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X-Terra Identifies Lithium Potential at Troilus East

Exploration Programs

X-TERRA IDENTIFIES LITHIUM POTENTIAL AT

TROILUS EAST

ROUYN-NORANDA, QC

,

June 5, 2023

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

(FRANKFURT: XTR) ("

X-Terra

" or the "

Company

") is pleased to report that it has identified

significant lithium potential at its 100%-owned Troilus East Property in

James Bay

, Québec,

following a review of Company results from previous exploration at Troilus East that focused only on

its gold-copper potential.

Troilus East is located approximately 285 km southwest of X-Terra's flagship Liberty Property

bordering Winsome Resources' Adina discovery. Notably, Troilus East is contiguous to the eastern

boundary of a large gold deposit being advanced to the Feasibility Stage by Troilus Gold and lies on

the contact of a large granitic intrusion, known as the Parker Pluton, and the Frotet-Evans

Greenstone Belt.

X-Terra's compilation for lithium over the ~100

sq.

km Troilus East Property was sparked by

the recent Sayona transaction

(refer to Troilus Gold news release dated Nov. 16, 2022) where

Troilus Gold announced the sale of select properties to emerging producer Sayona Mining for

$40

million (

see attached map

).

Mr.

Michael Ferreira

, X-Terra President & CEO, commented: "With our focus on the Liberty Lithium

Property as we quickly transition to Comet Lithium (refer to

April 20, 2023

, and

May 19, 2023

, X-

Terra news releases), the discovery of lithium potential at Troilus East, combined with its already

known gold-copper potential, makes this an extremely compelling #2 project for the Company. We

are exploring multiple options to unlock the full potential value of Troilus East for shareholders."

Troilus East Lithium Highlights:

1

.

The property has never been explored for lithium despite being located nearly along strike and

inside the same geological units as spodumene-bearing pegmatites of Lac Moblan located

about 50 km south of the property;

2

.

Geological mapping at Troilus East shows granitic dykes and occasional pegmatite veins

intruded in mafic rocks, an environment often mentioned in spodumene-bearing cases in the

James Bay

region;

3

.

95 samples among 475 surface samples across the property, taken by X-Terra in 2020

targeting gold-copper, are anomalous in lithium above 30 ppm and up to 248 ppm. They are

mostly composed of basalt with quartz veinlets. This initial prospecting was oriented toward

gold-copper and did not consider pegmatites as prospective targets;

4

.

Five (5) lithium target areas have initially been identified based on clusters of lithium values. Two

of them are located inside the Parker granite, two others are located close to lenticular granitic

intrusion-hosted mafic terrains.

5

.

Elements such as

scandium

(Sc, up to 964 ppm), tin (Sn, up to 1,100 ppm) and

tungsten

(W,

up to 100 ppm) are present in the environment of some of the targets, showing the potential

influence of a large, possibly zoned magmatic system;

6

.

X-Terra is currently reviewing options for a near-term follow-up program dedicated to the lithium

potential at Troilus East that would include testing of mapped granites and pegmatite vein

swarms.

Troilus East Project & Surrounding Area – Frotet-Evans Greenstone Belt.

*Map claim information

generated from: https://gestim.mines.gouv.qc.ca/. Troilus Gold resource information generated from:

https://www.troilusgold.com/troilus-gold-project/#geology-and-mineral-resources (CNW Group/X-

Terra Resources Inc.)

Troilus East Lithium Targets

Five separate target areas identified to date follow a northeast alignment along the eastern flank of

the Parker intrusion over a strike length of about 20 km. They are based on a minimum of two

samples with Li assays above 53 ppm. The follow-up objective will be to evaluate potential

magmatic sources of lithium anomalies observed in the volcanic environment.

