Announcement • Jul 28
Xali Gold Reports Assay Results From Initial Underground And Surface Channel And Rock Chip Sampling Program At Pico Machay Gold Project Xali Gold Corp. reported the completion of assay results from its initial underground and surface channel and rock chip sampling program at its Pico Machay Gold Project in Central Peru. Gold mineralization and alteration characteristic of a high-sulphidation epithermal system have been identified in underground workings across an area measuring 1.35km by 0.83km. 67 of 119 surface samples returned more than 0.50 g/t gold. 2.92 grams per tonne gold over 31.5 meters from Surface Channel 1 including 13.76 g/t gold over 4.5m. The historical resource (surface expression) area extends over approximately 750 m east-west by 150 m north-south. Within its core, Surface Channel 1 returned 2.92 g/t gold over 31.5 m, including 13.76 g/t gold over 4.5 m. Surface Channel 1 is located approximately 40 m vertically above UG Channel 3A, supporting the presence and vertical continuity of higher-grade gold mineralization in this central area. As previously reported, UG Channel 3 NS returned 1.49 g/t gold over 41.1m, including 3.44 g/t gold over 8.0m. A total of 13 underground workings are now known to have been excavated since 2020, of which 11 have now been mapped and sampled. All 11 UG workings expose gold mineralization and alteration characteristic of a high-sulphidation epithermal system, including vuggy silica and advanced argillic alteration. The workings occur across an area extending approximately 1.35 kilometres in a northeast-southwest direction along the main structural trend and approximately 825m in a northwest-southeast direction. UG Channel 8, the northeastern most working, is located approximately 800m northeast of the centre of the historical resource area and returned 1.18 g/t gold over 4.3m. At UG Channel 9, 2.10 g/t gold was returned over 1.35m from vuggy silica. UG Channel 10, the southwestern most working, returned three samples ranging from approximately 0.68 to 4.14 g/t gold. Aquiline Resources previously identified nine exploration targets outside of the resource area at Pico Machay. Surface sampling has helped identify and refine Xali Gold’s current exploration targets, with 67 of the 119 surface samples collected during the Program returning gold values above 0.5 g/t gold. Xali Gold has now defined ten exploration targets, four of which overlap with targets previously identified by Aquiline. The five remaining Aquiline targets will be reviewed in greater detail as part of future exploration work. The Company has received assay results for all 197 samples collected during the Program. The Program included both systematic channel sampling within previously unsampled underground workings and rock chip sampling across surface areas within the resource area of Pico Machay and surrounding exploration targets. 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. 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 were completed where required. 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). 
