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X-Terra Resources identifies a new mineralized system at Troilus East

Exploration Programs

X-Terra Resources identifies a new

mineralized system at Troilus East

ROUYN-NORANDA, QC

,

Aug. 13, 2020

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

(FRANKFURT: XTR) ("

X-Terra

") is pleased to announce the identification of a new mineralized

system close to the Troilus Mine, in Northern Québec, from its first ever prospecting campaign on

the property (see X-Terra press release dated

July 2, 2020

).

X-Terra Resources identifies a new mineralized system at Troilus East (CNW Group/X-Terra

Resources Inc.)

The newly identified "Smoke" showing is located in the southwest portion of the property three

kilometres directly south east of the former Troilus open pit. The new system identified covers a

strike length of approximately 2.2 kilometres where polymetallic sulfides were sampled. X-Terra

noted that sporadic samples over this area returned copper grades up to

0.25% Cu,

silver grades

up to

8.0 g/t Ag,

zinc grades up to

0.7% Zn and 0.11 g/t Au

, or

0.42g/t AuEq*.

See map.

*AuEq calculated using the spot price on

August 13, 2020

(Au 1947.80 oz; Ag 26.73 oz; Cu 2.85lbs

and Zn 1.06 lbs).

"Being able to define gold, silver and copper mineralization with varied geological features consistent

with the Troilus deposit is a remarkable achievement from the first prospecting program. Considering

that the cut-off grade of the Troilus Gold resource calculation is 0.30 g/t AuEq (see Troilus Gold

Corp. ("TLG") press release dated

July 28, 2020

). The X-Terra exploration team considers these

results more than encouraging as we advance towards the next step of exploration. In addition, the

mineralized system identified correlates to a series of historical electromagnetic anomalies which

have never been drill tested. The teams have already begun planning the next phase of work which

should commence shortly." stated

Michael Ferreira

, President and Chief Executive Officer of X-

Terra.

The mineralization is hosted in a folded sequence of mafic to felsic flows injected by diorite

intrusions. To the north-east, the mineralized system is interwoven into the Parker intrusion, a large

poly phased felsic intrusion. In addition, diorite breccia with sulfides stringers, fractures networks

filled by sulfides associated with quart veining, and disseminated sulfides in mafic host rocks are

common mineralized styles observed in and around the smoke showing. Polymetallic sulfides

observed to date are pyrite, pyrrhotite, chalcopyrite and sphalerite. Furthermore, X-Terra's qualified

person's observations and field expertise over X-Terra's ground and results support the comparison

to that of the Troilus Gold mine which is supported by Troilus Gold's Technical report dated

December 20, 2019

, a copy of which is available on SEDAR at

www.sedar.com

.

A series of important alteration minerals (biotite, tremolite, sericite, garnet, aluminous silicate)

observed alone, or in complex assemblage form halos of which known extensions are still unknown

because of the limited amount of outcrops.

X-Terra wants to highlight that copper and silver grades from drill results disclosed by Troilus Gold

are in the same range as these first surface results obtained from the smoke showing. Also, host

rocks description, alteration and mineralization style, are considered similar. See TLG press release

dated

September 10, 2019

.

Table 1

outlines the grade distribution from 179 rock samples split between 140 bedrock chip

samples and 30 boulder samples over an area of approximately 4.5 square kilometres

Ag (g/t)

Cu (%)

Zn (%)

Au (g/t)

Range

1.0 to 8.0

0.05 to 0.25

0.1 to 0.7

0.05 to 0.11

Number of samples

6

23

10

7

Note: Grab samples are selective by nature and may not be representative of average grades

hosted on the property.

Quality assurance/quality control.

Bedrock and boulder samples were obtained by manually chipping the bedrock and or erratic

boulders. Samples positions were measured by GPS and recorded for quality assurance. 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 Sodium Peroxide Fusion method (Code 201 378) with ICP-OES and ICP-MS

Finish (per sample). They are also analyzed for Gold by Fire Assay with ICP-OES (30g) (Code

202052).

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.

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 Troilus East and/or the Grog and Northwest

Properties, or if it does so, what benefits X-Terra will derive from the Troilus East and/or 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.

About X-Terra Resources Inc.

X-Terra is a resource company focused on acquiring and exploring precious metals properties in

Canada

.

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/August2020/13/c5175.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 16:00e 13-AUG-20