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X-Terra Resources Announces Geochemical Results at its 100% Owned Troilus East Project In James Bay, Québec

Exploration Programs Sampling & Geoscience Results

X-Terra Resources Announces Geochemical

Results at its 100% Owned Troilus East

Project In James Bay, Québec

ROUYN-NORANDA, QC

,

Dec. 30, 2020

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

(FRANKFURT: XTR) ("

X-Terra

") is pleased to announce the results of the geochemical sampling

program have identified a new high priority gold-silver target on its 100% owned Troilus East project

located 150 kilometres northeast of the town of

Chibougamau

, Québec, which is adjacent to the

Troilus Gold Project, owned by Troilus Gold Corp.

X-Terra received a portion of its geochemical results stemming from a series of soil geochemistry

test lines executed earlier this fall. The survey employed diverse sampling and assay techniques in

order to advance the property towards its first ever drill program.

Different horizon materials (hums, soil and till) were sampled and assayed using different

approaches: Neutronic activation, MMI™ and Bleg (cyanide extractable gold). Humus and soil (MMI)

sampling were completed over the newly identified mineralized system located two kilometres east

of the Troilus Mine deposit and identified in the exploration program conducted in the summer of

2020, (See X-Terra's press release dated

August 13, 2020

). Till sampling grids were also

completed on previous till lines where high pristine gold grains counts were obtained.

A total of 184 soil (MMI) samples were collected at 25 metre intervals followed by 146 humus

samples collected at 50 metre intervals over line spacing varying between 150 and 300 metres.

In addition, five additional grids of till sampling at 100 to 150 metres spacing were also completed to

infill the pre-existing soil survey X-Terra carried out in 2018 which identified a total of 283 gold grains

in 72 of 78 total samples and where 71 gold grains were classified as pristine, meaning that the

location of the till samples in which such gold grains have been recuperated is most likely located

less than 500 metres from its source.

Lac Diane Target

While the till survey results are still pending, the Humus and soil (MMI) results have highlighted an

outstanding gold-silver anomaly north of Lac Diane, about 3.2 kilometres due east of the Troilus

Mine deposit. One line comprising of 31 MMI samples and 9 humus samples highlights the

superimposition of the gold and silver signals. The main anomaly is composed of 7 MMI samples,

with values between 11 and 25 times the detection limit and are aligned over 150 metres. The

anomalous area corresponds to a flat lying till coverage which extends north-east for about three

kilometres. It has to be noted that this area lacks visible outcrops and has been subject to very

minimal exploration prior to this program.

Smoke Target

A series of polymetallic and gold anomalies are currently under review based on the surface sample

results obtained by X-Terra in the summer of 2020, in order to apply appropriate levelling

techniques. The geochemical results correspond to the underlying Smoke target defined earlier this

year following ground prospecting results which returned copper-silver-zinc-gold grades along

defined trends centered on known structures and lithological contacts.

The polymetallic and gold geochemical activity covers an area approximately two kilometres along

strike following the north-east regional structural orientation over an apparent width of about 500

metres.

"

The discovery of multiple gold and base metal-in-sol anomalies defined by our MMI and Humus, is

an exciting development for the Troilus East project which sits directly adjacent to Troilus Gold's

8.11 M oz AuEq deposit*. While more results are pending, our preliminary interpretations suggest

that the gold and base metal-in-sol anomalies form a parallel trend that is similarly northeast-

southwest orientated like the nearby Troilus Gold deposit. Importantly enough, the balance of soil

results pending could open up the Troilus East property to additional discoveries and we believe X-

Terra is well positioned next to one of

North America's

promising undeveloped copper-gold projects"

stated

Michael Ferreira

, President and Chief Executive Officer of X-Terra.

* Refer to Troilus Gold's NI 43-101 Technical Report dated

October 14, 2020

with an effective date

of

August 31, 2020

and entitled "Preliminary Economic Assessment of the Troilus Gold Project,

Quebec, Canada

", available on Troilus Gold's SEDAR profile at

www.sedar.com

).

Outlook

Gold and base metal geochemical results confirming mineralization were obtained mainly in areas

that did not undergo any surface exploration due to lack of outcrop, thus highlighting the importance

of this geochemical sampling step in X-Terra's exploration strategy.

In addition, even with the limited amount of samples taken and the relatively wide spacing used for

the line network, the structural continuity of gold and base metal anomalies observed support the

immediate execution of a ground IP geophysics program in order to follow up and plan the first drill

program at Troilus East.

Qualified Person

Jeannot Théberge, P. Geo registered in the Provinces of Québec and

New-Brunswick

, a consultant

to X-Terra and a qualified person

under National Instrument 43

–

101 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.

About X-Terra Resources Inc.

X-Terra is a resource company focused on acquiring and exploring precious metals 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 Troilus East Project or any of the Lac Diane

Target or Smoke Target, or if it does so, what benefits X-Terra Resources will derive from the

Troilus East Project. 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, 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 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/December2020/30/c0898.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 09:00e 30-DEC-20