Xali completes Pico Machay due diligence site visits

Executive Summary

• Xali Gold Corp. has completed due diligence site visits for the Pico Machay gold project in Peru, confirming the integrity of historical data from Pan American Silver Corp. and Aquiline Resources Inc.
• The due diligence supports an ongoing acquisition via a Share Purchase Agreement (SPA) and validates the preparation of an updated NI 43-101 technical report.
• Significant exploration upside was identified, with the alteration footprint (533 hectares) being substantially larger than the current historic resource footprint (28 hectares).

Key Details

• Transaction Status: Acquisition of Pico Machay gold project via SPA with Pan American Silver Corp. and Aquiline Resources Inc. (referenced Oct. 24, 2025 release).
• Due Diligence Activities:
  • Three site visits conducted between June and November 2025.
  • Qualified Person David Thomas (DKT Geosolutions) verified the historic geological model, drill collar locations, and assay reliability.
  • Independent check sampling included 26 rock-chip samples (9 surface, 17 pulp/coarse reject) and review of stored RC chip samples.
  • Samples analyzed at ALS Chemex (Lima, Peru) via fire assay (Au-AA23) and ICP-AAS (Ag-ICP61).
• Exploration Upside:
  • Alteration footprint spans ~4.1 km by 1.3 km (533 hectares).
  • Current historic resource occupies only ~800m by 350m (28 hectares), representing ~5% of the broader altered system.
  • High-grade and low-grade gold/silver values confirmed in new samples.
• Historic Resource Estimates (Reference Point Only):
  • Measured & Indicated: 264,600 oz Au (10.6 Mt @ 0.78 g/t Au).
  • Inferred: 446,000 oz Au (23.9 Mt @ 0.58 g/t Au).
  • Note: Estimates are historic, based on a $700/oz gold price, and not yet classified as current resources under NI 43-101.
• Next Steps: Preparation of an updated NI 43-101 report is underway, expected to be completed in the coming months to support the acquisition and convert historic resources to current estimates.

Notable Quotes

• "The project has delivered a major and highly encouraging surprise: The alteration footprint is substantially more extensive than we had understood... which highlights the substantial exploration upside that remains open for discovery." — Joanne Freeze, President and CEO, Xali Gold.