Xanadu Mines, an Australian-backed, Mongolian-focused minerals
explorer and developer, has opened its Initial Public Offer (IPO) ahead of its
proposed listing on the Australian Stock Exchange in late December. The IPO
seeks to raise between AUD15 million and AUD21 million, valuing the company at
between AUD90 and AUD100 million.  Xanadu
commenced exploration in Mongolia almost six years ago and in that time has assembled
a portfolio of coal and copper/gold assets strategically located in proximity
to rail infrastructure and the Chinese border.

On completion of its IPO, Xanadu’s strategy will be to step up the
acquisition and exploration of new coking and thermal coal opportunities. In
2011, it plans to drill out its Galshar coal to JORC code classification. The
company also intends to conduct further geophysics and an extensive drilling
campaign on its two advanced South East Gobi porphyry copper and gold projects
at Hutag Uul and Elgen-Zos.

The offer is scheduled to close on December 8, 2010 unless brought
forward, with Xanadu set to begin trading on the Australian Securities Exchange
on December 21.