Ms. Joanne Freeze reports

XALI GOLD PAUSES FTA APPLICATION TEMPORARILY FOR DRILLING AT PICO MACHAY

Xali Gold Corp. is temporarily pausing its ficha tecnica ambiental application for drilling on the Pico Machay gold project to allow extra time to compile additional information on historical work at the project as requested by Peru's Ministry of Energy and Mines. While compiling the additional data requested, the company will continue advancing other permitting work to minimize delays to the planned drill program. The company expects that addressing MINEM's requests before resubmission will facilitate a more optimized review of the revised FTA application, minimizing the need for further rounds of clarification and avoiding unnecessary delays in the approval process.

"The additional data requested by MINEM will be very useful for future permitting, and we are still expecting to be drilling before December," said Joanne Freeze, president and chief executive officer of Xali Gold. "Our drilling contractor GEMA (Geologia Estudios Medio Ambientales Drilling & Construction SRL) estimates that the resource confirmation drilling program, using two drills, will take approximately six weeks, based on their experience in other similar high-sulphidation gold projects in Peru, such as La Arena."

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 of the 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 exploration targets on the project. Various historical engineering studies at Pico Machay were completed through 2009 and evaluated the potential for a low-cost, low-strip-ratio, open-pit heap-leach operation. 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.

The company's approach to community engagement and responsible development is guided by strong governance principles and board oversight that support long-term stakeholder relationships.

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.

We seek Safe Harbor.