Target

Location

Signature

Environment

Features

Lac Diane

540370E –

5649300N

Li: 50 to 70ppm

Sc: 55 to 100ppm

Southern limit of

the Parker Pluton

Andesite,

affected by

calc-silicate

alteration and

metamorphism

Parker 1

542280E –

5651100N

Li: 57 to 67ppm

Internal area of

the Parker

intrusion

Granite and

tonalite

Mésière

551000E –

5655350N

Li: 54 to 248ppm

Spatially

associated with a

mapped lenticular

granitic body

Biotite

alteration

affecting mafic

intrusions;

higher values

hosted in

quartz-

feldspar vein

Dionne Fault

552075E –

5658350N

Li: 56 to 98ppm

Spatially

associated with a

northeast

lenticular granitic

body at the apex

of the Parker

Pluton

Biotite

alteration in

mafic

intrusions and

volcanics

Gilbert Fault

556150E –

5660230N

Li: 55 to 71ppm

Sc: 65ppm

Spatially

associated with

east-west Gilbert

Fault

Calc-silicate

alteration with

biotite in mafic

volcanics

2020 Troilus East Sampling

Surface sample results used for this preliminary assessment of the lithium potential at Troilus East

were generated by X-Terra during the summer of 2020. The program that year tested an area

located immediately south of the Parker intrusion in the Parker Volcanic Formation composed of a

mafic to felsic sequence known to host copper-zinc mineralization. East of the Parker intrusion, part

of the extensive Mésière Formation comprising basalt alternating with magnetic gabbro sills was

covered sporadically by sampling in the search for a gold-bearing system.

A total of 475 samples were taken during this initial program, including coverage of 25 felsic

intrusions of different types. Most samples were of variably pyritized upper greenschist

metamorphosed volcanic units, mostly of mafic composition. Samples were assayed for a wide

variety of elements using a peroxide fusion assaying method. The preliminary review of data

indicates a strong lithium background with 95 samples containing lithium concentrations above

30 ppm. Sporadically, scandium values above 60 ppm are spatially associated with high lithium

content with the highest value of 964 ppm in sample E6538051*. Tin anomalies were obtained

locally with concentrations above 10 ppm, and a mineralized occurrence as found inside the Mésière

Formation giving 0.114% Sn from sample E6538056*. Tungsten anomalies reaching at least 20 ppm

(highest concentration of 107 ppm) were observed south of the Parker intrusion.

The Parker intrusion can be interpreted as a composite intrusion which includes late tectonic coarse-

crystallized dykes and masses observed at its southern contact and at different locations along the

eastern contacts. It is not clear at this stage if this intrusive phase is related with the lithium anomaly

and associated elements which suggest a strong magmatic footprint in surrounding volcanic rocks.

Note: elemental results reported were not controlled by a QA/QC program using blank and standard

material inserted in the sampling chain. These initial results were also not validated by duplicate

sampling. Assays results were produced by AGAT Laboratories.

* From: Campagne d'échantillonnage 2020-2021, projet Troilus Est. GM 72758, 2022. Demers, M.

Sigéom.mines.gouv.qc.ca

Q

u

alified Person

Martin Demers

, P. Geo (ogq #770, APEGNB L5980, PGO #3785), registered in the Provinces of

Québec,

Ontario

and

New-Brunswick

, a consultant to X-Terra Resources, is a qualified person

under National Instrument 43

–

101 - Standards of Disclosure for Mineral Projects.

He 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 well-structured publicly listed resource company with projects in the James

Bay Lithium District in

Quebec

as well as in

New Brunswick

(precious metals). Advancing its projects

with thoughtful and technical rigor, X-Terra strives to discover and delineate new compliant

resources, creating value for its shareholders.

Website:

www.xterraresources.com

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 timing for holding the

Meeting, the voting results of the Meeting, obtaining regulatory and shareholders' approvals for the

Name Change. 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, 2022

, 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 to download multimedia:

http://www.newswire.ca/en/releases/archive/June2023/05/c1072.html

%SEDAR: 00035962E

For further information:

X-Terra Resources Inc., Michael Ferreira, President and Chief Executive

Officer, 147 Québec Avenue (back door), Rouyn-Noranda, Québec, J9X 6M8, Email:

[email protected], Website: www.xterraresources.com; MarketSmart Communications Inc.,

Adrian Sydenham, Toll-free: 1-877-261-4466, Email: [email protected]

CO: X-Terra Resources Inc.

CNW 08:00e 05-JUN-23