Classification

Tonnes (Mt)

Grades

Contained Metal

Cu (%)

Au (g/t)

Cu (kt)

Au (koz)

Proved

0

0

0

0

0

Probable

730

0.21

0.17

1,600

4,000

Total

730

0.21

0.17

1,600

4,000

Deposit

Classification

Tonnes (Mt)

Grades

Contained Metal

CuEq (%)

Cu (%)

Au (g/t)

CuEq (Mlbs)

CuEq (kt)

Cu (kt)

Au (koz)

Stockwork Hill

Indicated

314

0.35

0.23

0.23

2,445

1,110

730

2,310

White Hill

704

0.30

0.23

0.13

4,578

2,080

1,590

2,980

Copper Hill

65

0.29

0.21

0.15

420

190

140

310

Zaraa

84

0.23

0.15

0.15

424

190

130

410

Golden Eagle

62

0.24

0.11

0.25

334

150

70

500

Zephyr

49

0.23

0.14

0.17

243

110

70

260

Exploration Potential

Total Indicated

1,279

0.30

0.21

0.16

8,447

3,830

2,730

6,770

Stockwork Hill

Inferred

74

0.22

0.14

0.14

352

160

100

340

White Hill

361

0.26

0.21

0.10

2,100

950

770

1,100

Copper Hill

30

0.18

0.15

0.06

120

50

40

60

Zaraa

195

0.26

0.18

0.15

1,123

510

350

970

Golden Eagle

50

0.21

0.11

0.20

230

100

50

320

Zephyr

39

0.19

0.12

0.14

165

70

50

180

Exploration Potential

Total Inferred

751

0.25

0.18

0.12

4,097

1,860

1,380

2,970

Deposit

Classification

Tonnes (Mt)

Grades

Contained Metal

CuEq (%)

Cu (%)

Au (g/t)

CuEq (Mlbs)

CuEq (kt)

Cu (kt)

Au (koz)

Stockwork Hill

Indicated

14

0.46

0.30

0.29

138

60

40

130

White Hill

11

0.41

0.35

0.12

104

50

40

40

Copper Hill

-

0.33

0.23

0.19

2

-

-

-

Zaraa

13

0.47

0.33

0.28

132

60

40

110

Golden Eagle

-

-

-

-

-

-

-

-

Zephyr

-

-

-

-

-

-

-

-

Exploration Potential

Total Indicated

38

0.45

0.32

0.24

376

170

120

290

Stockwork Hill

Inferred

26

0.42

0.32

0.19

238

110

80

160

White Hill

57

0.38

0.32

0.12

478

220

180

210

Copper Hill

-

0.38

0.34

0.09

4

-

-

-

Zaraa

81

0.42

0.30

0.23

750

340

240

610

Golden Eagle

-

-

-

-

-

-

-

-

Zephyr

-

0.40

0.06

0.67

1

-

-

-

Exploration Potential

Total Inferred

164

0.41

0.31

0.19

1,471

670

500

980

Deposit

Classification

Tonnes (Mt)

Grades

Contained Metal

CuEq (%)

Cu (%)

Au (g/t)

CuEq (Mlbs)

CuEq (kt)

Cu (kt)

Au (koz)

Stockwork Hill

Indicated

14

0.46

0.30

0.29

138

60

40

130

White Hill

44

0.26

0.19

0.12

249

110

90

170

Copper Hill

10

0.32

0.24

0.15

70

30

20

50

Zaraa

2

0.22

0.10

0.23

10

-

-

20

Golden Eagle

6

0.27

0.10

0.33

34

20

10

60

Zephyr

5

0.25

0.16

0.18

28

10

10

30

Exploration Potential

Total Indicated

82

0.30

0.21

0.17

532

240

170

450

Stockwork Hill

Inferred

26

0.42

0.32

0.19

238

110

80

160

White Hill

4

0.21

0.16

0.10

20

10

10

10

Copper Hill

3

0.18

0.15

0.05

13

10

-

10

Zaraa

1

0.19

0.10

0.18

3

-

-

-

Golden Eagle

4

0.20

0.09

0.21

18

10

-

30

Zephyr

-

0.15

0.10

0.11

-

-

-

-

Exploration Potential

Total Inferred

40

0.34

0.25

0.17

297

130

100

220

Classification

Dry Tonnes (Mt)

Copper Grade (%)

Gold Grade (g/t)

Insitu Copper (‘000 t)

Insitu Gold (‘000 oz)

Proved

0

0

0

0

0

Probable

730

0.21

0.17

1,570

4,000

Classification

Tonnes (Mt)

Grades

Contained Metal

Cu (%)

Au (g/t)

Cu (kt)

Au (koz)

Stockwork Hill

233

0.22

0.21

520

1,600

White Hill

437

0.21

0.14

930

2,000

Copper Hill

22

0.26

0.17

60

200

Golden Eagle

13

0.12

0.31

20

100

Zephyr

16

0.15

0.19

20

100

White Hill West

11

0.16

0.11

20

40

Probable

730

0.21

0.17

1,570

4,000

Colin Moorhead  

Spencer Cole    

Executive Chairman & Managing Director 

Chief Financial & Development Officer

P: +61 2 8280 7497  

P: +61 2 8280 7497

E: [email protected]  

E: [email protected]

W: www.xanadumines.com

Criteria

Commentary

Sampling techniques

• Representative ? core samples were split from PQ, HQ & NQ diameter diamond drill core on site using rock saws, on a routine 2m sample interval that also honours lithological/intrusive contacts.

• The orientation of the cut line is controlled using the core orientation line ensuring uniformity of core splitting wherever the core has been successfully oriented.

• Sample intervals are defined and subsequently checked by geologists, and sample tags are attached (stapled) to the plastic core trays for every sample interval.

• Reverse Circulation (RC) chip samples are ? splits from one meter (1m) intervals using a 75%:25% riffle splitter to obtain a 3kg sample

• RC samples are uniform 2m samples formed from the combination of two ? split 1m samples.

Drilling techniques

• The Mineral Resource Estimation has been based upon diamond drilling of PQ, HQ and NQ diameters with both standard and triple tube core recovery configurations, RC drilling and surface trenching with channel sampling.

• All drill core drilled by Xanadu has been oriented using the “Reflex Ace” tool.

Drill sample recovery

• Diamond drill core recoveries were assessed using the standard industry (best) practice which involves removing the core from core trays; reassembling multiple core runs in a v-rail; measuring core lengths with a tape measure, assessing recovery against core block depth measurements and recording any measured core loss for each core run.

• Diamond core recoveries average 97% through mineralisation.

• Overall, core quality is good, with minimal core loss. Where there is localised faulting and or fracturing core recoveries decrease, however, this is a very small percentage of the mineralised intersections.

• RC recoveries are measured using whole weight of each 1m intercept measured before splitting

• Analysis of recovery results vs grade shows no significant trends that might indicate sampling bias introduced by variable recovery in fault/fracture zones.

Logging

• All drill core is geologically logged by well-trained geologists using a modified “Anaconda-style” logging system methodology. The Anaconda method of logging and mapping is specifically designed for porphyry Cu-Au mineral systems and is entirely appropriate to support Mineral Resource Estimation, mining and metallurgical studies.

• Logging of lithology, alteration and mineralogy is intrinsically qualitative in nature. However, the logging is subsequently supported by 4 Acid ICP-MS (48 element) geochemistry and SWIR spectral mineralogy (facilitating semi-quantitative/calculated mineralogical, lithological and alteration classification) which is integrated with the logging to improve cross section interpretation and 3D geological model development.

