Two Diamond Drill Rigs Target High-Grade Bornite Zones at Kharmagtai - Seite 2

The style of bornite mineralisation encountered is similar to the main zone of high-grade copper-gold mineralisation within the Hugo Dummett deposit at the Oyu Tolgoi project, 120km to the south of Kharmagtai.

It should be noted that hole KHDDH559B is deep relative to other drilling at Kharmagtai, with mineralisation encountered at around 500m depth, but relatively shallow in comparison to the bornite mineralisation at Hugo Dummett. In comparison, the high-grade zones at Hugo Dummett which are much deeper, starting around 700m and extending to >1,500m depth. This highlights that significant, high grade potential at Kharmagtai remains at greater depth the current drilling.

Drill Holes KHDDH563 and KHDDH564

In response to the high-grade, gold-rich bornite intercept at KHDDH559B, two diamond drill rigs have commenced follow-up drilling. Two drill holes are currently underway, KHDDH563 and KHDDH564, designed to test above and below hole KHDDH559B, clarify the offsets and fault structures, and further define the vertical extent of high-grade mineralisation. The results will tell us whether the bornite mineralisation extends up dip and south of the intercept in KHDDH559B and across the fault as shown in Figure 1. Results from these holes are expected mid-April 2021.

Drill hole KHDDH563 is designed as a scissor hole to KHDDH559B, drilling from the south to the north and targeting the up-dip and southern extensions to the high-grade bornite zone. This hole aims to expand the current zone of mineralisation and confirm the true width.

Drill hole KHDDH564 is designed as a larger step back from KHDDH563, and to test for a repeat of the high-grade bornite zone, below and south of Stockwork Hill. This hole will also pass through the interpreted along-strike extension of White Hill and has the potential to link these two zones of mineralisation. Should KHDDH564 be successful, this will represent a step change to the Kharmagtai project.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/808b62b0-877f-437a ...

While KHDDH563 and KHDDH564 are focused on Stockwork Hill (Figure 2), they will also inform the Phase 2 search for further high-grade extensions at depth under Copper Hill, White Hill, Golden Eagle and Zaraa.

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/16f2c354-a1df-4192 ...

Red Mountain

Drilling continues at Red Mountain with two diamond drill rigs executing a 4,300m drill program to target large scale copper gold porphyry mineralisation. Xanadu’s farm-in partner, JOGMEC, is funding the Red Mountain exploration program.