Xali Gold Completes Initial Underground and Surface Sampling Program on the Pico Machay Gold Project in Peru

Executive Summary

• Xali Gold Corp. has completed its initial underground and surface rock chip sampling program at the Pico Machay Gold Project in Central Peru.
• The program sampled accessible historical underground workings and surface outcrops to validate historical data and collect new geological and grade distribution information.
• Assay results from 197 samples are expected in approximately two weeks and will be used to update the mineral resource estimate and support a Preliminary Economic Assessment (PEA).

Key Details

• Underground Sampling Scope: Completed across three north-south oriented horizontal galleries (21–46 m lengths), one east-west crosscut (34 m), and smaller workings. Continuous channel samples were collected from eastern gallery walls at 2–4 m intervals.
• Surface Sampling Scope: Conducted over both historical resource areas and new exploration targets.
• Sample Count & Distribution: 197 total samples submitted for analysis (78 underground, 119 surface).
• Laboratory & Analytical Methods: Samples were submitted to SGS in Lima, Peru (transferred from ALS to align with future metallurgical testing). Analysis utilizes fire assay and atomic absorption for gold/silver, plus multi-element ICP for 36 elements, with additional overlimit analyses as required.
• Strategic Purpose: Results will validate historical resource data, improve understanding of mineralization geometry and continuity, and provide the foundation for an updated mineral resource estimate and PEA.
• Historical Context: Sampling targets areas originally explored by Aquiline Resources in 2009. Historical engineering studies previously targeted an open pit heap-leach operation based on a long-term gold price of $700/oz.
• Timeline: Assay results are expected to be released in approximately two weeks from the announcement date.

Notable Quotes

• Joanne Freeze, President and CEO: “We are very pleased to have completed the initial rock chip sampling program at Pico Machay, marking another important step forward in advancing the Project... All these initiatives continue to systematically de-risk the Project while advancing Pico Machay toward its goal of becoming a near-term gold development opportunity in Peru.”