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XGC.V ·

Xali Gold closes First Tranche of Non-Brokered Private Placement

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 Non-Brokered Private Placement

Vancouver, British Columbia, November 12, 2021. Xali Gold Corp. (TSXV:XGC) ("Xali Gold”

and/or the “Company”) is pleased to announce that it has completed a first tranche of its previously

announced (see the Company’s news release No. 105, dated October 19 th, 2021) non- brokered

private placement (the “Private Placement”), issuing 3,665,000 units (the “Units”) at a price of

$0.06 per Unit raising $219,900.

Each Unit consisted of one common share of the Company (a “Unit Share”) and one -half share

purchase warrant (each whole being a “Warrant”). Each Warrant will be ex ercisable for one

additional share of the Company’s common stock (a “Warrant Share”) for two years at a

conversion price of $0.12, subject to an acceleration provision. If at any time after March 30th,

2022, the Company’s common shares have a closing price on the TSX Venture Exchange at or

above a price of $0.20 per share for a period of 10 consecutive trading days, the Company may

give notice by news release that expiration of the Warrants will be accelerated to 40 days from the

date of providing such notice.

Both Unit Shares and Warrant Shares will be subject to a mandatory four month and one day hold

period commencing the day of closing of the Private Placement, November 10, 2021.

Joanne C. Freeze, President , CEO and director of the Xali Gold subscribed for and w as issued

1,165,000 Units. The Company is relying upon exemptions from the valuation and minority

shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of Multilateral

Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.

The net proceeds of the Private Placement will be used to further our permitting and targeting for

drilling programs on our gold-silver projects, working capital and general corporate purposes.

The Private Placement is subject to TSX Venture Exchange (“TSXV”) final approval.

About Xali Gold

Xali Gold has launched a comprehensive growth strategy to acquire gold and silver projects

with near surface exploration potential, near -term production potential and previous mining

histories. Xali Gold plans to advance our growing bank of gold and silver assets internally and/or

with industry partners.

El Oro, remains as our flagship asset, as it i s a district scale gold project encompassing a well -

NEWS RELEASE

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known prolific high-grade gold-silver epithermal vein system in Mexico. The project covers 20

veins with past production and more than 57 veins in total, from which approximately 6.4 million

ounces of gold and 74 million ounces of silver were reported to have been produced from just two

of these veins (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and

Tlapujahua Districts. 1920, T. Flores*). Modern understanding of such systems indicates that

several of the El Oro district’s veins hold excellent discovery potential.

Xali Gold is dedicated to being a responsible Community partner.

Joanne C. Freeze, P.Geo., President, CEO and Matthew Melnyk, CPG., Director Operations, are Qualified Persons as defined by

National Instrument 43-101 for the projects discussed above. Ms. Freeze and Mr. Melnyk have 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.

Forward-looking Information

This news release may contain forward-looking information (as such term is defined under Canadian securities laws)

including but not limited to the potential for discovery on the Victoria, El Dorado, Cocula and El Oro Properties and

other statements that a re not historical facts. While such forward- looking information is expressed by Xali Gold in

good faith and believed by Xali Gold to have a reasonable basis, they address future events and conditions and are

therefore subject to inherent risks and uncertainties including those set out in Xali Gold’s MD&A. Factors that cause

the actual results to differ materially from those in forward -looking information include, without limitation, gold

prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials

and equipment, timeliness of government approvals, potential environmental issues, availability of capital and

financing and general economic, market or business conditions. Xali Gold expressly discl aims 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.

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) 689-1957

[email protected]

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