Erdene Provides Update on the Bayan Khundii Gold Project - Seite 2

Building upon the success of the early works phase, Erdene is in negotiations with MCSP on an Engineering, Procurement and Construction contract for the balance of the build, targeting execution in Q4-2023. Additionally, Erdene is negotiating with a Mongolian power producer to secure the Project’s energy needs.

Bayan Khundii NI 43-101 Feasibility Study Update

On August 15, 2023, Erdene announced results of an updated Feasibility Study (“FS”) for Bayan Khundii. The FS was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and incorporates updated mineral resources and reserves, including maiden resources and reserves from the high-grade Dark Horse Mane deposit (“DH”), as well as current capital and operating cost estimates and metals prices.

Highlights of the FS are included below (US$1,800/oz Gold Price, unless otherwise noted), and further details are available in the Company’s August 15, 2023 press release. The Technical Report will be filed on SEDAR in late September 2023.

• Base Case after-tax Net Present Value of US$170 million (NPV_5%) and 35.3% Internal Rate of Return (IRR), increasing to US$196 million and 38.95% IRR, respectively, at current gold price of US$1,900/oz
• Life of Mine Earnings Before Interest, Taxes and Depreciation of US$451 million, increasing to US$495 million at a US$1,900/oz gold price
• Total recovered gold of 476,000 ounces, a 25% increase compared to the 2020 Feasibility Study from an average gold recovery rate of 93%
• All-in sustaining cost (“AISC”) of US$869 per ounce and upfront capital costs of US$88 million, plus a 12% contingency, and $2 million of pre-production costs
• Measured and Indicated Resources of 674,700 ounces gold at an average grade of 2.6 g/t gold, and 319,000 ounces silver at an average grade of 1.38 g/t silver
• Proven and Probable Reserves of 513,700 ounces gold at an average grade 4.0 g/t gold, and 220,500 ounces silver at an average grade of 1.7 g/t silver
• Average annual gold production of 86,900 ounces during years 2 through 5 – Life of Mine annual average production of 74,200 ounces gold
• Eight-year project, comprising one-year pre-production, six and three quarter-year operating life and one-year mine closure period
• Adjacent high-grade resources and recent discoveries provide high probability growth options
• Significant benefits to Mongolia, including Life of Mine royalties and taxes of US$143 million and approximately 500 new jobs in Bayankhongor Province

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