Announcement • Jul 09
Xali Gold Receives Community Authorization To Advance 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 28th 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. 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. 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. 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 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/oz and several exploration targets remain untested, Xali Gold considers the upside potential to be very strong. New Risk • Jul 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Negative equity (-US$2.5m). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (CA$43.0m market cap, or US$30.3m). Announcement • Jun 26
Xali Gold Reports Assay Results From Sampling Program At Pico Machay Gold Project Xali Gold Corp. has reported the first assay results from the recently completed underground and surface channel and rock chip sampling program at its Pico Machay Gold Project in Central Peru. Channel assay highlights include 2.22 g/t gold over 45.1 meters from Underground Channel 1 including 4.17 g/t gold over 20.0 meters, 1.49 g/t gold over 41.1 meters from Underground Channel 3 NS including 3.44 g/t gold over 8.0 meters, 4.41 g/t gold over 13.7 meters from Underground Channel 3 EW including 6.45 g/t gold over 6.5 meters, and 2.28 g/t gold over 40.0 meters from Surface Channel 2. The company has received assay results for approximately 25% of the samples collected during the program, with the remaining results expected in the coming weeks. The program included both systematic channel sampling within previously unsampled underground workings and surface rock chip sampling across areas within the resource area of Pico Machay. Assay and ICP results have been received for 51 of 197 samples collected to date. The samples are comprised of 78 underground channel samples and 119 surface samples, collected to support the Company's efforts to validate, update and potentially upgrade the historical mineral resource estimate at Pico Machay. Underground sampling was completed in three horizontal channels extending over 15 to 46 meter lengths over north-south or east-west orientations and some smaller workings. The two north-south channels are 150 meters apart and the east-west channel connects to the southern end of Underground Channel 3 NW. Continuous channel samples were collected from the eastern walls over 2 to 4 meter intervals. These underground samples provide grades and other data over extensive lengths not previously sampled. The nature of the channels makes them similar to a horizontal drill hole. Table 1 provides results from the sampling program at Pico Machay. Channel samples were collected continuously across exposed mineralized zones within underground workings. Sample lengths represent true sample lengths along the channel and may not represent true widths of mineralization, which has no clear orientation. Sample 20 is a duplicate of Sample 19 and Sample 45 is a duplicate of Sample 44. All scientific and technical information in this news release has been reviewed and approved by Joanne Freeze, P.Geo. and Ing. Enrique Bernuy. Ms. Freeze has verified the data disclosed in this news release, including the assay and test data underlying the information or opinions contained in this news release. Ms. Freeze has verified the data disclosed in this news release by reviewing imported and sorted assay data; reviewing the variance in field duplicate results; and reviewing grade calculation formulas. Ms. Freeze detected no significant QA/QC issues during review of the data and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to in this news release. The 197 samples were submitted to SGS in Lima, Peru for gold and silver analysis using fire assay and atomic absorption methods, along with multi-element Inductively Coupled Plasma for 36 elements. Additional overlimit analyses will be completed where required. Of the 197 samples, 78 were collected from underground and 119 from surface outcrops. 
