Mr. Colin Moorhead reports

BACCHUS CAPITAL ENGAGED AS STRATEGIC & PROJECT FUNDING ADVISER

Xanadu Mines Ltd. has engaged Bacchus Capital Advisers Ltd. as its strategic and project financing adviser in relation to the Kharmagtai copper-gold project in the South Gobi region of Mongolia.

Highlights

Xanadu is executing a prefeasibility study (PFS) at its Kharmagtai copper-gold project, a 50-50 joint venture with Zijin Mining Group Co. Ltd. The PFS will be completed in the third quarter calendar year 2024 resulting in a gating decision to feasibility study (FS) and financial investment decision (FID).

Upon completion of the PFS in Q3 calendar year 2024, Xanadu has defined several paths available to carry the project and company forward:

• Finance its 50-per-cent share of FS and construction costs through project financing which may include debt, equity, royalties and streaming components.

• Execute a put option with Zijin to sell half of its share for $25-million (U.S.) with a loan carry from Zijin to commercial production at six-month secured overnight financing rate plus 5 per cent, to be repaid from 90 per cent of Xanadu's share of project cash flow.

• Execute a put option with Zijin to sell Xanadu's entire stake for $50-million (U.S.). Alternatives to be defined.

Bacchus is a well-respected adviser to the mining industry in the areas of project financing, transaction structuring and mergers and acquisitions. Jefferies remains Xanadu's merger and acquisition adviser.

Xanadu's executive chairman and managing director, Colin Moorhead, said: "We are pleased to have Bacchus onboard as our strategic and project funding adviser. Bacchus has significant experience helping companies of similar scale and complexity navigate through opportunities and partnerships like ours.

"We believe that with Bacchus onboard, together with Jefferies our M&A adviser, we have the right team to create the most value for our shareholders from our world-class Kharmagtai copper-gold project."

About Xanadu Mines Ltd.

Xanadu is an Australian Securities Exchange and Toronto Stock Exchange listed exploration company operating in Mongolia. It 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 which jointly controls a globally significant copper-gold deposit in its flagship Kharmagtai project. Xanadu is the operator of a 50-50 joint venture with Zijin Mining Group in Khuiten Metals Pte Ltd., which controls 76.5 per cent of the Kharmagtai project.

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