Mr. Michael Ferreira reports

X-TERRA RESOURCES PLEASED WITH NEW BRUNSWICK'S GOVERNMENT DECISION TO PLACE ALL MINERAL CLAIMS UNDER PROTECTION

X-Terra Resources Inc. is pleased with the decision that the New Brunswick government has decided to place, effective immediately, all mineral claims under protection status, to ensure continuity of mineral claims during this time of extreme uncertainty.

Michael Ferreira, president and chief executive officer of X-Terra Resources, stated, "This is a bold step and demonstrates the outstanding leadership and support the government has taken to ensure stability for individuals and companies, like X-Terra Resources, that have been working and will continue exploring in the province, once the COVID-19 pandemic situation begins to improve."

In other news, X-Terra Resources has received the results from the first two holes of 13 holes drilled over the Grog property. Anomalous gold and silver results, including one value of 15.7 grams per tonne silver and 0.19 g/t gold over one metre, were obtained from the first two targets. Results from the 11 remaining holes have yet to be received. The delay in results is due to lab closure, resulting from the continuing COVID-19 pandemic, and X-Terra Resources hopes to receive them as soon as the lab returns to normal operations.

Meanwhile, results received to date provide a series of insights on how to refine the targets, identify the right geological pathfinders and make necessary adjustments to the exploration approach. This initial drill program was built to test six different targets spread over 30 kilometres along the McKenzie Gulch regional fault.

Exploration model update

Dyke Swarm

Holes GRG-20-001 and GRG-20-002 were planned in the Grog Brook group composed of thin bed siltstone inside the McKenzie Gulch regional fault environment. The favourable area related to strong chargeability anomalies. A 100-metre-wide arsenic anomaly was detected during the previous trenching programs, which were closely related to variably argillized feldspathic dikes. The two holes were drilled about 30 metres apart on an east-west line.

The first holes were collared in a complex assemblage of feldspathic dikes hosted in strongly sericitized or argillized hydrothermal breccia cut over approximately 15 metres. Silver values highlighted an enrichment from 0.3 to 1.9 g/t in this environment. The lower half section of both drill holes, which are approximately 30 metres, corresponding approximately to a depth of 50 metres, intersected calcic silicate alteration, or skarns, which are related in the area to the Matapedia group rocks. In both holes, feldspathic intrusions, intersected over intervals between five and 10 metres, are seemingly related genetically to the skarn system. The best results received from hole GRG-20-002 were 0.19 g/t gold and 15.7 g/t silver over one metre enclosed in a skarnified band.

Mr. Ferreira stated: "These first results, while discrete, provided a serious insight about the copper-silver-gold skarn potential inside the property outline. At this stage, these results also correspond to some modest copper values we obtained from our previous exploration programs. We now believe the skarn environment within the property is possibly related to the Legacy skarn deposit, which hosts 1.5 million tonnes of 10.29 g/t Ag and 0.87 per cent Cu, located three kilometres directly south of the Dyke Swarm target (Atlantic Geology, 2015, Volume 51, 1, doi: 10.4138/atlgeol.2015.005). In addition, we can now confirm a possible extension of the Matapedia group inside the property in association with an extensive dike swarm, which we consider a breakthrough in our understanding of the overall property gold deposit model."

It is also important to note that the geological environment at Dyke Swarm is much different than that of Grog, which instills a lot of confidence moving forward.

In further news, X-Terra Resources is excited to report a significant increase in staking activity in and around its Troilus East project and the Frotet-Evans greenstone belt located in James Bay, Quebec. It is a true testament to the geological potential of the area, of which X-Terra Resources has yet to uncover. Recent circumstances have allowed X-Terra Resources to accelerate and finalize its exploration plan, which will be carried out over its Troilus East property as soon as the overall climate allows.

Qualified person

Jeannot Theberge, PGeo, registered in the provinces of Quebec and New-Brunswick, a consultant to X-Terra Resources, a qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects), 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 resource company focused on acquiring and exploring precious metal and energy properties in Canada.

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