Xanadu Accelerates 2021 Exploration Program

• Nature and high quality of sampling (e.g. minimize channels, random chips, or particular specialised business commonplace measurement instruments acceptable to the minerals beneath investigation, similar to down gap gamma sondes, or handheld XRF devices, and many others.). These examples shouldn’t be taken as limiting the broad which means of sampling.
• Embody reference to measures taken to make sure pattern representivity and the suitable calibration of any measurement instruments or techniques used.
• Elements of the dedication of mineralisation which are Materials to the Public Report.
• In circumstances the place ‘business commonplace’ work has been performed this could be comparatively easy (e.g. ‘reverse circulation drilling was used to acquire 1 m samples from which 3 kg was pulverised to provide a 30 g cost for fireplace assay’). In different circumstances, extra rationalization could also be required, similar to the place there may be coarse gold that has inherent sampling issues. Uncommon commodities or mineralisation varieties (e.g. submarine nodules) might warrant disclosure of detailed info.

• Consultant ½ core samples had been break up from PQ, HQ & NQ diameter diamond drill core on web site utilizing rock saws, on a routine 2m pattern interval that additionally honours lithological/intrusive contacts.
• The orientation of the minimize line is managed utilizing the core orientation line guaranteeing uniformity of core splitting wherever the core has been efficiently oriented.
• Pattern intervals are outlined and subsequently checked by geologists, and pattern tags are hooked up (stapled) to the plastic core trays for each pattern interval.
• RC chip samples are ¼ splits from one meter intervals utilizing a 75%:25% riffle splitter to acquire a 3kg pattern
• RC samples are uniform 2m samples shaped from the mix of two ¼ break up 1m samples.

• Drill kind (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, and many others.) and particulars (e.g. core diameter, triple or commonplace tube, depth of diamond tails, face-sampling bit or different kind, whether or not core is oriented and in that case, by what methodology, and many others.).

• The Mineral Useful resource estimation has been based mostly upon diamond drilling of PQ, HQ and NQ diameters with each commonplace and triple tube core restoration configurations, RC drilling and floor trenching with channel sampling.
• All drill core drilled by Xanadu has been oriented utilizing the “Reflex Ace” software.

• Technique of recording and assessing core and chip pattern recoveries and outcomes assessed.
• Measures taken to maximise pattern restoration and guarantee consultant nature of the samples.
• Whether or not a relationship exists between pattern restoration and grade and whether or not pattern bias might have occurred attributable to preferential loss/acquire of positive/coarse materials.

• Diamond drill core recoveries had been assessed utilizing the usual business (finest) apply which includes: eradicating the core from core trays; reassembling a number of core runs in a v-rail; measuring core lengths with a tape measure, assessing restoration towards core block depth measurements and recording any measured core loss for every core run.
• Diamond core recoveries common 97% by means of mineralization.
• Total, core high quality is sweet, with minimal core loss. The place there may be localized faulting and or fracturing core recoveries lower, nonetheless, it is a very small share of the mineralized intersections.
• RC recoveries are measured utilizing complete weight of every 1m intercept measured earlier than splitting
• Evaluation of restoration outcomes vs grade exhibits no vital traits that may point out sampling bias launched by variable restoration in fault/fracture zones.

• Whether or not core and chip samples have been geologically and geotechnically logged to a stage of element to help acceptable Mineral Useful resource estimation, mining research and metallurgical research.
• Whether or not logging is qualitative or quantitative in nature. Core (or costean, channel, and many others.) images.
• The overall size and share of the related intersections logged.

• All drill core is geologically logged by well-trained geologists utilizing a modified “Anaconda-style” logging system methodology. The Anaconda methodology of logging and mapping is particularly designed for porphyry Cu-Au mineral techniques and is fully acceptable to help Mineral Useful resource Estimation, mining, and metallurgical research.
• Logging of lithology, alteration and mineralogy is intrinsically qualitative in nature. Nevertheless, the logging is subsequently supported by 4 Acid ICP-MS (48 ingredient) geochemistry and SWIR spectral mineralogy (facilitating semi-quantitative/calculated mineralogical, lithological and alteration classification) which is built-in with the logging to enhance cross part interpretation and 3D geological mannequin growth.
• Drill core can be systematically logged for each geotechnical options and geological buildings. The place drill core has been efficiently oriented, the orientation of buildings and geotechnical options are additionally routinely measured.
• Each moist and dry core photographs are taken after core has been logged and marked-up however earlier than drill core has been minimize.

