Mr. Colin Moorhead reports

TECHNICAL REPORT TO SUPPORT KHARMAGTAI PRE-FEASIBILITY STUDY

Xanadu Mines Ltd. has filed an independent National Instrument 43-101 technical report titled "National Instrument 43-101 Report, Kharmagtai Copper-Gold Project, South Gobi, Mongolia," effective Oct. 10, 2024.

The NI 43-101 technical report for the Kharmagtai prefeasibility study (PFS) was written under the supervision of Julien Lawerence, who is an independent qualified person as defined by NI 43-101. Mr. Lawrence has reviewed and approved the technical and scientific contents of this announcement.

The production and economic outcomes in this technical report differ from those announced in the Kharmagtai PFS report lodged with Australian Securities Exchange on Oct. 14, 2024, due to different requirements between ASX and Toronto Stock Exchange. The principal of these differences is that, under NI 43-101 guidelines for a PFS, any material that is not included in the ore reserve cannot contribute to the production and financial outcomes of the study, whereas, under ASX, they can be included. Please refer to the technical report for detail.

The technical report has been classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum (CIM) definition standards (CIM, 2014); NI 43-101, Standards for Disclosure for Mineral Projects; and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012 edition).

The technical report, dated Jan. 13, 2025, may be found under the company's profile on SEDAR+ and on Xanadu's website.

About Xanadu Mines Ltd.

Xanadu is an ASX- and TSX-listed exploration company operating in Mongolia. The company gives 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 that jointly control a globally significant copper-gold deposit in the company's flagship Kharmagtai project, together with Xanadu's 50/50 joint venture partner, Zijin Mining Group.

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