Xanadu Mines Ltd — Capital/Financing Update 2021

Feb 10, 2021

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DRILLING RECOMMENCES AT RED MOUNTAIN

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10[th] February 2021

Xanadu Mines Ltd (ASX: XAM, TSX: XAM) ( “Xanadu” or “the Company” ) is pleased to report that onground exploration activities have recommenced at the highly prospective Red Mountain Joint Venture ( JV ) with the Japan Oil, Gas and Metals National Corporation ( JOGMEC ).

Highlights

• On-ground exploration activities have recommenced at Red Mountain

• Red Mountain JV with JOGMEC is focused on discovery of a Tier-1 copper-gold porphyry deposit

• Red Mountain JV builds upon Xanadu’s other active exploration program at Kharmagtai in the South Gobi

• Program consists of 4,300 metres of diamond drilling

Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We are excited to have exploration drilling recommencing at our Red Mountain JV with JOGMEC. The fact that we can commence operational activities following local COVID-19 related restrictions is testament to the proactive and effective approach being taken by the Government of Mongolia in managing the pandemic.

Red Mountain offers a rare opportunity to access a large, under-explored porphyry district. In the coming months, we will deploy a systematic exploration program, including diamond drilling, that we expect will provide a new perspective on the mineral potential of the Red Mountain district. Diamond drilling will be testing several large-scale drill targets.”

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

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About Red Mountain

The Red Mountain JV project, located within the Dornogovi Province of southern Mongolia, approximately 420 kilometres southeast of Ulaanbaatar ( Figure 1 ), is a joint venture between Xanadu and JOGMEC. The project covers approximately 57 square kilometres in a frontier terrane with significant mineral endowment and has a granted 30-year mining licence. Red Mountain comprises a cluster of outcropping mineralising porphyry intrusions which display features typically found in the shallower parts of porphyry systems where narrow dykes and patchy mineralisation branch out above a mineralised stock. This underexplored porphyry district includes multiple porphyry copper-gold centres, mineralised tourmaline breccia pipes copper-gold/base metal skarns and high-grade epithermal gold veins.

Existing porphyry mineralisation at Red Mountain is hosted within narrow stockwork zones that have been focused around several narrow structurally controlled monzonite porphyry dykes. Emplacement of mineralisation appears to be controlled by intersection of northeast and north-northwest trending structures. The quartz-chalcopyrite-bornite stockwork mineralisation is associated with strong reddening albite-sericite-biotite-magnetite (potassic) alteration assemblage in the host lithology. The thin nature of the mineralising dykes, their irregular intrusion geometry, and the patchy distribution of stockwork mineralisation are all features typically found in the shallower parts of porphyry systems, where narrow dykes and patchy mineralisation branch out above a mineralised stock. Similar orebody geometries are found in the shallower parts of the Northparkes porphyry copper-gold ( Cu-Au ) deposits in NSW, where porphyry mineralisation has also been tightly focused along a controlling structure adjacent to a felsic pluton. Like Northparkes, there is the potential for further mineralisation along the main structures at Diorite Hill and Stockwork Hill, and the likelihood that mineralisation extends (and could amalgamate) at depth.

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FIGURE 1: Location of the Red Mountain Project in the South Gobi porphyry copper belt.

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Joint venture with JOGMEC

JOGMEC may earn up to 51% beneficial interest in the project by sole funding up to $US7.2 million in exploration expenditure over the next four years. The exploration objective of the earn-in deal is to discover Mongolia’s next world-class copper-porphyry deposit.

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FIGURE 2 : The Red Mountain Mining Licence showing location of main targets.

About Xanadu Mines

Xanadu is an ASX and TSX listed exploration company that seeks to discover and define globally significant porphyry copper-gold assets in Mongolia. We give investors exposure to large scale coppergold discoveries, and we create liquidity events for our shareholders at peak value points in the mining life cycle. Xanadu delivers this through a low cost of discovery, inventory growth, and by progressing projects from Discovery towards Pre-Feasibility.

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For further information, please visit www.xanadumines.com or contact:

Andrew Stewart CEO Xanadu Mines Ltd Andrew.stewart@xanadumines.com +61 409 819 922

This Announcement was authorised for release by Xanadu’s Board of Directors.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this Announcement, including information as to the future financial or ‐ operating performance of Xanadu and its projects may also include statements which are ‘forward looking statements’ that may include, amongst other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward-looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Xanadu, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from ‐ estimated or anticipated events or results reflected in such forward looking statements.

