Gold Mineralization Uncovered on the Victoria Property in Central Newfoundland

VANCOUVER, Aug. 04, 2021 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold" and/or the "Company") is pleased to announce that recent data compilation on the Victoria Property in Central Newfoundland has identified the presence of gold-bearing quartz veins. These veins were found near where two heavy mineral concentrate ("HMC") samples with high grades of gold were collected (Rubicon 2003).

The gold-bearing quartz veins occur within altered granitoid-type (felsic) rocks. Bedrock samples of the quartz veins contain 0.441 and 0.109 grams per tonne ("gpt") gold. These veins occur within 50 meters of the two high grade HMC samples (collected from glacial till), which contain 10.45 and 66.7 gpt gold (see Geochemistry Maps).

In addition to the above, several geological features have been identified on the property, which are typical for some of the recently discovered gold deposits in Newfoundland including Marathon Gold's ("Marathon") Valentine Lake deposit (see Victoria Claims and Geology Map).

• The southern portion of the property is underlain by the footwall rocks of the Victoria Lake Shear Zone, which are host to several recently discovered gold deposits;
• The Rogerson Lake Conglomerate, which is a stratigraphic marker unit for the orogenic gold mineralization at other locations, has been mapped across Victoria Lake a short distance from Xali Gold's Victoria property;
• The granitoid intrusives are interpreted to be fault bound, which is also a typical setting for gold mineralization regionally.
  

"It is very exciting to discover that we already have gold mineralization in bedrock and many geological features typical of gold deposits in Newfoundland, before we head to the field. Our first goal was to look for bedrock exposures and to identify the source of the gold in the HMC samples. Knowing the quartz veins contain gold mineralization, is a great start." stated Joanne Freeze, President and CEO of Xali Gold.

Xali Gold has also received the Exploration Approval from Department of Industry, Energy & Technology Mines Branch, Mineral Lands Division of Newfoundland Labrador. This permit allows the Company to conduct prospecting, geochemical surveys and ground geophysics. Field work is planned to commence in Q3 2021.

Xali Gold's new Victoria Property is located just 3 kilometres ("km") southwest of Marathon's Valentine Gold Project (see Newfoundland Map). Marathon has defined (Measured and Indicated) reserves of 3.14 million ounces ("Moz") gold and Inferred resources of 1.00 Moz (https://marathon-gold.com/valentine-gold-project/) and mine construction is expected to commence in early 2022. *There are no assurances that similar results would be obtained on Xali Gold's Victoria Property.

The Company recently entered into an option agreement to acquire 100% interest in the Victoria Property (see News Release 097 dated July 14, 2021). A finder's fee of 5% will be paid (in common shares of XGC) on each installment of the 3,500,000 shares to be issued over three years to the Optionors.

About Xali Gold

Xali Gold has launched a comprehensive growth strategy to acquire gold and silver projects with near surface exploration potential, near-term production potential and previous mining histories. Xali Gold plans to advance our growing bank of gold and silver assets internally and/or with industry partners.

The acquisition of the SDA Plant, suitable for treating high grade gold and silver mineralization, along with the acquisition of rights to the El Dorado gold and silver historic mines was the initial step in this strategy.

The profit-sharing agreement on the potentially leachable Cocula Gold Project was the second step and is a key component of our asset base. In addition to the potential for inexpensive extraction processes such as leaching, it has excellent near surface exploration potential.

The Company is currently evaluating other properties complementary to the SDA plant and El Dorado or stand alone such as the Cocula Gold Project.

El Oro, remains as our flagship asset, as it is a district scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system in Mexico. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores*). Modern understanding of such systems indicates that several of the El Oro district's veins hold excellent discovery potential.

Xali Gold is dedicated to being a responsible Community partner.

Joanne C. Freeze, P.Geo., President, CEO and Matthew Melnyk, CPG., Director Operations, are Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. Ms. Freeze and Mr. Melnyk have reviewed and approved the contents of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information

This news release may contain forward-looking information (as such term is defined under Canadian securities laws) including but not limited to the potential for discovery on the Victoria, El Dorado, Cocula and El Oro Properties and other statements that are not historical facts. While such forward-looking information is expressed by Xali Gold in good faith and believed by Xali Gold to have a reasonable basis, they address future events and conditions and are therefore subject to inherent risks and uncertainties including those set out in Xali Gold's MD&A. Factors that cause the actual results to differ materially from those in forward-looking information include, without limitation, gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, potential environmental issues, availability of capital and financing and general economic, market or business conditions. Xali Gold expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

On behalf of the Board of Xali Gold Corp.

"Joanne Freeze" P.Geo.
President, CEO and Director

For further information please contact:
Joanne Freeze
President & CEO
Tel: + 1 (604) 689-1957
info@xaligold.com

NR 098