October 2019
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, 2016, 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.
Lower Gaspésie Project Southern Québec QC Gas consumption ~ 290 Bcf/yr LNG: Energie Gaspé Saguenay QC Oil consumption ~ 127 mmBo/yr Surrounded by numerous Québec LNG Bear Head/ AG Refinery infrastructures : Montréal Refinery LNG Project LNG Canaport/ LNG Goldboro Irving refinery Refinery Pipelines Close proximity to deep water Boston 3
1 - Review of current licences and historical exploration 2- Technical Geological overview 4
2088PG402 5 Hydrocarbon exploration 16,560 Ha 2088PG401 licences : 20,477 Ha Total :~230,480 Ac (93,272 ha) 2088PG400 16,006 Ha Low population: mainly farm and forest, flat lands Many paved and gravel 2088PG997 21,427 Ha roads: perpendicular to geological 2008PG996 18,802 Ha strutures Underexplored Territory NO DECOMMISIONNING LIABILITY 5
2 high resolution mag surveys covering all licences Few available seismic profils : Mainly regional gouvernmental acquisitions 2D seismic: regional coverage In red: seismic profils Approximative location Sources : http://sigpeg.mrn.gouv.qc.ca/gpg/hydrocarbures/hydrocarbures.htm 6
Cleary highlights bedding trends Highlights fracturation patterns Adds value to a 2D seimic survey : Better design Filling gaps between lines. Inversion work can be included in a follow up exploration program 7
Utica Resources acquired all of Cuda Oil and gas`s Québec assets for a total consideration of 10,6 MM$ (https://cudaoilandgas.com/wp- content/uploads/2019/09/Press-Release-Sept-4-2019.pdf) Cuda owned 1,8 M net acres on december 31, 2018 (sedar) Questerre is acquiring approximately 753,000 net acres for a total consideration of ~ 11MM$ (https://www.questerre.com/news/2019/03/07/march-7-2019- questerre-executes-agreement-to-acquire-quebec-assets/) 8
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Gaspé Belt: Massé extension Pockmarks Humber zone : Port-O-Port Oil discovery X-Terra Trend of existing discoveries Licences Sandstone conventional Du Park Wells: Galt Oil Resevoir storage reservoir discovery St-Flavien : High potential for shale 4 BCF gas Storage Massé Oil gas discovery discovery Joly, permiting well Plateform zone: Utica shale gaz St-Simon : potential Test 400 mcf/d Dolomitized Carbonate (TBR) 10
SE NW Saint-Lawrence river Massé Discovery Charlevoix Pockmarks: Gas events Precambrian Gaspé Belt Siluro-Devonian Humber Zone Carbonate Ordovician Platefrom siliclastic Ordovician Massé :oil Trusted Slope siliclastic Platform and trusted carbonate 11
Source rocks Gaspé Belt Réservoir rocks Massé reservoir continuity Humber Zone Ordovician shale potential Sandstone reservoirs Plateform: Massé reservoir Utica shale equivalent Park reservoir TBR dolomitization Modified from Pinet et al, 2014 12
Thermogenic gas escaping from Paleozoic rocks just north of X-Terra ’s licences, in the Saint-Lawrence river Over 2,000 pockmarks have been identified by high resolution bathymetry survey X-Terra Gas escaping from bedrock Image Source : Lavoie, D. Pinet, et al, 2010 13
Sproule, 2016: 61,1 MMBOE in place X-Terra Licences : High porosity created by carbonate Possible Siluro-Devonian play extension dolomitisation Vertical stack of source rocks ? NW SE Ordovician Rocks Siluro-Devonian Neigette fault Gaspé Belt Gaspé Belt Oil discovery Ordovician source rocks continuing onto X-terra licences Possible extension to X-Terra ’s Licences 14 Sources : Squatex and Petrolympic public presentations, 2015,2016,2017. Sproule evaluation, 2016
Silurian carbonate Massé extension Contact ordovician / silurian X-TERRA Licences Ordovician reflector ? Sandstone Prospect ? N S 15
Good indicator for deeper oil and gas conservation Ordovician formations highlighting high levels of TOC in the oil generation windows. Excellent position for an unconventional discovery Source : Bertrand et al , 2010 16
Drilled in 1979 Extensive work to study storage potential Source : Hu and Lavoie, OF 5485 17
Upper siliclastic interval Lower siliclastic and carbonate interval Marcil et al, 2013 Thériaut, MERN 18
A’ A Humber zone Plateform and trusted carbonate A A’ Modified from Pinet et al, 2014 Gaspe Belt Humber zone Gaspé belt 19
B’ B Gaspe Belt Humber zone Gaspé belt B B’ Modified from Pinet et al, 2014 20
X-Terra licences are surrounded by hydrocarbon showings and discoveries Licences highlight great potential for conventional and non-conventional opportunites in three differents highly prospective geological settings. Value creation could occur with social acceptibility improvement and/or low cost exploration program About the Author Mr. Jérémie Lavoie, P. Ing. MBA a consultant to X-Terra Resources, has been working for more than 13 years in the oil and gas exploration industry with extensive experience in Québec, broader Canada and the United States. He has reviewed all available data and is the author of this presentation. 21
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