Xali says 7 El Oro concessions cancelled unlawfully

Executive Summary

• Xali Gold filed its audited annual financial statements, MD&A, and CEO/CFO certifications for FY ended March 31 2025.
• The TSX Venture Exchange is reviewing the listing after a trading halt; Xali is working to resume trading.
• The company wrote‑off $2,260,108 in mining fees after two El Oro concessions were cancelled (unlawfully) and is seeking legal recourse for seven additional unlawful cancellations.

Key Details

• Annual filings (financial statements, MD&A, certifications) were filed on Aug 16 2025 with SEDAR+ and the company website.
• TSX Venture Exchange conducting a standard listing review; transfer agent confirms Xali is in good standing with Computershare Investor Services Inc.
• President & CEO Joanne Freeze emphasized focus on securing an advanced‑stage exploration project in Peru’s high‑sulphidation epithermal belt.
• El Oro concessions:
• Two peripheral concessions (representing 76.28 % of total El Oro fees) were cancelled prior to Mar 31 2025; one cancellation gave notice, the other did not and is deemed unlawful.
• Xali wrote‑off $2,260,108 in outstanding mining fees related to these two concessions.
• In late July 2025, seven additional concessions were cancelled without the required 60‑day notice; all cancellations are considered unlawful.
• Company is obtaining legal advice to potentially suspend or overturn the seven cancellations.
• Remedioambiente S.A. de C.V. (RM) is obligated to pay fees on five claims and may contest the cancellations.
• Existing agreements:
• RM holds rights to recover gold/silver from mineralized veins and backfill historic mine workings on five concessions, providing Xali with up‑to‑3 % NSR cash flow.
• Kappes, Cassiday & Associates (KCA) has rights to reprocess Mexico mine tailings; Xali receives up‑to‑3 % NSR from this agreement as well.
• These agreements are expected to generate cash flow and provide underground access for drilling high‑grade targets at El Oro.
• Xali is reviewing additional high‑sulphidation gold targets in Peru, maintaining other Peruvian properties.

Notable Quotes

“Given the current price of gold, and our very experienced and capable partners in Mexico, we are focused on securing an advanced exploration stage project in South America in one of the proven high‑sulphidation epithermal belts in Peru.” – Joanne Freeze, President & CEO

The release includes a qualified person statement and safe‑harbor disclaimer.