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X-Terra Resources Drills New Gold Discovery at Grog Property in New Brunswick

Exploration Programs

X-Terra Resources Drills New Gold Discovery

at Grog Property in New Brunswick

ROUYN-NORANDA, QC

,

May 5, 2020

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

(FRANKFURT: XTR) ("

X-Terra

") is pleased to announce it has drilled a new gold bearing structure

at the Grog target on the Grog Property located in

Restigouche

county,

New Brunswick

. The

mineralization style continues to highlight strong characteristics of an epithermal system.

Hole GRG-20-012 identified gold ("

Au

") mineralization over a significant width with one interval of

0.41 g/t Au over 36 metres along the hole, which includes 0.46 g/t Au over 31 metres and includes

7.59 g/t Au over 0.6 metres located at a vertical depth of 81 metres under the Grog showing.

Michael Ferreira

, President and Chief Executive Officer of X-Terra states, "This is a significant

exploration breakthrough on a property that's never been drilled and reinforces our expectations that

a large epithermal system is present. While more in-depth geological work, which includes drilling is

needed, X-Terra's management believes that the 11 holes (1,499 metres drilled) only covered a very

small fraction of the targeted environment. Reaching a significant mineralized interval this shallow

(from 107 metres to 143 metres, in GRG-20-012) is a milestone we were relentlessly pursuing after

completing the limited field exploration programs based predominately on roadside trenching. The

information obtained in this program will allow the detailed follow up on the Grog target but also

allow X-Terra to refine and generate more high priority targets carrying the same geological

characteristics to that of the Grog target. This provides a monumental shift moving forward."

Adding these results and data to our database has resulted in the hypothesis that, hole GRG-20-012

may have cross-cut a north to north-east oriented lens. Strong intercept angles of mineralized quartz

veins observed along the core suggest we are close to true thickness. Significant additional drilling

will be required to define the exact dip and plunge of the mineralized lens and the true width and

extent of this discovery.

The series of 11 holes is split into three clusters comprising of three to four holes distributed over a

target area of about 1.6 kilometres following the North-East regional trend associated with the

McKenzie Gulch regional fault.

Targets

Best Results

DIP

(

o

)

Azimuth

(

o

)

Location

Characteristics

Grog:

Sequence of sandstone, conglomerate and mudrock cross-cut by sedimentary

breccia, faults, feldspathic dykes.

Strong argilization, pyritization and veins stockworks. Silicification. Local

arsenopyrite

GRG-20-

011

0.13 g/t Au over 1.15 m (from 90.45 m to

91.60 m)

-54

270

E653395

N5293149

GRG-20-

012

0.41 g/t over 36 m (from 107 m to 143 m)

including:

0.46 g/t Au over 31 m

(from 107 m to

138.05 m), and including:

7.59 g/t Au over 0.6 m (from 137.45 m to

138.05 m)

-49

270

E653320

N5293194

GRG-20-

013

0.57 g/t over 5 m (from 162 m to 167 m)

-48

270

E653504

N5293202

Bellevue

North

:

Sequence of sandstone, conglomerate and mudrock. Cross cut by sedimentary,

breccia, faults, feldspathic and mafic dykes

Carbonate-sericite alteration.

Quartz-carbonate veinlets stockworks with pyrite dissemination. Local

arsenopyrite.

GRG-20-

003

0.11 g/t Au over 2.85 m (from 46 m to 48.85

m)

-53

255

E652820

N5292629

GRG-20-

004

0.35 g/t over 1.5 m (from 165.5 m to 167 m)

-53

255

E652891

N5292613

GRG-20-

005

0.01 g/t Au over 15 m (from 9 m to 24 m)

-55

255

E652889

N5292493

GRG-20-

010

0.01 g/t Au over 96.5 m (from 4.5 m to 101

m)

-55

270

E652947

N5292624

Bellevue

South:

GRG-20-

006

No significant value

-56

360

E652791

N5292165

Mudrock, wacke.

Local disseminated pyrite, arsenopyrite in quart-carbonate veinlets stockworks.