• Drill core is also systematically logged for both geotechnical features and geological structures. Where drill core has been successfully oriented, the orientation of structures and geotechnical features are also routinely measured.

• Both wet and dry core photos are taken after core has been logged and marked-up but before drill core has been cut.

Sub-sampling techniques and sample preparation

• All drill core samples are ? core splits from either PQ, HQ or NQ diameter cores. A routine 2m sample interval is used, but this is varied locally to honour lithological/intrusive contacts. The minimum allowed sample length is 30cm.

• Core is appropriately split (onsite) using diamond core saws with the cut line routinely located relative to the core orientation line (where present) to provide consistency of sample split selection.

• The diamond saws are regularly flushed with water to minimize potential contamination.

• A field duplicate ? core sample is collected every 30^th sample to ensure the “representivity of the in-situ material collected”. The performance of these field duplicates is routinely analysed as part of Xanadu’s sample QC process.

• Routine sample preparation and analyses of DDH samples were carried out by ALS Mongolia LLC (ALS Mongolia), who operates an independent sample preparation and analytical laboratory in Ulaanbaatar.

• All samples were prepared to meet standard quality control procedures as follows: Crushed to 75% passing 2mm, split to 1kg, pulverised to 85% passing 200 mesh (75 microns) and split to 150g sample pulp.

• ALS Mongolia Geochemistry labs quality management system is certified to ISO 9001:2008.

• The sample support (sub-sample mass and comminution) is appropriate for the grainsize and Cu-Au distribution of the porphyry Cu-Au mineralization and associated host rocks.

Quality of assay data and laboratory tests

• All samples were routinely assayed by ALS Mongolia for gold

• Au is determined using a 25g fire assay fusion, cupelled to obtain a bead, and digested with Aqua Regia, followed by an atomic absorption spectroscopy (AAS) finish, with a lower detection (LDL) of 0.01 ppm.

• All samples were also submitted to ALS Mongolia for the 48-element package ME-ICP61 using a four-acid digest (considered to be an effective total digest for the elements relevant to the Mineral Resource Estimate (MRE)). Where copper is over-range (>1% Cu), it is analysed by a second analytical technique (Cu-OG62), which has a higher upper detection limit (UDL) of 5% copper.

• Quality assurance has been managed by insertion of appropriate Standards (1:30 samples – suitable Ore Research Pty Ltd certified standards), Blanks (1:30 samples), and Duplicates (1:30 samples – ? core duplicate) by XAM.

• Assay results outside the optimal range for methods were re-analysed by appropriate methods.

• Ore Research Pty Ltd certified copper and gold standards have been implemented as a part of QC procedures, as well as coarse and pulp blanks, and certified matrix matched copper-gold standards.

• QC monitoring is an active and ongoing processes on batch-by-batch basis by which unacceptable results are re-assayed as soon as practicable.

• Prior to 2014: Cu, Ag, Pb, Zn, As and Mo were routinely determined using a three-acid-digestion of a 0.3g sub-sample followed by an AAS finish (AAS21R) at SGS Mongolia. Samples were digested with nitric, hydrochloric and perchloric acids to dryness before leaching with hydrochloric acid to dissolve soluble salts and made to 15ml volume with distilled water. The LDL for copper using this technique was 2ppm. Where copper was over-range (>1% Cu), it was analysed by a second analytical technique (AAS22S), which has a higher upper detection limit (UDL) of 5% copper. Gold analysis method was essentially unchanged.

Verification of sampling and assaying

• All assay data QA/QC is checked prior to loading into XAM’s Geobank data base.

• The data is managed by XAM geologists.

• The data base and geological interpretation is managed by XAM.

• Check assays are submitted to an umpire lab (SGS Mongolia) for duplicate analysis.

• No twinned drill holes exist.

• There have been no adjustments to any of the assay data.

Location of data points

• Diamond drill holes have been surveyed with a differential global positioning system (DGPS) to within 10cm accuracy.

• The grid system used for the project is UTM WGS-84 Zone 48N

• Historically, Eastman Kodak and Flexit electronic multi-shot downhole survey tools have been used at Kharmagtai to collect down-hole azimuth and inclination information for the majority of the diamond drill holes. Single shots were typically taken every 30m to 50m during the drilling process, and a multi-shot survey with readings every 3-5m are conducted at the completion of the drill hole. As these tools rely on the earth’s magnetic field to measure azimuth, there is some localised interference/inaccuracy introduced by the presence of magnetite in some parts of the Kharmagtai mineral system. The extent of this interference cannot be quantified on a reading-by-reading basis.

• More recently (since September 2017), a north-seeking gyro has been employed by the drilling crews on site (rented and operated by the drilling contractor), providing accurate downhole orientation measurements unaffected by magnetic effects. Xanadu have a permanent calibration station setup for the gyro tool, which is routinely calibrated every 2 weeks (calibration records are maintained and were sighted)

• The project Digital Terrain Model (DTM) is based on 1m contours from satellite imagery with an accuracy of ±0.1 m.

Data spacing and distribution

• The drill-holes spacing ranges from <50m spacing within the core of mineralization to +500m spacing for exploration drilling. The drill-hole spacing can be determined using the sections and drill plans provided.

• Holes range from vertical to an inclination of -60 degrees depending on the attitude of the target and the drilling method.

• The data spacing and distribution is sufficient to establish anomalism and targeting for porphyry Cu-Au, tourmaline breccia and epithermal target types.

• Holes have been drilled to a maximum of 1,400m vertical depth.

• The data spacing and distribution is sufficient to establish geological and grade continuity, and to support the Mineral Resource classification.

Orientation of data in relation to geological structure

• Drilling is conducted in a predominantly regular grid to allow unbiased interpretation and targeting.

• Scissor drilling, as well as some vertical and oblique drilling, has been used in key mineralised zones to achieve unbiased sampling of interpreted structures and mineralised zones, and in particular to assist in constraining the geometry of the mineralised hydrothermal tourmaline-sulphide breccia domains.

Sample security

• Samples are delivered from the drill rig to the core shed twice daily and are never left unattended at the rig.

• Samples are dispatched from site in locked boxes transported on XAM company vehicles to ALS lab in Ulaanbaatar.

• Sample shipment receipt is signed off at the Laboratory with additional email confirmation of receipt.

• Samples are then stored at the lab and returned to a locked storage site.

Audits or reviews

• Internal audits of sampling techniques and data management are undertaken on a regular basis, to ensure industry best practice is employed at all times.

• External reviews and audits have been conducted by the following groups:

• 2012: AMC Consultants Pty Ltd. was engaged to conduct an Independent Technical Report which reviewed drilling and sampling procedures. It was concluded that sampling and data record was to an appropriate standard.

• 2013: Mining Associates Ltd. was engaged to conduct an Independent Technical Report to review drilling, sampling techniques and QAQC. Methods were found to conform to international best practice.

• 2018: CSA Global reviewed the entire drilling, logging, sampling, sample shipping and laboratory processes during the competent persons site visit for the 2018 MRE and found the systems and adherence to protocols to be to an appropriate standard.

• 2024: Ted Coupland reviewed the 2023 Mineral Resource Estimation (MRE) and during this review covered drilling, QAQC, data and documentation. Ted found no issues with the work conducted.

Criteria

Commentary

Mineral
tenement
and land
tenure
status

• The Project comprises Mining Licence MV-17387A Kharmagtai, originally granted in September 2013.

