x-terra resources inc. · instruments” and “risk and uncertainties in x terra resources’...

1June 2020

Cautionary Statement on Forward Looking Information

Certain information contained in this document may include “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 document, 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

development of X-Terra Resources’ properties, or if any of them do so, what benefits X-Terra Resources will

derive. 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, 2018, 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 document to reflect subsequent information, events or

circumstances or otherwise, except if required by applicable laws.

Jeannot Théberge, P. Geo registered in the Provinces of Québec and New-Brunswick, a consultant to X-

Terra Resources, a qualified person under National Instrument 43-101 Standards of Disclosure for Mineral

Projects (“NI 43-101”) has reviewed the technical contents and has approved the disclosure of the technical

information contained in this presentation.

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➢ Michael Ferreira, President, Chief Executive Officer, Director

Mr. Ferreira has been working with public and private companies as an independent advisor for more than five years,

primarily in the junior mining sector. His strengths include identifying and sourcing projects, structuring investments,

and business development.

➢ Dr. Michael Byron, PH. D., P. GEO, Director

Dr. Michael Byron has thirty years of field work, research, and senior management experience in gold, base-metal,

magmatic nickel and PGE, diamond, and gemstone exploration, spanning employment within the mineral exploration

industry and government. Dr. Byron is attributed with the re-discovery of the Horne 5 deposit – Falco’s premier asset.

Dr. Byron is currently the President, CEO, and Chief Geologist of Nighthawk Gold Corp. (TSXV: NHK)

➢ Sylvain Champagne, B.B.A. Chief Financial Officer, Director

Mr. Champagne is the Chief Financial Officer of the Corporation, and is also Chief Financial Officer and a Director of

Visible Gold Mines Inc.

➢ Sebastien Bellefleur, Director

Mr. Bellefleur is a business lawyer in the Montreal office of Fasken Martineau LLP. His specialty is securities law and

he has been involved in numerous public offerings in addition to private placements, takeover bids, stock exchange

listings and a broad range of other security matters.

➢ Kim Oishi, Director

Mr. Kim Oishi has over 20 years of experience in financing and advising growth companies. He has served in senior

management and board positions on a number of public and private companies. Mr. Oishi is the founder and President

of Grand Rock Capital Inc., a company that invests in growth companies and provides consulting services regarding

capital markets, corporate finance, investor relations, business development, mergers and acquisitions.

➢ Jean-François Madore, Director

Jean-François Madore is a financial planner and currently wealth-manager specialist with Industrial Alliance,

Assurance et Services Financiers Inc. Mr. Madore has acquired fifteen years experience in the financial industry, with

a particular expertise in financial planning and risk management.3

➢ Growth through the identification, acquisition and development of mineral properties of merit in Quebec and eastern Canada.

➢ Thoughtful, technical rigor with an emphasis on quality over quantity; X-Terra has focused its efforts on a limited number of properties of merit, and an on-going rebalancing that reflect available resources.

➢ Develop and maximize intrinsic value by early-stage identification and optioning, advancing independently, and managing risk.

➢ Maintain and continue developing strategic relationships with leading consultants, prospectors, service providers and investment community.

-Marc Boivin, Geophysicist (MB Geosolutions)

-IOS Geoservices (Rejean Girard)

-Mr. Martin Demers, P. Geo (Notably implicated in the re-opening of the Casa Berardi mine in the Abitibi region)

-Dr. David Lentz, P. Geo (Research Chair in Economic Geology, University of New Brunswick)

-Mr. Robert Sansfaçon, P. Geo (Notably implicated in the discovery of the Malartic open pit gold mine)

-Mr. Jeannot Théberge, P. Geo (X-Terra`s Exploration Manager and qualified person under NI 43-101)

-Caisse de Dépôt Placement Québec, Fonds de Solidarité FTQ, Sidex, SDBJ, Etc…

➢ Anchored by a fundamental exploration approach while continuously employing and exploring innovative techniques.