‐ Xanadu disclaims any intent or obligation to update publicly or release any revisions to any forward looking statements, whether as a result of new information, future events, circumstances or results or otherwise after the date of this Announcement or to reflect the occurrence of unanticipated events, other than required by the Corporations Act 2001 (Cth) and the Listing Rules of the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX). The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward ‐ looking statements.

All ‘forward ‐ looking statements’ made in this Announcement are qualified by the foregoing cautionary statements. Investors are cautioned that ‘forward ‐ looking statements’ are not guarantee of future ‐ performance and accordingly investors are cautioned not to put undue reliance on ‘forward looking statements’ due to the inherent uncertainty therein.

For further information please visit the Xanadu Mines Web Site at www.xanadumines.com.

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1.1 JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg	• The resource estimate is based on
techniques	cut channels, random chips, or	diamond drill core samples, RC chip
	specific specialised industry	samples and channel samples from surface
	standard measurement tools	trenches.
	appropriate to the minerals under	• Representative ½ core samples were split
	investigation, such as down hole	from PQ, HQ & NQ diameter diamond drill
	gamma sondes, or handheld XRF	core on site using rock saws, on a routine
	instruments, etc). These examples	2m sample interval that also honors
	should not be taken as limiting the	lithological/intrusive contacts.
	broad meaning of sampling.	• The orientation of the cut line is controlled
	• Include reference to measures taken	using the core orientation line ensuring
	to ensure sample representivity and	uniformity of core splitting wherever the
	the appropriate calibration of any	core has been successfully oriented.
	measurement tools or systems used.	• Sample intervals are defined and
	• Aspects of the determination of	subsequently checked by geologists, and
	mineralisation that are Material to	sample tags are attached (stapled) to the
	the Public Report.	plastic core trays for every sample interval.
	• In cases where ‘industry standard’	• RC chip samples are ¼ splits from one
	work has been done this would be	meter intervals using a 75%:25% riffle
	relatively simple (e.g. ‘reverse	splitter to obtain a 3kg sample
	circulation drilling was used to	• RC samples are uniform 2m samples
	obtain 1 m samples from which 3 kg	formed from the combination of two ¼
	was pulverised to produce a 30 g	split 1m samples.
	charge for fire assay’). In other
	cases, more explanation may be
	required, such as where there is
	coarse gold that has inherent
	sampling problems. Unusual
	commodities or mineralisation types
	(e.g. submarine nodules) may
	warrant disclosure of detailed
	information.
Drilling	• Drill type (e.g. core, reverse	• The Mineral Resource estimation has been
techniques	circulation, open-hole hammer,	based upon diamond drilling of PQ, HQ and
	rotary air blast, auger, Bangka,	NQ diameters with both standard and
	sonic, etc.) and details (e.g. core	triple tube core recovery configurations,
	diameter, triple or standard tube,	RC drilling and surface trenching with

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Criteria	JORC Code explanation	Commentary
	depth of diamond tails, face-	channel sampling.
	sampling bit or other type, whether	• All drill core drilled by Xanadu has been
	core is oriented and if so, by what	oriented using the “Reflex Ace” tool.
	method, etc).
Drill sample	• Method of recording and assessing	• Diamond drill core recoveries were
recovery	core and chip sample recoveries and	assessed using the standard industry (best)
	results assessed.	practice which involves: removing the core
	• Measures taken to maximise sample	from core trays; reassembling multiple
	recovery and ensure representative	core runs in a v-rail; measuring core
	nature of the samples.	lengths with a tape measure, assessing
	• Whether a relationship exists	recovery against core block depth
	between sample recovery and grade	measurements and recording any
	and whether sample bias may have	measured core loss for each core run.
	occurred due to preferential	• Diamond core recoveries average 97%
	loss/gain of fine/coarse material.	through mineralization.
		• Overall, core quality is good, with minimal
		core loss. Where there is localized faulting
		and or fracturing core recoveries decrease,
		however, this is a very small percentage of
		the mineralized 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	• Whether core and chip samples	• All drill core is geologically logged by well-
	have been geologically and	trained geologists using a modified
	geotechnically logged to a level of	“Anaconda-style” logging system
	detail to support appropriate	methodology. The Anaconda method of
	Mineral Resource estimation, mining	logging and mapping is specifically
	studies and metallurgical studies.	designed for porphyry Cu-Au mineral
	• Whether logging is qualitative or	systems and is entirely appropriate to
	quantitative in nature. Core (or	support Mineral Resource Estimation,
	costean, channel, etc) photography.	mining and metallurgical studies.
	• The total length and percentage of	• Logging of lithology, alteration and
	the relevant intersections logged.	mineralogy is intrinsically qualitative in

