Ms. Joanne Freeze reports

XALI GOLD COMPLETES PUBLIC WORKSHOP, ADVANCING EXPLORATION PERMITTING AT PICO MACHAY IN PERU

Xali Gold Corp. completed a public information workshop on Oct. 7, 2026, as part of the Ficha Tecnica Ambiental (FTA) approval process for the planned drilling program at its Pico Machay gold project in Peru. completion of the workshop marks an important step toward submission of the company's FTA application.

The workshop was organized by Peru's Ministry of Energy and Mines (MINEM), in co-ordination with the executives of the Department of Energy and Mines of the regional government of Huancavelica and the company. Approximately 60 residents attended from the various annexes of the Comunidad Campesina de Salcca Santa Ana (Santa Ana community) within the project's area of influence, including the presidents of five of its six annexes, the community president and two members of the community's governing board, and the president of the alpaca breeders' association.

Participants had the opportunity to hear directly from and ask questions of government representatives, Geades Consultores, the company's Peru-based environmental consultant, and Xali Gold's team. Discussions covered the proposed drilling program, environmental and social aspects of exploration, applicable laws and measures to protect community interests, as well as the company's broader exploration and potential development plans.

"Completion of this workshop is an important step in advancing our exploration permit application and continuing an open dialogue with the Santa Ana community," said Joanne Freeze, president and chief executive officer of Xali Gold. "The participation and questions raised demonstrate the community's interest in understanding the proposed work, how the environment will be protected and the laws that govern our activities. We thank all community members who attended, MINEM, the regional government of Huancavelica, Geades Consultores and our team for their contributions."

FTA process and next steps

As reported in Xali Gold's Sept. 17, 2026, news release, the company completed two technical meetings with Peru's MINEM to obtain guidance on updated FTA requirements. Xali Gold also engaged Embellie Advisory LLC to assess potential effects of the proposed drilling on the collective rights of indigenous or native community members and assist with the related application requirements.

With the workshop now completed, the company is working to finalize its FTA application, with submission targeted for next week. Based on guidance received, the review and approval process is anticipated to take approximately 10 days following submission, although actual timing remains subject to the regulatory process.

The planned 3,000-metre diamond drill program includes approximately 2,000 metres of drilling to twin selected historical reverse-circulation holes. This work is intended to support an updated mineral resource estimate and subsequent preliminary economic assessment.

Continuing community engagement

The workshop builds on the community authorization announced in Xali Gold's July 9, 2026, news release. At an extraordinary assembly held on June 28, 2026, the Santa Ana community authorized the company to undertake drilling, exploration and environmental studies at Pico Machay.

Xali Gold remains committed to ongoing engagement with the community as the project advances, with an emphasis on transparent communication, respect for local priorities and opportunities for community participation.

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/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.

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