• Mining licences are granted for a period of 30 years, extendable twice, for 20 years each time. A mining license holder has the right to conduct mining activities throughout the licence area and to construct structures within the licence area that are related to its mining activities.

• The Mining License is held by Oyut Ulaan LLC, a Mongolian registered company that is 90% owned by Mongolian joint venture (JV) company, Mongol Metals LLC. The remaining 10% of Oyut Ulaan LLC is owned by QGX Ltd a private company registered in Canada. Mongol Metals is in turn 85% owned by the Singapore JV company, Khuiten Metals Pte Ltd. The remaining 15% of Mongol Metals is the personal holding of Ganbayar Lkhagvasuren, a Mongolian citizen. Khuiten Metals is a 50-50 JV between Xanadu Mines Ltd and Jinping Singapore Mining, a subsidiary of Zijin Mining Group. Khuiten Metals effectively holds 76.5% of the Kharmagtai project.

• The Mongolian Minerals Law (2006) and Mongolian Land Law (2002) govern exploration, mining and land use rights for the project.

Exploration
done by
other
parties

• Previous exploration at Kharmagtai was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill Resources Ltd including extensive drilling, surface geochemistry, geophysics and mapping.

• Previous exploration at Red Mountain (Oyut Ulaan) was conducted by Ivanhoe Mines.

Geology

• The mineralisation is characterised as porphyry copper-gold type.

• Porphyry copper-gold deposits are formed from magmatic hydrothermal fluids typically associated with felsic intrusive stocks that have deposited metals as sulphides both within the intrusive and the intruded host rocks. Quartz stockwork veining is typically associated with sulphides occurring both within the quartz veinlets and disseminated thought out the wall rock. Porphyry deposits are typically large tonnage deposits ranging from low to high grade and are generally mined by large scale open pit or underground bulk mining methods. The deposits at Kharmagtai are atypical in that they are associated with intermediate intrusions of diorite to quartz diorite composition; however, the deposits are in terms of contained gold significant, and similar gold-rich porphyry deposits.

Drill hole
Information

• Diamond drill holes are the principal source of geological and grade data for the Project.

• See figures in this ASX/TSX Announcement.

Data
Aggregation methods

• A nominal cut-off of 0.1% eCu is used in copper dominant systems for identification of potentially significant intercepts for reporting purposes. Higher grade cut-offs are 0.3%, 0.6% and 1% eCu.

• A nominal cut-off of 0.1g/t eAu is used in gold dominant systems like Golden Eagle for identification of potentially significant intercepts for reporting purposes. Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t eAu.

• Maximum contiguous dilution within each intercept is 9m for 0.1%, 0.3%, 0.6% and 1% eCu.

• Most of the reported intercepts are shown in sufficient detail, including maxima and subintervals, to allow the reader to make an assessment of the balance of high and low grades in the intercept.

• Informing samples have been composited to two metre lengths honouring the geological domains and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit).

The copper equivalent (CuEq or eCu) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage with a metallurgical recovery factor applied.

Copper equivalent (CuEq or eCu) grade values were calculated using the following formula:

eCu or CuEq = Cu + Au * 0.60049 * 0.86667,

Gold Equivalent (eAu) grade values were calculated using the following formula:

eAu = Au + Cu / 0.60049 * 0.86667.

Where:

Cu - copper grade (%)

Au - gold grade (g/t)

0.60049 - conversion factor (gold to copper)

0.86667 - relative recovery of gold to copper (86.67%)

The copper equivalent formula was based on the following parameters (prices are in USD):

• Copper price - 3.4 $/lb

• Gold price        - 1400 $/oz

• Copper recovery - 90%

• Gold recovery - 78%

• Relative recovery of gold to copper = 78% / 90% = 86.67%.

Relationship between mineralisation
on widths

and intercept
lengths

• Mineralised structures are variable in orientation, and therefore drill orientations have been adjusted from place to place in order to allow intersection angles as close as possible to true widths.

• Exploration results have been reported as an interval with 'from' and 'to' stated in tables of significant economic intercepts. Tables clearly indicate that true widths will generally be narrower than those reported.

Diagrams

• See figures in the body of this ASX/TSX Announcement.

Balanced

reporting

• Resources have been reported at a range of cut-off grades, above a minimum suitable for open pit mining, and above a minimum suitable for underground mining.

Other
substantive
exploration
data

• Extensive work in this area has been done and is reported separately.

• This MRE and prior MRE announcements incorporate drilling results that have been previously reported to ASX by Xanadu since 2014 and are available on the Xanadu Mines website: https://www.xanadumines.com/site/investor-centre/asx-announcements

• Please also refer to previous Mineral Resource announcements:

  • ASX/TSX Announcement 28 August 2024 – Update Increase in Kharmagtai Resource

  • ASX/TSX Announcement 14 October 2024 – Kharmagtai Pre-Feasibility Study

  • ASX/TSX Announcement 23 December 2023 – Kharmagtai Mineral Resource Grows

  • ASX/TSX Announcement 08 December 2021 – Kharmagtai Resource Grows to 1.1 Billion Tonnes

  • ASX/TSX Announcement 31 October 2018 – Major Increase in Kharmagtai Open-Cut Resource

  • ASX/TSX Announcements 19 March 2015 – Kharmagtai Maiden JORC Resource

Further
Work

• The mineralisation is open at depth and along strike.

• Current estimates are restricted to those expected to be reasonable for open pit mining. Limited drilling below this depth (-300m RL) shows widths and grades potentially suitable for underground extraction.

• Exploration on going.

Criteria

Commentary

Database integrity

The database is managed using Micromine Geobank software. Data is logged directly into an Excel spread sheet logging system with drop down field lists. Validation checks are written into the importing program ensures all data is of high quality. Digital assay data is obtained from the Laboratory, QA/QC checked and imported. Geobank exported to CSV TEXT and imported directly to the Micromine software used for the MRE.

• The combined database was provided for the MRE.

• Validation of the data import include checks for the following: o Duplicate drill hole or trench names,

  • One or more drill hole collar or trench coordinates missing in the collar file,

  • FROM or TO missing or absent in the assay file,

  • FROM > TO in the assay file,

  • Sample intervals overlap in the assay file,

  • First sample is not equal to 0 m in the assay file,

  • First depth is not equal to 0 m in the survey file,

  • Several downhole survey records exist for the same depth,

  • Azimuth is not between 0 and 360° in the survey file,

  • Dip is not between 0 and 90° in the survey file,

  • Azimuth or dip is missing in survey file,

  • Total depth of the holes is less than the depth of the last sample,

  • Total length of trenches is less than the total length of all samples.

  • Negative sample grades.

• No logical errors were identified in the analytical data.

Site visits

• Site visits was conducted by SGC during the period 5^th of September 2022 through to the 16^th of September 2022.

Geological interpretation

Geological data has been collected in a consistent manner that has allowed the development of geological models to support the Mineral Resource estimate. Copper and gold mineralisation is controlled by porphyry phases, oxidation zone, and the level of veining, breccia, country rocks and barren dykes.

• Solid geological models were generated in Leapfrog for each of the deposits using the following methodology

  • Composite copper and gold grades to 10m intervals

  • Define cut-offs using changes in slope of histograms and cumulative log plots

  • Create raw grade shells for these using implicit numeric modelling (e.g. 800, 1500 and 4000ppm Cu)

  • Define the main dividing features/structures between populations (clusters of grade)

  • Build these structures in detail using grade, lithology, and structural information

  • For each compartment/fault block

  • Group the main lithologies into “like units”

  • Build geological shapes from these units

  • Re-build the grade shells within each compartment using information from the geological shapes to help constrain the grade shapes

  • Once each compartment was built, they were assessed in context with each other and refined so that the models made geological sense.

