Mr. Colin Moorhead reports

XANADU MINES ANNOUNCES $5.5 MILLION PLACEMENT

Xanadu Mines Ltd. has received commitments for a placement to eligible professional and sophisticated investors of approximately 100 million fully paid ordinary shares in Xanadu at an issue price of 5.5 cents each to raise approximately $5.5-million (before costs). The placement is unconditional and will be issued pursuant to the company's existing placement capacity under Australian Securities Exchange listing Rule 7.1.

The company is in discussion with other potential strategic parties for subsequent participation on similar terms, subject to formal documentation and approvals. This would also be issued pursuant to the company's existing placement capacity under ASX listing Rule 7.1.

Xanadu has entered a consultation period with Zijin Mining following delivery of the Kharmagtai prefeasibility study. As part of those discussions, Zijin will be given the opportunity to participate in the placement on a pro rata basis to maintain its 19.4-per-cent shareholding in Xanadu Mines through its wholly owned subsidiary Jinping (Singapore) Mining Pte. Ltd. Zijin's participation would be subject to formal documentation, internal approvals, completion of the placement to all other participants, Foreign Investment Review Board approval and Xanadu shareholder approval under ASX listing Rule 10.11.

The proceeds of the placement, together with the company's existing cash reserves, will be applied toward Xanadu's Red Mountain copper-gold project and Sant Tolgoi nickel-copper project, toward new project acquisition and exploration, toward financing for first quarter calendar year 2025 of the Khuiten joint venture prior to feasibility study commencement, and toward working capital.

The issue price of 5.5 cents per new share represents a 14.1-per-cent discount to Xanadu's last close (Oct. 31, 2024) of 6.4 cents per share and a discount of 16.7 per cent to the five-day volume-weighted average price of 6.6 cents per share.

New shares will rank pari passu with Xanadu's existing fully paid ordinary shares currently on issue.

New shares issued in the placement are scheduled to settle on Thursday, Nov. 7, 2024, with allotment and trading scheduled to occur on Friday, Nov. 8, 2024. Subsequent placement of new shares to other potential parties which are not yet confirmed, including Zijin, will be announced separately and will occur within 10 business days of completion of documentation, approvals and other applicable conditions for each party.

Ord Minnett and Bell Potter Securities Ltd. acted as joint lead managers to the placement, and MST Financial and PAC Partners acted as co-managers.

Executive chairman and managing director Colin Moorhead said: "We are pleased with the strong support for this placement. This provides capital to pursue our broader strategies as we seek a new discovery at Red Mountain and Sant Tolgoi to expand our portfolio into new copper and gold projects in Mongolia, and it puts us in a strong position to discuss potential strategic interests in Xanadu's share of the Kharmagtai project. I look forward to updating the market with progress on Xanadu's exploration portfolio, as well as continued news flow from the Kharmagtai project, as it moves from prefeasibility into feasibility stage."

All dollar amounts are in Australian dollars unless otherwise indicated.