TORONTO - Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu or the Company) is pleased to update the market on its on-going exploration program for porphyry copper and gold deposits at the Kharmagtai District in the South Gobi region of Mongolia.

Highlights

High-grade intercept from drill hole KHDDH573 at Stockwork Hill extends gold-rich bornite zone by 40 metres up-dip and 40 metres down-dip returning: 240m @ 1.36% eCu from 474m, including 130m @ 1.75% eCu including 26m @ 2.22% eCu

Step-out drill holes demonstrate potential to grow the gold-rich bornite zone, with copper and gold grades that materially exceed those estimated in the 2018 Mineral Resource Estimate

3 active diamond drill rigs are targeting extensions of the higher-grade bornite core at Stockwork Hill

Xanadu is currently targeting an updated Mineral Resource Estimate for Kharmagtai in Q4 2021

Xanadu's Chief Executive Officer, Dr Andrew Stewart, said 'The results from KHDDH573 continue to grow the higher-grade copper and gold core at Stockwork Hill, and build toward our >100Mt @ >0.8% eCu objective. It's also exciting to see a continuation of the increasing gold to copper ratio as we drill deeper into the core of the system, which bears a growing resemblance to other world class deposits such as Oyu Tolgoi and Cadia Valley.

Drilling out a large porphyry system is a marathon, not a sprint and given the structurally complexity of the Kharmagtai system it is a credit to our team that they continue to steadily unravel the knot and continue to deliver such high-quality results that enhance project economics.'

About Xanadu Mines

Xanadu is an ASX and TSX listed Exploration company operating in Mongolia. We give investors exposure to globally significant, large scale copper-gold discoveries and low-cost inventory growth. Xanadu maintains a portfolio of exploration projects and remains one of the few junior explorers on the ASX or TSX who control a globally significant copper-gold deposit in our flagship Kharmagtai project.

Contact:

Andrew Stewart

Tel: +61 409 819 922

Email: Andrew.stewart@xanadumines.com

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