Xali Gold Buys Back NSR on Casua Property in Peru - Seite 2

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 our 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.

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 in order to monetize the San Dieguito de Arriba (“SDA”) Plant in Western Mexico.   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.

*Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the accuracy of the estimate. For more information see “National Instrument 43-101 Technical Report on the Inferred Mineral Resource Estimate of the Mexico Mine Tailings” prepared by Nadia Caira, P.Geo. and Allan Reeves, P.Geo., dated August 25, 2014 with an effective date of July 8, 2014 available at www.sedar.com

On another matter, the Company advises that Ms. Sheri Rempel has been appointed as Chief Financial Officer (“CFO”) for the company to replace Mark Lotz who is leaving the position.

Ms. Rempel has over 30 years of experience working with companies in the areas of real estate development, restaurant management, mining, general financial services and software development. She specializes in the provision of accounting services to public companies listed on the Toronto Stock Exchange, the TSX Venture Exchange, and the Canadian Securities Exchange and to companies preparing to list on a Canadian stock exchange.

In addition to providing accounting services to reporting issuers, she serves as a CFO, Controller, and/or a director of a number of public companies in the mining, investment, and technology sectors. She leads an accounting team consisting of twenty individuals.