Erdene Closes Second Stage of Strategic Alliance With Mongolian Mining Corporation and Reports Q1 2023 Results

HALIFAX, Nova Scotia, May 04, 2023 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce the close of the second stage of the Strategic Alliance with Mongolian Mining Corporation (“MMC”), to provide an update on the Bayan Khundii (“BK”) Gold Project development and exploration in the Khundii Minerals District (“KMD”), and to report operating and financial results for the quarter ended March 31, 2023. This release should be read in conjunction with the Company’s Q1 2023 Condensed Consolidated Interim Financial Statements and MD&A, available on the Company’s website and SEDAR.

Quotes from the Company:

“The first quarter of 2023 was another productive period for Erdene as we made significant progress advancing our Bayan Khundii (“BK”) Gold Project towards construction,” said Peter Akerley, Erdene’s President and CEO. “With the recent close of the second stage of our MMC Strategic Alliance, we are launching early construction works and expect to make a full construction decision in mid-2023.”

“In Q1 we also ramped up exploration in the KMD, with three rigs currently conducting mineral exploration, hydrogeological reserve exploration, and geotechnical drilling, including exploratory drilling at our Zuun Mod molybdenum-copper project,” continued Mr. Akerley. “With robust molybdenum prices and a strong outlook for copper demand supporting the green energy transition, we plan to continue to unlock the value of the Zuun Mod. Following the completion of the first phase of work at Zuun Mod, expansion and exploration drilling will test for high-grade gold, targeting resource extensions and new prospects near the planned BK open pits.”

Q1-2023 Highlights and Significant Subsequent Events:

Bayan Khundii Gold Project

• Progressed construction readiness and engineering for the BK Gold Project
  • Completed detailed design and engineering for 12 of 14 facilities
  • Conducted construction, mine planning and gold processing optimization studies with MMC
  • Engaged with preferred vendors and received updated quotations for major construction works and mining equipment, leveraging MMC relationships

• Completed internal Feasibility Study (“FS”) update and advanced NI 43-101 FS update
  • Worked with MMC and Glogex Consulting to update resource and mine plans, fleet optimization, and capital & operating costs for the internal study
  • Advanced hydrogeological, metallurgy and geotechnical work for NI 43-101 FS update
  • Updated NI 43-101 scheduled to be delivered in mid-2023
• Advanced regulatory approvals and secured key permits for mine development
  • Obtained approval for 12 project facilities and received construction permits for eight facilities
  • Received regulatory approval of the Project’s 2023 operational plans
• Launched 2023 community engagement program
  • Established Bayankhongor province branch office in early Q2
  • Held community open house information sessions in advance of construction

Khundii Minerals District Exploration