Ms. Joanne Freeze reports

XALI GOLD RECEIVES GREEN LIGHT FROM COMMUNITY, PICO MACHAY GOLD PROJECT IN PERU

On Sunday, Feb. 22, 2026, the community of Santa Ana authorized Xali Gold Corp. to further advance mining exploration activities at the Pico Machay gold project in Peru.

"This agreement underscores the strong, constructive relationship we are building together with the community of Santa Ana," said Joanne Freeze, president and chief executive officer of Xali Gold. "It provides a clear pathway for Xali Gold to progress its fieldwork and continue to build a long-term partnership focused on shared benefits, transparency and responsible development throughout the life of the Pico Machay project."

The company will immediately initiate its planned comprehensive field program designed to unlock the project's potential and establish a development timeline by updating exploration, engineering and economic studies previously conducted from 1999 through 2009. Alongside geological and technical work, the company will continue community engagement and agreement discussions as well as advance environmental studies.

Geological and technical work (as per the phase I program outlined in the Pico Machay technical report filed on Dec. 16, 2025):

• Analysis of historical drill results: systematic relogging of historical reverse circulation (RC) drill cuttings, documenting lithologies, alteration and mineralization, as well as a detailed review of all assays, descriptive data and interpretations to improve the understanding of controls on mineralization (commenced January, 2026);
• Advanced modelling: reconstruction of the geological and resource models using 3-D software to optimize the understanding of the deposit;
• Mapping and reconnaissance: geological mapping of the entire property to better define stratigraphy and mineralization controls as well as better delineate undrilled exploration targets;
• Sampling: collection of rock chip and bulk sampling, both on surface and within all current underground workings.

Social -- community engagement and agreements

Xali Gold's social strategy, as agreed upon in the Feb. 22 meeting, is based on mutual respect and transparency and includes the following key elements:

• Social diagnosis and baseline: gathering information to ensure the development of the project in partnership with the community;
• Long-term negotiation: continuation of discussions for a long-term agreement covering both exploration and operations. The successful 2008 agreement between Santa Ana and Minera Calipuy (under Aquiline Resources), which covered both exploration and development, will serve as a basis for future agreements which are to be ratified in public meetings;
• Respect for Artisanal Mining: commitment to coexistence and respect for community members with current REINFO (Registry of Community Mining Owners) within the concession areas;
• Local contracting: the community will have priority for all jobs they are qualified for and services they are able to provide.

Environmental studies

Basic, low-impact data collection will provide information required for permitting for all stages of the project as well as guarantee the integrity of the Pico Machay area:

• Flora and Fauna studies: establish the environmental baseline and protect native species in the Santa Ana area;
• Comprehensive monitoring: preventative monitoring of water, soil and air quality, as well as noise levels, at strategic points within the property;
• Liability management: inventory and declaration of pre-existing environmental liabilities to the Ministry of Energy and Mines (MINEM), ensuring that Xali Gold operates with complete transparency and clearly defined responsibility.

About Pico Machay

Pico Machay lies within the northern extent of the Southern Peru epithermal gold-silver belt and in the eastern part of Western Cordillera Andes within a well-established mining area/district.

Pico Machay was discovered in 1997 and explored by several juniors including Aquiline Resources through 2009. Aquiline completed various engineering studies including resource estimations and metallurgical testwork. These studies 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 Corp., was 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.

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

Private placement clarification

Xali Gold also advises that the entire non-brokered private placement announced on Dec. 2, 2025, was completed on Dec. 24, 2025. The private placement resulted in the raising of $1.5-million and the issuance of 15 million units, with each unit consisting of one common share and one-half of one common share purchase warrant at a price of 10 cents per unit. Each warrant will be exercisable for one additional share of the company for 18 months at a price of 20 cents per warrant share, subject to an accelerated expiry.

The net proceeds from the private placement were used to cover the $500,000 (U.S.) payment due to Pan American for the closing of the acquisition of Pico Machay as well as phase I exploration at Pico Machay and working capital and general corporate purposes.

Additional details about the private placement can be found in the Dec. 24, 2025, news release.

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 who 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 dedicated to being a responsible community partner.

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.