Xali Gold Corp. announced that it has extended the Production Earn-In Option Agreement (the "Agreement") with Sun River Gold Corp. on the Tailings Project in El Oro, Mexico in exchange for additional advanced Net Profits Interest ("NPI") payments.

The third extension On December 30, 2022, Xali Gold agreed to grant a third extension of the Option Expiry Date to December 31, 2023 under the following terms: continuation of advanced NPI payments of USD 15,000 per month; advanced NPI payments of: USD 35,000 by January 6, 2023; USD 50,000 by June 30, 2023; USD 75,000 within 20 days of receiving the Financing for Construction; if an additional 6 months is required to get into Operation and Xali Gold is satisfied with permitting status then an additional 6 months extension for Commencing Operation will be granted if the following Payment is made: USD 75,000 on Dec. 31, 2023. As part of the second extension previously granted Xali Gold will also receive advanced NPI payments of USD 50,000 per month once commercial production is reached (or first concentrate is produced or dore gold is poured) and during the first year of operation, after which normal 5% NPI payments will be made; the first USD 1.5M of the Municipality NPI owing to Xali Gold will now be paid during the first 3 years of operation.

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), bring the tailings into commercial production by October 31, 2021 (now extended to December 31, 2023 as stated above), and grant to the Company a 5% NPI, Life of Mine royalty as well as the Municipality's 8% NPI on production from the properties. Xali Gold will also receive the first USD 1.5 Million of the Municipality's 8% NPI.