The supplementary exploration program will comprise some 2,500 metres of diamond core drilling and will target areas of particular potential identified in campaign 1. Drilling commence d on 4 November and is expected to be completed before early/ mid – December . Drilling will mainly target the enlargement of higher – grade zones , specifically :

• potential extensions to porphyry copper – gold mineralisation at Altan Tolgoi;

• connections between the stockwork and tourmaline breccia – hosted copper – gold mineralisation at Altan Tolgoi ; and

• a new 4 th area of mineralisation not included in the current Exploration Target.

The results will add useful insights to the geological model in areas of higher – grade mineralisation and should contribute to Xanadu ‘s resource estimate for the Kharmagtai project .

Xanadu ‘s Managing Director , George Lloyd , said : " We have taken the project a long way since its acquisition earlier in the year a nd this sup plementary program , armed with the insights from the first campaign, allows us to progress this understanding still further ahead of a more substantive program pla nned for in 2015."