Ms. Joanne Freeze of Xali Gold reports

XALI GOLD COMPLETES DUE DILIGENCE VISIT, CONFIRMS DATA INTEGRITY AND EXPLORATION UPSIDE AT PICO MACHAY GOLD PROJECT IN PERU

Xali Gold Corp. has completed due diligence site visits for the Pico Machay gold project in central Peru and they confirm the high quality and integrity of the historical work. The project is under acquisition through a share purchase agreement (SPA) with Pan American Silver Corp. and its subsidiary, Aquiline Resources Inc., as per the Oct. 24, 2025, news release.

Xali Gold has now completed three site visits between June and November of this year, providing strong confidence in the integrity of the historical work conducted on the property by Aquiline Resources, its predecessors and also by Pan American. Participants of the site visits have included Xali Gold technical team and management, Xali Gold qualified person David Thomas of DKT Geosolutions, as well as representatives for local investors. Mr. Thomas has verified the historic geological model, confirmed the accuracy of drill collar locations and validated the reliability of the assays from historic drilling through independent check sampling. These results speak to the integrity of the data set and support the preparation of an updated National Instrument 43-101 report as required by the TSX Venture Exchange for this acquisition. This report will also serve as the foundation for converting the historic mineral resource estimate to a current estimate.

"The project has delivered a major and highly encouraging surprise: The alteration footprint is substantially more extensive than we had understood, spanning about 4.1 kilometres by 1.3 kilometres (533 hectares)," stated Joanne Freeze, president and chief executive officer of Xali Gold. "By comparison, the surficial expression of the current resource occupies approximately 800 metres by 350 metres (28 hectares) -- approximately 5 per cent of the altered mineralized broader system -- which highlights the substantial exploration upside that remains open for discovery. Not only does Pico Machay offer immediate value potential, given that the original resource was based on a long-term gold price of only $700 (U.S.) per ounce, but the extensive undrilled areas within this large alteration system provide exceptional opportunity for both resource expansion and new discoveries."

Xali Gold engaged Mr. Thomas of DKT to carry out a comprehensive due diligence site visit in October, 2025. During the visit, DKT verified key elements of the geological model through examination of surface outcrops, collected GPS (Global Positioning System) co-ordinates for drill collar locations, gathered 26 samples (including nine surface samples and 17 pulp and coarse reject samples) and conducted a thorough review of RC (reverse circulation) chip samples stored in Lima, Peru.

The new rock-chip samples collected at Pico Machay reinforce the strength of the system, confirming both higher-grade and lower-grade gold and silver values, as summarized in Table 1 below. Drill collar positions were validated as reasonably accurate, and check assays from pulp and coarse reject material confirm strong assay reliability. Over all, the data set shows excellent integrity -- sufficiently accurate and robust to support an updated NI 43-101 mineral resource estimate, which is now well under way and expected to be completed in the coming months.

Pico Machay has a historic measured and indicated resource of 264,600 ounces of gold (10.6 million tonnes grading 0.78 gram per tonne gold) and an additional historic inferred resource of 446,000 ounces of gold (23.9 million tonnes grading 0.58 gram per tonne gold). Additional details about Pico Machay, including a video with highlights from the site visit, can be found on the Xali Gold website.

All rock-chip samples were collected in the field using a hammer. Sample locations were obtained using a hand-held GPS with samples placed in prelabelled sample bags. Samples were securely transported by field staff to ALS Chemex's laboratory in Lima, Peru, for standard sample preparation (Prep 32), which includes drying at 105 C, crushing to 70 per cent passing two millimetres, riffle splitting 1,000 grams and pulverizing 85 per cent passing 75 microns. Thirty-gram pulps were then analyzed for gold and silver by fire assay with an AAS finish (code Au-AA23). Silver analysis was performed using four-acid digest with an ICP-AAS finish (Code Ag-ICP61). A quality assurance/quality control protocol was incorporated into the program and included the insertion of certified reference material at and blanks at a rate of approximately 5 per cent and 5 per cent, respectively. ALS Chemex is independent of the company.

Management cautions that surface rock-chip samples and associated assays, as discussed herein, are selective by nature and represent a point location, and therefore may not necessarily be fully representative of the mineralized horizon sampled.

Technical information

Information regarding the historic mineral resource at Pico Machay was obtained from the report titled "Independent Technical Report and Resource Estimate Pico Machay Gold Deposit," prepared by Caracle Creek International Consulting Inc. for Aquiline dated Nov. 25, 2009. The mineral resource numbers are included in the Pan American news release dated Sept. 11, 2024, and found on both the Pan American website and on SEDAR+. All mineral resource estimates have used the same categories in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standards on mineral resources and reserves.

All resource estimates for Pico Machay are considered historic in nature and are based on prior data and reports prepared by previous property owners. The company views the estimate as a meaningful reference point for planning current exploration activities and assessing the project's potential, but a qualified person has not done sufficient work yet to classify the historic estimates as current resources in accordance with current CIM categories and the company is not treating the historic estimates as current resources. Significant data compilation, redrilling, resampling and data verification may be required by a qualified person before the historical estimates on the project can be classified as a current resource. There can be no assurance that any of the historic mineral resources, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. Even if classified as a current resource, there is no certainty as to whether further exploration will result in any inferred mineral resources being upgraded to an indicated or measured resource category.

Xali Gold is dedicated to being a responsible community partner.

Both David G. Thomas, PGeo, and Joanne C. Freeze, PGeo, qualified persons as defined by NI 43-101, have reviewed and approved the contents of this release.

We seek Safe Harbor.