Page 1

XANADU MINES QUARTERLY ACTIVITIES REPORT for the three months ended 30 June 2021 ( figures are unaudited and in A $ except where stated ) 29 July 2021 June 2021 Quarter Highlights Exploration continued at Kharmagtai and Red Mountain districts in the South Gobi Region of Mongolia , with significant additions to mineralisation at White Hill , Kharmagtai District , and multiple strong electromagnetic conductor anomalies identified at Stairy , Red Hill District . COVID - 19 restrictions impacted operations , however robust management plans enabled the Company to maintain exploration activity with high safety standards . A successful capital raise of $ 10.2 million ensured Xanadu is well funded to execute its strategy . Kharmagtai District Completed 7 holes for approximately 8,670 metres using 3 diamond drill rigs . This includes 7,250 metres of the current 23,000 metre program , to be completed by Q4 of CY2021 . Significant drilling intercepts from the Stockwork Hill deposit included : О KHDDH565 : 499m @ 0.31 % Cu and 0.39 g / t Au ( 0.51 % eCu ) from 656m . 1 ○ KHDDH567 : 86.7m @ 0.61 % eCu from 660.3m 2 ○ KHDDH568 : 46.4m @ 0.60 % eCu from 693.7m² • KHDDH565 expanded the higher - grade zone of chalcopyrite and bornite mineralisation south of the Stockwork Hill resource both in width and significantly along strike . • KHDDH567 and KHDDH568 , scissor holes following up KHDDH565 , confirmed the location of the broader zone of high - grade mineralisation but is interpreted to have missed the very high grade , gold- rich bornite zone due to displacement along the Fifty - Fifty fault . Subsequent drilling resulted in a large - scale extension at White Hill ( KHDDH569 ) and potential new discovery between Zaraa and Stockwork Hill ( KHDDH574 ) . ³ Red Mountain District • Ground Moving Loop Electromagnetic ( MLEM ) survey completed at the Stairy prospect at Red Mountain , which identified several strong conductor anomalies . 4 1 ASX / TSX Announcement 20 April 2021 - New Drilling Intercepts Significant Copper Sulphides & ASX Announcement 28 May 2021 - Exploration Update 2 ASX / TSX Announcement 17 June 2021 - Exploration Update Kharmagtai 3 ASX / TSX Announcement 13 July 2021 - Large Scale Extension at White Hill 4 ASX / TSX Announcement 16 June 2021 - Multiple Strong MLEM Conductors Detected at Stairy AUSTRALIA c / o Company Matters Pty Limited Level 12 , 680 George Street Sydney NSW 2000 T : +612 8280 7497 MONGOLIA Suite 23 , Building 9B Olympic St , Sukhbaatar District Ulaanbaatar , Mongolia T : +967 7012 0211 Xanadu Mines Ltd ACN 114 249 026 www.xanadumines.com