• Geological interpretation and wire-framing were based on sampling results of drill holes and trenches, which were logged at 2 m intervals (average, tied to lithological boundaries during logging).

• SGC do not believe that the effect of alternative interpretations will have a material impact on the overall Mineral Resource Estimates.

• The geological interpretation is considered robust & alternative interpretations are not considered to have a material effect on the Mineral Resource. No alternate interpretations are proposed as geological confidence in the model is moderate to high. As additional geological data is collected from additional drilling, the geological interpretation will be continually updated.

• The factors affecting continuity both of grade and geology are most likely to be associated with structural controls and local complexity the knowledge of which is considered at a moderate level with the current spacing of information. The broad approach to the mineralisation modelling is an attempt to model an unbiased interpretation.

Dimensions

• Stockwork Hill: The strike length of the mineralised zone is about 1,350 m. Width is up to 800 m, traced down dip to 1,250 m. Mineralisation outcrops at the surface.

• White Hill: The strike length of the mineralised zone is about 1,800 m. Width is up to 830 m, traced down dip to 1,210 m. Mineralisation outcrops at the surface.

• Copper Hill: The strike length of the mineralised zone is about 630 m. Width is up to 150 m with apparent plunging to SW at about 40 degrees traced down dip to 420 m dipping 70 degrees to SE. Mineralisation is outcropped at the surface.

• Zaraa: The strike length of the mineralised zone is about 1,300m. Width is up to 600m with apparent plunging to SW at about 60 degrees and traced down dip to 1,280m dipping. Mineralisation outcrops at the basement surface, beneath 35m of Palaeozoic cover.

• Golden Eagle: The strike length of the mineralised zone is about 400m. Width is up to 400m and traced down dip to 450 m. Mineralisation outcrops at the basement surface, beneath 35m of Palaeozoic cover.

• Zephyr: The strike length of the mineralised zone is about 1,030 m. Width is up to 310 m. Traced down dip to 350m. SE. Mineralisation outcrops at the basement surface, beneath 30m of Palaeozoic cover.

Estimation and modelling techniques

• Ordinary Kriging technique was employed using third party software based on low coefficient of variation between samples in the mineralised domain.

• Grade interpolation and search ellipses were based on variography and geometry modelling outcomes.

• Modelling was conducted in three passes with block sizes being 20.0 m E by 20.0 m N by 10.0 m RL; discretisation was 5x5x2 for all project areas

• In the first pass data and octant criteria used were, Minimum Data=12, maximum Data=32, Minimum Octants=4. Search radii was 55 mE by 75 mN by 10 mRL.

• An expansion factor of 1 was applied so in the second pass saw the same data and octants criteria with an expanded search to 110mE by 150mN by 20mRL.

• The third pass saw Minimum Data=6, maximum Data=32, Minimum Octants=2. Search radii was 110mE by 150mN by 20mRL.

• Top cutting was applied to domains and elements which displayed a very strongly skewed nature as summarise in the report reference and in accordance with the prevailing coefficients of variation.

• Secondary attributes including the modelling of density which was also modelled on three passes (as above) which included the same data and octant criteria as above.

• No dilution was expressly added to the SGC model however domain was largely driven by geological and grade domains created by the Client (XM) and provided to SGC which tends to incorporated the full population range in the geological domains and a constrained population range in the grade domains in=line with the grade domain constraints.

• No assumptions were made by SGC regarding the recovery of by-products

• Copper, gold, molybdenum and sulphur were modelled as elements.

• Blocks in the model were defined based on the likely mining bench heights and the domaining took into account the SMU proposed at the outset of 4 m E by 4 m N by 2 m RL.

• The interpretation or domain model was largely driven by the lithology / geology, oxidation state, and structural intervention and mineralised trends observed over the various project areas. Grade was used as a secondary domain driver for the definition of boundarieswhere deemed appropriate by the XAM resource team.

• The model was validated in a third party software using section and plan comparisons back to original informing data as well as with the use of swath plots to assess local grade variability between the model and informing data.

Moisture

• Tonnages are estimated on a dry basis.

Cut-off parameters

• Mineralised domain interpreted on grade ≥ 0.1% CuEq inside the local interpretation solids by area with reference to local variability.

• Assumed to be reasonable cut-off for open pit and underground propositions given probability plot curve inflexions and grade population distributions.

• Resources estimated at a range of cut-offs and reported at a 0.13% CuEq cut-off grade for open pit and 0.3% CuEq for underground public reporting.

Mining factors or assumptions

• This item is beyond the scope of work for SGC as such this item details were not addressed by SGC but will remain the responsibility of the Client and Client’s representatives.

• Consideration was given by SGC to SMU factors, blocks in the model were defined based on the likely mining bench heights and the domaining took into account the SMU proposed at the outset of 4 m E by 4 m N by 2 m RL.

Metallurgical factors or assumptions

• No metallurgical factors or assumptions used to restrict or modify the resource estimation were employed by SGC proceeding or during the construction of the model. Metallurgical recovery was not modelled as an attribute of the model.

• Recent PFS level Metallurgical test-work conducted during 2023 to 2024 (post Mineral Resource Estimation) has indicated recovery of Cu% to be 81% and Au g/t to be 80% overall. see ASX/TSX Announcement 18 September 2024 – Kharmagtai PFS Metallurgy Results

• To the best of SGC’s knowledge no further work has been conducted in regard to metallurgical recovery which would indicated anything to the contrary of the recovery numbers put forth by the Client.

Environmental factors or assumptions

• No environmental factors or assumptions were used to restrict or modify the resource estimation.

Bulk density

• Bulk density was estimated into block models and post processed on the basis of data analysis by primary domain and oxidation to assign missing values with average density values.

• In all 61,295 bulk density measurements were taken from non-specified drilling samples by XAM site representatives during the period 2014 through to 2023 drilling program. The remainder of the SG database is historical in nature.

Classification

• The resource classification was based on drilling density (and the availability of data to present to the search neighbourhood, geological modelling, oxidation and, density and recovery data as well as data quality considerations

• The classification criteria is deemed appropriate by SGC.

Audits or reviews

• An internal independent review was conducted by Ted Coupland, of Coupland Consulting Services Pty Ltd in May, 2024 and spent three days on site at Kharmagtai.

• Below are his main conclusions

• The Author has concluded that there are no fatal flaws or areas of significant concern with the XAM December 2023 MRE.

• The Author can replicate the publicly stated MRE numbers from the data provided in the data room.

• Check estimates undertaken by the Author confirm the robustness of the XAM December 2023 MRE.

• All data management procedures and protocols, including QAQC, are comprehensively documented and are line with industry best practices.

• QC performance over time indicates a high degree of assay data integrity.

• The approach to domaining is comprehensive and well considered.

• There may be some opportunity to further simply the estimation domain framework where there is strong evidence of diffusive grade behaviour across lithological and structural boundaries.

• The approach to grade estimation is well considered and robust.

• The approach to resource classification is reasonable, however, a more holistic and broader approach taking into consideration the scale of production timeframes should be considered.

