Ms. Joanne Freeze reports

XALI GOLD ADVANCES PICO MACHAY GOLD PROJECT WITH UNDERGROUND AND SURFACE SAMPLING PROGRAM

Xali Gold Corp. has completed more than 50 per cent of the initial underground and surface rock-chip sampling program on its Pico Machay gold project in central Peru, with 125 initial samples now collected and submitted to the laboratory for geochemical and assay analyses.

"The underground sampling was conducted in the walls of two crosscuts through the centre of the resource, which allows continuous sampling similar to what a horizontal drill hole would allow," stated Joanne Freeze, president and chief executive officer of Xali Gold. "Surface sampling was conducted in channels cut in outcropping mineralized zones and was also continuous. This sampling is to verify historical grades, lithologies and alteration zones as well as allow us to better understand the geometry and grade distribution of the mineralizing system and the historical resource. This program builds on a series of recent milestones at Pico Machay, including community support, advancing permitting initiatives and mobilizing in-country technical expertise. Together, these steps are part of a co-ordinated strategy to reduce risk while we build on a wealth of historical data, making Pico Machay a unique opportunity for an accelerated timeline for production expected to benefit from favourable market conditions."

To date, 36 samples were collected from underground, and 89 samples were collected on surface, all from within areas of mineralization. This program started with the Xali Gold technical team conducting geological mapping to delimit lithological, alteration and mineralization contacts, then systematic sampling was carried out utilizing sample lengths typically ranging from two to four metres.

Underground sampling was conducted in two galleries trending north-south, where continuous samples over two- to four-metre lengths were collected from the east-side walls of the galleries. The galleries were driven perpendicular to the fracturing and hydrothermal breccia structures (BxHy), which exhibit a preferential east-west trend that dips to the north. Surface channel sampling was conducted in channels cut over outcropping mineralization in sample lengths typically two to four metres in length and 0.20 to 0.30 metre in width. In the case of hydrothermal breccia structures, surface samples were collected every five metres by cutting a channel perpendicular to the hydrothermal breccia, extending outward into the wall rocks on both sides of the breccia.

Results from this program are expected to support the updating and potential upgrading of the historical resource (see below) to a current, compliant mineral resource estimate, with completion targeted for Q3 2026, as well as support the advancement of a preliminary economic assessment (PEA). Samples collected from this program have been sent to ALS Peru for analyses, including combinations of atomic absorption and fire assay for gold and silver as well as inductively coupled plasma mass spectrometry (ICP) for multielements.

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 measured and indicated resource of 264,600 ounces of gold (10.6 million tonnes grading 0.78 gram per tonne gold) and an additional historical inferred resource of 446,000 ounces of gold (23.9 million tonnes grading 0.58 gram per tonne gold). A total of 154 reverse circulation holes drilled prior to 2009 were relied upon to delineate the historical resource. All holes were drilled in a central zone while nine additional high-potential exploration targets remain untested.

Various historical engineering studies at Pico Machay 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.

Details of the acquisition can be found in the company's Oct. 24, 2025, and Dec. 24, 2025, news releases.

Technical information

Information regarding the historical resource at Pico Machay is outlined in the technical report titled "Amended Technical Report on the Pico Machay Gold Deposit in Huancavelica Province, Peru" prepared by David G. Thomas, PGeo, for Xali Gold dated Dec. 16, 2025, and filed on SEDAR+ as well as the report titled "Independent Technical Report and Resource Estimate Pico Machay Gold Deposit" prepared by Caracle Creek International Consulting Inc. for Aquiline Resources Inc. (purchased by Pan American Silver) on Nov. 25, 2009. All 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 historical in nature and are based on prior data and reports prepared by previous property owners. A qualified person has not done sufficient work yet to classify the historical estimates as current resources in accordance with current CIM categories and the company is not treating the historical estimates as current resources. The qualified person considers the historical estimates to be relevant as they were prepared using industry-standard estimation methodologies, reporting categories, and technical practices commonly relied upon by mining companies and other issuers for comparable mineral projects. 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 historical 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.

All scientific and technical information in this news release has been prepared by, or approved by David G. Thomas, PGeo, and Joanne C. Freeze, PGeo, qualified persons as defined by National Instrument 43-101 for the Pico Machay project. Ms. Freeze is the president and chief executive officer of Xali Gold and Mr. Thomas is independent.

Resources were estimated using historical drilling (up to 2004) and current drilling (drilled between 2004 and 2008). The resource estimate includes holes up to hole ABS-246, drilled in 2008. Micromine software (version 11.0.4) was used to facilitate the resource estimating process and the estimate was prepared in accordance with CIM Standards on Mineral Resources and Reserves.

Mineralized zones were outlined to enforce geological control during block modelling. The geological continuity of the broader mineralized zones, especially for the main zone, was quite good and could be readily followed from hole to hole and section to section. An average specific gravity (rock density) value, based on 11 samples, of 2.31 was used.

A block model was created, constrained by the zone wire frames. Blocks in the inferred category were defined based on search ellipse parameters with a range of 40 m. Blocks in the indicated and measured categories were identified manually, based on drill intercepts spacing values of 27 m and 20 m, respectively. Ordinary block kriging was used to estimate block grades.

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 NI 43-101 and has reviewed and approved the contents of this release.

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