Xali Gold begins community engagement at Pico Machay

Executive Summary

• Xali Gold Corp. has commenced fieldwork and community engagement at its newly acquired Pico Machay gold project in Peru, following the successful acquisition closure on December 24, 2025.
• The company is initiating technical fieldwork and environmental studies to secure surface drilling permits, with a fourfold strategy aimed at advancing the project toward production and exploring for additional resources.
• The project holds a historical measured and indicated resource of 264,600 ounces of gold and an inferred resource of 446,000 ounces of gold, with significant upside potential due to untested exploration targets and favorable geological conditions.

Key Details

• Acquisition Status: The acquisition of the Pico Machay project was successfully closed on December 24, 2025.
• Current Activities:
  • Community engagement commenced between December 27 and 30, 2025, including introductory meetings.
  • Engagement with permitting consultants is underway to submit surface drilling permit applications.
• Fourfold Strategy for Pico Machay:
  1. Geological Work: Conduct detailed rock-chip sampling, bulk sampling, and geological mapping on surface and in existing underground workings to understand geological controls and compare with historical Reverse Circulation (RC) data (noting RC may wash away fine gold).
  2. Permitting: Complete an environmental technical report to support a surface drilling permit under a ficha tecnica ambiental (FTA) permit, estimated to take two to three months.
  3. Economic Assessment: Launch a new Preliminary Economic Assessment (PEA) and detailed environmental studies for additional surface drilling and development.
  4. Community Agreement: Negotiate a 20-year community agreement covering activities from exploration drilling through full production.
• Historical Resource Data:
  • Measured and Indicated: 264,600 ounces of gold (10.6 million tonnes grading 0.78 g/t Au).
  • Inferred: 446,000 ounces of gold (23.9 million tonnes grading 0.58 g/t Au).
  • Drilling History: 154 RC holes drilled prior to 2009 delineated the historical resource in a central zone; nine additional high-potential exploration targets remain untested.
• Project Background:
  • Located in the northern extent of the southern Peru epithermal gold-silver belt.
  • Previously explored by Aquiline Resources (until 2009), which completed engineering studies targeting an open-pit heap-leach operation based on a $700/oz gold price.
  • Technical report prepared by David G. Thomas, PGeo, dated December 16, 2025.
  • Historical resources are not classified as current resources under CIM standards until verified by a qualified person.

Notable Quotes

• "With the acquisition of Pico Machay successfully closed on Dec. 24, 2025, our team hit the ground running during the holiday period," said Joanne Freeze, president and chief executive officer of Xali Gold. "Community engagement commenced with introductory meetings and the sharing of holiday cheer in the community between Dec. 27 and 30. In addition, we are engaging with permitting consultants in order to get surface drilling permit applications in as soon as possible."