Discussion of relative accuracy/confidence

• Outlines of resource classifications were reviewed against drill-hole data density and assays results and each block in the model has a resource classification which indicates the relative (block to block) confidence level.

• Mineral resource estimate technique was deemed appropriate by an internal peer review by SGC as were the estimates themselves.

• Total mineral resource estimate based on global estimate.

• No production data was available at the time the estimates were undertaken.

• The block model was produced to represent global estimates, however the model honours the local grade distributions appropriately given the drilling data provided and the domaining strategy employed.

• The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral Resource as per the guidelines of the 2012 JORC Code.

Criteria

Commentary

Mineral Resource estimate for conversion to Ore Reserves

? The JORC Code (2012) Ore Reserve Estimate has been classified and reported as a conventional bulk open cut mine feeding a copper concentrator.

? The MRE Update used as a basis for the conversion to an Ore Reserve is detailed in this announcement.

? The Mineral Resources are reported inclusive of the Ore Reserves.

Site visits

? Julien Lawrence, overall study Competent Person, visited site and labs in 2023 and 2024

? Colin McVie, one of the Competent Persons for Mining and estimated Ore Reserve visited site on 15-16 April 2024 to ensure the data used for the study matches the field observations.

? Numerous other members of the study team including Xanadu employees and technical consultants have visited site during the completion of the PFS study used as the basis of the support for the estimated Ore Reserve.

Study status

? The study presented is developed to a Pre-Feasibility Study level.

? This includes a mine plan that is technically achievable and economically viable.

? Mine optimisation and strategic guidance for project configuration was undertaken by Whittle Consulting.

? Mine design and mine engineering were undertaken by Mining Plus.

? The PFS was undertaken by a team of industry professionals focused on technical areas including infrastructure, approvals, environmental, governance, community, local considerations, operations readiness, geochemistry, hydrogeology, geotechnical engineering, metallurgical, and PFS discounted cashflow model.

? The Pre-Feasibility Study shows that the mine plan is technically achievable and economically viable taking into consideration all material Modifying Factors

? To support the Ore Reserve evaluation within the PFS a separate Whittle 4X open pit optimization evaluation was completed with no value given to the Inferred Resource within the Mineral Resource Estimate and mine plan for all deposits. Following this a PFS level mine design, mine scheduling, mining costing and overall project economic model evaluation was completed to confirm positive economic outcomes for the Ore Reserve.

Cut-off parameters

? A breakeven cutoff of 0.22% CuEq was adopted based on economic parameters and recoveries determined as part of the PFS study. The marginal cut-off was 0.13% CuEq.

? Breakeven and marginal cut-off grades for the Ore Reserve were calculated based on copper equivalent grades that account for the relative value of the recovered copper and gold. This calculation used a copper price of $4.0/lb and gold price of $1,900/oz. Recovery and unit cost assumptions matched PFS stage 1 and stage 2 outcomes.

? The copper equivalent cut off grades vary over time with stockpiling of lower grade material for processing later to maximise net present value (NPV).

Mining factors or assumptions

? Kharmagtai is a project at PFS stage based on a conventional open pit, truck and shovel operation feeding a copper concentrator. The Ore Reserve is supported by this PFS Study, and the Project is progressing to the Feasibility Stage. To support the Ore Reserve evaluation within the PFS a separate Whittle 4X open pit optimisation evaluation was completed with no value given to the inferred classified material within the Mineral Resource Estimate for all deposits. Following this a PFS level mine design, mine scheduling, mining costing and overall project economic model evaluation was completed to confirm positive economic outcomes for the Ore Reserve.

? There are no inferred Resources reported in the Ore Reserves estimation or valued in the mine schedule and financial evaluation to support the Ore Reserve Estimation.

? The copper-gold mineralisation at Kharmagtai Project is relatively shallow therefore open pit mining is considered appropriate. Oxide mineralisation at Stockwork Hill, White Hill and Copper Hill is exposed at surface and sulphide mineralisation commences 25m to 45m below surface. At Golden Eagle, Zephyr and Zaraa oxide mineralisation is under 20m to 35m of cover and sulphide mineralisation commences 40m to 60m below surface.

? The mining method was based on conventional drill, blast, load and haul open pit operation, utilising large electric rope shovels and hydraulic excavators loading electric drive diesel ultra class haul trucks as a well-proven, flexible and efficient match suited to the planned scale of operations. The PFS assumes a contract miner model for mining operations.

? Geovia Whittle pit optimisation software was used to generate a series of potentially viable pit shells for the deposits, based on the 2023 Mineral Resource. A validation check optimization run was also performed in 2024 with the updated resource model as part of final project checks and completion which confirmed location of final pits and staging.

? The Ore Reserves estimate was created from a detailed mine-design. Pit optimisations were performed to determine the inventories to be mined, and to develop pit phasing strategies. The process generates a set of nested pit shells by varying the “Revenue Factor” (i.e. metal price assumption). Selected shells are used for the intermediate phases and ultimate pits. The resulting phases (or cutbacks) were designed and scheduled using Deswik software, aiming to closely approximate the optimised shells with a mine design and PFS level engineering. Deswik determined the multi-mine mining sequence and rate, elevated cutoff to the plant varying over time, and stockpiling of lower grade material for processing later, to maximise NPV using Study assumptions and constraints.

? A 10-metre bench height was used consistent with the resource estimate block height and based on the required production rate and appropriately sized equipment.

? No additional estimate has been made for mining dilution and loss for the PFS assessment due to the gradational nature of the deposit, other than the inherent dilution within the regularised resource model (20m x 20m x10m) used for mining planning. Diluting material is either low grade Indicated Mineral Resource or material carrying no grade. It was also assumed that due to the style of mineralisation the geological model and mine schedule incorporates some level of dilution

? A minimum mining width appropriate for the proposed equipment and consideration of the geometry of mining areas was considered (of nominal 80m), and the intermediate pit shells adjusted as required.

? Grade control will be undertaken from sampling of blasthole cuttings assayed in the on-site laboratory and also planned targeted grade control drilling during operation. Grade control plan will consider both ore definition and waste rock characterization definition.

? The geotechnical analysis was completed by external consultants (MineGeoTech), which included evaluation of geological, structural and alteration environments, material strength, in-situ stress estimate and rock mass classification from 48 drill holes. The geotechnical data was analysed for the geological and weathering wireframes to undertake bench configuration. The resultant design was tested for overall slope stability analysis using 3D finite element modelling. Slopes recommended were typically 39 degrees in transition zones. By deposit in fresh material the slope ranges were from 36 to 48 degrees in Stockwork Hill, 39 to 48 degrees at White Hill, 39 to 52 degrees at Copper Hill, and 39 to 59 degrees at both Golden Eagle and Zephyr.

? The PFS design (also used for the reserve mine schedule) for the concentrator was based on a Stage 1 throughput rate of 26mtpa, which would be increased to 52mtpa in Stage 2, both utilising conventional comminution and flotation technologies, with Stage 2 based on a full duplication of Stage 1 flowsheet.

The following preliminary inputs were used to select pit shells and prepare preliminary production schedules for the six deposits. Final project operating parameters and economic assessments will vary from pit selection parameters below:

? Metal prices Copper price $4.00/lb; Gold price $1900/oz.

? Mining operating costs were based on the costs built up from first principles in the 2024 PFS: $1.70-2.00/t mined. (Variation dependent on material source pit and destination (Plant, Stockpile or Waste Dump)).

? Processing cost $6.17/t milled for 26Mtpa operation and $6.04/t milled for 52Mtpa.

