Xanadu Mines Ltd. provided update on metallurgical testwork for the Kharmagtai Project in Mongolia, being developed with the Company?s joint venture partner Zijin Mining Group Co. Ltd. (Zijin). Oxide leach recovery results demonstrate material progress towards one of the multiple uplift scenarios defined in the Kharmagtai Scoping Study1, with value add likely; reducing mining strip and generating earlier operating cashflows for the Kharmagtai Pre-Feasibility Study (PFS), in addition to sulphide flotation processing of the main mineralised orebody.

Upscaled column leach tests, as well as heap leach engineering design work are in progress. Oxide Metallurgical Program: Assays for Selected Samples: Four samples representative of the Kharmagtai oxide zones were sent to DMPS for a preliminary column leach and reactor leach test program, to evaluate gold and copper extraction. These are referenced as follows: GE (Golden Eagle Oxide), plus several composite samples collected from White Hill, Stockwork Hill and Copper Hill deposits, and classified as follows: GOX (Green Oxide), SOX (Strong Oxide) and ROX (Red Oxide).

Testwork Results: Initial testwork focused on the GOX sample which recorded a 49.7% gold extraction on a high cyanide diagnostic leach and a 69.7% acid soluble copper value. A range of alternative lixiviants were then tested for GOX to assess leach recoveries, including glycine via DMPS?s GlyCatTM and GlyLeachTM processes, GlyCatTM and GlyLeachTM are environmentally benign, hydrometallurgical processes that can leach copper from oxide, mixed oxide and supergene ores, as well as leach gold under the right conditions. Glycine is the simplest amino acid and widely available as a bulk reagent.

Its unique properties can offer substantial advantages over conventional lixiviants in mineralogical processing: Environment safety: Glycine is stable, water soluble and non-toxic to humans as well as wildlife. Selectivity: Glycine will solubilise base and precious metals, while iron, magnesium, manganese, silicates, and carbonates remain in the solid phase. Alkalinity: Leach conditions are at high pH, allowing simple and inexpensive materials for construction.

Low consumption: Glycine is non-volatile (unlike cyanide, ammonia, and hydrochloric acid) and stable under process conditions. Recycle: Glycine is not chemically consumed in the overall process. It is easily recovered and recycled, and process losses minimised.

Low cyanide addition, coupled with a glycine-dominant lixiviant, has many beneficial properties, particularly for leaching of precious metals with elevated copper content. This occurs due to copper preferentially bonding to glycine rather than cyanide, thus freeing the cyanide to leach gold. Tests are expected to extend for a further 4 weeks, out to a total 12-week period.

Results to date indicate that leaching is accelerated at a finer crush size, and gold and copper extractions are tracking better than expected. It should be noted that extractions presented are based on the assay of leach solutions, as compared to the assay head grades. When a column leach is terminated, the residue solids are sampled and then a precise extraction is calculated based on the assays of the residue.

Based on findings from the GOX tests, each of the other three composite samples are undergoing column leach tests at a crush size of 6mm, followed by sequential lixiviant combination of acid and GlyCatTM. Further tests are expected to run over 12 weeks; full results will be released at completion. Test Program Scope: There is up to 52Mt of partially oxidised material at Kharmagtai, with the majority located near surface at Stockwork Hill, White Hill and Golden Eagle.

If this material was processed as ore rather than pre-stripping, it could reduce waste rock production by approximately 10% in the early years of the project and generate net revenue rather than net costs. ample Selection and Preparation: Samples were selected from three oxide zones GOX, ROX and SOX from White Hill, Copper Hill, Stockwork Hill and Golden Eagle. The geometallurgical domains are defined as follows: GOX ?

Green and blue copper oxide products present. SOX ? Strongly oxidised, yellow to light brown material with sooty chalcocite and tenorite.

ROX ? Bright red, strongly oxidised material with chalcocite, tenorite and neotocite present. GEX ?

Golden Eagle higher grade gold zone. Single Oxide domain. Samples were collected from core drilled at Stockwork Hill, White Hill, Copper Hill and Golden Eagle deposits at the Kharmagtai project, as being representative of each of these zones.

Sample preparation consisted of homogenising and splitting samples ?as received? into their respective composites and labelling by sample number (between 1 and 12), followed by crushing and grinding to particle sizes ranging between 3mm and 12mm. Each split was rotary split and homogenised for head analysis and sub-samples taken for testwork.

Head assays for Au, Silver (Ag) & Cu were conducted by fire assay for each sample. Prior to leach testwork, samples were cured in 10kg/t sulfuric acid for 24 hours to improve copper extraction. Oxide Mineral Resource: The 2023 Mineral Resource Estimate2 (MRE) included a 52Mt subset of partially oxidised material at grades comparable to the underlying sulphide deposit, which could be amenable to heap leach rather than being treated as waste.

Future Testwork: GlycatTM (using glycine and cyanide as lixiviants) is proving effective in leaching gold, with very little interference on extraction of copper. The next step in testwork is to deliver PFS level results for pilot-scale 2m high columns, testing crushed particle sizes of 20mm, 12mm and 6mm. Results will become available between June and July 2024.

In parallel, an indicative leach process flow sheet and engineering design will be developed, which will be upgraded to PFS level when final column leach test results are delivered.