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XGC.V ·

Xali Gold Closes First Tranche of Private Placement for $1.5 Million

Financings

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Not for dissemination in the United States or for distribution to U.S. Newswire Services

Xali Gold Closes First Tranche of Private Placement for $1.5 Million

Vancouver, British Columbia, December 24, 2025. Xali Gold Corp. (TSXV:XGC) ( “Xali Gold” or the

“Company”) is pleased to announce the closing on December 23rd, 2025, of the first tranche of the

previously announced non–brokered private placement (the “Private Placement”) for gross

proceeds of C$1.5 million. A second tranche of up to C$0.5 Million is planned to close in early

January 2026.

The net proceeds from the Private Placement will be used to cover the US$500,000 payment (the

“Payment”) due to Pan American Silver Corp. (“Pan American”) for the closing of the acquisition of

the Pico Machay Gold Property ( “Pico Machay” or the “Property”), an advanced exploration stage

project in Peru with a near-term production goal, as announced in the Company’s October 24th, 2025

news release. In addition to the Payment, the proceeds will also be allocated to the exploration of

Pico Machay and working capital and general corporate purposes.

“The successful progress of this Private Placement allows us to move ahead with the Pico Machay

acquisition and execute on the next phase of our growth strategy ,” said Joanne Freeze, Xali Gold

President and CEO. “ We are excited about the opportunities this transaction presents for the

Company.”

The Private Placement resulted in the issuance of 15,000,000 units (the “Units ”), with each unit

consisting of one common share and one -half of one common share purchase warrant (each full

common share purchase warrant, a “Warrant”) at a price of $0.10 per Unit. Each Warrant will be

exercisable for one additional share of the Company (a “Warrant Share”) for 18 months at a price of

C$0.20 per Warrant Share, subject to an Accelerated Expiry (as defined below). If at any time after

April 24, 2026, the Company’s common shares hav e a closing price on the TSX Venture Exchange

(“TSX-V”) at or above a price of C$0.30 per share for a period of 10 consecutive trading days, the

Company may give notice by news release that the expiration of the Warrants will be accelerated

(the “Accelerated Expiry”) to 40 days from the date of providing such notice. Both the Shares and any

Warrant Shares issued on exercise of the Warrants will be subject to a mandatory four month and

one day hold period commencing the day of closing of the Private Placement.

Finder’s fees of 6% in cash and 6% in non-transferrable finder warrants (the “Finder Warrants”) were

paid on a portion of the Private Placement in accordance with the policies of the TSX-V. Each

Finder’s Warrant is non-transferable and exercisable into a common share for a period of 18 months

at a price of $0.20 per common share, subject to the same Accelerated Expiry provisions. A total of

$30,300 was paid in cash finder’s fees (of which $9,900 was to Canadian registered dealer firms and

$20,400 was to BLB Advisory, a Peruvian -based finder) and 99,000 Finder Warrants were issued to

the Canadian registered firms.

NEWS RELEASE

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Two directors of the Company participated in the Private Placement which constitutes a related

party transaction , as defined in Multilateral Instrument 61 -101 (Protection of Minority

Securityholders in Special Transactions). The issuance of Units to the directors is exempt from the

valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101, and

exempt from the minority shareholder approval requirements of Section 5.6 of MI 61 -101, pursuant

to Subsection 5.7(1)(a) of MI 61-101.

This news release does not constitute an offer of securities for sale in the United States. The

securities being offered have not been, nor will they be, registered under the United States

Securities Act of 1933, as amended, and such securities may not be o ffered or sold within the

United States absent U.S. registration or an applicable exemption from U.S. registration

requirements.

Pico Machay Acquisition Update

With the closing of the Private Placement, Xali Gold is able to move ahead with closing the

acquisition of Pico Machay. Xali Gold will acquire the company Minera Calipuy S.A.C., which wholly

owns Pico Machay, from Pan American and its subsidiary, Aquiline Resources Inc.

The Pico Machay acquisition is expected to close later today, and the transaction is subject to final

TSX-V approval.

About Xali Gold

Xali Gold is a gold and silver exploration company focused on advancing opportunities in the

Americas. The Company is focused on completing the acquisition, exploration and development of

Pico Machay , an advanced exploration stage gold project in South America with a near -term

production goal. Xali Gold maintains exploration potential as well as two royalty agreements with

third parties who have the rights to produce gold and silver from specific areas of the El Oro gold -

silver Project in Mexico, a histori c district-scale system with a long history of significant gold and

silver production.

Xali Gold is dedicated to being a responsible Community partner.

Joanne C. Freeze, P.Geo. is a Qualified Person as defined by National Instrument 43 -101 and has

reviewed and approved the contents of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the

adequacy or accuracy of this release.

On behalf of the Board of Xali Gold Corp.

“Joanne Freeze” P.Geo.

President, CEO and Director

For further information please contact:

Joanne Freeze, President & CEO

Tel: + 1 (604) 512-3359

[email protected]

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Forward-looking Disclaimer

This press release contains forward-looking information within the meaning of Canadian securities laws (“forward-looking

statements”). Forward -looking statements are typically identified by words such as: believe, expect, anticipate, intend,

estimate, plan s, postulate and similar expressions, or are those, which, by their nature, refer to future events. All

statements that are not statements of historical fact are forward-looking statements.

Forward-looking statements in this press release include, without limitation: the use of net proceeds from the Private

Placement; the closing and timing of the second tranche of the Private Placement; and the pending acquisition of Pico

Machay. These forward-looking statements are made as of the date of this press release. Although the Company believes

the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and

assumptions in such statements w ill prove to be correct. The Company cautions investors that any forward -looking

statements by the Company are not guarantees of future results or performance, and are subject to risks, uncertainties,

assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied

by such forward-looking statements.

Known risk factors and assumptions include risks associated with exploration and project development; accessing further

funding and related dilution: continuing its projected growth, or being fully able to implement its business strategies; the

calculation of mineral resources and additional work required to convert historical resources to current mineral resources;

the nature, quality and quantity of any mineral deposits that may be located on the project; operational risks associated

with mining and mineral processing; fluctuations in metal prices and assumptions including costs; title matters;

government regulation; obtaining and renewing necessary consents, authorizations, licenses and permits; environmental

liability and insurance; reliance on key personnel; local community opposition; currency fluctuations; labour disputes;

competition; variations in market conditi ons, and the volatility of our common share price and volume; future sales of

shares by existing shareholders; and other risk factors described in Xali Gold’s MD&A and other filings with Canadian

securities regulators, which may be viewed at www.sedarplus.ca. Although we have attempted to identify important factors

that could cause actual actions, events or results to differ materially from those described in forward -looking statements,

there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

There can be no assurance that forward -looking statements will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance

on forward-looking statements. Xali Gold expressly disclaims any intention or obligation to update or revise any forward -

looking information, whether as a result of new information, future events or otherwise, except in accordance with

applicable securities laws.