XFLT Urges Shareholders to Vote Today to Approve the King Street Sub-Advisory Agreement

XAI Floating Rate & Alternative Income Trust (XFLT) urges shareholders to vote today on the WHITE proxy card “ FOR ” the long-term appointment of interim sub-adviser Rockford Tower Asset Management, L.L.C. (the “King Street Sub-Adviser”), a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”) (the “King Street Sub-Advisory Agreement”), ahead of the reconvened Special Meeting of Shareholders on August 6, 2026. Beginning July 30 th , the King Street Sub-Adviser assumed the role of sub-adviser and has been engaging with XA Investments LLC, the Fund’s Investment Adviser, on a smooth transition. Octagon has been terminated, no longer has a role in the daily portfolio management responsibilities of the Fund and has no authority to implement their proposed plan. An “Against” vote at the upcoming Special Meeting will not reverse Octagon’s termination. Shareholders are being urged to vote ahead of the August 6 th meeting to ensure the King Street Sub-Adviser can continue managing the Fund’s portfolio going forward on a permanent basis. A vote “FOR” the proposal on the WHITE proxy card will provide shareholders the following benefits: Potential for increased distributions, improved performance over time and expanded investment opportunities in different parts of the U.S. and European credit markets. Access to a global, alternative asset manager with a 30-year track record investing in the U.S. and global credit markets with investment professionals based in the U.S., London, Singapore and Dubai. Expertise from an investment manager with $30 billion in assets under management, a $12 billion CLO platform and deep bench of talent, including Young Choi, a 20-year veteran and partner at King Street, who is currently serving as Portfolio Manager of XFLT. Implementation of the Board’s proposed liquidity plan, including an initial tender offer and a discount management program consisting of two contingent tender offers, occurring approximately 13 and 25 months after the completion of the initial tender offer. Each contingent tender offer will occur unless a net asset value (“NAV”) performance condition or a market discount condition is satisfied. In response to shareholder feedback, the XFLT Board has refined the market discount condition, such that the market discount condition will only be satisfied if the Fund’s common shares close at a market price representing a discount to NAV of less than 15% on 15 out of any 20 consecutive trading days during the final three months of the measurement period preceding the applicable contingent tender. The XFLT Board continues to take action to protect and advance shareholders’ long-term interests, presenting a real path forward and shareholder-friendly initiatives designed to enhance performance and the future of the Fund. The Board urges XFLT shareholders to follow recommendations from Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co. LLC ("Glass Lewis"), leading independent proxy advisory firms, and vote “ FOR ” the King Street Sub-Adviser on the WHITE proxy card.