Xali Gold Completes Due Diligence Visit, Confirms Data Integrity and Exploration Upside at Pico Machay Gold Project in Peru

On November 19, 2025, Xali Gold announced the completion of its due diligence site visit for the recently acquired Pico Machay Gold Project in Peru. The company confirmed the integrity of the historical data and geological model.

The key finding was that the alteration footprint of the mineralized system is substantially larger than previously understood, spanning approximately 4.1km by 1.3km (533 hectares). This is significantly larger than the area of the current historic resource, which covers only about 800m by 350m (28 hectares), or roughly 5% of the newly identified altered system.

The company also collected surface rock chip samples, with results including grades up to 3.98 g/t gold. This work supports the preparation of an updated NI 43-101 technical report.

The news is materially positive as it provides a crucial first step in de-risking the company's transformative acquisition of the Pico Machay project, announced on October 24, 2025. While the acquisition itself was the game-changing event, this follow-up confirms the company's thesis and, importantly, enhances the project's exploration narrative by identifying a mineralized system potentially 20 times larger than the one that hosts the historic resource.

This validation is critical for two reasons: 1. Supports Necessary Financing: Xali Gold is in an extremely precarious financial position, with a working capital deficit of over $3.1 million as of June 30, 2025, and negligible cash. The Pico Machay acquisition comes with a US$17.5 million price tag in staged payments, starting with US$500,000 at closing. This positive news strengthens the story they will need to tell the market to raise the significant capital required to close the deal and fund operations. 2. Validates Strategic Pivot: The company has been plagued by issues at its El Oro project in Mexico, including the "unlawful" cancellation of key mining concessions. Management explicitly stated a strategic shift to South America. This news provides the first tangible evidence that the pivot to Peru was a sound decision, adding credibility to the management team after a period of significant operational and administrative challenges (including a cease trade order in August 2025 for late filings).

The progression of news shows a company in distress shedding its past to bet everything on a new future. - July-September 2025: Disclosed major problems with Mexican concessions, dropped an option on the Sarape project, and revealed a dire financial situation requiring loans from the CEO. - October 2025: Halted trading and announced the transformational, high-cost acquisition of Pico Machay. - November 2025: Cleverly monetized the El Oro Tailings project into a royalty stream (Nov 13 news), providing a small amount of non-dilutive capital, and now (Nov 19 news) has confirmed the upside potential of its new flagship asset.

The rock chip samples are encouraging but are selective surface samples and should be viewed with caution until systematic drilling is completed. The main value of this release is the confirmation of a large-scale mineralized system, which provides a strong foundation for future exploration and resource growth.

Xali Gold Corp. is a junior exploration company that has recently pivoted its focus from Mexico to Peru. Its new flagship asset is the Pico Machay Gold Project in central Peru, which it is acquiring from Pan American Silver. Pico Machay is a high-sulphidation gold deposit with a historical (non-compliant) resource of 264,600 oz Au (M&I) and 446,000 oz Au (Inferred). The company also retains royalty interests on its legacy El Oro district properties in Mexico, most notably a 3-4% NSR on the El Oro Tailings Project being advanced by Kappes, Cassiday and Associates.