The announcement is a comprehensive independent expert report prepared for Xanadu Mines Limited (“XAM”) in connection with an off‐market takeover bid being made by Bastion Mining Pte Ltd. Under the proposal, Bastion intends to acquire all of the ordinary shares in XAM that it does not already own by offering a cash consideration of A$0.08 per share, a price which represents a significant premium to recent trading values. The report supports the bid by assessing the technical and economic value of XAM’s major projects in Mongolia. A large portion of the report is devoted to reviewing XAM’s flagship asset, the Kharmagtai copper–gold project. Technical work, including mineral resource and ore reserve estimates, metallurgical testing, mining design, and process engineering, has been examined in detail. The expert’s analysis employs several valuation methodologies including discounted cash flow (DCF), market‐based comparisons, and the summation method to estimate the project’s value. In doing so, the report accounts for detailed operating and capital expenditure assumptions, mitigation of dilution and ore loss, as well as adjustments for royalties and tax considerations in Mongolia. Based on these analyses, the experts conclude that the value attributable to XAM’s controlling interest is estimated to be in the range of A$0.056 to A$0.104 per share. The report also reviews the two earlier stage exploration projects—Red Mountain and Sant Tolgoi. Red Mountain, which is entirely owned by XAM through its subsidiary Vantage LLC, is evaluated using comparable transaction data and an exploration expenditure multiplier, leading to a valuation opinion in the low single-digit millions of US dollars. In contrast, the Sant Tolgoi project remains at an arrangement stage under a joint venture with STSM LLC; XAM has not reached the milestone that would earn equity in this project and therefore no value is assigned at present. In addition to technical and financial assessments, the report discusses a range of risk factors. These include uncertainties from metallurgical variability, discrepancies between operating and capital cost estimates compared to comparable projects, potential challenges in negotiating royalties with the Mongolian government, liquidity constraints given the company’s concentrated share ownership, and broader geopolitical and regulatory risks associated with doing business in Mongolia. Overall, the report concludes that in the absence of a superior proposal and subject to ongoing confirmation of its assumptions, the takeover bid by Bastion Mining Pte Ltd is fair and reasonable to non‐associated shareholders. The detailed sensitivity analyses provided—covering changes in commodity prices, operating expenses, capital costs, and copper royalty rates—support a valuation that aligns with the offer price when a control premium is factored in compared with minority market transactions. This independent expert report, prepared jointly with the support of BDO Corporate Finance Ltd and ERM Consultants Australia Pty Ltd, is intended to provide shareholders with the necessary technical, economic, and market information to make an informed decision on whether to accept the bid.