Xali Gold Corp. FY2026 Consolidated Financial Statements

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# Xali Gold Corp. FY2026 Consolidated Financial Statements

Source: https://xaligold.com/site/assets/files/6552/q4_2026_xali_gold_fs_-_final_fs.pdf
Published: 2026-07-29T00:00:00+00:00
Fetched: 2026-08-02T19:06:22.53+00:00
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# Xali Gold Corp. FY2026 Consolidated Financial Statements
Source: https://xaligold.com/site/assets/files/6552/q4_2026_xali_gold_fs_-_final_fs.pdf
Published: 2026-07-29
Consolidated Financial Statements
For the years ended March 31, 2026 and 2025
(Expressed in United States dollars, unless otherwise noted)
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of:
Xali Gold Corp.
Opinion
We have audited the accompanying consolidated financial statements of Xali Gold Corp (the “Company”), which comprise the
consolidated statement of financial position as at March 31, 2026, and the consolidated statements of operations (loss) and
comprehensive income (loss), changes in shareholders’ deficit and cash flows for the year then ended, and notes to the
consolidated financial statements, including material accounting policy information.
In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the
Company as at March 31, 2026, and its financial performance and its cash flows for the year then ended in accordance with
IFRS Accounting Standards (“IFRS”).
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section
of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of
the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 of the consolidated financial statements, which indicates that the Company incurred a net loss of
$1,350,759 during the year ended March 31, 2026, and, as of that date, the Company’s total deficit was $36,461,982. As stated
in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists
that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect
of this matter.
Other Matters
The consolidated financial statements of Xali Gold Corp. for the year ended March 31, 2025, were audited by another auditor
who expressed an unmodified opinion on those statements on August 15, 2025.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements for the year ended March 31, 2026. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, prepared under the conditions mentioned above, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters
described below to be the key audit matters to be communicated in our auditor's report.
Asset Acquisition – Minera Calipuy SAC
As disclosed in Note 4 to the consolidated financial statements, the Company acquired all of the issued and outstanding common
shares of Minera Calipuy S.A.C. (“Calipuy”) during the year ended March 31, 2026. The acquisition of Calipuy has been
accounted for as an asset acquisition.
The principal considerations for our determination that the accounting for the acquisition is a key audit matter are that
the transaction requires management to exercise judgement to determine the appropriate accounting treatment, including
whether the acquisition should be accounted for as an asset acquisition or business combination, assessing the fair value of
consideration provided, and estimating the fair value of net assets acquired. These factors in turn led to a high degree of auditor
judgment, subjectivity, and effort in performing procedures to evaluate audit evidence relating to the judgments made by
management in their assessment.
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Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. Our audit procedures included, among others:
 Obtaining an understanding of the transaction, including management’s assessment of whether the transaction
constituted an asset acquisition or business combination;
 Reviewing the share purchase agreement to understand key terms and conditions;
 Agreeing the consideration to supporting documentation and ensuring correct IFRS application;
 Evaluating management’s calculation of the fair value of the net assets acquired in accordance with the Company’s
material accounting policies; and
 Assessing the adequacy of the related disclosures to the consolidated financial statements.
Recognition and Assessment of Asset Retirement Obligations
As described in Note 4 and Note 6 to the consolidated financial statements, the Company recorded asset retirement obligations
of $480,995 as at March 31, 2026. The recognition and accounting of asset retirement obligation requires management to
exercise significate judgement with respect to estimates of future reclamation and remediation costs that the Company will be
required to complete as part of the laws and regulations, as well as discount rates and expected timing.
We consider the asset retirement obligations to represent a key audit matter, as it represents an area of significant risk of material
misstatement given the degree of estimation uncertainty involved. A high degree of auditor judgment, subjectivity, and effort was
required in performing procedures to evaluate management’s quantitative and qualitative estimates and assumptions.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. Our audit procedures included, among others:
 Evaluating, assessing, and testing the assumptions, estimates, and judgements that have been applied by
management with respect to the determining the carrying value of the asset retirement obligations as at March 31,
2026;
 Evaluating and assessing the objectivity and competence of the specialist employed by management to determine the
future cost estimates;
 Performing recalculations of management provided workbooks;
 Assessing the appropriateness of the cost estimates and changes from the previous fiscal year to ensure all changes
are appropriately supported; and
 Assessing the adequacy of the related disclosures to the consolidated financial statements.
Other Information
Management is responsible for the other information. The other information comprises the Management Discussion and
Analysis. Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally
accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
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error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal
control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the group to express an opinion on the cons

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