Xanadu Mines Ltd. provided an update on exploration drilling at the Kharmagtai Project in Mongolia, being developed with the company's joint venture partner Zijin Mining Group Co. Ltd. (Zijin). Exploration drilling continues to expand upon the new zone of higher-grade copper and gold mineralization at the White Hill deposit, demonstrating progressive growth in higher-grade material at the base of the previously optimized open pits.

Highlights: Latest extensional and exploration drilling results expand upon the recently identified higher-grade zone (core) at White Hill1, located below the previous Scoping Study pit designs and outside the 2023 Mineral Resource Estimate (MRE). Best drilling results include: KHDDH808 - 64.45m at 0.74% CuEq (0.61% Cu & 0.26/t Au) from 516, Including 24.45m at 1.41% CuEq (1.14% Cu & 0.53g/t Au) from 634m Including 13.8m at 1.99% CuEq (1.64% Cu & 0.70g/t Au) from 558m; KHDDH806 - 50m at 0.73% CuEq (0.25% Cu & 0.94g/t Au) from 545m Including 22m at 1.34% CuEq (0.26% Cu & 2.10g/t Au) from 549. Expanding higher-grade core (>1% CuEq) at White Hill is expected to enhance & enlarge the 2023 MRE and to increase scale & deepen 2022 Scoping Study2 pit shells, capturing additional higher-grade over longer period.

Step-out drilling at Golden Eagle returns grades more than double the MRE grade and extends mineralisation. Best results include: KHDDH805 - 153.4m at 0.68g/t AuEq (0.43g/t Au and 0.13% Cu) from 41.6m Including 67m at 0.97g/t AuEq (0.67g/t Au and 0.15% Cu) from 44m Including 8m at 1.7g/t AuEq (1.34g/t Au and 0.18% Cu) from 54m And 14m at 1.22g/t AuEq (0.81g/t Au and 0.21% Cu) from 77m. Deep drilling hole KHDDH779 encounters two broad zones of porphyry and tourmaline breccia style mineralisation between Stockwork Hill and Zaraa, potentially indicating the edges of a very large-scale Cu-Au System.

Growth-focused discovery exploration drilling at Kharmagtai continues to discover new, shallow mineralisation with potential to enhance open pit mining and deep mineralisation with potential for future underground mining. Further assays from deep exploration drilling are pending; it look forward to sharing over the coming months. Kharmagtai JV is funding USD 35 million for both PFS completion and discovery exploration, aiming towards decision to mine in fourth quarter calendar year 2024.