Ms. Joanne Freeze reports

XALI GOLD ANNOUNCES NON-BROKERED FINANCING

Xali Gold Corp. has arranged a non-brokered private placement to raise gross proceeds of approximately $1-million. The private placement will support the company's advancement of the Pico Machay gold project, an advanced exploration-stage project in Peru with a near-term production goal.

The private placement will consist of the sale of four million common shares at a price of 25 cents per share to raise gross proceeds of $1-million. The shares issued will be subject to a mandatory four-month-and-one-day hold period commencing the day of closing of the private placement. There will be no warrants issued with this private placement.

Approximately 75 per cent of the gross proceeds of the private placement will be allocated to the continued exploration and development of Pico Machay, including activities aimed at supporting an updated mineral resource estimate, permitting initiatives and continuing technical studies, as well as community initiatives. The balance of the proceeds will be directed toward working capital and general corporate purposes.

The company expects that the private placement will be taken up by a small group of key investors and intends to close it on or around June 17, 2026, or such a date as the company may determine. Closing of the private placement is subject to TSX Venture Exchange approval.

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 Andes. The project benefits from existing infrastructure and a mining-friendly community eager to partner on sustainable development. Xali Gold remains confident that updating the historical resource and completing a preliminary economic assessment will significantly derisk the project and help unlock significant value at Pico Machay. The company also sees considerable upside potential from drilling several untested targets across the project. Various historical engineering studies at Pico Machay targeted an open-pit heap-leach operation, which was expected to be low cost and with a low strip ratio. 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 there to be excellent upside potential at Pico Machay.

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 which have the rights to produce gold and silver from specific areas of 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 committed to working as a responsible partner and seeks to create shared value opportunities with local communities.

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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