Xali Gold completes due diligence visit at Pico Machay Gold Project

Xali Gold reportd that due diligence site visits for the Pico Machay Gold Project in Central Peru have been completed and confirm the high quality and integrity of the historical work. The Project is under acquisition through a Share Purchase Agreement with Pan American Silver (PAAS) and its subsidiary, Aquiline Resources as per the October 24 news release. Xali Gold has now completed three site visits between June and November of this year, providing strong confidence in the integrity of the historical work conducted on the property by Aquiline Resources, their predecessors and also by Pan American. Participants of the site visits have included Xali Gold technical team and management, Xali Gold Qualified Person David Thomas of DKT Geosolutions, as well as representatives for local investors. David Thomas has verified the historic geological model, confirmed the accuracy of drill collar locations, and validated the reliability of the assays from historic drilling through independent check sampling. These results speak to the integrity of the dataset and support the preparation of an updated National Instrument 43-101 report as required by the TSXV for this acquisition. This report will also serve as the foundation for converting the historic mineral resource estimate to a current estimate. Xali Gold engaged David Thomas of DKT to carry out a comprehensive due diligence site visit in October 2025. During the visit, DKT verified key elements of the geological model through examination of surface outcrops, collected GPS coordinates for drill collar locations, gathered 26 samples and conducted a thorough review of RC chip samples stored in Lima, Peru. The new rock chip samples collected at Pico Machay reinforce the strength of the system, confirming both higher-grade and lower-grade gold and silver values. Drill collar positions were validated as reasonably accurate, and check assays from pulp and coarse reject material confirm strong assay reliability. Overall, the dataset shows excellent integrity-sufficiently accurate and robust to support an updated National Instrument 43-101 mineral resource estimate, which is now well underway and expected to be completed in the coming months.