Xtierra Inc. (TSXV: XAG) ('Xtierra' or the 'Company') reports that it held its Annual Meeting of Shareholders today in Toronto.

At the meeting, Tim Gallagher, President and Chief Executive Officer, provided shareholders with an update of the current position and outlook for the Company.

Company Overview

Xtierra is a natural resource company which holds mineral royalty interests and mineral exploration properties located in the Central Silver Belt of Mexico in the State of Zacatecas and is also pursuing new opportunities, including mineral exploration and development projects, and the potential acquisition of mineral and other royalties. Xtierra is pursuing a strategy for realizing some value on its Bilbao and other Mexican projects in the context of the current resource cycle, as well as identifying and evaluating new potential royalty acquisitions. Xtierra, through its Mexican subsidiaries, holds a 100% interest in the Bilbao zinc-silver-lead-copper project, in the southeastern part of the State of Zacatecas. The Company maintains the Bilbao property in good standing while at the same time examining strategic alternatives for further exploring and /or development of the property.

Mineral Royalty Interests

In July 2019, Xtierra acquired, indirectly through a wholly owned subsidiary, a 1.5% net smelter royalty in the four mining concessions comprising the bulk of the Bilbao zinc-silver-lead-copper property in Zacatecas. In April 2020, Xtierra acquired 88% of the shares of Minera Portree de Zacatecas, S.A. de C.V ('Minera Portree'). Minera Portree holds various legal or royalty interests in certain mineral properties in Mexico, including the Company's Bilbao property and an asserted claim to a 2% net smelter royalty on six mining concessions located adjacent to the Cozamin Mine in Zacatecas operated by Capstone Mining Corp. (TSX:CS). The entitlement of Minera Portree to the royalty may be contested by a third party and/or Capstone. The Cozamin Mine is an operating polymetallic copper-silver underground mine, located 3.6 km northnorthwest of Zacatecas City, with a 3,990 tonne per day milling capacity, which is expected to increase its production to 50 to 55 million pounds of copper and 1.4 to 1.5 million ounces of silver starting in early 2021, upon completion of the underground debottlenecking development project. The current mine plans maintain the Cozamin Mine operations life to 2024.

Based on public disclosure, Capstone reported that during the third quarter of 2019 Cozamin acquired the Portree claim block that laid within the Mala Noche Footwall Zone area. The claim block is surrounded by high grade Inferred Mineral Resources and provides access to continuously infill drill and eventually mine the Portree area. During the fourth quarter of 2019, Cozamin started drilling into the Portree claim block. Prior to this, Portree was an untested inlier within Cozamin's land position covering the Mala Noche Footwall Zone area. Portree is surrounded by high grade Inferred Mineral Resources that future drilling is expected to increase to Indicated categorization. Capstone has reported that mining has already started within the Portree claim. In the first quarter of 2020, Capstone reported that drilling of the Mala Noche Footwall Zone, associated with infilling or stepping out from regions of Inferred Mineral Resource category of the Mineral Resource estimate, was undertaken with 5 surface and 1 underground diamond drilling rigs. The drill program is aiming to upgrade Inferred Mineral Resources to the Indicated category to maximize subsequent conversion to Mineral Reserves in support of a doubling of mine life.

Contact:

Tel: (647) 728-4106

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