Vancouver, British Columbia – October 24
th, 2025 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the
“Company”) is pleased to announce that it has entered into a Share Purchase Agreement (“SPA”) on
October 23rd to acquire the company Minera Calipuy S.A.C (“Calipuy”), which wholly owns the Pico
Machay Gold Project (“Pico Machay” or the “Project”) in Central Peru, from Pan American Silver Corp.
(TSX:PAAS) (NYSE:PAAS) (“Pan American”) and its subsidiary, Aquiline Resources Inc. (“Aquiline”).
Pico Machay is a high-sulphidation gold deposit that lies within the northern extent of the Southern Peru
Epithermal Gold-Silver Belt and has a Historic Measured and Indicated Resource of 264,600 ounces (“oz”)
of gold (10.6 million (“M”) tonnes grading 0.78 grams per tonne (“gpt”) gold) and an additional Historic
Inferred Resource of 446,000 oz of gold (23.9 M tonnes grading 0.58 gpt gold) (see Table 1 below for
resource details).
“The Pico Machay acquisition represents a pivotal step for Xali Gold as we expand our presence in one of
the world's most prolific epithermal gold-silver countries,” said Joanne Freeze, President and CEO of Xali
Gold. “With a historic resource already in place and various engineering studies conducted since
discovery through 2010, the Project offers both immediate value and excellent upside potential. Pico
Machay is especially compelling given that the original resource was calculated using a long-term gold
price of US$700/oz. The current stronger gold price environment provides us with many opportunities to
upgrade the project and evaluate additional production alternatives that may not have been supported by
lower gold prices. With three decades of experience in Peru’s mining sector, we are confident that our
team of South American and gold experts combined with the strengths of local partnerships and the
country’s exceptional mineral potential, uniquely positions us to unlock the full value of this opportunity.
Our focus will be to update the resource estimate and previous engineering studies with a near-term
production goal, while also testing exploration targets for potential resource expansion. In addition, there
are several other known high-sulphidation prospects in the area which we will evaluate for potential
acquisition and exploration to enhance/expand production at Pico Machay.”
About Pico Machay
Pico Machay was discovered in 1997 and explored by several juniors including Aquiline through 2009.
Aquiline completed various engineering studies including resource estimations and metallurgical
testwork. 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 was based on a long-term gold price of $700/oz and several exploration targets remain
untested, Xali Gold believes there is excellent upside potential.
Geologically, Pico Machay occurs within the northern extent of the Southern Peru Epithermal Gold-Silver
Belt, which is one of three epithermal gold-silver belts in Peru that are host to world-class gold deposits,
including the Yanacocha and Pierina mines. Minera IRL Ltd.'s Corihuarmi Mine operates 63 km north of
Pico Machay.
NEWS RELEASE
Logistically, the Project lies in the eastern part of Western Cordillera Andes within the District of Santa
Ana, Province of Castrovirreyna and Department of Huancavelica which is a well-established mining
area/district. The Santa Barbara Mine and Julcani Mine have been operating since 1953 by Compañia de
Minas Buenaventura S.A. There are also currently several mines within a 45km radius of Pico Machay
including: Lalira, San Genoro, Astohuaraca, El Paloma, Cauduloso, Reliquias and Recuperada.
Pico Machay is 35 km southwest of the city of Huancavelica via road, 457 km from Lima or 270 km from
Pisco. Huancavelica is also connected to Callao, the port of Lima by a 650-kilometre intermontane rail
line. Santa Ana is the nearest town from the Project and is 13 km away.
Historic Resource

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https://xaligold.com/site/assets/files/6456/xgcnr_20251024_pico_machay_intro_final.pdf