Xau Resources Inc. Completes Initial Public Offering

XAU RESOURCES INC. COMPLETES INITIAL PUBLIC OFFERING

FOR IMMEDIATE RELEASE

TORONTO, ONTARIO – July 18, 2019 – XAU RESOURCES INC. (TSXV:GIG.P) (the

"Corporation") is pleased to announce that it has completed an initial public offering of 4,411,500

common shares of the Corporation (the “ Common Shares”) at a price of $0.10 per Common Share

for gross proceeds of $441,150 (the "Offering").

Following the closing of the Offering, a total of 8,411,500 Common Shares are issued and

outstanding, of which 4,000,000 are currently held in escrow pursuant to the policies of the TSX

Venture Exchange (the "Exchange").

The current directors and officers of the Corporation are Gary Bay, Chief Executive Officer and a

Director, Enrico Visentini, Chief Financial Officer and Corporate Secretary, Peter Hambro, Director,

Dr. Pavel Maslovskiy, Director, Dr. Nataliya Hearn, Director, Alexey Maslovskiy, Director and Dan

Hrushewsky, Director. The net proceeds of the O ffering, together with proceeds from prior sales of

Common Shares will be used by the Corporation to identify and evaluate assets or businesses for

acquisition with a view to completing a "Qualifying Transaction" under the capital pool company

program of the Exchange.

Hampton Securities Limited (the " Agent") acted as agent for the Offering. In connection with the

Offering, the Corporation granted to the Agent non-transferable warrants to acquire up to an

aggregate of 441,150 Common Shares at a price of $0.10 per Common Share at any time until July

18, 2021. The Agent also received a cash commission e qual to 10% of the aggregate gross proceeds

from the sale of the Common Shares under the Offering and a corporate finance fee of $20,000.

The Corporation also granted stock options to the directors and officers of the Corporation

exercisable to acquire up to an aggregate of 841,147 Common Shares at any time until July 18, 2024

at a price of $0.10 per Common Share.

The Common Shares are expected to commence trading on the Exchange under the stock symbol

"GIG.P" upon issuance of the listing bulletin by the Exchange.

For further information please see the amended and restated final prospectus of the Corporation dated

May 22, 2019 filed on SEDAR at www.sedar.com.

For further information please contact:

Gary Bay

Chief Executive Officer

Tel: 647-339-4301

Cautionary Notes

The information in this news release includes certain information and statements about management's view of future

events, expectations, plans and prospect s that constitute forward looking statements. Thes e statements are based

upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties

and as a result of a variety of fact ors, the actual results, expectations, achievements or performance may differ

materially from those anticipated and indicated by these forward looking statements. Forward-looking statements

in this news release include, but are not limited to, the ability of the Corporation to complete a qualifying

transaction. Any number of factors could cause actual results to differ materially from these forward-looking

statements as well as future results. Although the Corporation believes that the expectations reflected in forward

looking statements are reasonable, it can give no assurance that the expectations of any forward looking statements

will prove to be correct. Except as required by law, the Corporation disclaims any intention and assumes no

obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new

information, future events, changes in assumptions, changes in factors affecting su ch forward looking statements or

otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.