Source: Reuters Key Development                         Date: 27 July, 2011

Xanadu Mines Ltd. has finalized a farm-in agreement on the Javkhlant exploration project, as part of its strategic alliance with Noble Group Limited. The project is located in the southwestern Gobi Altai Province of Mongolia.

The earn-in agreement will be undertaken via Ekhgoviin Chuluu LLC (EC), the Joint Venture vehicle established to seek out and develop new coking coal opportunities as part of the strategic alliance between Xanadu and Noble. Under the terms of the agreement, EC can earn up to 80% of the Javkhlant coal exploration license by meeting various spending commitments over two years. These include up to USD 230,000 on drilling to earn the first 60%, followed by a commitment to complete a JORC resource to earn a further 20%, taking EC's interest to 80% of the Project.