? General and administration cost $1.2/t milled for 26Mtpa operation and $0.72/t milled for 52Mtpa operation.

? Corporate overheads $1.42/t milled for 26Mtpa operation and $0.81/t milled for 52Mtpa operation.

? All costs are in USD.

? 25% Cu concentrate grade in Stage 1 and 22% Cu concentrate grade in Stage 2 with 8% moisture.

? Concentrate transport costs of $44.8/wmt.

? Concentrate treatment of $75/dry tonne.

? Concentrate refining charge of $0.075/lb Cu and $4.50/ oz Au.

? Concentrate payment terms: 96.5% Cu payable, 1% Cu deduction, 97.5% Au payable.

? A progressive royalty averaging 8.2% is assumed.

? Cu recovery 81%.

? Au recovery 80%.

Additional Information is below:

? The infrastructure requirements for open pit mining includes maintenance workshop for mobile equipment, offices, crib rooms and amenities, explosive storage and explosive contractor infrastructure, fuel farm, geotechnical monitoring, electrical infrastructure for electric rope shovels, drills and de-watering systems.

? The PFS project has identified a material risk to the project water supply. The PFS has partially mitigated this risk to its water supply and this will continue to be a core focus of the BFS with a forward work plan developed. This plan was developed by a team of competent persons & experts with contributions from SRK, a qualified Mongolian hydrogeologists from Litho exploration, the Kharmagtai government & community relations team, and O2 Mining. The project has a substantial water resource established nearby, but significant amounts of additional make-up water will be required to be identified to meet the full Stage 1 demand. Current predictions Kharmagtai requires approximately 350Ml/s make-up water supply for Stage 1, which is roughly doubled for Stage 2.

? Mining Factors and assumptions have been signed off by CPs Colin McVie and Simon Grimbeek. See Competent Persons Statements in this announcement.

Metallurgical factors or assumptions

? The proposed metallurgical process is a simple comminution circuit comprising a primary crusher, semi-autogenous mill and recycle crusher, ball mill, a gravity circuit to recover coarse free gold and a flotation circuit to produce a copper-gold concentrate. The gravity gold will be tabled and smelted to produce bullion.

? These processing techniques are all well tested and techniques currently in use in similar operations globally.

? Pre-Feasibility confidence level variability testwork has been completed on samples representing the major mineralisation styles using techniques commonly applied to similar copper/gold porphyry deposits.

? Based on the testwork results and experience with similar mineralisation the copper recovery has been estimated at 81% and the gold recovery at 80%. Copper concentrate grades assumed 23% copper for S:Cu ratio below 7.5 and 22% copper for ratios above 7.5.

? Further PFS sampling and test work to date have not shown any deleterious element that would have a material detrimental effect on the selling price or project viability.

? A market assessment on concentrate assays from the PFS metallurgical assessment of metallurgical composites in 2024 indicated that any potential penalties will be limited and will not have a material impact on the marketability of the concentrate.

? No bulk or pilot scale testwork has been carried out to date.

? Please refer to ASX/TSX Announcement 18 September 2024 – Kharmagtai PFS Metallurgy Results

Environmental

? Mongolian certified EIA consultant Eco Trade LLC undertook a preliminary baseline environmental survey in 2003 and prepared the Mongolian Detailed Environmental Impact Assessment (DEIA) in 2011 as part of the Mining Licence application. The Mining Licence was granted in 2013. Xanadu initiated a review of the approved DEIA in 2019 that identified supplementary studies to be undertaken in the PFS. The approval for this initial DEIA has since lapsed and is no longer valid

? Mongolian Certified EIA consultant Sublime LLC undertook subsequent baseline environmental surveys in 2024 and are preparing a new DEIA as part of permitting requirements, as a prerequisite for Mongolian Investment Agreement discussions in 2025.

? Waste rock characterisation was undertaken by SoilTrade LLC in 2024 as part of the PFS.

? The PFS identified a site in the northeast corner of the Mining License for a tailings storage facility (TSF) in a shallow depression ~6km to the east of the proposed plant site. Design capacity is 350Mt over 12 years on lease and 760Mt off lease over the remaining LOM, sufficient for the proposed operation. Testwork indicated limited acid formation such that dam liner is not required.

? For the waste rock from the mining operation, a waste rock characterisation study was completed as part of the PFS. An environmental geochemical assessment was conducted based on the available environmental geochemistry data to allow for an initial Acid Rock Drainage (ARD) classification of the waste rock material which was used to inform the design of waste management facilities, waste handling and management.

? The exploration assay data set was used for the preliminary classification of the Kharmagtai waste rock material. This is a large data set and was deemed to be of a very good quality for this stage of study. The acid-base properties of the rock samples were calculated from the sulphur and calcium assays. This dataset consists of assay data for about ~133,000 samples taken at 2 m intervals from exploration boreholes. The sulphur content and the Neutralisation Potential Ratio (NPR) were used for the waste classification within the mine scheduling model.

? The PFS mine schedule indicated that approximately 63% of the waste rock material is classified as high sulfur waste rock or PAF-MS. Material earmarked for encapsulation (low sulfur, NAF-MS, pNAF_MS) comprises approximately 37% of waste rock. During the PFS, checks completed have confirmed, there is overall adequate material to achieve required encapsulation with recommendations for further detailed scheduling of waste rock, and dump design recommended in further studies in the BFS.

? The waste dumps will be constructed such that Potentially Acid Forming (PAF) materials will be encapsulated by Non-Acid Forming (NAF) material. The as-built waste dumps are designed with a slope of 37 degrees and the final landforms with a shallower slope of 22 degrees. Further analysis of the final slope angle is planned as part of further work in the BFS.

? A conceptual-level cost estimate of earthworks associated with the closure and rehabilitation of planned waste rock dumps, stockpiles and infrastructure, was completed as part of the PFS. The estimate is developed as part of an estimate of potential financial obligations following the immediate cessation of mining activities should this occur during planned mining activities. This estimate has been included within the PFS evaluation.

Infrastructure

? The mine site is currently connected to a 32kV power line. In the future the Kharmagtai project will build a new 220kV substation, powered by 2 lines from the SS switch station.

? The new line will extend approximately 140×2 km, with two additional 220kV lines connecting the Inner Mongolia 500kV Bazhong substation to the SS switch station, each about 175×2 km in length. This phase includes two main transformers, with plans for a future expansion to add one more.

? The project focuses primarily on renewable energy, emphasising wind and solar power. Wind power will have an installed capacity of 169 MW, providing an annual equivalent full-load hour of 3180 hours. Solar power will have a DC installed capacity of 102 MWp and an AC capacity of 83 MW, with an average utilization of 1760 hours over 25 years.

? The site is located within 15km of the new railway line connecting Tavan Tolgoi to Sainshand on the Trans-Siberian railway. The site access road is planned to connect to this road and the railway. The Trans-Mongolian railway crosses the Mongolia-China border approximately 420 km east of Kharmagtai, traversing the country from southeast to northwest through Ulaanbaatar, to the border with Russia.

? Road access to site from Ulaanbaatar is via the Ulaanbaatar-Delgertsogt-Mandalgobi-Tsogt-Ovoo route, a 461 km asphalt-paved road. From Tsogt-Ovoo to the Tsogttsetsii-Kharmagtai site, the road is 145 km long and unpaved. The 71 km dirt road from Tsogttsetsii to Kharmagtai needs upgrading to accommodate increased project traffic volumes, loads, and road standards.

