Ms. Joanne Freeze reports

XALI GOLD ANNOUNCES COMMUNITY AGREEMENT FOR ADVANCING THE PICO MACHAY GOLD PROJECT

Xali Gold Corp. has received confirmation from the local community of Comunidad Campesina de Salcca Santa Ana of their support for the continued advancement of the Pico Machay gold project in Peru.

Santa Ana held an extraordinary assembly on June 28, 2026, during which they agreed to authorize the company to carry out the drilling, exploration, and environmental studies necessary for the development of Pico Machay. The authorization reflects the constructive relationship that Xali Gold and the community have been strengthening through open communications, transparency and a shared commitment to responsible development of the community alongside its mineral resources.

Xali Gold recognizes that the success of the project depends on maintaining a strong and respectful relationship based on shared values with the surrounding community and looks forward to continuing that partnership throughout the life of Pico Machay and well beyond.

"We are very grateful to the community of Santa Ana for their continued trust and support," said Joanne Freeze, president and chief executive officer of Xali Gold. "This authorization reflects our work together toward a shared purpose: improving quality of life while maintaining high environmental and social standards and responsibly advancing the Pico Machay project. We recognize that trust is earned over time through our actions, and we are committed to being a trusted long-term partner to the community by working transparently and respecting local priorities."

Alongside community engagement initiatives at Pico Machay, the company plans to continue advancing environmental baseline studies, drilling to both update the historical resource and test exploration targets while advancing geological mapping, resource modelling, surface and underground sampling, and various technical studies designed to support economic evaluations.

Community commitments

Over the past four months, the Xali Gold (Minera Calipuy) community relations team has conducted social diagnosis and baseline studies, including transparent discussions with various community members held in the various parts of the community to ensure the development of the project in partnership with the community, which will be based on mutual respect and transparency.

Based on this, the company intends to support community-led development initiatives focused on the four main pillars of health, education, basic infrastructure and economic strengthening with capacity building. Details of these initiatives will be identified jointly through collaborative planning with the community.

In addition, the company will provide social support to address immediate community needs in: education, health, capacity building, culture and sports, among others. The company will also work with the community to strengthen local skills and capabilities, helping community members qualify for employment opportunities and supporting local businesses in becoming more competitive for the goods and services required by the project. The company recognizes that community relationships require continuous engagement and mutual accountability throughout every stage of the project.

About Pico Machay

Pico Machay lies within the northern extent of the Southern Peru epithermal gold-silver belt and in the eastern part of the 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 test work. 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 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. Xali Gold maintains some exploration potential as well as two royalty agreements with third parties that 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.

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.