Xali Gold Corp. is advancing permitting and contractor selection for a planned 3,000-metre diamond drill program at the Pico Machay Gold Project in Peru, targeting a drilling start by the end of September 2026.

The Ficha Técnica Ambiental drilling permit application for the gold project is nearing completion following positive initial feedback from Peru’s General Directorate of Mining Environmental Affairs. Prospective drilling contractors are currently visiting the site to confirm operating requirements and submit final proposals.

The planned program consists of approximately 3,000 metres of diamond drilling, featuring about 2,000 metres of twin drilling within the historical resource area. The historical resource estimate at Pico Machay relied exclusively on 154 reverse circulation holes drilled prior to 2009; the current programme introduces 3,000 metres of diamond drilling, including 2,000 metres of twin drilling. The new diamond drilling aims to provide continuous core and improved sample integrity.

Xali Gold closed a non-brokered private placement for gross proceeds of C$1,000,000 in June 2026 to support the advancement of Pico Machay.

The company anticipates completing the review process for its Ficha Técnica Ambiental (FTA) permit application within weeks following submission and final technical review. The upcoming resource confirmation drilling is intended to support an updated mineral resource estimate to support its first Preliminary Economic Assessment (PEA) for Pico Machay.

“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.”

— Joanne Freeze, President and CEO

Read the full announcement: Xali Gold Advances Permitting and Contractor Selection for Drilling at Pico Machay