• If core, whether or not minimize or sawn and whether or not quarter, half or all core taken.
• If non-core, whether or not riffled, tube sampled, rotary break up, and many others. and whether or not sampled moist or dry.
• For all pattern varieties, the character, high quality, and appropriateness of the pattern preparation method.
• High quality management procedures adopted for all sub-sampling levels to maximise representivity of samples.
• Measures taken to make sure that the sampling is consultant of the in-situ materials collected, together with as an example outcomes for area duplicate/second-half sampling.
• Whether or not pattern sizes are acceptable to the grain measurement of the fabric being sampled.

• All drill core samples are ½ core splits from both PQ, HQ or NQ diameter cores. A routine 2m pattern interval is used, however that is diverse domestically to honour lithological/intrusive contacts. The minimal allowed pattern size is 30cm.
• Core is appropriately break up (onsite) utilizing diamond core saws with the minimize line routinely situated relative to the core orientation line (the place current) to offer consistency of pattern break up choice.
• The diamond saws are repeatedly flushed with water to reduce potential contamination.
• A area duplicate ¼ core pattern is collected each 30^th pattern to make sure the “representivity of the in-situ materials collected”. The efficiency of those area duplicates is routinely analysed as a part of Xanadu’s pattern QC course of.
• Routine pattern preparation and analyses of DDH samples had been carried out by ALS Mongolia LLC (ALS Mongolia), who operates an unbiased pattern preparation and analytical laboratory in Ulaanbaatar.
• All samples had been ready to satisfy commonplace high quality management procedures as follows: Crushed to 75% passing 2mm, break up to 1kg, pulverised to 85% passing 200 mesh (75 microns) and break up to 150g pattern pulp.
• ALS Mongolia Geochemistry labs high quality administration system is licensed to ISO 9001:2008.
• The pattern help (sub-sample mass and comminution) is suitable for the grainsize and Cu-Au distribution of the porphyry Cu-Au mineralization and related host rocks.

• The character, high quality and appropriateness of the assaying and laboratory procedures used and whether or not the method is taken into account partial or whole.
• For geophysical instruments, spectrometers, handheld XRF devices, and many others., the parameters utilized in figuring out the evaluation together with instrument make and mannequin, studying occasions, calibrations components utilized and their derivation, and many others.
• Nature of high quality management procedures adopted (e.g. requirements, blanks, duplicates, exterior laboratory checks) and whether or not acceptable ranges of accuracy (i.e. lack of bias) and precision have been established.

• All samples had been routinely assayed by ALS Mongolia for gold
• Au is decided utilizing a 25g fireplace assay fusion, cupelled to acquire a bead, and digested with Aqua Regia, adopted by an atomic absorption spectroscopy (AAS) end, with a decrease detection (LDL) of 0.01 ppm.
• All samples had been additionally submitted to ALS Mongolia for the 48-element bundle ME-ICP61 utilizing a four-acid digest (thought-about to be an efficient whole digest for the weather related to the MRE). The place copper is over-range (>1% Cu), it’s analysed by a second analytical method (Cu-OG62), which has the next higher detection restrict (UDL) of 5% copper.
• High quality assurance has been managed by insertion of acceptable Requirements (1:30 samples – appropriate Ore Analysis Pty Ltd licensed requirements), Blanks (1:30 samples), Duplicates (1:30 samples – ¼ core duplicate) by XAM.
• Assay outcomes outdoors the optimum vary for strategies had been re-analysed by acceptable strategies.
• Ore Analysis Pty Ltd licensed copper and gold requirements have been applied as part of QC procedures, in addition to coarse and pulp blanks, and authorized matrix matched copper-gold requirements.
• QC monitoring is an energetic and ongoing processes on batch by batch foundation by which unacceptable outcomes are re-assayed as quickly as practicable.
• Previous to 2014: Cu, Ag, Pb, Zn, As and Mo had been routinely decided utilizing a three-acid-digestion of a 0.3g sub-sample adopted by an AAS end (AAS21R) at SGS Mongolia. Samples had been digested with nitric, hydrochloric and perchloric acids to dryness earlier than leaching with hydrochloric acid to dissolve soluble salts and made to 15ml quantity with distilled water. The LDL for copper utilizing this method was 2ppm. The place copper was over-range (>1% Cu), it was analysed by a second analytical method (AAS22S), which has the next higher detection restrict (UDL) of 5% copper. Gold evaluation methodology was primarily unchanged.

• The verification of serious intersections by both unbiased or different firm personnel.
• Using twinned holes.
• Documentation of main information, information entry procedures, information verification, information storage (bodily and digital) protocols.
• Talk about any adjustment to assay information.

