Ms. Joanne Freeze reports

XALI GOLD SUBMITS FTA APPLICATION AND SELECTS DRILL CONTRACTOR FOR PICO MACHAY

Xali Gold Corp. has submitted its ficha tecnica ambiental (FTA) application to Peru's Ministry of Energy and Mines (MINEM) for resource confirmation and exploration drilling at the Pico Machay gold project in Huancavelica, Peru. The company has also signed a contract with Geologia Estudios Medio Ambientales Drilling & Construction SRL (GEMA) to carry out its initial 3,000-metre diamond drilling program.

The submission follows receipt of MINEM's documentation regarding attendance at the Oct. 7, 2026, public information workshop, the final item outstanding when the company announced completion of the application on Oct. 21, 2026. Based on guidance received, the company anticipates a review and approval period of approximately 10 days following submission, subject to regulatory review and any requests for additional information.

"With the FTA submitted and our drill contractor lined up, we are advancing the permitting and operational preparations needed to begin drilling at Pico Machay," said Joanne Freeze, president and chief executive officer of Xali Gold. "Our immediate priority is to obtain the geological and assay data needed to support an updated mineral resource estimate. That estimate will underpin a preliminary economic assessment (PEA), allowing us to evaluate potential development options and project economics using an updated technical foundation."

Drilling contractor

GEMA and its key personnel specialize in exploration and geotechnical diamond drilling across Peru. The team's experience spans diverse terrain across Peru, from high-altitude mountain sites to jungle and dry coastal areas. Its project experience includes Fresnillo Peru's Santo Domingo project (4,600 to 4,950 metres above sea level), Nexa Resources' Sinaycocha, Santa Rosa and El Porvenir projects (above 4,000 metres above sea level), as well as Buenaventura's Tantahuatay and La Zanja operations. Team members also worked at Tahoe Resources' La Arena and Shahuindo mines, where Wilder Garcia, Xali Gold's exploration manager, oversaw their work.

GEMA has two diamond drill rigs ready for the initial 3,000-metre program at Pico Machay, with HQ-diameter core and individual holes planned to reach depths of approximately 150 to 300 metres. Approximately 2,000 metres of the initial 3,000-metre program will twin 10 per cent of the historical reverse circulation holes within the historical resource area to help verify previous results and improve understanding of the controls to gold mineralization. The FTA application covers a broader program totalling up to 20,000 metres from 20 platforms, providing scope for additional resource definition and exploration drilling beyond this initial program.

The company is targeting commencement of drilling in early November, 2026, subject to receipt of the required permits.

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 in 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.