Xali Gold Corp. advised that it has decided to review exploration opportunities in South America including Peru and provides an update on Mexican assets. With renewed interest in gold and silver exploration in South America, the Company is reviewing options to resume exploration in Peru and other countries.

The Company still maintains some properties in Peru including the Lucero Gold Property acquired several years ago. Lucero is a high sulphidation disseminated gold prospect occurring within a prolific mineral belt and located between the Tantahuatay and La Zanja mines in Cajamarca, Northern Peru. Gold mineralization has been found to date in three locations in an area extending over 1.3 by 1.0 kilometres ("km") on the Lucero property.

Lucero is located 34 km NW of the Yanacocha Mine, 18 km west of the Tantahuatay Mine and approximately 12 km NE of the La Zanja Mine. Mexico Properties and Assets: The El Oro Project remains a highly valued asset of the Company with past production of 8 million ounces gold equivalent (gold-silver 1:10) and excellent discovery potential, however exploration focus for El Oro has been temporarily put on hold. The Company is now focused on building local partnerships for two assets in Mexico, which have strong potential to provide near-term cash flow.

Sun River Gold ("SRG"), who holds an option on the Mexican Mine Tailings Project at El Oro, has been advancing permitting and providing some cash flow through advances on the Net Profit Interest ("NPI") due once in production. SRG has recently advised the Company that they have received feedback from the Mexican government on the final permit for the El Oro Tailings Project and have now re-submitted the application with the requested updates. The El Oro Tailings Project 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.

Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba ("SDA") Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement with Minera Cinco Reales S.A. de C.V. ("MCR") earlier this month due to MCR's lack of progress. The Company has been advised that MCR's funding is imminent, but Xali Gold believes there are better options for Xali Gold to realize profits with the SDA Plant.

As proven by Vane Minerals, the original owner of the plant, there are many small and rich mines in the surrounding area and there is a scarcity of plants with economic proximity to the mines.