Mr. Michael Ferreira reports

X-TERRA IDENTIFIES LITHIUM POTENTIAL AT TROILUS EAST

X-Terra Resources Inc. has identified significant lithium potential at its 100-per-cent-owned Troilus East property in James Bay, Quebec, following a review of company results from previous exploration at Troilus East that focused only on its gold-copper potential.

Troilus East is located approximately 285 kilometres southwest of X-Terra's flagship Liberty property bordering Winsome Resources' Adina discovery. Notably, Troilus East is contiguous to the eastern boundary of a large gold deposit being advanced to the feasibility stage by Troilus Gold and lies on the contact of a large granitic intrusion, known as the Parker pluton, and the Frotet-Evans greenstone belt. X-Terra's compilation for lithium over the approximately square km Troilus East property was sparked by the recent Sayona transaction (refer to Troilus Gold news release dated Nov. 16, 2022) where Troilus Gold announced the sale of select properties to emerging producer Sayona Mining for $40-million.

Michael Ferreira, X-Terra president and chief executive officer, commented: "With our focus on the Liberty lithium property as we quickly transition to Comet Lithium (refer to April 20, 2023, and May 19, 2023, X-Terra news releases), the discovery of lithium potential at Troilus East, combined with its already known gold-copper potential, makes this an extremely compelling No. 2 project for the company. We are exploring multiple options to unlock the full potential value of Troilus East for shareholders."

Troilus East lithium highlights:

1. The property has never been explored for lithium despite being located nearly along strike and inside the same geological units as spodumene-bearing pegmatites of Lac Moblan located about 50 km south of the property.
2. Geological mapping at Troilus East shows granitic dikes and occasional pegmatite veins intruded in mafic rocks, an environment often mentioned in spodumene-bearing cases in the James Bay region.
3. Ninety-five samples among 475 surface samples across the property, taken by X-Terra in 2020 targeting gold-copper, are anomalous in lithium above 30 parts per million and up to 248 ppm. They are mostly composed of basalt with quartz veinlets. This initial prospecting was oriented toward gold-copper and did not consider pegmatites as prospective targets.
4. Five lithium target areas have initially been identified based on clusters of lithium values. Two of them are located inside the Parker granite, two others are located close to lenticular granitic intrusion-hosted mafic terrains.
5. Elements such as scandium (Sc, up to 964 ppm), tin (Sn, up to 1,100 ppm) and tungsten (W, up to 100 ppm) are present in the environment of some of the targets, showing the potential influence of a large, possibly zoned magmatic system.
6. X-Terra is currently reviewing options for a near-term follow-up program dedicated to the lithium potential at Troilus East that would include testing of mapped granites and pegmatite vein swarms.

Troilus East lithium targets

Five separate target areas identified to date follow a northeast alignment along the eastern flank of the Parker intrusion over a strike length of about 20 km. They are based on a minimum of two samples with Li assays above 53 ppm. The follow-up objective will be to evaluate potential magmatic sources of lithium anomalies observed in the volcanic environment.

2020 Troilus East sampling

Surface sample results used for this preliminary assessment of the lithium potential at Troilus East were generated by X-Terra during the summer of 2020. The program that year tested an area located immediately south of the Parker intrusion in the Parker volcanic formation composed of a mafic to felsic sequence known to host copper-zinc mineralization. East of the Parker intrusion, part of the extensive Mesiere formation comprising basalt alternating with magnetic gabbro sills was covered sporadically by sampling in the search for a gold-bearing system.

A total of 475 samples were taken during this initial program, including coverage of 25 felsic intrusions of different types. Most samples were of variably pyritized upper greenschist metamorphosed volcanic units, mostly of mafic composition. Samples were assayed for a wide variety of elements using a peroxide fusion assaying method. The preliminary review of data indicates a strong lithium background with 95 samples containing lithium concentrations above 30 ppm. Sporadically, scandium values above 60 ppm are spatially associated with high lithium content with the highest value of 964 ppm in sample E6538051. Tin anomalies were obtained locally with concentrations above 10 ppm, and a mineralized occurrence as found inside the Mesiere formation giving 0.114 per cent Sn from sample E6538056. Tungsten anomalies reaching at least 20 ppm (highest concentration of 107 ppm) were observed south of the Parker intrusion.

The Parker intrusion can be interpreted as a composite intrusion which includes late tectonic coarse-crystallized dikes and masses observed at its southern contact and at different locations along the eastern contacts. It is not clear at this stage if this intrusive phase is related with the lithium anomaly and associated elements which suggest a strong magmatic footprint in surrounding volcanic rocks.

Note: Elemental results reported were not controlled by a quality assurance/quality control program using blank and standard material inserted in the sampling chain. These initial results were also not validated by duplicate sampling. Assays results were produced by Agat Laboratories.

Qualified person

Martin Demers, PGeo (OGQ No. 770, APEGNB L5980, PGO No. 3785), registered in the provinces of Quebec, Ontario and New Brunswick, a consultant to X-Terra Resources, is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. He 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 well-structured publicly listed resource company with projects in the James Bay lithium district in Quebec as well as in New Brunswick (precious metals). Advancing its projects with thoughtful and technical rigour, X-Terra strives to discover and delineate new compliant resources, creating value for its shareholders.

We seek Safe Harbor.