Rouyn-Noranda, Québec, July15, 2020–X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR)(“X-Terra”) is pleased to announce it has received all the necessary work authorization permits to continue with its exploration and drilling over the Grog and Northwest properties located in Restigouche county, New Brunswick.

X-Terra has also been awarded a $35,000 grant under the New Brunswick Junior Mining Assistance Program. Plans are being finalized to carry out a detailed geochemical sampling survey over the Grog target in addition to a detailed ground IP survey. The surveys are expected to being shortly, which will be financed in part by the grant recently awarded.

The objective of this program is complementary to the winter drilling program which resulted in the new gold discovery of 0.46 g/t Au over 31 metres in hole GRG-20-012 (see X-Terra’s press release dated May 5, 2020). This continuous gold interval was obtained at a vertical depth of 81 metres in an area where trenching had already delivered sporadic results. This achievement for an inaugural program was convincing enough to cover the area with additional preparatory works while targeting specific objectives.

— Discern the deposit signature. The combination of IP ground geophysics with soil geochemistry is expected to highlight the correspondence between conductor zones associated with a higher fraction of sulfides and known soil Au-As-Sb signatures.

Extending the surface footprint of the Grog showing: Current exploration, which includes a past soil survey, identified a number of anomalies scattered over an area measuring approximately 1 X 2 kilometres.

— Confirming parallel structures to Grog. Further interpretation of the 2019 detailed magnetic survey identified distinct parallel magnetic contrasts that followed a north-east orientation. The Grog showing follows one of these trends and corresponds to a soil anomaly. To date, no follow up has been done on the other trends.

The IP survey planned will cover the defined area of two square kilometres(2km2)centered on the Grog showing using an overlapping pattern of 1-kilometre long lines following an average spacing of 200metres. Approximately 5.5-line kilometres will seek to expand and highlight more detail of the mineralized structure already identified in addition to its NE-SW extensions for follow up drilling.

The detailed geochemical sampling program will comprise of approximately 108 samples collected at 25 metre spaced intervals over 2.6 line kilometres on both sides of Grog showing, maintaining a spacing of 200 metres This type of survey will seek to again highlight and confirm parallel structures to Grog hosting a similar Au-As-Sb signature.

Michael Ferreira, President and CEO of X-Terra commented: “This is an exciting step for our team as we will be able to move forward while we wait for our Troilus East samples to come back from the lab. Receiving this grant will allow us to improve our targeting ability along the newly identified gold bearing structure and increase the assurance for the drill targets carrying the same characteristics of Grog.

Qualified Person

Jeannot Théberge, P. Geo registered in the Provinces of Québec and New-Brunswick, a consultant to X-Terra, a qualified person under National Instrument 43‑101 Standards of Disclosure for Mineral Projects (“NI43-101”) 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 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 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 exploration programs and development (including any drilling programs) of the Troilus East and/or the Grog and Northwest Properties, or if it does so, what benefits X-Terra will derive from the Troilus East and/or 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’s 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, 2019, 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 does not intend, nor does X-Terra 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.

For further information:

X-Terra Resources Inc.

Michael Ferreira, President and Chief Executive Officer

147 Québec Avenue

Rouyn-Noranda, Québec, J9X6M8

Telephone: 819-762-4101 | Fax: 819-762-0097

E-mail: info@xterraresources.com

Website: www.xterraresources.com