Building a leading copper & gold company Corporate Presentaon March 2013 Overview 1 Highlights 2 Leadership 3 Project Por6olio 4 Project Profiles 5 Coking Coal JV 6 HSE & Community Contact Details Highlights Building a leading copper and gold company Capital Structure (A$) Last trade 7.2 c One of the last great exploraon froners: highly mineralised and Issued shares 199.2 m vastly underexplored mineral belts known to host large deposits Market capitaliza6on $14.3 m Cash $7.5 m Culture of exploraon: project generaon through boQom-up Enterprise Value $6.9 m exploraon and deep regional knowledge led experienced geoscienPsts Leadership A strategic posi6on in emerging mineral belts: por6olio of exploraon assets with idenPfied high priority targets Chairman Denis Gately CEO George Lloyd Strong project execuon: exploraon team with decades of combined CFO Mark Langan experience running exploraon programs under Mongolian condiPons Chief Geologist Andrew Stewart Exec. Director Ganbayar Lkhagvasuren Experienced management: proven record of mine discovery and development with a strong team built over two decades Strategic Investors Sakari Energy (PTT) 12.4% Value Creaon: through project generaon, prospect ranking and prioriPzaon and Pght capital management The Noble Group 9.0% Leadership Strong team with a balance of technical and commercial experience in natural resources Denis is a commercial/corporate lawyer, with over 30 years’ experience in the resources Mr Denis Gately sector. He was a partner at law firm Minter Ellison and led the firm’s resources and energy Chairman industry. He was a director of Gloucester Coal Ltd during its recent merger with Yancoal. George is an engineer with 12 years of corporate finance and direct investment experience in Mr George Lloyd the natural resources sector including substanPal experience in Mongolia and other Chief Execuve Officer resource-rich emerging markets. Mark is a Chartered Accountant with 25 years experience in public pracPce and commerce. Mr Mark Langan He has worked companies with operaons in the Asia Pacific region and has substanPal Chief Financial Officer listed company experience. Mr Andrew Stewart Andy is a geologist with +15 yrs mineral exploraon, project generaon & evaluaon across Chief Geologist several commodiPes with Vale and Ivanhoe. Specialist in Asian Copper & Gold Exploraon. Mr Ganbayar Lkhagvasuren Ganbayar has over 15 years experience in the resource sector in Mongolia. Extensive ExecuPve Director network of high level contacts in government and business throughout Mongolia. The Noble Group Hannah is VP of Asset Development & Operaons at Noble Resources Limited. A lawyer with several Mrs Hannah Badenach years experience in Asia. Hannah was MD of QGX Mongol LLC from 2006 unPl the company was sold Non ExecuPve Director in 2008. Project Por6olio Copper-gold & gold strategy based on exploring newly recognised mineral districts (emerging belts) Project Por6olio Aggressive & focused explora6on • Exploraon discovery remains our key driver for value adding growth and for maximising shareholder returns over the long term. A key objecPve of our copper-gold & gold exploraon strategy is based on exploring newly recognised mining or mineral districts (emerging belts). The principal targets for XAM’s exploraon are porphyry copper-gold & epithermal gold deposits. Phase 1 - Areas of Interest • Conceptual exploraon models South Gobi Exploraon Licenses • Favourable host rocks, structures Argalant Uul & Amgalant Long Term Strategy and/or geophysics Phase 2 - Anomalous Prospects • Strongly anomalous geochemical results Suug Elgen Uul Zost Uul • Exploratory drilling • First approach on ore/deposit quality and infra-structure Medium Priority Projects Sharchuluut Uul Discovery Phase 3 - Mineralised Prospects • Prospects containing drill intersecPons of mineralised width and grade which would be Oyut Ulaan High Priority Project economic if a sufficient tonnage was located. Confirmaon of Resources Phase 4 - Mineral Deposits • Prospects containing mineralisaon of a sufficient ? Inferred width, grade and potenPal tonnage to warrant the esPmaon of resources • Economic evaluaon Oyut Ulaan A significant gold-rich porphyry copper district with numerous mineralised porphyry centres • Located within the Dornogovi Province • XAM to earn 100% on a staged basis • Subject to regulatory approval under the new foreign investment law Au-rich Porphyry Copper District • Large district (40 square kilometres) • Moderately-eroded porphyry environment • High grade, Au-rich structurally controlled porphyry systems with walk- up drill targets • FerPle, oxidized, mineralised monzoniPc intrusions and copper- mineralised magnePte skarns is reminiscent of the Cadia Cu-Au porphyry deposits in NSW Australia Stockwork (7662) 2.18% Cu & Tourmaline (7659) 15% Cu & South West (7660) 1.78 g/t Au, 1.78% Cu Stockwork (7661) 1.74% Cu, 1.06 g/t Au 0.66g/t Au 33g/t Ag Sharchuluut Uul Potenal for large copper-gold resource close to infrastructure • Bulgan Province of Mongolia, approximately 230km NW of Ulaanbaatar • Approximately 40km NW of the world-class Erdenet Cu-Mo deposit • Rail & road infrastructure is nearby and well-developed Erdenet Porphyry Trend • Project strategically located within 40km of world class Erdenet mine • Operated by Erdenet Mining Corporaon • Giant porphyry Cu-Mo deposit (2.370 Mt @ 0.38% Cu & 0.013% Mo) • Annual producPon 20 to 25 Mt @ 0.65% Cu Sharchuluut project • High potenPal to discover a large satellite deposit(s) to the Erdenet • Porphyries typically occur in clusters • Poorly explored (current drilling is relavely shallow) Regional air magnetic data taken JICA Magnetite veins (A veins) Hydrothermal / magmatic breccia Elgen Zost Uul A low-sulphida6on epithermal gold with numerous drill targets and untested prospects • Located within the Dornogovi Province of Mongolia • XAM currently holds 80% through a joint venture • Three shallowly eroded epithermal • Excellent potenPal for the discovery of a mulP-million ounce Au deposit with bonanza grade shoots Large License holding • Regional Landsat & geochemical anomalies held by Xanadu • 4 exploraon licenses covering approximately 401km² Regional Geology • Mesozoic ConPnental extension • Bimodal volcanism associated with extension • Two exploraon targets (1) High grade quartz-adularia epithermal veins (2) Low grade bulk tonnage silicified breccia's (Zost & Suug) Zost Uul Prospect Exposed silica sinters at Suuj Elgen Uul Prospect Amgalant & Argalant Targe6ng porphyry Cu-Au & epithermal Au deposits in known Mineral Belts • Aggressive Project Generaon • Emerging World-class Porphyry Belt Amgalant (15157X) & Argalant (15259X) • Along strike from OT & Tsagaan Suvarga Cu-Mo deposits Amgalant Prospect Stockwork outcrop Cu Stockwork Porphyry veins • Numerous geochemical & geophysical anomalies • Shallowly eroded Cu ± Mo-Au porphyry environment • Large untested geophysical targets idenPfied Argalant Prospect Oxide Cu mineralisation Cu Stockwork Coking Coal JV Mongolian Coking Coal alliance with The Noble Group • Ekhgoviin Chuluu LLC joint venture company with each party holding 50% • Experienced JV partner validates exploraon and project generaon model • Increased access to markets (China & Pacific coast ports) • Ability to fast track project development • Three highly prospecPve projects acquired in 2011/12 • Laboratory results confirm high quality coking coal at Nuurstei Nuurstei Coking Coal Project is a highly prospec6ve coking coal project • Middle to Upper Triassic coal bearing sedimentary package • Numerous moderately dipping thick coal seams • 3,000m reconnaissance drill program completed • IniPal Laboratory results confirm high quality coking coal Khavtsgait Coal Project is a highly prospec6ve coking coal project • Mesozoic coal bearing sedimentary package • Numerous moderately dipping thick coal seams Javkhlant Coal Project is a highly prospec6ve coking coal project • The large (1,005km²) exploraon license lies along the south Gobi Basin which is known to host premium coking coal deposits of Permian and Carboniferous age HSE & Community Health and Safety • Proven Environmental Stewardship • Xanadu is commiQed to the principles of workplace health and safety as per the Workplace Safety and Hygiene Law of Mongolia • Strong safety culture based on visible and effecPve leadership, ongoing educaon, training, provision of effecPve tools and equipment Environmental Management • Xanadu's standards, strategies, targets and systems are all designed to manage environmental risks • To facilitate educaon of employees & contractors in relaon to their roles and responsibiliPes in environmental management in respect to the Company's acPviPes Xanadu's approach to corporate social responsibility • Communicate honestly and transparently with stakeholders & the broader investment community • Guided by transparency, respect for stakeholders rights, protecPon of the environment, and seek to improve the quality of life in the communiPes in which the company operates • Assist and support regional development, training, community based projects and small business opportuniPes Summary www.xanadumines.com George A. Lloyd MNG: +976 9400 9211 Chief Execuve Officer HK: +852 6397 3308 [email protected] Andrew Stewart MNG: +976 9999 9211 Chief Geologist Office: +976 5011 0211 [email protected] Informa6on Not A Recommenda6on The views expressed in this presentaon are based on informaon derived from Xanadu's own internal sources and from publicly available sources that have not been independently