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Criteria	JORC Code explanation	Commentary
		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	• If core, whether cut or sawn and	• All drill core samples are ½ core splits from
techniques	whether quarter, half or all core	either PQ, HQ or NQ diameter cores. A
and sample	taken.	routine 2m sample interval is used, but this
preparation	• If non-core, whether riffled, tube	is varied locally to honour
	sampled, rotary split, etc and	lithological/intrusive contacts. The
	whether sampled wet or dry.	minimum allowed sample length is 30cm.
	• For all sample types, the nature,	• Core is appropriately split (onsite) using
	quality and appropriateness of the	diamond core saws with the cut line
	sample preparation technique.	routinely located relative to the core
	• Quality control procedures adopted	orientation line (where present) to provide
	for all sub-sampling stages to	consistency of sample split selection.
	maximise representivity of samples.	• The diamond saws are regularly flushed
	• Measures taken to ensure that the	with water to minimize potential
	sampling is representative of the in	contamination.
	situ material collected, including for	• A field duplicate ¼ core sample is collected
	instance results for field	every 30th sample to ensure the
	duplicate/second-half sampling.	“representivity of the in situ material
	• Whether sample sizes are	collected”. The performance of these field
	appropriate to the grain size of the	duplicates are routinely analysed as part of
	material being sampled.	Xanadu’s sample QC process.

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Criteria	JORC Code explanation	Commentary
		• 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	• The nature, quality and	• All samples were routinely assayed by ALS
assay data	appropriateness of the assaying and	Mongolia for gold
and	laboratory procedures used and	• Au is determined using a 25g fire assay
laboratory	whether the technique is considered	fusion, cupelled to obtain a bead, and
tests	partial or total.	digested with Aqua Regia, followed by an
	• For geophysical tools,	atomic absorption spectroscopy (AAS)
	spectrometers, handheld XRF	finish, with a lower detection (LDL) of 0.01
	instruments, etc, the parameters	ppm.
	used in determining the analysis	• All samples were also submitted to ALS
	including instrument make and	Mongolia for the 48 element package ME-
	model, reading times, calibrations	ICP61 using a four acid digest (considered
	factors applied and their derivation,	to be an effective total digest for the
	etc.	elements relevant to the MRE). Where
	• Nature of quality control procedures	copper is over-range (>1% Cu), it is
	adopted (eg standards, blanks,	analysed by a second analytical technique
	duplicates, external laboratory	(Cu-OG62), which has a higher upper
	checks) and whether acceptable	detection limit (UDL) of 5% copper.
	levels of accuracy (ie lack of bias)	• Quality assurance has been managed by

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Criteria	JORC Code explanation	Commentary
	and precision have been established.	insertion of appropriate Standards (1:30
		samples – suitable Ore Research Pty Ltd
		certified standards), Blanks (1:30 samples),
		Duplicates (1:30 samples – ¼ 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	• The verification of significant	• All assay data QAQC is checked prior to
of sampling	intersections by either independent	loading into XAM’s Geobank data base.
and assaying	or alternative company personnel.	• The data is managed by XAM geologists.
	• The use of twinned holes.	• The data base and geological
	• Documentation of primary data,	interpretation is managed by XAM.

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Criteria	JORC Code explanation	Commentary
	data entry procedures, data	• Check assays are submitted to an umpire
	verification, data storage (physical	lab (SGS Mongolia) for duplicate analysis.
	and electronic) protocols.	• No twinned drill holes exist.
	• Discuss any adjustment to assay	• There have been no adjustments to any of
	data.	the assay data.
Location of	• Accuracy and quality of surveys used	• Diamond drill holes have been surveyed
data points	to locate drill holes (collar and	with a differential global positioning
	down-hole surveys), trenches, mine	system (DGPS) to within 10cm accuracy.
	workings and other locations used in	• The grid system used for the project is
	Mineral Resource estimation.	UTM WGS-84 Zone 48N
	• Specification of the grid system	• Historically, Eastman Kodak and Flexit
	used.	electronic multi-shot downhole survey
	• Quality and adequacy of	tools have been used at Red Mountain to
	topographic control.	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 Red Mountain 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

