Xali Gold has entered into a binding Letter of Intent ("LOI") to option the Sarape silver-gold Project from Advanced Lithium Corp. ("AALI").  The move bolsters Xail Gold's Mexican portfolio of high-level, low-sulphidation epithermal precious metals assets, offering considerable exploration potential in a proven high-grade silver and gold district. 

LOI Terms:

• Issuing 1,000,000 shares to AALI on signing a Definitive Agreement
• Paying a total of C$450,000 in cash payments to AALI in stages upon closing financings to fund drilling at Sarape (not to exceed 10% of each financing)
• Partial earn-in of 51% interest in Sarape once Xali Gold has completed 10,000m of drilling by issuing 26.6M shares (19% of shares outstanding on date of signing)
• Second earn-in of 70% interest by completing an additional 5,000m of drilling and issuing an additional 21M shares (15% of shares outstanding) and the full C$450,000 has been paid
• A final interest of 90% upon completing an additional 5,000m of drilling (cumulative total of 20,000m) and an additional 91.4M shares are issued (total of 140M, which is 50% of shares outstanding on date of signing)
• All shares issued to AALI are subject to sale limitations and may be distributed to AALI shareholders when issued.

Xali Gold anticipates the timing for the earn-in of the 90% interest to be between 12-18 months post regulatory approval.  The Project is subject to a 1.5% Net Smelter Return, with no current buyout option.  All transactions are subject to applicable stock exchange approvals, third party consents and shareholder approvals for each of AALI and Xali Gold, as may be required.