Xali Gold Considers Selling El Oro Assets Amid Project Prioritization

VANCOUVER, British Columbia, Sept. 16, 2026 /CourierPR/ -- Xali Gold Corp. has provided an update on its projects in the El Oro Mining District of Mexico, focusing on the challenges and potential opportunities facing the company. The firm maintains certain rights to the El Oro property, which has a rich history of gold and silver mining, with 6.4 million ounces of gold and 74 million ounces of silver having been mined historically.

Xali Gold has entered into discussions regarding the potential sale of its El Oro hard-rock interests to companies with operations in Mexico. The company also considers the possibility of significantly reducing its position in the El Oro property and associated mineral rights fees. The rationale behind these moves is the company’s strategic focus on its recently acquired Pico Machay Gold Project in Peru, which has taken precedence over the El Oro projects.

The company has recently been advised that two additional claims, representing hard-rock mineral rights, have been cancelled by the Mexican Mines Bureau (MMB) without the legally required 60-day notice. This brings the total number of claim cancellations to 11, with eight of those cancellations occurring without the required notice. Xali Gold’s legal counsel has advised that the company may challenge these cancellations through a judicial review procedure known as an Amparo, which has been successful for other mining and exploration companies in Mexico. If successful, the company may also challenge and potentially avoid paying concession fees for the period during which the concessions were declared cancelled.

In the meantime, Xali Gold is working with Remedioambiente S.A. de C.V., which has the right to recover gold and silver from historic mine workings above the 2,400-meter-elevation on five of the El Oro concessions. The company retains 100% of the exploration and mineral rights below the 2,400-meter elevation, where it has developed drill targets for new untouched mineral bodies. Remedioambiente is responsible for maintaining the applicable mineral rights in good standing by completing required filings and paying past-due and future mineral rights fees on the five concessions subject to the agreement.

Xali Gold also provided an update on the Mexican Mine Tailings Reprocessing Project at El Oro. The company and Kappes, Cassiday & Associates (KCA) agreed to finalize a definitive agreement consistent with the binding letter of intent announced in April 2024. However, the current President of El Oro is delaying ratification of the long-standing reprocessing agreement, which KCA continues to manage. The company has become aware that a portion of the tailings may have been removed from the site by another party claiming to be Minera CCM. Xali Gold is working with KCA and its advisors to determine the quantity of material involved, the authority under which it may have been removed, and any potential implications for the Tailings Project and the company’s interests.

Xali Gold maintains that it is not currently in a position to confirm the quantity or characteristics of any material that may have been removed or the effect, if any, on the Tailings Project. The company will provide a further update when sufficient information has been obtained.

The company’s approach to community engagement and responsible development is guided by strong governance principles and Board oversight that support long-term stakeholder relationships. Xali Gold remains committed to advancing its exploration and development opportunities in the Americas, with a particular focus on the Pico Machay project in Peru.