Ms. Joanne Freeze reports

XALI GOLD PROVIDES UPDATE ON COMPLETION OF THE ACQUISITION OF PICO MACHAY GOLD DEPOSIT

The TSX Venture Exchange is advancing on its approval process for Xali Gold Corp.'s acquisition of the Pico Machay gold deposit, terms of which are detailed in the Xali Gold news release dated Oct. 24, 2025.

The company understands that all outstanding technical and legal aspects have been addressed to the satisfaction of the TSX-V. The closing of both the Pico Machay acquisition and tranche one of the previously announced non-brokered private placement are to be completed simultaneously. Both transactions are expected to close by the end of the week and remain subject to TSX-V acceptance.

Following the TSX-V's review of the technical report, the company has filed an amended technical report on the Pico Machay gold deposit in Huancavelica province, Peru, on SEDAR+ with an effective date of Nov. 18, 2025, and dated Dec. 16, 2025. The amended technical report incorporates minor modifications made in response to comments from the TSX-V and has now been approved.

The amended technical report was prepared by David Thomas, PGeo, of DKT Geosolutions Inc., on behalf of Xali Gold to comply with TSX-V requirements related to the acquisition of Pico Machay. It is a National Instrument 43-101-compliant report and was prepared and completed in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (adopted May 10, 2014).

The minor amendments to the technical report include:

• Updating section headings within the report (that is, executive summary has been updated to summary);
• Disclosure in adjacent properties was reduced;
• Deleted the historical mineral resource estimates from the mineral resource estimates section of the technical report, retaining them only within the summary and history sections;
• Clarified Section 18.0 recommendations, to state that while the recommended phase 1 work program is important for strengthening the overall project, the phase 2 program is not contingent on the results of phase 1, as it is supported by existing historical data.

The amended technical report is available on the Xali Gold website and under the company's profile on SEDAR+.

About Pico Machay

The Pico Machay project is an advanced exploration-stage gold project in Peru with a near-term production opportunity. It is located within the Southern Peru epithermal gold-silver belt, and the well-established mining district of Huancavelica. Between 2005 and 2009, Aquiline and others completed various engineering studies including resource estimations and metallurgical testwork on Pico Machay. Aquiline targeted an open pit heap-leach operation, which was expected to be low-cost and with a low strip ratio. Given that Aquiline's engineering work, prior to that company's acquisition by Pan American Silver, was based on a long-term gold price of $700/ounce and several exploration targets remain untested by drilling, Xali Gold believes there is excellent upside potential.

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 completing the acquisition, exploration and development of Pico Machay, an advanced exploration stage gold project in Peru. Xali Gold also maintains exploration potential and two royalty agreements with third parties at El Oro in Mexico. The third parties have the rights to produce gold and silver from specific areas of the El Oro gold-silver project in central Mexico, a historic district-scale system with a long history of significant gold and silver production.

Xali Gold is dedicated to being a responsible community partner.

Joanne C. Freeze, PGeo QP, as defined by National Instrument 43-101, has reviewed and approved the contents of this release.

We seek Safe Harbor.