? A permanent mining camp, heavy and light vehicle (HV/LV) workshop, and warehouse will be constructed in two phases. This phased approach minimises start-up capital expenditure, with initial construction supporting early operations, followed by expansion as operations ramp up and the process plant is expanded.

? The camp will be located northeast of the existing exploration camp, adjacent to the main access road. Other key facilities will include the main office, mine dry change facility, and security guard houses. Workshops and warehouses will consist of a general warehouse, chemical warehouse, and processing workshop, positioned near the processing plant and ore stockpiles to optimise efficiency.

? The Study assumes workforce from both Ulaanbaatar and nearby regional centres. Commuting to site from regional centres will be via bus. Commutes to regional centres from Ulaanbaatar will be via plane.

? Water supply for the project will primarily come from the Zagiin Usnii Khudag (ZUK) groundwater basin, approximately 20 km northeast of the site. A 20 km pipeline with a capacity of up to 150 l/s will be installed. Additionally, a 50 km double pipeline, designed to transmit up to 700 l/s, will be used for a more distant groundwater basin and has been costed into the project. The project will require approximately 350 l/s during the first nine years, increasing to approximately 700 l/s following expansion. Stage 2 water supply will come from groundwater exploration in reginal basins and will be augmented and derisked by the option to use the Mongolian Government Kherlen Toono water pipeline currently in Feasibility Study stage. This alternative water supply is to address the water supply risk and identify the make-up water requirements, with costs considered in the PFS, with further technical definition planned in the BFS.

? The TSF strategy includes two phases: an on-lease two-cell paddock facility with a capacity of 350Mt for the first 12 years of operation, followed by an off-lease two-cell paddock facility with a capacity of 760 Mt for the remaining 17 years.

Costs

? The capital cost estimates were based on a mixture of quotations and factoring, PFS stage engineering, as well as benchmarking with similar operations, targeting accuracy of +/- 25%.

? DRA prepared the capital cost of the ore processing facility based on a first principles mechanical equipment list, supported by quotations for major equipment and factoring balance of plant.

? Xanadu estimated the EPCM rate of 10% for the ore processing plant using its JV partner Zijin Engineering as the EPCM provider.

? The capital cost of the majority of the non-processing infrastructure was estimated by Mongolian based O2 Mining. The methodology involves using detailed parametric costing and first principles costing. This estimate is based on analysing relevant costs from previous projects in Mongolia and current market rates to accurately assess costs for facilities and project components. It includes all direct and indirect costs, with 30% owner costs considered under the 3^rd party Build, Own, Operate, Transfer (BOOT) arrangement. In this study, the direct costs include temporary facilities to support construction as these will be utilised for shutdown maintenance and other activities early in the project life.

? Process operating costs were built up by DRA from first principles.

? Mining operating costs were built up by Mining Plus from first principles based on pricing from Mongolian based equipment & consumable suppliers and input from established in-country mining contractors and also cross-checked against a database of comparable bulk copper mines.

? No contingency was applied to operating costs.

? No allowances were made for deleterious elements as they are not considered material.

? Realisation charges were based on market analysis undertaken by Zijin Trading Company and Albert de Sousa independent Competent Person.

? The PFS assumes Mongolian royalties will be set as part of the Investment Stability Agreement. Copper royalties are assumed to match draft legislation for copper royalties published by the Government of Mongolia. Sensitivities are run in this study at higher and lower benchmarks (high = government owned Erdenet Copper Mine; low = Rio Tinto and government owned Oyu Tolgoi Copper Mine. Gold bullion is assumed to attract a 5% royalty.

Revenue factors

? The Company has not established any contracts or committed any of its production pursuant to offtake agreements at this time.

? The copper market outlook is based on research reports by S&P Global Research (15 May 2024) and IEA Global Critical Minerals Outlook 2024 (17 May 2024).

? The sale price is derived from estimated commodity prices based on the market outlook and from benchmarking comparable copper project study prices.

? This study assumes sale in China. Freight, handling and insurance are included in the cost of shipping.

? A breakeven cutoff of 0.22% CuEq was adopted based on economic parameters and recoveries determined as part of the PFS study and Ore Reserve mine schedule. A marginal cutoff of 0.13% CuEq was adopted.

Market assessment

Market and Pricing Assumptions

? This market assessment was completed by Xanadu using publicly available price information and long term forecasts from S&P Market Intelligence and others.

? The 12-month price range for copper reached a low of $3.57/lb and a high of $5.19/lb. A price assumption of $4.10 has been applied to the calculations for the 2024 PFS, in the lower half of this 12-month price range.

? The $4.10/lb price assumption is conservative when balanced against higher forecasts based on exceptionally strong pricing conditions year to date (YTD), low inventories, momentum shifts in economic recovery, stimulus packages and expectations of increased medium-term demand due to carbon reduction energy policies.

? The 12-month price range for gold reached a low of $1,820/oz and a high of $2,673/oz. A price assumption of $2,100/oz has been applied to the calculations for the 2024 PFS, near the low point for the period. *

Price Fundamentals

? Demand for copper is increasing with growing electrification, smart buildings, electric vehicle (EV) demand.

? Copper prices are near 10-year highs, currently $4.60/lb

? Forecast to remain well above $4.50/lb

? S&P Global Market Intelligence, as of 30 April 2024, compiles consensus price forecasts which remain above $4.44/lb Cu beyond 2028

Supply Factors

? The copper industry is experiencing declining grade, depleting resources in ageing major projects, and increasing production costs as mines go deeper.

? There is an emerging shortage of high-quality copper concentrate producers

? There have been major disruptions including the closure of Cobre Panama.

? RFC Ambrian (and others) highlights 75 new mines must come online in the next 8 years to balance the market, with supply deficit valued at 10 times the total forecast value of the global lithium market in 2028

? New projects can take 15 years from discovery to production in many jurisdictions.

? Jurisdictions previously seen as historically reliable (Chile) are now experiencing a trend towards resource nationalism

? Lack of major new, long-life discoveries

? Lack of exploration success resulting in shortage of quality assets

Demand Factors

? Copper metal demand is in response to rising living standards globally

? Environmental policies (carbon reduction) drive electrification and displace fossil fuel use

? Urbanisation of developing nations populations including China and India

? Electrification of transport including electric vehicles

? Growth in renewable energy technology

Economic

? The inputs to the NPV analysis are tabulated in this Study.

? The NPV was determined using the Discounted Cash Flow method of valuation using a discount rate of 8%, noting that one of the JV partners Zijin Mining Group will most likely have access to much lower cost capital through its scale and the Chinese banking system than the other partner Xanadu Mines.

? The financial model is in real terms based on yearly increments.

? No escalation was applied.

? Mongolian Corporate tax rate of 25% taxable income has been applied.

? Mongolian Customs Duty of 5% has been applied to all imported materials and equipment.

? Mongolian VAT of 10% has been applied to both capital and operating costs.

? Inflation was not included

? PFS outcomes using full mine inventory (including Inferred Resource) include a NPV range is between approximately $450M and $1,220M with base case NPV of $930M.

? The PFS ranges include a low case based on a 10% reduction in copper price, a 5% increase in capex and a 5% increase in gold prices as a natural by-product hedge. The high case is the inverse scenario. The project is most sensitive to copper price, followed by gold price and capital expenditure. Further detail on sensitivity is presented in the Study.

