Mr. Colin Moorhead reports

FUNDING EXPANDED TO $7.5 MILLION & SECTION 708A(5)(E) NOTICE

Xanadu Mines Ltd. has referred to its previous announcement released to the Australian Securities Exchange on Nov. 4, 2024, with regard to a placement of 100 million fully paid shares to raise approximately $5.5-million (Australian).

The company is pleased to announce that two binding share subscription agreements have been signed to expand the placement by 36.5 million shares at the same price of 5.5 cents per share. This expands the placement by $2.0-million (Australian) to provide total combined financing of $7.5-million (Australian).

The first share subscription agreement is with a new Australian sophisticated investor for 10 million new shares. This is unconditional and will be issued pursuant to the company's existing placement capacity under ASX listing Rule 7.1. Allotment of the 10 million new shares will occur on Friday, Nov. 15, 2024.

The second share subscription agreement is with Zijin, Xanadu's largest shareholder, through its wholly owned subsidiary Jinping (Singapore) Mining Pte. Ltd. Zijin's 26,515,543 new shares are conditional on Xanadu shareholder approval under ASX listing Rule 10.11. Australia Foreign Investment Review Board approvals are already in place. Completion will occur on the date that is 10 business days after Xanadu shareholder approval. An Xanadu extraordinary general meeting will be scheduled in December to seek approval of the issue of new shares to Zijin. Following completion of the placement to Zijin, Zijin will own 359,817,003 ordinary shares, representing approximately 19.42 per cent of Xanadu's total issued share capital.

The proceeds of the expanded $7.5-million (Australian) 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, new project acquisition and exploration, financing for first quarter calendar year 2025 of the Khuiten joint venture prior to feasibility study commencement, and working capital.

The issue price of 5.5 cents per new share represents a 14.1-per-cent discount to Xanadu's Oct. 31, 2024, close of 6.4 cents per share, which was the last day of trading prior to the Nov. 4 placement announcement.

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

Executive chairman and managing director Colin Moorhead said: "We are pleased to have expanded our placement to $7.5-million (Australian). This represents a strong vote of confidence in the company from our largest shareholder Zijin. We will notify the market shortly of a date for our extraordinary meeting to approve Zijin's share of this placement."