Xali Gold Clarifies Agreement with Remedioambiente on the El Oro Property and Terminates Option on the Sarape Project in Mexico

Core Viewpoint - Xali Gold Corp. has successfully undergone a Reinstatement Review by the TSX Venture Exchange, which was previously delayed due to requests for clarity on property agreements [1] Group 1: Property Agreements and Rights - Remedioambiente S.A. de C.V. has the right to recover gold and silver from mineralized veins in the historic El Oro mine, with payments to Xali Gold equaling up to 3% Net Smelter Returns (NSR) on extracted metals above 2400 masl [2] - Xali Gold retains 100% exploration potential below 2400 masl, while Remedioambiente is responsible for maintaining mineral rights and may convert past fees into shares once they reach a minimum of $50,000 [3] - Remedioambiente can appoint a mining engineer to Xali Gold's Board if they acquire over 20% of shares within five years, subject to Board approval [3] Group 2: Legal and Regulatory Issues - The Mexican Mines Bureau has unlawfully cancelled nine mining concessions, including two related to Remedioambiente, which is seeking to overturn these cancellations [4] - No other company can take ownership of areas covered by the cancelled concessions during the legal process [5] Group 3: Financial Position and Plans - Xali Gold is addressing a capital working deficiency of $3,150,354 as of June 30, 2025, with plans to reduce mining fees owed in Mexico to nil through payments from Remedioambiente and other third parties [7] - The company has allowed the option on the Sarape Project to expire without advancing to a Definitive Agreement, resulting in no financial liabilities or changes to the issuer's treasury [6] Group 4: Leadership and Future Directions - The President and CEO of Xali Gold expressed concerns over increasing costs and permitting issues in Mexico, indicating a shift in focus towards exploration opportunities in South America [6] - The company is relying on loans from Ridley Rocks Inc., controlled by the CEO, to manage its financial obligations, with specific repayment terms outlined [8][9]