Xali Gold Advances Permitting and Contractor Selection for Drilling at Pico Machay

VANCOUVER, British Columbia, Aug. 13, 2026 (GLOBE NEWSWIRE) — Xali Gold Corp. (TSXV:XGC) (“ Xali Gold ” or the “ Company ”) is pleased to provide an update on permitting and preparations for a planned 3,000-metre (“ m ”) diamond drill program at the Company’s Pico Machay Gold Project (“ Pico Machay ” or the “ Project ”) in Peru.

In support of the FTA application currently being prepared, the Company’s team recently met with representatives of DGAAM, including the Director General, to seek early feedback on the technical and environmental information being incorporated into the application. The Company received positive feedback regarding the permitting process, and a final technical meeting will be conducted in the near future, as required prior to submission.

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Based on current expectations and feedback received, the Company anticipates that the review process following submission of the completed FTA application should be completed within some weeks. Subject to the timing of regulatory approval and completion of final preparations, Xali Gold is targeting the commencement of drilling near the end of September 2026. Two drills will be engaged initially to complete the resource confirmation drilling well ahead of December 2026.

“We are making solid progress towards drilling at Pico Machay,” stated Joanne Freeze, President and CEO of Xali Gold. “Early engagement with DGAAM has provided us with constructive feedback to best finalize the FTA application, while drilling contractor site visits are helping us confirm the equipment and operating approach best suited to the Project. With permitting and drilling contractor selection advancing in parallel, we are focused on getting drills turning so we can provide an updated and potentially upgraded mineral resource estimate to support our first Preliminary Economic Assessment (“ PEA ”) as soon as possible.”

Representatives from prospective drilling contractors are currently visiting Pico Machay to assess site access, terrain, logistics and ground conditions. These visits will allow contractors to confirm the equipment and operating requirements for the planned program and submit accurate, site-specific proposals. The Company expects to select a drilling contractor shortly following completion and review of these proposals.

The planned program will consist of approximately 3,000m of diamond drilling. Approximately 2,000m will be dedicated to twinning selected (10% of) historical resource holes required to support the preparation of an updated mineral resource estimate. The extra 1,000m will allow additional resource drilling to target high-grade controls. Following the resource drilling, the FTA will allow an additional 13,000 to 17,000 m of drilling to test exploration targets identified through the Company’s recent mapping, surface and underground sampling, and geological modelling programs.