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Criteria	JORC Code explanation	Commentary
		were sighted)
		• The project DTM is based on 1 m contours
		from satellite imagery with an accuracy of
		±0.1 m.
Data spacing	• Data spacing for reporting of	• Holes spacings range from <50m spacings
and	Exploration Results.	within the core of mineralization to +500m
distribution	• Whether the data spacing and	spacings for exploration drilling. Hole
	distribution is sufficient to establish	spacings can be determined using the
	the degree of geological and grade	sections and drill plans provided.
	continuity appropriate for the	• Holes range from vertical to an inclination
	Mineral Resource and Ore Reserve	of -60 degrees depending on the attitude
	estimation procedure(s) and	of the target and the drilling method.
	classifications applied.	• The data spacing and distribution is
	• Whether sample compositing has	sufficient to establish anomalism and
	been applied.	targeting for porphyry Cu-Au, tourmaline
		breccia and epithermal target types.
		• Holes have been drilled to a maximum of
		1,300m vertical depth.
		• The data spacing and distribution is
		sufficient to establish geological and grade
		continuity, and to support the Mineral
		Resource classification.
Orientation	• Whether the orientation of sampling	• Drilling is conducted in a predominantly
of data in	achieves unbiased sampling of	regular grid to allow unbiased
relation to	possible structures and the extent to	interpretation and targeting.
geological	which this is known, considering the	• Scissor drilling, as well as some vertical and
structure	deposit type.	oblique drilling, has been used in key
	• If the relationship between the	mineralised zones to achieve unbiased
	drilling orientation and the	sampling of interpreted structures and
	orientation of key mineralised	mineralised zones, and in particular to
	structures is considered to have	assist in constraining the geometry of the
	introduced a sampling bias, this	mineralised hydrothermal tourmaline-
	should be assessed and reported if	sulphide breccia domains.
	material.
Sample	• The measures taken to ensure	• Samples are delivered from the drill rig to
security	sample security.	the core shed twice daily and are never left
		unattended at the rig.

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Criteria	JORC Code explanation	Commentary
		• 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	• The results of any audits or reviews	• Internal audits of sampling techniques and
reviews	of sampling techniques and data.	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.

1.2 JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS

(Criteria in this section apply to all succeeding sections).

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Criteria		JORC Code (Section 2) Explanation	JORC Code (Section 2) Explanation	JORC Code (Section 2) Explanation		Commentary
	•	Type, reference name/number, location				• The Project comprises 1 Mining Licence
		and ownership including agreements or				(MV-17129A).
		material issues with third parties such				• Xanadu now owns 90% of Vantage LLC,
Mineral tenement and land tenure status		as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.				the 100% owner of the Oyut Ulaan mining licence. • The Mongolian Minerals Law (2006) and Mongolian Land Law (2002) govern exploration, mining and land use rights for the project.
	•	The security of the tenure held at the
		time of reporting along with any known
		impediments to obtaining a license to
		operate in	the area.
	•	Acknowledgment and		appraisal	of	• Previous exploration was conducted by
Exploration		exploration by other parties.				Quincunx Ltd, Ivanhoe Mines Ltd and
done by other parties	•					Turquoise Hill Resources Ltd including extensive drilling, surface
						geochemistry, geophysics, mapping.
	•	Deposit type, geological setting			and	• The mineralisation is characterised as
		style of mineralisation.				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
Geology						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 Red Mountain are
						atypical in that they are associated with
						intermediate intrusions of diorite to
						quartz diorite composition; however

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Criteria	JORC Code (Section 2) Explanation	Commentary
		the deposits are in terms of contained
		gold significant, and similar gold-rich
		porphyry deposits.
	• A summary of all information material	• Diamond drill holes are the principal
	to the understanding of the exploration	source of geological and grade data for
	results including a tabulation of the	the Project.
	following information for all Material	• See figures in ASX/TSX Announcement.
	drill holes:
	• easting and northing of the drill hole
	collar.
	• elevation or RL Reduced Level –
	elevation above sea level in metres) of
	the drill hole collar.
Drill hole Information	• dip and azimuth of the hole
	• down hole length and interception
	depth
	• hole length.
	• If the exclusion of this information is
	justified on the basis that the
	information is not Material and this
	exclusion does not detract from the
	understanding of the report, the
	Competent Person should clearly
	explain why this is the case.
	• In reporting Exploration Results,	• A nominal cut-off of 0.1% eCu is used in
	weighting averaging techniques,	copper dominant systems for
	maximum and/or minimum grade	identification of potentially significant
	truncations (eg cutting of high grades)	intercepts for reporting purposes.
	and cut-off grades are usually Material	Higher grade cut-offs are 0.3%, 0.6%
	and should be stated.	and 1% eCu.
Data Aggregation methods	• Where aggregate intercepts incorporate short lengths of high grade	• A nominal cut-off of 0.1g/t eAu is used in gold dominant systems like for
	results and longer lengths of low grade	identification of potentially significant
	results, the procedure used for such	intercepts for reporting purposes.
	aggregation should be stated and some	Higher grade cut-offs are 0.3g/t, 0.6g/t
	typical examples of such aggregations	and 1g/t eAu.
	should be shown in detail.	• Maximum contiguous dilution within
	• The assumptions used for any reporting	each intercept is 9m for 0.1%, 0.3%,

