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X-terra Resources Announces Closing of Private Placement

Financings

X-terra Resources Announces Closing of

Private Placement

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE

UNITED

STATES/

ROUYN-NORANDA, QC

,

Aug. 27, 2021

/CNW Telbec/ - X-Terra Resources Inc. (TSXV: XTT)

(FRANKFURT: XTR) ("

X-Terra

") is pleased to announce the closing of a non-brokered private

placement at which it issued 11,716,670 units at a price of

$0.075

per unit, for aggregate gross

proceeds to X-Terra of

$878,750

. Each of the 11,716,670 units is comprised of one common share

and one common share purchase warrant (the "Warrants"). Each Warrant entitles its holder to

acquire one additional common share of X-Terra at a price of

$0.11

for a period of 24 months from

the closing date. In the event that the closing price of the common shares of X-Terra on the TSX

Venture Exchange ("TSXV") is at least

$0.20

for a period of not less than 10 consecutive trading

days, the Warrants will expire, at the sole discretion of X-Terra, on the 30

th

day after the date on

which X-Terra sends a notice in prescribed form to the holders of the Warrants.

X-Terra intends to use the proceeds from the private placement for exploration on certain of its

mining exploration properties in Québec and New Brunswick and for working capital purposes.

In connection with the private placement, X-Terra paid cash commissions to two securities dealers in

an aggregate amount of

$9,948.75

. In addition, X-Terra granted finders' options to Canaccord

Genuity Corp. and Leede Jones Gable Inc. entitling them to acquire up to an aggregate of 132,650

additional common shares of X-Terra at a price of

$0.075

per share for a period of 24 months.

As a result of the closing of the private placement, there are 91,169,937 common shares of X-Terra

issued and outstanding. Under applicable securities legislation, the securities issued in the private

placement are subject to a four-month hold period, expiring on

December 28, 2021

.

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 relating to the use of proceeds from the private placement, 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 additional closings of the private

placement. 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, those described under "Financial Instruments" and "Risk and Uncertainties in X-Terra

Resources' Annual Report for the fiscal year ended

December 31, 2020

, 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 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.

SOURCE

X-Terra Resources Inc.

View original content:

http://www.newswire.ca/en/releases/archive/August2021/27/c5235.html

%SEDAR: 00035962E

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: [email protected], Website: www.xterraresources.com

CO: X-Terra Resources Inc.

CNW 17:19e 27-AUG-21