Ms. Joanne Freeze reports

XALI GOLD COMPLETES INITIAL UNDERGROUND AND SURFACE SAMPLING PROGRAM ON THE PICO MACHAY GOLD PROJECT IN PERU

Xali Gold Corp. has completed the initial underground and surface rock-chip sampling program on its Pico Machay gold project in central Peru.

The program included all accessible underground workings excavated since Aquiline Resources' 2009 exploration, resource and feasibility work at Pico Machay and was predominantly within the historical resource area. This is the first time the historical resource area has been sampled from underground, so it will provide the company with excellent resource confirmation data as well as additional new geological, grade and grade distribution data. The results will support the preparation of an updated mineral resource estimate, which is expected to form the basis of an updated preliminary economic assessment (PEA) for Pico Machay. All samples collected during the program have been submitted to the laboratory for analysis, with results expected in approximately two weeks.

Underground sampling was completed in three north-south-oriented horizontal galleries (tunnels) extending over 21-metre to 46-metre lengths as well as one east-west crosscut 34 metres in length and some smaller workings. Continuous channel samples were collected from the eastern walls of the galleries over two-metre to four-metre intervals. These underground samples will provide grades and other data over extensive lengths not previously sampled. The nature of the galleries makes them similar to a horizontal drill hole. Surface sampling was conducted over both historical resource areas and new exploration targets.

"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," stated Joanne Freeze, president and chief executive officer Xali Gold. "The underground and surface sampling programs were designed to help validate historical data, improve our understanding of the geometry and continuity of mineralization, and support future technical and engineering work as we advance toward an updated resource, PEA and development studies. All these initiatives continue to systematically derisk the project while advancing Pico Machay toward its goal of becoming a near-term gold development opportunity in Peru."

The 197 samples have been submitted to SGS in Lima, Peru, for gold and silver analysis using fire assay and atomic absorption methods, along with multielement inductively coupled plasma (ICP) for 36 elements. Additional overlimit analyses will be completed where required. Of the 197 samples, 78 were collected from underground and 119 from surface outcrops. While 125 samples were initially sent to the ALS laboratory in Peru, the company decided to move the analyses to SGS to be sure the processes were well aligned with future metallurgical testing, which ALS does not have facilities for.

See more detail about the sampling program in the Xali Gold news release dated April 29, 2026.

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 and 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 that 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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