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Criteria		JORC Code (Section 2) Explanation	Commentary
		of metal equivalent values should be	0.6% and 1% eCu.
		clearly stated.	• 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 (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. The copper
			equivalent calculation used is based off
			the eCu calculation defined by CSA in
			the 2018 Mineral Resource Upgrade.
			• Copper equivalent (CuEq or eCu) grade
			values were calculated using the
			following formula:
			• eCu or CuEq = Cu + Au * 0.62097 *
			0.8235,
			• Gold Equivalent (eAu) grade values
			were calculated using the following
			formula:
			• eAu = Au + Cu / 0.62097 * 0.8235.
			• Where:
			• Cu - copper grade (%)
			• Au - gold grade (g/t)
			• 0.62097- conversion factor (gold to

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Criteria	JORC Code (Section 2) Explanation	Commentary
		copper)
		• 0.8235 - relative recovery of
		gold to copper (82.35%)
		• The copper equivalent formula was
		based on the following parameters
		(prices are in USD):
		• Copper price - 3.1
		$/lb (or 6834 $/t)
		• Gold price - 1320 $/oz
		• Copper recovery - 85%
		• Gold recovery - 70%
		• Relative recovery of gold to copper =
		70% / 85% = 82.35%.
	• These relationships are particularly	• Mineralised structures are variable in
	important in the reporting of	orientation, and therefore drill
	Exploration Results.	orientations have been adjusted from
	• If the geometry of the mineralisation	place to place in order to allow
Relationship between	with respect to the drill hole angle is	intersection angles as close as possible
mineralisation	known, its nature should be reported.	to true widths.
on widths	• If it is not known and only the down hole	• Exploration results have been reported
and intercept lengths	lengths are reported, there should be a clear statement to this effect (eg ‘down	as an interval with 'from' and 'to' stated in tables of significant economic
	hole length, true width not known’).	intercepts. Tables clearly indicate that
		true widths will generally be narrower
		than those reported.
	• Appropriate maps and sections (with	• See figures in ASX/TSX Announcement.
	scales) and tabulations of intercepts
	should be included for any significant
Diagrams	discovery being reported These should
	include, but not be limited to a plan
	view of drill hole collar locations and
	appropriate sectional views.
	• Where comprehensive reporting of all	• Resources have been reported at a
Balanced	Exploration Results is not practicable,	range of cut-off grades, above a
Reporting	representative reporting of both low	minimum suitable for open pit mining,
	and high grades and/or widths should	and above a minimum suitable for
	be practiced to avoid misleading

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Criteria		JORC Code (Section 2) Explanation	Commentary
		reporting of Exploration Results.	underground mining.
	•	Other exploration data, if meaningful	• Extensive work in this area has been
		and material, should be reported	done and is reported separately.
		including (but not limited to): geological
		observations; geophysical survey
Other		results; geochemical survey results;
substantive exploration		bulk samples – size and method of
data		treatment; metallurgical test results;
		bulk density, groundwater,
		geotechnical and rock characteristics;
		potential deleterious or contaminating
		substances.
	•	The nature and scale of planned further	• The mineralisation is open at depth and
		work (eg tests for lateral extensions or	along strike.
		depth extensions or large-scale step-	• Current estimates are restricted to
		out drilling).	those expected to be reasonable for
Further	•	Diagrams clearly highlighting the areas	open pit mining. Limited drilling below
Work		of possible extensions, including the	this depth (-300m RLl) shows widths
		main geological interpretations and	and grades potentially suitable for
		future drilling areas, provided this	underground extraction.
		information is not commercially	• Exploration on going.
		sensitive.

1.3 JORC TABLE 1 - SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES

Mineral Resources are not reported so this is not applicable to this report.

1.4 JORC TABLE 1 - SECTION 4 ESTIMATION AND REPORTING OF ORE RESERVES

Ore Reserves are not reported so this is not applicable to this report.