Xali Gold Corp. announced that Sun River Gold Corp. has received a change in soil use permit which is the main permit required for the El Oro Tailings Project in Mexico.

The permit received allows the Tailings to be moved out of the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town. Sun River has the option to acquire 100% of the Tailings Project from Minera CCM El Oro Jales (Xali Gold's subsidiary) by making staged payments totaling USD 500,000 (paid), bringing the tailings into commercial production by October 31, 2021, and paying the Company a 5% Net Profits Interest, Life of Mine royalty as well as the Municipality's 8% NPI on production from the properties. Xali Gold will also receive the first $1.5 Million of the Municipality's 8% NPI.

Sun River is a private Arizona based corporation managed by an experienced team of mining professionals with a combined 80 years of mining experience in Mexico, including specific experience in the reprocessing of old gold and silver tailings. The Tailings Project in El Oro contains an Inferred Resource of 1,267,400 Tonnes grading 2.94 gold grams per tonne ("g/t"), 75.12 silver g/t containing 119,900 ounces of gold and 3,061,200 ounces of silver.