➢ Disciplined approach to capital management.➢ raising funds (flow-through, super flow-through, charity flow-through, hard dollars, strategic investments)

➢ utilizing capital stemming from individual financial channels

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www.xterraresources.com TSX-V : XTT Frankfurt: XTR

Shares Outstanding 62,795,053

Market Capitalization $5.7M

Warrants Outstanding20,496,665

*Strike price ~ 0.14c

Options Outstanding2,960,000

*Strike price ~ 0.16c

Broker Warrants 931,384

Fully Diluted 87,183,102

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Quebec Institutions

14%Management

6%

Principal Shareholders

36%

Individuals and Other

stakeholders44%

Ownership

As of May 18th 6 MONTH STOCK CHART

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Troilus East

Ducran

NB-One

Grog & Northwest

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• The Gander-Dunnage zone represents the remnants of Cambro-Ordovician arcs and back-arc basins

associated with the closure of the Iapetus Ocean around 440 Myr. The Grog property is enclosed in an

evolving sequence of sediments corresponding to a forearc basin environment.

• 100 kilometres Eastward, the Bathurst deposit supplied approximately 150 Mt of Zn, Pb, Cu, Ag ore in

a volcanic arc.


GROG

New-Brunswick

Bathurst

GROG

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• Intrusion-related, porphyry to epithermal styles of mineralization formed during the Devonian period

have only recently been recognized in New Brunswick

• Similarities can be found along the Appalachian Belt between the Haile gold deposit in South

Carolina (About 4Moz in resources – NI 43-101 Technical Report Haile Gold Mine, SRK

Consulting, 2017). Disseminated mineralization is found in a forearc basin showing a succession of

sedimentary, magmatic, hydrothermal, and tectonic events that have fostered the gold deposition.

GROGBathurst

Matapedia

Basin

Source: GeoNBSource: Hatcher R.D.et al., 1979

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Regional Setting

➢ Accessible by road in an active

forestry operation environment.

➢ Power grid

➢ From the field: two hour drive

for most services.

➢ Close to Bathurst mining camp:

150Mt (Zn, Cu, Ag)

➢ Local Infrastructure

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St-Quentin

Protected Natural areasKedgwick

Bathurst

➢ 38 claims covering 280 km2 along the Mackenzie

Fault.

➢ Two major gold systems identified over two 5

kilometres footprints: Northwest orogenic veins

and Grog (Epithermal System)

➢ New Brunswick’s exploration advantage:

accessibility, field efficiency and rapid exploration

cycle. X-Terra’s execution from field exploration,

trenching, geophysics, to drilling was completed

inside 12 months at a capital cost under $1M.

➢ The local and regional till survey completed at

Northwest proved high gold grain counts were

detected in very near vicinity of veins, where

local high-grade samples were obtained.

➢ On Grog, property scale sterilization type of till

survey on unworked sectors (362 samples).

Results recently received, compilation ongoing.

➢ Conclusive inaugural drilling completed on both

targets.

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Grog discovery hole: GRG-20-012

0.46 g/t Au over 31 metres

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Regional structural basin: Grog

Brook Group non calcareous mudstone-

fine sandstone (Late Ordovician) are

surrounded by Matapedia Group (early

Silurian) composed of calcareous

siltstone.

Grog & Northwest

Structural Map

Ductile and Fragile Faults

Fold Hinge

Dykes

swarm

Plutons

Structural mapping:

Regional East-West ductile shear zone

contrasting with the North to North-East

regional trend.

Exotic Units (Envelopes): Grog

Grog

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Geology is Essential

• Extensive clastic sediment fold

belts, historically known for

copper skarn potential. Where

regional faults are associated.

• Major thrust fault identified,

highlighting polyphased

deformation exhibiting similarities

with those of the Bathurst mining

camp but more superficial in the

crust.

• GeoNB has completed a detailed

map of the entire area with a high

density of structural

measurements.

• Our approach included the

reprocessing of all available

magnetic data, including our own

detailed surveys in order to

augment and improve the

interpretation.


Matapedia Gr (Pabos Fm)

Early Silurian

Cu-Ag skarns

associated with

Devonian dykes

swarm.

