Xali Gold Corp. (TSXV:XGC) (“Xali Gold” or the “Company”) is pleased to advise that Minera Cinco Reales S.A. de C.V. (“MCR”) have commenced work on the San Dieguito de Arriba (“SDA”) Plant in Nayarit, Western Mexico.

MCR is planning to carry out their first bulk sample test of approximately 300 to 400 tons by the end of May 2023. The first step was to get the Federal Electricity Commission to upgrade the power at the SDA Plant, which has now been completed. Fabrication of initial replacement parts for the plant is also underway.

“We are very excited with MCR’s progress at the SDA Plant,” says Joanne Freeze, President and CEO of Xali Gold. “The Profit Sharing Agreement with MCR and the same with Sun River Gold on the El Oro Tailings project will allow us to put our assets to work and provide cash flow while we continue to evaluate other opportunities.”

The Environmental Impact Permit for the SDA Plant is under evaluation and will be brought current by MCR. It is estimated that this process will be completed within two to three months.   In the interim and while upgrading the plant, MCR will be allowed to conduct the bulk test work which is expected to yield saleable gold and silver.

MCR signed a Binding Letter of Intent (the “Agreement”) with Xali Gold on the SDA Plant earlier this year. Beginning in the first full month of production, or no later than the fourth month from the signing of the Agreement, Xali Gold will have the right to receive 15% of the net profits from any mineral that is processed at the SDA Plant.