Xali Gold Corp. has disclosed the cancellation of two additional hard-rock mineral claims by the Mexican Mines Bureau without required notice, bringing the total number of cancelled concessions at the El Oro project in Mexico to 11.

The company previously reported nine claim cancellations in July and August 2025. Mexican legal counsel has advised Xali Gold that it may challenge the cancellations through an Amparo judicial review procedure, an avenue used successfully by other operators in the country to reinstate concessions and dispute associated mineral rights fees within the five-year tax statute of limitations.

However, delays and regulatory setbacks at El Oro have reduced its strategic priority relative to the company's Pico Machay Gold Project in Peru. Xali Gold maintains rights at the district-scale El Oro property, which encompasses historic production of 6.4 million ounces of gold and 74 million ounces of silver from just two veins.

In response to the shifting portfolio priorities, Xali Gold has entered into discussions regarding the potential sale of its El Oro hard-rock interests to operational entities in Mexico. Alternatively, the company is considering a significant reduction in its property position to cut associated mineral rights fees. The company's subsidiary, Minera CCM S.A. de C.V., also holds a tax loss carry forward of approximately US$3,044,560 that could prove useful to prospective buyers.

The property review also follows an incident where a portion of the tailings at the El Oro Tailings Project may have been removed from the site by another party claiming to be Minera CCM. Xali Gold is currently working with Kappes, Cassiday & Associates and advisors to determine the quantity of material involved and assess any operational implications for the reprocessing project.

Read the full announcement: Xali Gold Provides Update on El Oro Projects in Mexico