation. The aim of the hole was to cutthe Grog sequence on a perpendicular axis to test the width of the mineralization trend. The gold mineralization can now be correlated to visual observations such as the density of fractures, faults zones, and the presence of areas where disseminated sulfides occur.

It is becoming clear that the gold zone is closely associatedwith a carbonate and clay altered sandstone. Alteration is the result of hydrothermal stockwork and brecciationthat have been reworked by regional deformation. The mineralized zones are characterized by open space filling of quartz-carbonate. Sulfides, mainly pyrite and arsenopyrite are abundant, taking the form of both disseminated and replacement of host rocks.In addition, some narrow veins of stibnite have been observed.

Michael Ferreira, President and Chief Executive Officer of X-Terra stated; “This is a big step forward in ourunderstanding of the Grog mineralized system. With the new information gained,our geological team has a clearer understanding of the mineralization trends. We are now actively modeling these trends to generate higher probability targets of higher-grade mineralization. To date there has only been 19 drill holes at the Grog target, including 16 from this program.  The identification of a second widegold bearing interval at this early stage reinforces the confidence that a large epithermal gold system is present on the Grog Project.”

“Additionally, we would like to thank our shareholders for their patience during the long turn-around time for these results. Labs continue to be overwhelmed by the volume of samples from a busy industry along with the ongoing complications brought on by the COVID 19 pandemic.

X-Terra also wants to report that upon reception of these results, our systematic sampling of non mineralized rock has identified multiple zones grading up to 2.19 g/t Au which have not been sampled on either side along the hole. These samples are currently being cut and will be sent to the lab as soon as they are ready.”

Table 1 – 2020 Drill Results

Hole IDFrom (m)To (m)Length (m)Au (g/t)
GRG-20-1540.3045.054.750.26
 47.8051.804.000.20
GRG-20-1745.0545.550.502.19
GRG-20-239.5014.004.500.26
 108.50110.001.500.96
 116.00121.505.500.61
GRG-20-29115.25168.0052.750.29
 115.25121.005.750.37
 125.40135.009.600.60
Incl.127.50128.150.652.21
 138.00138.500.501.79
 148.50168.0019.500.28

Map enclosed illustrates the position of drill holes, main results and targets model.

QA/QC

X-Terra Resources adheres to a strict quality assurance and quality control program with regard to core handling, sampling, transportation of samples and lab analyses. Samples selected for assay were shipped via secure transportation to the Techni-Lab (S.G.B. Abitibi Inc.) preparation facility in Ste-Germaine Boulé, QC. samples were assayed for gold by standard fire assay on 30-gram fractions with atomic absorption (TMT-G5B) or gravimetric finish (TMT-G5C) at Techni-Lab (S.G.B. Abitibi Inc.). In addition, the quality control protocol includes insertion of blank or standard every 10 samples on average, in addition to the regular insertion of blank, duplicate and standard samples accredited by Actlabs during the analytical process. 

Qualified Person

Jeannot Théberge, P. Geo registered in the Provinces of Québec and New-Brunswick, a consultant to X-Terra, a qualified person under National Instrument 43101 Standards of Disclosure for Mineral Projects (NI 43-101”), has reviewed the technical contents of this news release and has approved the disclosure of the technical information contained herein.

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, 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 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’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Financial Instruments” and “Risk and Uncertainties in X-Terra’s Annual Report for the fiscal year ended December 31, 2019, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X-Terra does not intend, nor does X-Terra 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.

About X-Terra Resources Inc.

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

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
147 Québec Avenue

Rouyn-Noranda, Québec, J9X 6M8

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

E-mail: info@xterraresources.com

Website: www.xterraresources.com