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X-Terra Resources Defines Gold Drilling Targets on the Grog and Northwest Properties

Exploration Programs

X-Terra Resources Defines Gold Drilling

Targets on the Grog and Northwest Properties

ROUYN-NORANDA, QC

,

Jan. 7, 2020

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

(FRANKFURT: XTR) is pleased to announce that it has defined several high priority gold drilling

targets on its road-accessible Grog and Northwest properties, located in Restigouche County in the

province of

New Brunswick

. The targets were defined as a result of the fieldwork and data

processing completed throughout the 2019 exploration program. Winter drilling will allow to

accelerate the exploration process and continue to generate high quality sampling in areas previously

identified as gold-bearing.

Geochemical surveys, high resolution magnetic survey and induced polarization were completed

across the Grog and Northwest properties, in addition to the trenching and structural mapping that

were completed to produce a first drilling plan. The Grog and Northwest properties are

characterized by a one to two metres thick soil and overburden blanket without nearly any

outcropping areas. This situation creates both an opportunity and a challenge for exploration by

making the classic "hammer and boot" prospecting more challenging. Identification of targets needed

to be supported heavily on indirect exploration methods, such as, geochemistry and geophysics

followed by drilling.

Grog gold mineralization targets

correspond to an area of about 6 kilometres along the East

to Northeast McKenzie Fault Zone. The mineralized system is not attached to a unique structure

and remain inside a one kilometre-wide favorable corridor marked by a complex folding pattern

with associated shear zones. A feldspathic dyke swarm event runs all along the targets

associated with clay alteration, open space filling quartz veining marked by brecciation and

sulfidation. The gold-bearing system can be tracked using arsenic and antimony as pathfinders.

The Northwest veins system

is located about 25 kilometres further south in a distinct

geological environment composed of wacke sediments metamorphosed to the greenschist

metamorphism facies. In this context, low sulfides, free gold-bearing quartz veins are hosted in

strongly dipping shear zones marked locally by drag folding. Chlorite group minerals are the

main component of the alteration system.

While early, the drilling proposal is supported by multiple field evidences such as the gold enrichment

observed with lithological contacts, shearing and particular alteration assemblages. Structural

information obtained during the 2019 field exploration program allowed to give an orientation for

each target.

"The 2019 exploration program on the Grog and Northwest properties was very successful and to

further delineate these first drill targets is a true testament to the hard work the entire team has

done. Some of the targets identified exhibit the geological characteristics required for a porphyritic-

epithermal connection, however, other sectors of the properties advocate more for an intrusion

related gold deposit context. In addition, this will be the first time any drilling has taken place over

the Grog Property", stated

Michael Ferreira

, President and Chief Executive Officer of X-Terra

Resources.

The objective of these first drill holes is to confirm the position of gold-bearing structures, evaluate

the geometrical parameters such as dip and thickness, and recover information that will validate

geological controls on gold mineralization.

Six distinct high-priority targets were modelled to be tested first with one or two shallow drill holes.

X-Terra Resources' plan is to drill between one and three shallows holes per target.

Targets

Host rocks

Geochemical signature and

alteration

Host structure

Mineralization

environment

Northwest

26

Greenschist sediments

Au, chlorite alteration

N-NE strongly dipping shear zone along a folded contact

Orogenic quartz veins

Dyke swarm

Feldspathic dykes/hornfels

As-Sb, hornfels alteration

Dykes contacts corresponding to a strong chargeability

contrast.

Intrusion related

Bellevue

South

Conglomerate/shear zones

Au-As-Sb, clay alteration

Shear zone cross cutting a fold hinge

Epithermal veins

Bellevue

North

Conglomerate/shear zones

Au-As, clay alteration

Shear zone cross cutting a fold hinge

Epithermal veins

Grog

Conglomerate/feldspathic

dykes

Au-As-Sb, clay, silicification

Shear zone cross cutting a fold hinge

Epithermal veins

TR-8

Conglomerate

Au-As-Sb, clay, silicification

Sediments contacts with a strong chargeability contrast.

Epithermal veins

Prospective structures were firstly identified with strong chargeability contrasts along property wide

dipole-dipole induced polarization survey lines. Further trenching on selected anomalies made the

contact with different sulfides bearing, alteration and locally strongly faulted environments.

Systematic sampling along 20 to 200 metres lines returned varied levels of gold, arsenic and

antimony enrichment.

The final targeting used the last detailed airborne magnetic survey produced at 50 metres spacing

over 701 line kilometres interpreted with the help of structural measurements and geological

mapping from each trench.

Drilling priorities

Northwest 26

target

: High grade gold values were obtained from four sub-outcropping quartz vein

occurrences scattered within a five kilometre by five kilometre area. For all cases identified to date,

gold enrichment values up to 207.6 g/t Au from chip samples and boulder samples were obtained

from individual 0.1 to 0.3 metre wide veins.

The northwest trench No 26 result (4.5 g/t Au) is associated with a 10 metre-wide quartz vein

networks following a chlorite rich shear zone (see X-Terra Resources press release dated

November 27, 2019

). Drill holes planned should prove the repetition and consistency of gold grades

inside the vein system (See link:

https://www.xterraresources.com/pdfs/Drill-Targets-2020-XTT-NB-TRENCH-26.pdf

).

Dyke swarm Target

: Strong arsenic and gold geochemical anomalies are associated with a

feldspathic dyke swarm highlighting a north to north-south orientation. A strong brecciation

associated with clay, silica and pyrite alteration was identified at the limit of accessible ground for

trenching. Drilling will cross-cut this 60 to 100 metre area bounded by strong mineralization

indicators.

Bellevue North

& South Targets:

The area is located approximately two kilometres north of the

Dykes swarm showing. Initial roadside prospecting returned 1 to 2.87 g/t Au boulders. Initial

trenching has intercepted a series of gold values between 0.3 and 0.8 g/t forming locally five metres

wide interval. Target modelling indicates a strong control by a north-east shear zone developed

inside a silicified and argilized conglomerate. Both gold showings can belong to similar parallel

structures according to the current interpretation. The distance between them reaches approximately

600 metres. The drilling strategy aims to cut entirely the gold-bearing structure thickness.

Grog Target:

The Grog showing area is located approximately 700 metres north of the Bellevue

showing. Actual trenching patterns returned gold values up to 3.7 g/t Au partly hosted in argilized

strongly dipping feldspathic dykes, and partly in silicified conglomerates extending over

approximately 500 metres. Structural observations have indicated the importance of intersections

between dykes and easterly fractures. The initial drilling planned aim to reproduce historical surface

results.

Tr-8 Target:

Trench No. 8 represented the northernmost exploration area on the property, being

located approximately six kilometres from the dyke swarm target. The mineralization context

identified with gold anomalies between 0.05 and 0.27 g/t Au is located at the intersection between a

conglomerate-siltstone contact and an oblique minor shear zone. The gold enrichment is related to

silicification and brecciation similar to the structures observed in epithermal environments.

(See link:

https://www.xterraresources.com/pdfs/Drill-Targets-2020-XTT-NB.pdf

).

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

(

"

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 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, those described

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 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.

Website:

www.xterraresources.com

SOURCE

X-Terra Resources Inc.

View original content:

http://www.newswire.ca/en/releases/archive/January2020/07/c3161.html

%SEDAR: 00035962E

For further information:

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

Officer, 139 Québec Avenue, Suite 202, Rouyn-Noranda, Québec, J9X 6M8, Telephone: 819-762-

4101, Fax: 819-762-0097, E-mail: [email protected]

CO: X-Terra Resources Inc.

CNW 09:30e 07-JAN-20