XFLT Shareholders: Vote Today to Approve the King Street Sub-Adviser

XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”) reminds 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”), ahead of the reconvened Special Meeting of Shareholders on August 6, 2026.

A vote today on the WHITE proxy card “ FOR ” the King Street Sub-Adviser provides the potential for improved long-term performance, positive shareholder outcomes and liquidity opportunities, including a series of tender offers. Preliminary voting indicates that votes “ FOR ” the King Street Sub-Adviser by engaged shareholders would have approved the proposal on July 30 th if not for the impact of shares voted to abstain.

Vote “FOR” the Long-Term Appointment of The King Street Sub-Adviser

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. King Street is a leading global alternative asset 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. Octagon has been terminated as the former sub-adviser and no longer has any role in the daily portfolio management responsibilities of the Fund, nor does Octagon have any authority to implement their proposed plan. An “Against” vote at the upcoming Special Meeting will not reverse Octagon’s termination.

The XFLT Board asks all shareholders to review the Fund’s proxy materials and vote on the WHITE proxy card “ FOR ” the King Street Sub-Adviser to ensure the King Street Sub-Adviser can continue managing the Fund.

Vote “FOR” the XFLT Board’s Proposed Liquidity Plan to Support Positive Shareholder Outcomes

The liquidity plan will become effective upon approval of the King Street Sub-Advisory Agreement . The liquidity plan provides shareholders with near-term liquidity and a clear discount- management framework . The liquidity plan includes an initial tender offer (the “Initial Tender Offer”) for up to 12.5% of common shares at 98% of net asset value (“NAV”) within 45 days, followed by two contingent tender offers for up to an additional 12.5% of shares in total if the Fund does not achieve specified discount or NAV performance conditions. Contingent tender offers are designed to protect shareholders if the Fund’s discount remains wide or performance does not meaningfully improve . The contingent tender offers included within the liquidity plan would provide shareholders the opportunity to sell shares at 98% of NAV unless the Fund’s market discount narrows below 15% on 15 out of 20 consecutive trading days during the final three months of the measurement period prior to each contingent tender offer or the Fund meets the NAV performance condition of a $0.25 per share NAV increase, in addition to the current distributions. The contingent tender offers are intended to be subject to a meaningful performance condition —in addition to distributions . For example, if the current $0.225 monthly distribution is maintained, the NAV performance condition for the fir...