Mr. Colin Moorhead reports

$4.3 MILLION PLACEMENT

Xanadu Mines Ltd. has received commitments for a placement to eligible professional and sophisticated investors of 78,181,818 fully paid ordinary shares in Xanadu (new shares) at an issue price of 5.5 cents each to raise $4,299,999.99 (before costs). The placement will complete in two tranches. The first tranche, being the issue of 62,996,490 new shares, is unconditional and will be issued pursuant to the company's existing placement capacity under Australian Securities Exchange Listing Rule 7.1. The second tranche, being the proposed subscription of 15,185,328 new shares by Xanadu's major shareholder Zijin Mining Group Co. Ltd., is subject to formal documentation and a number of conditions set out below. All dollar amounts are in Australian dollars unless otherwise indicated.

Highlights:

• Firm commitments received for a placement to raise $4.3-million (before costs);
• Supported by both domestic and international institutions;
• Includes participation by Zijin on a proportionate basis ($800,000), subject to Australia Foreign Investment Review Board (FIRB) and Xanadu shareholder approval;
• Xanadu extraordinary general meeting to be scheduled in late January to seek approval of Zijin participation.

The proceeds of the placement, together with the company's existing cash reserves of $4.7-million, enable Xanadu to execute on its Horizon 2 and Horizon 3 strategy, including exploration at the Red Mountain copper-gold project, new project acquisition and exploration, and working capital.

The issue price of 5.5 cents per new share represents a 19.1-per-cent discount to Xanadu's last close (Nov. 15, 2023) of 6.8 cents per share, and a discount of 19.9 per cent to the five-day volume-weighted average price of 6.9 cents per share.

All new shares will rank pari passu with the existing fully paid ordinary shares currently on issue. The issue of the second tranche new shares to Zijin is conditional on Xanadu shareholder approval under ASX Listing Rule 10.11, completion of the first tranche and FIRB approval.

The placement of the first tranche new shares is scheduled to settle on Thursday, Nov. 23, 2023, with allotment and trading scheduled to occur on Friday, Nov. 24, 2023. Placement of the second tranche new shares will occur 10 business days after the last of the Zijin conditions are satisfied.

Bell Potter Securities Ltd. acted as lead manager and Ord Minnett acted as co-manager to the placement.

Executive chairman and managing director Colin Moorhead said: "We are pleased with the support for this placement. This provides capital to pursue our strategies, as we seek a new discovery at Red Mountain and expand our portfolio into new critical mineral projects in Mongolia. We will notify the market shortly of a date for our extraordinary meeting to approve Zijin's share of this placement. I look forward to updating the market with progress on our exploration projects as well as continued news flow from our ongoing prefeasibility study and discovery exploration at Kharmagtai."