• All assay information QAQC is checked previous to loading into XAM’s Geobank information base.
• The information is managed by XAM geologists.
• The information base and geological interpretation is managed by XAM.
• Test assays are submitted to an umpire lab (SGS Mongolia) for duplicate evaluation.
• No twinned drill holes exist.
• There have been no changes to any of the assay information.

• Accuracy and high quality of surveys used to find drill holes (collar and down-hole surveys), trenches, mine workings and different areas utilized in Mineral Useful resource estimation.
• Specification of the grid system used.
• High quality and adequacy of topographic management.

• Diamond drill holes have been surveyed with a differential international positioning system (DGPS) to inside 10cm accuracy.
• The grid system used for the undertaking is UTM WGS-84 Zone 48N
• Traditionally, Eastman Kodak and Flexit digital multi-shot downhole survey instruments have been used at Kharmagtai to gather down gap azimuth and inclination info for almost all of the diamond drill holes. Single pictures had been sometimes taken each 30m to 50m in the course of the drilling course of, and a multi-shot survey with readings each 3-5m are carried out on the completion of the drill gap. As these instruments depend on the earth’s magnetic area to measure azimuth, there may be some localised interference/inaccuracy launched by the presence of magnetite in some elements of the Kharmagtai mineral system. The extent of this interference can’t be quantified on a reading-by-reading foundation.
• Extra just lately (since September 2017), a north-seeking gyro has been employed by the drilling crews on web site (rented and operated by the drilling contractor), offering correct downhole orientation measurements unaffected by magnetic results. Xanadu have a everlasting calibration station setup for the gyro software, which is routinely calibrated each 2 weeks (calibration information are maintained and had been sighted)
• The undertaking DTM relies on 1 m contours from satellite tv for pc imagery with an accuracy of ±0.1 m.

• Knowledge spacing for reporting of Exploration Outcomes.
• Whether or not the info spacing, and distribution is adequate to ascertain the diploma of geological and grade continuity acceptable for the Mineral Useful resource and Ore Reserve estimation process(s) and classifications utilized.
• Whether or not pattern compositing has been utilized.

• Holes spacings vary from <50m spacings throughout the core of mineralization to +500m spacings for exploration drilling. Gap spacings may be decided utilizing the sections and drill plans offered.
• Holes vary from vertical to an inclination of -60 levels relying on the perspective of the goal and the drilling methodology.
• The information spacing and distribution is adequate to ascertain anomalism and concentrating on for porphyry Cu-Au, tourmaline breccia and epithermal goal varieties.
• Holes have been drilled to a most of 1,300m vertical depth.
• The information spacing and distribution is adequate to ascertain geological and grade continuity, and to help the Mineral Useful resource classification.

• Whether or not the orientation of sampling achieves unbiased sampling of doable buildings and the extent to which that is identified, contemplating the deposit kind.
• If the connection between the drilling orientation and the orientation of key mineralised buildings is taken into account to have launched a sampling bias, this needs to be assessed and reported if materials.

• Drilling is carried out in a predominantly common grid to permit unbiased interpretation and concentrating on.
• Scissor drilling, in addition to some vertical and indirect drilling, has been utilized in key mineralised zones to attain unbiased sampling of interpreted buildings and mineralised zones, and specifically to help in constraining the geometry of the mineralised hydrothermal tourmaline-sulphide breccia domains.

• The measures taken to make sure pattern safety.

• Samples are delivered from the drill rig to the core shed twice every day and are by no means left unattended on the rig.
• Samples are dispatched from web site in locked bins transported on XAM firm automobiles to ALS lab in Ulaanbaatar.
• Pattern cargo receipt is signed off on the Laboratory with extra e-mail affirmation of receipt.
• Samples are then saved on the lab and returned to a locked storage web site.

• The outcomes of any audits or evaluations of sampling strategies and information.

• Inside audits of sampling strategies and information administration are undertaken regularly, to make sure business finest apply is employed always.
• Exterior evaluations and audits have been carried out by the next teams:
• 2012: AMC Consultants Pty Ltd. was engaged to conduct an Impartial Technical Report which reviewed drilling and sampling procedures. It was concluded that sampling and information document was to an acceptable commonplace.
• 2013: Mining Associates Ltd. was engaged to conduct an Impartial Technical Report back to evaluate drilling, sampling strategies and QAQC. Strategies had been discovered to evolve to worldwide finest apply.
• 2018: CSA International reviewed your entire drilling, logging, sampling, pattern transport and laboratory processes in the course of the competent individuals web site go to for the 2018 MRe and located the techniques and adherence to protocols to be to an acceptable commonplace.