Grog Brook Gr (White Brook Fm)

Late Ordovician

Sandstone

Grog Brook Gr (Boland Fm)

Late Ordovician

Siltstone

Grès de Gaspé Gr (Hypothesis)

Early Devonian

Restrained to the Grog gold field

Superimposition Intermediate

feldspath porphyries

Affected by gold bearing

hydrothermal alteration.

386 myr

Matapedia Gr (White Head Fm)

Early Silurian

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Phase 1 IP along forestry road: 57 line km

- Strong chargeability explained by iron oxydes

rich siltstone.

Tilt Derivative of the regional mag survey

only succeeded in creating contrasts in

low magnetic susceptibility rocks.

Indication of a more complex geological

landscape than the regional geological

map.

Deeply rooted structures proposed

Grog

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Correlation test with Sentinel satellite

imagery for kaolinite indicator. Ongoing

compilation of 16 endmembers.

GROG

GROG

Au

As

462 chip samples collected from 1,6 km of trenching

+ 188 grab samples

Grog

Sandstone

Unit

Grog

Sandstone

Unit

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Modelled contour of the target

rock using the inferred

susceptibility contrast between the

targeted environment and the

underlying Grog Brook rocks.

Targets & Planning supported by

field data (bedding, foliation,

faults)

13 holes drilled for 1,740 metres.

Dykes swarm:

Weakly mineralized skarn:

up to 20 g/t Ag

Bellevue Sud:

Graphitic fault: sporadic gold

anomalies

Bellevue Nord:

Up to 0,3 g/t close to

lamprophyre dykes

Grog:

0.46 g/t over 31 metres

Associated with quartz

veinlets, clay alteration

GROG SANDSTONE

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Advancing towards the identification of a wide scale Epithermal Footprint


Modeled contour of the target rock using the

inferred susceptibility contrast between the

targeted environment and the underlying Grog

Brook rocks.

- Host rock: Conglomerate – sandstone –

graphitic mudstone

- Devonian Dyke swarms with skarns in the

surrounding environment. Altered

Lamprophyre possibly associated with the

gold bearing environment.

- Alteration (proximal): clay minerals

(sericite, pyrophyllite, kaolinite, halloysite

alunite)

- Structures: sub-horizontal bedding, cross

cutting to conformable collapse breccia

and faults

- In gold bearing areas, quartz veinlets

highlight carbonate dissolution and locally

hydrothermal brecciation.

- Pyrite abundance not necessarily

correlated with gold. Arsenopyrite and

stibnite are associated.

Grog trenching

Feldspathic dyke

Gold bearing environment

Quartz-clay alteration

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Grog Sandstone

(Early Devonian ?)

Grog Brook Gr

or Matapedia Gr

Faulted blocks

Argilic alteration with quartz

5-10% pyrite (arsenopyrite, stibnite)

Summital part:

breccia and collapse

with clay alteration

Extension faulting

Synchroneous with

alteration

Collapse breccia

Feldspathic dykes

Lamprophyre phase (?)

Silicification halos

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Trench #8 Bellevue South

Source: USGS

Bellevue North

GROG

Dykes swarm

Devonian plutons ?

Skarns

Hornfels

Thrust fault

Dykes swarm

McKenzie Gulch

Fault system

INVERSION MODEL

5 km

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Bellevue North

Bellevue South

Trench 8

Dyke Swarm

Bellevue North

Anomaly (periphery of system)

GROG2017 trench

sampling

Discovery Hole: GRG-20-012


Mafic Dyke (lamprophyre)

1km

Target

Grog Showing

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Grog Showing

Discovery Hole: GRG-20-012:


GRG-20-013

0.57 g/t Au

over 5 metres

SANDSTONE

MUDSTONE Altered dyke

200m

GRG-20-01

Offset from

mineralization


Ordovician basement

Early Devonian

Thrust sheet or fold

belt

Devonian

Dykes swarm with copper

skarns associated.

Potential targets

Grog targetGrog target

N

E

Looking South-East

N

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Northwest: Classic Appalachian Orogenic Quartz Veins

• 2017: Initial discovery of

isolated gold bearing veins

located along forestry roads.

