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A key requirement for spin valves (SV) with nano-oxide layers (NOL) are the formation of the smooth and uniform interface between NOL and magnetic layer for specular electron scattering. We investigated the natural oxidation conditions using mixed gases (O2/N2 and O2/Ar) for the uniform NOL formation in specular SVs. We have compared the magnetoresistance (MR) properties and thermal stability of SVs with NOL formed in mixed gases with those formed using pure O2. We can optimize oxidation conditions using mixed gases for enhanced MR ratio and reduced interlayer coupling field.