Xanadu Mines (ASX: $XAM) Quarterly Activities Report 31 March 2024

Xanadu Mines Ltd (Xanadu or the Company) reported strong progress in its three-horizon strategy during the quarter ending 31 March 2024. The Company made significant advancements in the Kharmagtai Copper-Gold Project (Kharmagtai) Pre-Feasibility Study (PFS), discovery exploration, and new project generation. The Kharmagtai PFS saw positive results in metallurgical testwork, exploration drilling expanded upon higher-grade zones, and a binding term sheet was agreed for the Sant Tolgoi Copper-Nickel Project.

Executive Chairman & Managing Director, Colin Moorhead, on Q1 2024 progress

The March Quarter was another successful period of progress for Xanadu, which saw the Company execute its strategy with a disciplined approach. Importantly, our teams operated through what proved to be a very cold winter without any significant safety or environmental incidents and we were proud to be able to assist the local community in a meaningful way through the provision of stockfeed and nutrients for their herds. The Kharmagtai PFS remains on track for delivery in the September Quarter of this year. In the March Quarter, metallurgical testwork further demonstrated project viability with strong rougher flotation results, and now the metallurgy team is balancing final recovery with concentrate grade to give us a very clean, high-quality concentrate to sell. Importantly the oxide leach program, a significant value uplift opportunity, returned strong recoveries with fast leach kinetics, showing us a clear path to potentially convert waste stripping from the PEA into early cash for the project. A major focus will now be on detailed mine and process engineering which will incorporate these metallurgical outcomes. In parallel our water exploration program is back online in the spring to demonstrate industrial capacity to operate the Kharmagtai mine.

Outlook and Planned Activities for June 2024 Quarter

Xanadu Mines is well-positioned to continue its strong progress in the upcoming quarters. The Company plans to complete the Kharmagtai PFS, exploration drilling, and portfolio expansion activities. The completion of optimization and hand-off to Mine Engineering & Design, second stage sulphide and oxide metallurgical testwork, and non-process infrastructure engineering & design are among the key activities planned for the June 2024 Quarter. Xanadu's continued focus on executing its strategy and delivering on its milestones is expected to drive transformational growth for the Company and the Kharmagtai project.