Mr. Gary Bay reports

XAU RESOURCES INC. CORPORATE UPDATE

Xau Resources Inc. has provided shareholders with an update on corporate activities following the company's financing completed in December, 2025.

Since the completion of the financing, management has been focused on advancing a number of strategic initiatives, including the evaluation of potential corporate transactions and partnerships, as well as completing technical, legal and financial reviews related to opportunities currently under consideration.

In parallel, the company has continued internal technical work on its existing mineral property portfolio, including the compilation and review of historical geological, geochemical, and exploration data, with a view to refining its understanding of priority targets and determining appropriate next steps. As part of these efforts, the company's geologist is in the process of relocating to Guyana to support the evaluation and advancement of a potential exploration program and to assist with on-the-ground technical work related to the company's mineral property interests.

Further to the company's Nov. 25, 2025, news release, a special committee of independent directors remains constituted to oversee the evaluation of a potential transaction involving an asset of interest to the company. The special committee's mandate is to ensure that any such evaluation is conducted in a structured, independent and appropriate manner. No determinations have been made by the special committee, no agreements have been entered into, and there can be no assurance that its review will result in a transaction.

The company has not entered into any binding agreements in respect to the matters described above. There can be no assurance that current discussions or internal reviews will result in a completed transaction or exploration program. The company will provide further updates as material developments occur.

Looking ahead to 2026, the company intends to continue evaluating exploration and corporate opportunities consistent with its strategy of disciplined growth. Xau expects to prioritize opportunities that offer clear geological merit, alignment with shareholder interests, and the potential to advance the company's asset base in a measured and capital-efficient manner, subject to market conditions, regulatory approvals and board review.

Xau remains well capitalized and focused on disciplined growth and long-term value creation for shareholders.

About Xau Resources Inc.

Xau is a gold exploration and development company advancing high-potential assets within Guyana's prolific greenstone belt. Focused on its Noseno gold project and other targets within the region, Xau is well positioned to tap into Guyana's rich, underexplored mineral potential, capitalizing on the country's investor-friendly policies and growing infrastructure.

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