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X-Terra Resources Inc. (TSXV: XTT, FRANKFURT: XTR): Currently Focusing on a Potential High-Grade Gold Discovery in New Brunswick; Interview with Michael Ferreira, President and CEO

on 7/28/2019
We learned from Michael Ferreira, President and CEO of X-Terra Resources Inc. (TSXV: XTT, FRANKFURT: XTR), that they have recently signed an option agreement for the property in New Brunswick that has potential for a high-grade gold discovery, and are currently focusing their efforts on exploration there. According to Mr. Ferreira, the property is a vast undrilled virgin territory, with very little exploration, so far, and very good accessibility by logging roads. The goal this summer is to identify and narrow-down potentially high-grade targets to drill. Additionally, X-Terra holds a 100% interest in the Troilus East and Ducran property in Québec.

X-Terra Resources Inc.

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Michael Ferreira, President and CEO of X-Terra Resources, Incorporated. Michael, could you give our readers/investors an overview of X-Terra Resources?

Michael Ferreira: X-Terra Resources is a Canadian exploration company, focused on advancing precious metals projects in the best mining jurisdictions in the world, Quebec and New Brunswick. X-Terra is actively exploring for new gold deposits in underexplored regions of New Brunswick, more specifically, northwestern New Brunswick, where the Grog property has no historical drilling. Given the accessibility of this new project in Northwestern New Brunswick, and the fact that it is virgin territory, the Company will be focusing its efforts and resources, where the potential for a major gold discovery remains high.

Dr. Allen Alper: That sounds like a good approach. Could you tell our readers/investors why New Brunswick is of interest to X-Terra?

Michael Ferreira: There are many reasons why the project in New Brunswick attracted our attention. Firstly, the project is located outside of the conventional Bathurst Mining Camp. Located approximately 140 kilometers to the west of Bathurst in what is considered underexplored territory. There has been very little exploration in this area of New Brunswick.

Furthermore, there is no historical drilling on the Grog property and only 3 short holes on the Northwest property located within 10 metres of each other (in an attempt to intercept a small narrow gold-bearing quartz vein). The project is comprised of 2 properties, Grog and Northwest and totals approximately 280 square kilometers. The southern portion of the property is named Northwest. The Grog property is located to the north.

Through our exhaustive compilations, due diligence and preliminary field work, X-Terra is able to identify a possible connection between the massive feldspathic alteration overprint on the porphyry intermediate dykes and an epithermal gold mineralization context. The observation of open space brecciation, dense fracturing and clay alteration, all marked by weak pyritization, advocate for this gold deposit model. The reason we're focusing a lot of our efforts on the Grog property, right now, is due to the evidence that has surfaced. While still early, and requiring additional assessments, samples description and geochemical associations makes it possible to envision comparisons with classical, well-exposed epithermal districts such as Tonopah, Nevada. In deposits of this area, feldspathic alteration is dominant in felsic dyke swarm emplaced close to a regional sediment marker.

Another aspect of the GROG prospecting results is the identification of breccia facies also associated with integral feldspathization of intermediate dykes and hosted sediments. Adularia, the low temperature form of K feldspar, associated with epithermal environments, could be present. Carbonate and sericite are present as well as “soft” fine grain pyrite veins. Depending on the importance taken by this feature, in terms of volume, during our next prospecting phase, we will be able to trace some parallels, with similar structures like that of the Golden Sunlight Mine breccia pipe in Montana, which is also located close to a regional fault.

While no drilling has taken place yet, we have been able to conceptualize a deposit model, based on specimen observations obtained from trenches, highlighted below:

Given that the property is so vast and that the northern portion of Grog is approximately 100 square kilometers, we wanted to try and zoom in on certain areas, where we will be able to focus our efforts. In order to do this, we carefully designed a 57km line IP survey, in order to generate numerous high priority exploration targets. The targets identified will subsequently be trenched, stripped and carefully mapped, which should enable the Company to follow up with its maiden drill program. The IP results are slated to be delivered to X-Terra in the coming days. The results will then be published immediately.

It's absolutely fascinating how we can work the entire property, using the vast network of existing logging roads that are traversable by truck. This in turn minimizes the Company’s exploration expenses, meaning more funds are put into the ground!

Dr. Allen Alper: All right. Sounds like a very good approach. Could you tell our readers/investors about your background and your Management Team?

Michael Ferreira: Sure. I’ve been involved in the junior exploration sector since 2012, as a strategic consultant helping companies identify and finance projects across North America. Moving forward, I became a director of X-Terra in 2014 and took over as the Company’s President and CEO in October of 2016. Since then, we have been continuously trying to improve our project holdings and the strength of our Management Team.