• 2018: Large scale till sampling

identified gold grains over a 5

km2 area. Wide spacing

prevented the interpretation of

a detailed dispersion trail.

• Three short drill holes were

completed to understand the

geometry of a seemingly

continuous structure: quartz

veining networks in

association with strong

chlorite alteration, associated

with a weak magnetic

contrast.

• First result of 6.9 g/t Au over

0.6 metres was associated

with a sandstone and siltstone

contact.

NWST-20-002: Quartz vein stockwork.

Structural target: Detachment of the bedding contact,

modelled over a strike length of 4 km.

-5x5 km footprint

-500 metre spacing = unable

to define dispersion train

-Delicate to modified shapes

of gold grains – highlighting

proximal source

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Source: IOS Services Géoscientifiques

Northwest: Gold grain in till

morphology indicating local

origin

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1. Continue working on the property wide gold potential with a concentration

on the Gaspé Sandstone facies. Cu skarns areas could be considered

attractive depending on market conditions and partnership opportunities.

2. On Sandstone targets: modeling with the use of a magnetic inversion

approach and structural measurements. Reliability of IP lines will be

revisited, in order to discriminate mineralization from iron oxide rich

siltstones.

3. Phase 2 drilling program (Target depth 0-200 metres). 3000 metres to carry

out the second phase.

➢ The property is situated in the north central part of Quebec, about 160 km North-East of

the town of Chibougamau and located in a favourable geological context of the Frotet-

Evans greenstone belt and comprises of 182 mining claims covering ~93 km2.

➢ The Frotet Evans Greenstone belt has seen very limited exploration compared to the

Abitibi Greenstone Belt, leaving immeasurable potential in the district.

➢ The property is adjacent to Troilus Gold’s 6.4M oz AuEq* Indicated plus Inferred deposit

and less than 2 km from the former open pit. (Inmet Mining historic production of 2M oz

Au, 70,000 tons Cu).

➢ Troilus Gold’s recent property acquisitions include (Emgold property) directly north of X-

Terra which was valued at ~$3 million CAD and O3 Mining Inc`s 627 Troilus claims valued

at $1.4M, situated south and southwest of Troilus gold.

➢ According to the MRNF the property contains two zones of high favorability for orogenic

Au, VMS and intrusion-related Au-Cu porphyry (Troilus-type) mineralization.

* see Troilus Gold Corp. press release dated Nov. 11, 2019, and the National Instrument 43-101 technical report dated Dec. 20, 2019, of Troilus Gold

titled, "Technical Report on the Troilus Gold-Copper Mine Mineral Resource Estimate, Quebec, Canada" prepared by Luke Evans, MSc, P. Eng,

executive vice-president, geology and resource estimation, principal geological engineer at Roscoe Postle Associates Inc.).

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(100% ownership, royalty free)

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4.71M oz Au Eq Indicated

1.76M oz Au Eq Inferred

(L. Evans, NI 43-101, Dec 20th, 2019)

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Detailed magnetic survey over Troilus East (75 metre spacing)

Former Open pit

2020 Exploration

program to begin in

June over 5 distinct

targets

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• Regional Mag Survey

(200 metre line spacing)

• XTT - Detailed Mag

Survey (75 metre line

spacing) –Completed

December 2018

• Gold in Till Results and

TLG`s exploration

targets

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17 of 22 samples containing Sperrylite PtAs2 and Braggite (Pt, Pd, Ni)S

➢ Strong exploration vehicle in Quebec and Eastern Canada – top-tier jurisdictions

➢ Significant additional leverage from generous exploration credits coupled with

expertise with creative financing vehicles, e.g. charity flow-through (~60-90% gain)

➢ Favorable corporate structure

➢ Value of exposure via initial equity position is maximized during market bottom

➢ Current strategic investors to X-Terra include: Caisse de Depot, Sidex, SDBJ, FTQ,

Desjardins Securities.

➢ Leverage strong industry contacts in Quebec: geological consultants, drilling and

other service companies, etc…

➢ Established relationships with First Nation communities.

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“FOCUSED ON THE ,

AND DEFINITION OF IN

CANADA”

THANK YOU

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