Ms. Joanne Freeze reports

XALI GOLD COMPLETES BASELINE STUDIES ON THE PICO MACHAY GOLD PROJECT IN PERU

Xali Gold Corp. has completed the baseline studies required for the ficha tecnica ambiental -- drilling permit -- on its Pico Machay gold project.

GEADES, the Peruvian environmental and social consulting firm engaged by Xali Gold to complete the baseline studies, finalized its fieldwork on May 10, 2026. The work included environmental baseline sampling and monitoring activities related to water quality, air quality, soil quality, sound quality, and sampling of flora and fauna, as well as gathering social information. GEADES is receiving, compiling and interpreting the laboratory results from the completed sampling program to finalize the baseline studies and prepare the FTA application, which is expected to be submitted to the DGAAM (General Directorate of Mining Environmental Affairs) of MINEM (Ministry of Energy and Mines in Peru) by or near the end of June.

"We are very pleased to have completed the initial updated environmental baseline studies at Pico Machay, marking another important step forward in advancing the project," stated Joanne Freeze, president and chief executive officer of Xali Gold. "The completion of the baseline studies by GEADES keeps us on track for the submission of the FTA permit application near the end of June this year. Drilling under the FTA permit should allow us to make the historical resource NI 43-101 compliant for reference in our upcoming preliminary economic study, as well as to potentially upgrade the resource and test some new theories regarding controls to higher-grade mineralization zones. Together, these initiatives continue to systematically derisk the project while advancing Pico Machay toward our goal of becoming a near-term gold development opportunity in Peru."

Completion of the new environmental and social baseline studies continues to build momentum at Pico Machay as Xali Gold advances permitting initiatives alongside continuing technical advances of the project. With substantial historical exploration and engineering work already completed, the company believes Pico Machay represents a unique opportunity to advance a gold project toward development on an accelerated timeline relative to many earlier-stage exploration projects. The company also continues to advance several parallel initiatives at the project, including near-term completion of underground and surface sampling programs and continuing engagement with local communities regarding a long-term surface access and shared value agreement. Through its in-country community relations team, which brings experience from a number of development-stage mining projects in Peru, the company continues to build relationships across the broader community and gain a better understanding of local priorities and needs as project advancement activities continue.

Following submission of the FTA application, the company expects to continue technical evaluations and planning activities related to future drilling, metallurgical studies, resource modelling and advancement of a PEA.

About Pico Machay

Located within the southern Peru epithermal gold-silver belt, Pico Machay sits in a historically productive mining district in the western Cordillera Andes. The project benefits from existing infrastructure and a mining-friendly community eager to partner on sustainable development.

Xali Gold remains confident in the significant upside potential at Pico Machay, which hosts a historical resource and several untested targets on the project. Various historical engineering studies at Pico Machay were also completed and targeted an open-pit heap-leach operation, which was expected to be low cost with a low strip ratio. Given that those studies were based on a long-term gold price of $700 per ounce and several exploration targets remain untested, Xali Gold considers the upside potential to be very strong.

About Xali Gold Corp.

Xali Gold is a gold and silver exploration company focused on advancing opportunities in the Americas. The company is focused on the exploration and development of Pico Machay, an advanced exploration-stage gold project in Peru with a near-term production goal. Xali Gold maintains exploration potential as well as two royalty agreements with third parties which have the rights to produce gold and silver from specific areas of the El Oro gold-silver project in Mexico, a historic district-scale precious metal system with a long history of significant gold and silver production.

Xali Gold is committed to working as a responsible partner with local communities.

Joanne C. Freeze, PGeo, is a qualified person as defined by National Instrument 43-101, and has reviewed and approved the contents of this release.

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