I am very proud of our Board of Directors. Dr. Michael Byron, currently the President and CEO of Nighthawk, has over 30 years of fieldwork experience, senior management experience in gold, base metal, nickel, PGE, diamond, and even gemstone exploration.

He's also been attributed with the rediscovery of the Horne Five deposit, here in Quebec, which is Falco Resources premier asset. Now Nighthawk is focusing on the Colomac deposit and they've made some nice discoveries, just recently.

Alongside Dr. Byron we have Mr. Kim Oishi, Jean- François Madore, and Sebastien Bellefleur, along with our CFO Sylvan Champagne, who has a lot of experience with publicly held companies.

We are fortunate that our projects have allowed X-Terra to attract the talents of highly respected geologists, such as Mr. Robert Fraser, P. Geo, who we recently announced will be spearheading our Troilus East exploration program. Mr. Fraser was responsible for initiating, planning, and directing the exploration program that led up to the discovery of the former open pit Troilus gold/copper mine, with Minova back in the 80s.

We are also working with is Mr. Robert Sansfacon, P. Geo, who was notably implicated in the discovery of the Malartic open pit gold mine here in Malartic, Quebec, Mr. Martin Demers, P. Geo who was involved in the re-opening of the Casa Berardi mine, also in the Abitibi region, and, Mr. Jeannot Théberge, P. Geo, X-Terra's current Exploration Manager and qualified person, who is supervising all of the work programs.

We want our investors to always remember, that X-Terra is anchored by a fundamental exploration approach, while continuously employing and exploring innovative techniques. We are focused on quality over quantity, which is why we don't have a vast portfolio of projects.

We currently have three projects, which is comprised of one option and two that are owned 100%. Our Troilus East asset is approximately 7700 hectares and is located directly adjacent to the former Troilus open pit gold mine. And keep in mind, Troilus Gold (TLG) is currently undertaking a 40,000 metre drill program, which we are keeping a close eye on, as their resource currently sits at 5.09 million ounces gold equivalent.

In the meantime, we will be focusing our efforts in New Brunswick as we believe this particular asset is going to be a game-changer for the company and its shareholders. Given the fact that there's been no drilling whatsoever on this property, the possibilities are limitless.

Dr. Allen Alper: That sounds like an excellent approach. Would you tell our readers/investors the reasons they should consider investing in X-Terra Resources?

Michael Ferreira: X-Terra is currently trading at a low share price, given the significant advancements we have made to date. We believe this is partially driven by the overall negative sentiment for junior explorers. Nonetheless, we remain very optimistic for the future that lies ahead. Management has been taking advantage of this fact and been accumulating the stock.

One of the major catalysts that we have right now, is the upcoming IP results over the Grog property which could reveal many new areas for exploration, thus the potential for new surface discoveries. The Grog property is very large, it's underexplored and there have been no historical drilling. Since acquiring the option for this property, we have been able to get a much better understanding as to what's going on. And with some of the recent work completed and samples taken, the Corporation has been able to identify alterations, related to an epithermal system, located at the top of a porphyritic system.

We currently feel the timing couldn’t be better, given the depressed share price, and the gold environment that we're entering. Gold is certainly taking a turn for the better, which is a good sign.

The next major step for X-Terra on this particular property is going to be its maiden drill program which will start immediately following the stripping and trenching program. Thank you for interviewing X-Terra Resources Inc. for Metals News

Dr. Allen Alper: That all sounds very good. We’ll publish your press releases as they come out so our readers/investors can follow your progress.

Qualified Person

Jeannot Théberge, P. Geo, registered in the Provinces of Québec and New-Brunswick, a consultant to X-Terra Resources, is the independent qualified person under National Instrument 43‑101 Standards of Disclosure for Mineral Projects (“NI 43-101”) responsible for the technical contents of this interview, and has approved the disclosure of the technical information contained herein.

Forward-Looking Statements

This interview 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 closing of the private placement, the acquisition of the Grog and Northwest Properties, the development of the Grog and Northwest Properties, or if any of them do so, what benefits X-Terra will derive from 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 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’s Annual Report for the fiscal year ended December 31, 2017, a copy of which is available on SEDAR at, 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 interview 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 interview.

For further information:

X-Terra Resources Inc.
Mr. Michael Ferreira, President & Chief Executive Officer
139 Québec Avenue, Suite 202
Rouyn-Noranda, Québec, J9X 6M8

T:819-762-4101 | F: 819-762-0097

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