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X-Terra resources reports drilling and channel sample results from a new polymetallic discovery at its 100% owned Ducran property

Drill Results Exploration Programs

X-Terra resources reports drilling and channel sample results from a new

polymetallic discovery at its 100% owned Ducran property

ROUYN-NORANDA, QC, Oct. 31, 2017 /CNW Telbec/ - X-T erra Ressources Inc. (TSXV: XTT)

(FRANKFURT: XTR) is pleased to announce the results of channel sampling as well as the results from

the three (3) exploratory drill holes (totalling 294 metres) from the X-Terra Resources' 100% owned

Ducran property located 15 kilometres south of the town of Chapais in the province of Québec ( maps of

work can be viewed here ). X-Terra Resources completed these stripping and drilling works throughout its

due diligence review for the acquisition of the Ducran property (see X-Terra Resources' press releases

dated September 20, 2017 and October 16, 2017). The drilling program was carried out by Chibougamau

Diamond Drilling based in Chibougamau, Québec.

Highlights

• Channel sampling performed on trench A returned the following inter vals along the mineralized

corridor:

• ( R1 ) 0.06 g/t Au, 4.95 g/t Ag, 0.03% Co, 1.54% Cu and 0.91% Ni over 1.4 metres

• ( R3 ) 0.04 g/t Au, 1.51 g/t Ag, 0.05% Co, 0.90% Cu and 1.22% Ni over 2.3 metres

• Hole DC17-01

• 0.04 g/t Au, 0.68 g/t Ag, 0.02% Co, 0.32% Cu and 0 .50% Ni over 5.85 metres.

• Hole DC17-02

• 0.02 g/t Au, 2.49 g/t Ag, 0.24% Pb and 1.77% Zn ov er 2.00 metres.

• 0.06 g/t Au, 5.50 g/t Ag, 0.02% Co, 0.59% Cu and 0 .29% Ni over 2.00 metres.

• Hole DC17-03

• 9.75 g/t Ag, 0.02% Co, 0.38% Cu, 0.45% Ni and 0.28 % Zn over 3.90 metres.

Including (over 1.80 metres):

• o 0.03 g/t Au, 18.62 g/t Ag, 0.03% Co, 0.70% Cu, 0 .77% Ni and 0.24% Zn.

According to the trenches and drill core observations, the polymetallic mineralization is hosted by ma fic

schist in a sheared polyphased intrusion (diorite, quartz diorite and gabbro).

Three metallic packages were observed:

1. Nickel and copper;

2. Nickel, copper, silver and zinc with minor cobal t and gold; and

3. Silver, zinc and lead with minor gold.

Package 1 and 2 are associated to pyrrhotite (1 to 30%) and chalcopyrite (trace to 6%) stringers in the

mafic schist. Package 3 has only been observed in hole DC17-02 in a felsic fragment containing up to

25% sphalerite within the mafic schist (shear zone).

"The unique polymetallic mineralization we encountered in this renowned mining district is a big step for

X-Terra as the results highlight a very prospective horizon that historically has never been tested bo th

laterally and at depth. We are encouraged by the results and will be moving forward with a follow up

exploration program" stated Michael Ferreira, President and Chief Executive Officer of X-Terra Resourc es

Inc.

As described in X-Terra's press release of October 16, 2017, the mineralization at the Ducran property

consisted in pyrrhotite and chalcopyrite stringers hosted by a "volcanogenic" alteration (thin sections

study in progress) into a strongly sheared intrusion complex (diorite, quartz diorite and gabbro).

Channels sampling

Channel sampling performed on trench A returned the following intervals along the mineralized corridor:

• 0.06 g/t Au, 4.95 g/t Ag, 0.03% Co, 1.54% Cu and 0 .91% Ni over 1.4 metres ( R1 )

• 0.04 g/t Au, 1.51 g/t Ag, 0.05% Co, 0.90% Cu and 1 .22% Ni over 2.3 metres ( R3 )

R2 and R4 were performed to collect quality samples in order to complete additional thin section studies.

No significant results were obtained on R2 and the following results were obtained on R4: 0.04 g/t Au, 0.6

g/t Ag, 0.02% Co, 0.25% Cu and 0.60% Ni.

Trench B, completed 35 metres to the West-North-Wes t of trench A, failed to explain another beep mat

conductor on strike of the shear zone due to the am ount of overburden. The trench exposed a diorite and

quartz diorite intrusion containing minor shear zone (millimetric to centimetric). The unexposed area is

seven (7) to eight (8) metres wide and is interpreted to represent the location of the shear. Two (2)

samples taken from outcrop, sample number 00559 over a 50 centimetres large injection or fragment into

the diorite and sample number 00560 over a six (6) centimetres massive pyrite injection. Results are

indicated below: Sample number 00559 graded 2.1 g/t Ag, 0.02% Co, 0.2% Cu and 0.84% Zn and

Sample number 00560 graded 1.7 g/t Ag.