? The PFS Ore Reserve Schedule (including only Indicated Resource) was determined through the project financial model to have NPV of $650M with a range between approximately $350M and US$950M). All model assumptions were per the PFS discounted cash flow model other than the mining schedule which was changed to the Ore Reserve Schedule. Ore Reserve Schedule economic results are below.

? The PFS Ore Reserve Schedule (including only Indicated Resource) was determined through the project financial model to have NPV of $670M with a range between approximately $240M and US$900M). All model assumptions were per the PFS discounted cash flow model other than the mining schedule which was changed to the Ore Reserve Schedule. The Ore Reserve Schedule economic results are below.

RESERVE Key Findings

RESERVE

PFS

Project Financial Summary

Low Scenario

Base Case

High Scenario

Spot Prices

Base Case

Net Revenue ($M)

16,555

17,305

18,055

20,145

27,925

EBITDA ($M)

4,683

5,298

5,902

7,886

8,455

Net Cash Flow ($M) After CITax

1,340

2,333

2,870

4,275

4,631

NPV (8% discount) After CITax

236

666

901

1,465

931

IRR after CITax

12%

20%

24%

31%

21%

Capital Payback Period (years) After CITax

6

4

4

3

4

Net Cash Flow ($M) Before CITax

2,505

3,224

3,931

5,811

6,280

NPV (8% discount) Before CITax

739

1,047

1,351

2,114

1,405

IRR Before CITax

21%

26%

31%

39%

27%

Capital Payback Period (years) Before CITax

4

3

3

2

3

RESERVE High-Low-Base Sensitivity Scenarios

RESERVE

PFS

Project Financial Summary

Low Scenario

Base Case

High Scenario

Spot Prices

Base Case

Cu price ($/lb) +/-10%

3.69

4.1

4.51

4.52

4.1

Au price ($/oz) +/-5%

2,205

2,100

1,995

2,658

2,100

Ag price ($/oz) +/-10%

26

25

24

32

25

Establishment Capex ($M) +/-5%

929

885

840

885

885

LOM Capex ($M) +/-5%

1,973

1,879

1,785

1,879

1,970

Social

? The South Gobi Desert is the least populated region in Mongolia, the least populated country in the world.

? Xanadu has strong relationships with remote communities closest to Kharmagtai, providing support to education, health and economic development. This will continue into future stages of project development.

? The potential social impacts of the Project, both positive and negative, have been subject to an initial assessment to assist in scoping of social baseline studies and identifying affected communities for stakeholder engagement. These studies were commenced in 2024 to support both national environmental and land use approvals and the ESIA requirements for project financing.

? Xanadu’s Annual Sustainability Report is available on its website

? An initial Environmental and Social Impact Assessment (ESIA) was completed for the grant of mining license in 2012. The 2012 DEIA approval has expired and is no longer valid. The new DEIA is being prepared for submission to the Mongolian authorities in 2024.

? Baseline environmental studies will be completed in 2025 to support a Mongolian Detailed Environmental Impact Assessment (DEIA) which is required for the Mongolian permitting process.

? Additional baseline environmental studies are underway to support an international standard ESIA, with requirements as defined by Ramboll to meet project lender requirements. The baseline ESIA social studies will be completed in 2025.

Other

? No natural occurring risks have been identified. Mongolia has harsh winters with temperatures down to -40C, as well as dust storms in the spring. The mine, facilities and business processes have been designed with personnel and operational safety and resilience in mind.

? Xanadu has a marketing agency agreement with Tailai, a subsidiary of Noble Resource International Pte Ltd, for 30% of production for 20 years. For clarity this is not offtake, and to secure their marketing rights further discussions will be needed against competitive offers. No other marketing agreements are currently in place.

? Xanadu holds a Mining License at Kharmagtai, granted in 2012 for 30 years, and extendable twice for an additional 20 years each

? As part of this Mining License, a registered Water Resource was established within 15km of the project

? Applications for land access and water usage are not expected to affect the timelines outlined in this Study. The critical path for project timeline will be success of water exploration and timing of commercial negotiations.

? The next stage of approvals is to submit Mongolian DEIA and Feasibility Study (which will be based off this PFS). Once those are approved, discussions will commence for investment stability agreement. Following that, a well structured and understood permitting process will be followed.

Classification

? Kharmagtai has no Measured Mineral Resources, only Indicated and Inferred.

? As a result, all Ore Reserves have all been classified as Probable Ore Reserves, with no Proven Ore Reserves.

? Probable Ore Reserve was declared based on the Indicated Mineral Resources contained within the optimised pit design and the latest financial metrics from the PFS work and the reserve schedule economic model evaluation.

? To support the Ore Reserve evaluation within the PFS a separate Whittle 4X open pit optimization evaluation was completed with no value given to the Inferred Resource within the Mineral Resource Estimate and mine plan for all deposits. Following this a PFS level mine design, mine scheduling, mining costing and overall project economic model evaluation was completed to confirm positive economic outcomes for the Ore Reserve.

? The estimated Ore Reserve provided appropriately reflects the Competent Person’s view of the deposit based on the modifying factors derived from the PFS and the updated Mineral Resource received and referred to in this announcement.

Audits or reviews

? The Ore Reserve was developed by Mining Plus and subject to its internal review and audit process.

? Enthalpy conducted an Independent Review of all sections of this PFS other than Mineral Resource and Geotechnical.

? Mineral Resources Estimate was further reviewed by Ted Coupland consulting.

? Geotechnical assumptions were reviewed by PSM during development of mine parameters.

? O2 Mining, a Mongolia based consultancy, provided review of all study work packages.

? Graham Brock undertook review of the DRA process engineering and design work.

Discussion of relative accuracy/ confidence

? The Ore Reserve applied procedures include numerous levels of review, benchmarking comparison and risk assessment, to determine accuracy within the stated confidence limits.

? The level of accuracy of the PFS is +/- 25%.

Considerations in favour of a high confidence in the Ore Reserves include:

? Detailed analysis and consideration of local Mongolian costs at a PFS level to best reflect the costs during the operations

? The process flowsheet is relatively simple producing a saleable concentrate and gold doré.

? The study team comprises an experienced team of experts with various background and expertise, with a mix of Mongolian and international experience in similar projects, to ensure identification of the most appropriate approach for project development as determined in the PFS.

Considerations in favour of a lower confidence in the Ore Reserves include:

? Commodity prices and exchange rate assumptions are subject to market forces and present an area of uncertainty.

? There is a degree of uncertainty associated with geological estimates. The Reserve classifications reflect the levels of geological confidence in the estimates.

? There are risks associated with impacts of natural phenomena including geotechnical assumptions, hydrological assumptions, and the modifying factors, commensurate of the PFS level detail of the study.

? The Ore Reserve is based on a global estimate. Modifying factors have been applied on a local scale.

? The PFS project has identified a material risk to the project water supply. The PFS has partially mitigated this risk to its water supply, and this will continue to be a core focus of the BFS with a forward work plan developed. This plan was developed by a team of competent persons & experts with contributions from SRK, a qualified Mongolian hydrogeologists from Litho exploration, the Kharmagtai government & community relations team, and O2 Mining. The project has a substantial water resource established nearby, but significant amounts of additional make-up water will be required to be identified to meet the full Stage 1 demand. Current predictions Kharmagtai requires approximately 350Ml/s make-up water supply for Stage 1, which is roughly doubled for Stage 2. Additional pumps and water pipelines are included in the PFS costing assuming water will be required to be pumped from other sources to site for the make-up water.

? A BFS is planned to commence in Q1 2025.