Xanadu Mines Ltd. provided an update on infill drilling at the Kharmagtai Project in Mongolia, being developed with the Company?s joint venture partner Zijin Mining Group Co. Ltd. (Zijin). Infill drilling continues to expand upon the new zone (core) of high-grade copper and gold mineralisation at the White Hill deposit, demonstrating progressive growth in high-grade material at the base of the previously optimised open pits.

Highlights: Extensive ~48,000m of infill diamond drilling has been completed at Kharmagtai to support the Pre-Feasibility Study (PFS). Latest results expand upon the recently identified high-grade zone (core) at White Hill, located below the previous Scoping Study pit designs. Best drilling results below, and within the pit, include: KHDDH661 ?

325m @ 0.38% eCu (0.33% Cu & 0.11g/t Au) from 570m; Including 146.2m @ 0.50% eCu (0.43% Cu & 0.13g/t Au) from 700.8m; Including 23.7m @ 0.84% eCu (0.74% Cu & 0.20g/t Au) from 792.3m; Including 12m @ 1.00% eCu (0.87% Cu & 0.26g/t Au) from 794m And 10m @ 0.92% Cu (0.85% Cu and 0.12g/t Au) from 830mAnd 4m @ 1.28% Cu (1.2% Cu and 0.16g/t Au) from 834; KHDDH665 ? 733m @ 0.39% eCu (0.31% Cu & 0.15g/t Au) from 80m; Including 210.7m @ 0.55% eCu (0.43% Cu & 0.23g/t Au) from 411.3m; Including 56m @ 0.85% eCu (0.66% Cu & 0.37g/t Au) from 490m; Including 23m @ 1.16% eCu (0.92% Cu & 0.46g/t Au) from 521m. Newly identified high-grade (>1% eCu) core at White Hill demonstrates potential to: Enhance 2021 Mineral Resource Estimate (MRE) in preparation for updated PFS MRE in fourth quarter current year 2023.

Expand and deepen 2022 Scoping Study pit shells to capture additional higher grade for longer period. Additional follow-up drilling is being planned around the newly identified high-grade (core) zone at White Hill and higher-grade extensions identified at Stockwork Hill. Growth-focused discovery exploration drilling at Kharmagtai is continuing with 4 diamond rigs investigating shallow targets and one drill rig targeting deep mineralisation.

Kharmagtai JV is funding USD35 million for both PFS completion and discovery exploration, aiming towards decision to mine in fourth quarter current year 2024. About the Infill Drilling Program: Four diamond drill rigs are currently focussed on Kharmagtai infill drilling, with the objective to target areas with potential for future Mineral Resource to Ore Reserve conversion. Totalling ~48,000 metres, the infill drilling program is planned to specifically increase the Resource confidence category from Inferred to Indicated.

As such, the planned drill holes aim to remove any mineralisation knowledge gaps around the edges of existing deposits. Kharmagtai currently has an Inferred and Indicated Resource of 1.1Bt at 0.3% Cu and 0.2g/t gold, containing 3Mt Cu and 8Moz Au8. As part of the Kharmagtai PFS, the Resource will be upgraded to at least Indicated classification, enabling a maiden, JORC compliant Ore Reserve to be reported.

To achieve this, the infill drilling program is designed to upgrade and extend strike length of the shallow open pit Resource areas and selected deeper high-grade zones, including investigation of near-mine, higher-grade extensions.