Diamond drilling results

Hole DC17-01

• Drilled directly under the South-East end of trenc h A and intersected the shear zone (containing

20% of centimetric to metric diorite fragments) at a depth of 10 metres over a width of 9.85 metres

(from 8.50 metres to 18.35 metres). The mineralization within this zone is over 5.85 metres and

consists of pyrrhotite and chalcopyrite stringers within the alteration.

• Hole DC17-01 graded:

0.04 g/t Au, 0.68 g/t Ag, 0.02% Co, 0.32% Cu and 0. 50% Ni over 5.85 metres .

Hole DC17-02

• Drilled under No.1, have intersected the shear zone between 42 and 54 metres vertically over a

width of 16.48 metres . Two mineralized zones are present in the shear; a 1.9 metres fragment from

68 to 70 metres consisting of a felsic xenolith containing 5% to 20% sphalerite and the stringer zone

of pyrrhotite and chalcopyrite from 74.10 metres. to 76.10 metres.

• Hole DC17-02 graded:

0.02 g/t Au, 2.49 g/t Ag, 0.24% Pb and 1.77% Zn ove r 2.00 metres.

&

0.06 g/t Au, 5.50 g/t Ag, 0.02% Co, 0.59% Cu and 0. 29% Ni over 2.00 metres.

Hole DC17-03

• Drilled 25 metres to the South-East, parallel to h ole No. 2 according to the trend of the shear zone.

The hole intersected the shear zone at vertical dep th of 50 metres from 68.9 to 75.8 metres

(over 6.9 metres). The stringer zone of pyrrhotite and chalcopyrite occurs between 69.9 and 73.8

metres (3.90 metres).

• Hole DC17-03:

9.75 g/t Ag, 0.02% Co, 0.38% Cu, 0.45% Ni and 0.28% Zn over 3.90 metres; including 0.03 g/t

Au, 18.62 g/t Ag, 0.03% Co, 0.70% Cu, 0.77% Ni and 0.24% Zn over 1.80 metres.

"After our comprehensive interpretation of the mineralization, we have decided to concentrate our effo rts

on following the shear zone within the intrusions" stated Michel Chapdelaine Vice-President of

Exploration and Development of X-Terra Resources. According to the previous work done in the 60's and

in 1987-1988, the structure is open to the West-Nor th-West, to the East-South-East and at depth. "By

completing a detailed Mag-EM survey, followed by ground mapping and carrying some exploration and

drilling, we hope to identify more in the shear and also establish other structures in the intrusions'' further

stated Mr. Chapdelaine.

Qualified person

Jeannot Theberge, PGeo, a consultant to X-Terra Res ources, is the qualified person for the Ducran

property under National Instrument 43-101 - Standards of Disclosur e for Mineral Projects , responsible for

the technical contents of this news release, and has approved the disclosure of the technical informat ion

contained herein. The data verification was conducted by Jeannot Theberge, P.Geo. under the

supervision of Michel Chapdelaine, Vice-President o f Exploration and Development of X-Terra

Resources.

Quality Control

The drilling contract was awarded to Chibougamau Dr illing Ltd. based in Chibougamau, Québec. The

hole diameter is NQ. X-Terra Resources has implemen ted and adheres to a strict Quality

Assurance/Quality Control for its exploration program. It includes two mineralized gold standards, one

pulp duplicate and one blank for each batch of 24 samples. Analyses are performed by Techni-Lab, Ste-

Germaine-Boulé, Québec, an accredited laboratory.

About X-Terra Resources Inc.

X-Terra Resources 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 legislati on. 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 development of the Veronneau Property and Ducran property. 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 oth er

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 "Ri sk

and Uncertainties in X Terra Resources' Annual Report for the fiscal year ended December 31, 2016, 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 ob ligation, 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/October2017/31/c6613.html

%SEDAR: 00035962E

For further information: X-Terra Resources Inc., Michael Ferreira, President and Chief Executive

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

4101 | Fax: 819-762-0097, E-mail: [email protected], Website: www.xterraresources.com;

Michel Chapdelaine, Vice-President of Exploration and Development, 139 Québec Avenue, Suite 202,

Rouyn-Noranda, Québec, J9X 6M8, Telephone: 418-520- 2194 | Fax: 819-762-0097, E-mail:

[email protected], Website: www.xter raresources.com

CO: X-Terra Resources Inc.

CNW 15:37e 31-OCT-17