GRG-20-

007

0.13 g/t over 1.1 m (from 12 to 13.1 m)

-54

360

E652708

N5291922

GRG-20-

008

0.11 g/t Au over 1 m (from 17 to 18 m)

-47

360

E652704

N5291960

GRG-20-

009

No significant value

-53

360

E652772

N5291916

HIGHLIGHTS FROM HOLE GRG-20-012 and GRG-20-013

Hole ID

From

(m)

To

(m)

Length

(m)

Au

(g/t)

GRG-20-012

107.00

143.00

36

0.41

Including

107.00

138.05

31.05

0.46

Including

114.50

117.50

3.00

1.01

Including

125.00

128.00

3.00

0.72

Including

137.45

143.00

5.55

0.92

GRG-20-013

86.65

97.00

10.35

0.08

162.00

167.00

5.00

0.57

Hole GRG-20-012

: The mineralized interval is included in a clay rich and carbonate alteration zones

centered on a complex sedimentary breccia which includes graphitic slivers. Hydrothermal and

alteration are developed mostly in porous sandstone and fine grain conglomerates. The pervasive

and intense alteration seems composed mostly of clay mineral assemblages in association with

carbonate, in addition to the quartz veining with open space filling and geodic textures. The

associated sulfides assemblage composed of pyrite, arsenopyrite and marcasite (a low temperature

type of iron sulfide) is mostly finely disseminated with percentage in volume increasing locally from

less than 1% to 10% over metric intervals.

Hole GRG-20-013:

Collared 185 metres to the east has also cut a sequence of anomalous gold

intervals with as best result

0.57

g/t Au over

5

metres. Mineralization is hosted in a similar context

when compared to GRG-20-012. Another type of mineralization was also observed between 86,65

and 97 metres along the hole under the form of a pale yellow strongly argilized dyke of intermediate

composition. The unit returned 0.08 g/t Au over 10.35 metres, including 0.14 g/t over 4 metres,

associated with finely disseminated pyrite and arsenopyrite.

Further drill intercepts obtained over the Bellevue North area highlighted similar characteristics with

the drill holes completed over the Grog showing, such as the argillic alteration and the conglomerate-

sandstone assemblages, locally affected by breccia. In this context, fracturing is mostly filled with

quartz-carbonate veinlets instead of the quartz dominated ones as observed at Grog. Bellevue North

is located about 600 metres south of Grog. These intervals demonstrate and reinforce the possibility

that they were drilled on the periphery of a similar mineralized trend.

Outlook

The detailed interpretation on a larger scale of all information gathered is ongoing and will provide

the spatial orientation of the mineralized trend. X-Terra's recently completed detailed airborne

magnetic and ground IP survey are being used to compare the drilling results and surface data in

order to distinguish and model additional exploration and drill targets. Thus far, by using the surface

exploration data, drilling results and the improved 3D inversion mag model, which allows X-Terra's

team to carefully interpret rock units and structures down to a vertical depth of 300 metres. X-Terra

has been able to identify 12 new exploration and drilling targets carrying similar geological

characteristics. Based on what X-Terra now knows, the principal structure underlying gold

occurrences corresponds to an area of about two kilometres by three kilometres and the individual

targets identified within, correspond to twelve 500 metres segments highlighting varied orientation

depending on local structural geometry.

While X-Terra now has a firm grasp, it will continue evaluating and understanding the geological

sequence that is triggering the gold deposition process, the structural relations and controls within

the Grog environment. The next phase of work will consist of substantiating the key geological

characteristics of the Grog target over these newly identified targets that are all located within the

interpreted hydrothermal epithermal system.

Newly updated maps will be available on X-Terra's website very soon.

QA/QC and Drilling Contract

X-Terra 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.

Some samples were sent to AGAT Laboratories where they were dried and crushed to 75%

passing 10 mesh (2mm) (Code 200001), split to 250g and pulverized to 85% passing 200 mesh

(75μm). Samples are then analyzed with four acid digest method (Code 201 070) with ICP-OES and

ICP-OES Finish (per sample) for arsenic and silver. They are also analyzed for Gold by Fire Assay

with ICP-OES (30g) (Code 202052).

X-Terra has hired the Logan Drilling group based out of

Stewiacke

in

Nova Scotia

. The hole

diameter is NQ. Drilling took place from

January 25 to February 21, 2020

.

Grog and Northwest Properties

X-Terra has an option to acquire a 70% interest in the Grog Property and Northwest property (see

press releases dated April 22, 2019 and

April 30, 2019

).

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 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 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,

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.

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/May2020/05/c9367.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 07:00e 05-MAY-20