Royalties Inc. — AGM Information 2020

Jun 26, 2020

News Release

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XTIERRA ANNUAL MEETING OF SHAREHOLDERS

CORPORATE UPDATE

Toronto, June 26, 2020 – 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.

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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.

Support Extension Agreement

By an Extension Agreement dated as of February 7, 2020, as amended by an Amending Agreement dated April 30, 2020, the term of the Support and Standstill Agreement with Buchans Resources Limited, the Company’s largest shareholder, to defer repayment of outstanding Notes, was extended to April 30, 2021, in consideration of the issue to Buchans of 13,000,000, non-transferable warrants, each warrant entitling Buchans to purchase one common share of Xtierra for Cdn$0.05 per share for a term to April 30, 2021.

$1 Million Financing

On June 4, 2020: Xtierra announced a financing of up to $1,000,000 by way of a non-brokered private placement (the "Offering") of up to 20,000,000 common shares at a price of $0.05 per share. Proceeds will be primarily used to expand and diversify its royalty portfolio into Canada and the United States. The Offering is expected to close on or about June 30, 2020, unless further extended.

Election of Directors

All of the nominees for re-election as director: Messrs. John Kearney, Tim Gallagher, Terence McKillen, and Gerald Gauthier, were unanimously re-elected as directors, to serve until the next annual general meeting of shareholders.

Re-Appointment of Auditors

McGovern Hurley LLP Chartered Professional Accountants were re-appointed as Auditors for the current year and the directors were authorized to fix the remuneration of the Auditors.

For further information contact Xtierra Inc. at infor@xtierra.ca or the Company’s website at www.Xtierra.com

www.Xtierra.com
John F. KearneyChairman	Tim GallagherPresident & Director
(647) 728-4106	(416) 925‐0090

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