Xanadu Mines Ltd. and Zijin Mining Group Co. Ltd. announced delivery of further higher-grade drill results during Phase One infill drilling at the Kharmagtai Copper and Gold Project, in preparation for the Prefeasibility Study (PFS). Highlights: New infill drilling conducted in preparation for the PFS has returned strong higher-grade results from the Stockwork Hill deposit.

Best downhole intersects include: KHDDH649 ? 424m @ 0.36% eCu (0.26% Cu & 0.21g/t Au) from 126m; Including 72.2m @ 0.72% eCu (0.41% Cu & 0.60g/t Au) from 126m & 30.2m @ 0.89% eCu (0.50% Cu & 0.76g/t Au) from 168m & 6m @ 0.96% eCu (0.86% Cu and 0.19g/t Au) from 348m & 18m @ 0.66% eCu (0.54% Cu and 0.23g/t Au) from 466m; KHDDH650 ? 131m @ 0.70% eCu (0.35% Cu & 0.67g/t Au) from 6m; Including 76m @ 0.96% eCu (0.45% Cu & 1.00g/t Au) from 26m; Including 38.5m @ 1.24% Cu (0.51% Cu & 1.44g/t Au) from 58m & 29m @ 1.00% eCu (0.92% Cu & 0.14g/t Au) from 185m & 41.7m @ 0.94% eCu (0.53% Cu & 0.81g/t Au) from 347m; KHDDH660 ?

421.25m @ 0.48% eCu (0.33% Cu & 0.28 Au) from 152.75m Including 105m @ 0.84% eCu (0.47% Cu & 0.72g/t Au) from 168m; Including 62m @ 1.05% eCu (0.56% Cu & 0.97g/t Au) from 196.75m; KHDDH653 ? 6.2m @ 2.08% eCu (1.42% Cu & 1.31g/t Au) from 183.8m; And14m @ 0.83% eCu (0.15% Cu & 1.32g/t Au) from 202m; KHDDH655 ? 370m @ 0.55% eCu (0.41% Cu & 0.28g/t Au) from 236m; Including 106m @ 0.80% eCu (0.56% Cu & 0.48g/t Au) from 386m & 46m @ 0.85% eCu (0.69% Cu & 0.32g/t Au) from 544m; Including 12m @ 1.35% eCu (1.00% Cu & 0.69g/t Au) from 578m.

Completed Phase 1 drilling has defined and expanded the volume of higher-grade mineralisation within the Stockwork pit, indicating both grade uplift and resource expansion potential. Building on recent infill drilling success these newly identified higher-grade zones are expected to enhance the 2021 Mineral Resource Estimate (MRE), currently an Inferred and Indicated Resource of 1.1Bt containing 3Mt Cu and 8Moz Au (1.98Mt eCu Indicated, 2.33Mt eCu Inferred). Interim MRE update to be completed early fourth quarter current year 2023, in preparation for Final PFS MRE during fourth quarter current year 2023, which will include results from Phase 2 (now underway).

Growth-focused discovery exploration drilling at Kharmagtai also continues with 2 diamond rigs;expect to provide further shallow results, plus first ever deep drilling results during third quarter current year 2023.Infill Drilling Results to Date: The Phase One infill drilling program for Stockwork Hill, White Hill and Copper Hill is complete. All infill drilling assay results have now been returned for Stockwork Hill. These results demonstrate that the high-grade tourmaline breccia body within the Resource is larger than previous modelling predicted.

Several holes encountered materially better grade relative to Resource grade. Significant drill intersections from Stockwork Hill, include: KHDDH649 was drilled to expand upon the recently identified extensions of the tourmaline breccia zone. KHDDH649 intersected a significant interval of 424m @ 0.36% eCu (0.26% Cu & 0.21g/t Au) from 126m, which: broadened the shallow, gold-rich Southern Stockwork Zone relative to the 2021 MRE, with 72.2m @ 0.72% eCu (0.41% Cu and 0.60g/t Au) from 126m, and expanded the higher-grade tourmaline breccia zone, with 6m @ 0.96% eCu (0.86% Cu and 0.19g/t Au) from 348m and 18m @ 0.66% eCu (0.54% Cu and 0.23g/t Au) from 46.

KHDDH650 was also drilled to expand upon the recently identified extensions of the tourmaline breccia zone. The results from KHDDH650 have broadened the shallow, gold-rich Southern Stockwork Zone, delineating: An area of high-grade tourmaline breccia with 29m @ 1.00% eCu (0.92% Cu and 0.14g/t Au) from 185m, where the previous MRE reported 0.1% eCu, and A deeper zone of gold-rich stockwork mineralisation with 41.7m @ 0.94% eCu (0.53% Cu and 0.81g/t Au) from 347m, where the previous MRE estimated 0.2 to 0.3% eCu.