• The Challenge includes 2 Mining Licences (MV-17129A Oyut Ulaan and (MV-17387A Kharmagtai):
  • Xanadu now owns 90% of Vantage LLC, the 100% proprietor of the Oyut Ulaan mining licence.
  • The Kharmagtai mining license MV-17387A is 100% owned by Oyut Ulaan LLC. Xanadu has an 85% curiosity in Mongol Metals LLC, which has 90% curiosity in Oyut Ulaan LLC. The remaining 10% in Oyut Ulaan LLC is owned by Quincunx (BVI) Ltd (“Quincunx”).
• The Mongolian Minerals Legislation (2006) and Mongolian Land Legislation (2002) govern exploration, mining, and land use rights for the undertaking.

• Earlier exploration at Kharmagtai was carried out by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill Assets Ltd together with intensive drilling, floor geochemistry, geophysics, mapping.
• Earlier exploration at Purple Mountain (Oyut Ulaan) was carried out by Ivanhoe Mines.

• The mineralisation is characterised as porphyry copper-gold kind.
• Porphyry copper-gold deposits are shaped from magmatic hydrothermal fluids sometimes related to felsic intrusive shares which have deposited metals as sulphides each throughout the intrusive and the intruded host rocks. Quartz stockwork veining is usually related to sulphides occurring each throughout the quartz veinlets and disseminated thought out the wall rock. Porphyry deposits are sometimes giant tonnage deposits starting from low to excessive grade and are typically mined by giant scale open pit or underground bulk mining strategies. The deposits at Kharmagtai are atypical in that they’re related to intermediate intrusions of diorite to quartz diorite composition; nonetheless, the deposits are when it comes to contained gold vital, and related gold-rich porphyry deposits.

• Diamond drill holes are the principal supply of geological and grade information for the Challenge.
• See figures on this ASX/TSX Announcement.

• The CSAMT information was transformed into 2D line information utilizing the Zonge CSAMT processing software program after which transformed into 3D area utilizing a UBC inversion course of. Inversion match was acceptable, and error was typically low.
• A nominal cut-off of 0.1% eCu is utilized in copper dominant techniques for identification of probably vital intercepts for reporting functions. Greater grade cut-offs are 0.3%, 0.6% and 1% eCu.
• A nominal cut-off of 0.1g/t eAu is utilized in gold dominant techniques like Golden Eagle for identification of probably vital intercepts for reporting functions. Greater grade cut-offs are 0.3g/t, 0.6g/t and 1g/t eAu.
• Most contiguous dilution inside every intercept is 9m for 0.1%, 0.3%, 0.6% and 1% eCu.
• A lot of the reported intercepts are proven in adequate element, together with maxima and subintervals, to permit the reader to make an evaluation of the steadiness of excessive and low grades within the intercept.
• Informing samples have been composited to 2 metre lengths honouring the geological domains and adjusted the place mandatory to make sure that no residual pattern lengths have been excluded (finest match).

The copper equal (eCu) calculation represents the entire metallic worth for every metallic, multiplied by the conversion issue, summed, and expressed in equal copper share with a metallurgical restoration issue utilized. The copper equal calculation used relies off the eCu calculation outlined by CSA within the 2018 Mineral Useful resource Improve.

Copper equal (CuEq or eCu) grade values had been calculated utilizing the next system:

eCu or CuEq = Cu + Au * 0.62097 * 0.8235,

Gold Equal (eAu) grade values had been calculated utilizing the next system:

eAu = Au + Cu / 0.62097 * 0.8235.

The place:

Cu – copper grade (%)

Au – gold grade (g/t)

0.62097 – conversion issue (gold to copper)

0.8235 – relative restoration of gold to copper (82.35%)

The copper equal system was based mostly on the next parameters (costs are in USD):

• Copper worth – 3.1 $/lb (or 6834 $/t)
• Gold worth – 1320 $/oz
• Copper restoration – 85%
• Gold restoration – 70%
• Relative restoration of gold to copper = 70% / 85% = 82.35%.

• Mineralised buildings are variable in orientation, and subsequently drill orientations have been adjusted from place to put so as to enable intersection angles as shut as doable to true widths.
• Exploration outcomes have been reported as an interval with ‘from’ and ‘to’ said in tables of serious financial intercepts. Tables clearly point out that true widths will typically be narrower than these reported.

• See figures within the physique of the report.

• Assets have been reported at a spread of cut-off grades, above a minimal appropriate for open pit mining, and above a minimal appropriate for underground mining.

• Intensive work on this space has been performed and is reported individually.

• The mineralisation is open at depth and alongside strike.
• Present estimates are restricted to these anticipated to be affordable for open pit mining. Restricted drilling under this depth (-300m RLl) exhibits widths and grades doubtlessly appropriate for underground extraction.
• Exploration on going.