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X-Terra Resources signs definitive agreement for the acquisition of 100% interest in the Ducran polymetalic property

Mergers & Acquisitions Property Options & Staking

X-Terra Resources signs definitive agreement for the

acquisition of 100% interest in the Ducran polymetalic property

ROUYN-NORANDA, QC

, Oct. 16, 2017 /CNW/ - X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) is pleased to announce that

it has entered into a definitive agreement with a private prospector, pursuant to which X-Terra will acquire a 100% undivided ownership interest in

the Ducran property as referred to in X-Terra's press release of October 20, 2017. The Ducran property is comprised of 28 mining claims located

in the Eeyou Istchee/Baie James Territory, 15 kilometres south of the town of

Chapais

in the province of Québec.

The 28 mining claims are located at the eastern extremity of the Abitibi Subprovince which contains the Chibougamau mining camp (Doré Lake

and

Chibougamau Lake

sectors; historical production: 47.5 tonnes at 1.72% copper, 2.30 gram/ton gold, 1.6 billion pounds of copper and 3.2

million ounces of gold) and the

Chapais

mining camp (historical production: 24.2 tonnes at 2.24% copper, 1.13 g/t gold; 1.1 billion pounds of

copper, 0.8 million ounces of gold and 8.2 million ounces of silver) (source: report with the

Ministère de l'énergie et ressources naturelles

(Québec))

.

The evaluation work carried out by

Michel Chapdelaine

, Vice-President of Exploration and Development of X-Terra Resources in connection

with X-Terra Resources' due diligence on the Ducran property consisted of stripping in two areas and drilling three exploratory holes.

Stripping work

The stripping work revealed ''volcanogenic'' alteration and mineralization (pyrrhothite and chalcopyrite stringers) in sheared (N108/71)

diorite, quartz diorite and gabbro (the shear zone).

Drill hole No.

1

Drilled directly under the South-East end of trench 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 – chalcopyrite stringers within the alteration.

Drill hole No. 2

Drilled under No.1 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 meters fragment from 68 to 70 metres consisting of a felsic xenolith containing 5% to 20% sphalerite and the

stringer zone of pyrrhotite – chalcopyrite from 74.10 metres. to 76.10 metres.

Drill hole No. 3

Drilled 25 metres to the South-East, parallel to hole No. 2 according to the trend of the shear zone. The hole intersected the shear zone at

vertical depth of 50 metres from 68.9 to 75.8 metres (over 6.9 metres). The stringer zone of pyrrhotite – chalcopyrite occurs between 69.9

and 73.8 metres (3.90 metres).

According to the surface stripping work and drill holes 1 and 2, the shear is N105-N115 and dips 70-80 degrees to the South-West.

Results on the foregoing stripping work and the three drill holes are pending and will be communicated in a timely fashion upon reception by X-

Terra Resources.

The definitive agreement and the acquisition of the Ducran property is subject to the satisfaction of certain customary conditions and receipt of

regulatory approvals, including that of the TSX Venture Exchange. The completion of the acquisition of the Ducran property is expected before the

end of the month of

October 2017

.

In other news, X-Terra Resources has begun receiving results from its second exploration program at the Veronneau property which ended

September 20, 2017

. To date, 46 of 191 results have been received where 6 grades higher than 0.1 g/t gold where:

A dynamite trench over the IGPP showing returned

1.76 g/t Au, 70.5 g/t Ag, 2.32 % Cu and 0.72 % Zn

.

In between the Veronneau showing (4.24 g/t Au over 6.0 metres) and the 1.2 g/t Au discovered this summer as referred to in X-Terra's

press release of

September 6

th

, 2017, sample number 119390503 returned

0.5g/t Au

in what is believed to be the Veronneau mineralized

corridor. The balance of the results are expected in the coming weeks.

Qualified person

Jeannot Theberge

, PGeo, a consultant to X-Terra Resources, is the qualified person for the Veronneau and Ducran properties under

National

Instrument 43-101 - Standards of Disclosure for Mineral Projects

, responsible for the technical contents of this news release, and has

approved the disclosure of the technical information contained herein. The data verification was conducted by

Jeannot Theberge

, P.Geo. under the

supervision of

Michel Chapdelaine

, Vice-President of Exploration and Development of X-Terra Resources.

Quality Control

X-Terra Resources has implemented 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 ALS Chemex,

Val-d'Or

,

Québec, or Techni-Lab, Ste-Germaine-Boulé, Québec, both accredited laboratories.

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 acquisition of the Ducran property and the development of the Veronneau 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 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, 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 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/October2017/16/c5850.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 08:33e 16-OCT-17