Erdene Closes Private Placement; Advances Strategic Alliance in Mongolia

HALIFAX, NOVA SCOTIA--(Marketwired - April 27, 2015) - Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Company"), is pleased to announce it has closed its non-brokered private placement financing with Teck Resources Limited ("Teck"). The net proceeds will be used for exploration of the Company's Teck-Alliance projects in Mongolia.

The private placement financing included the issuance of 2,826,310 shares to Teck at a price of $0.139 per share for gross proceeds of $392,857 ("Private Placement"). In addition to the Private Placement, Teck was issued 1,071,429 shares on the exercise of warrants with an exercise price of $0.10 per share, for gross proceeds of $107,143. This fulfills Teck's annual equity investment obligation pursuant to the strategic alliance between Erdene and Teck announced by Erdene on April 11, 2013 (the "Alliance"). Net proceeds from the exercise of the warrants will be used to retire the $107,142 non-interest bearing loan owed to Teck.

The Alliance provides Teck with earn-in exploration opportunities on new mineral licences generated by the Company in Mongolia. Subsequent to year-end the Mineral Resources Authority of Mongolia (MRAM) re-opened the mineral license staking system after a 5-year hiatus, further signaling the country's efforts to reignite foreign direct investment in the mining sector. Since the opening of the licensing system, Erdene has been active on behalf of the Alliance in efforts to secure new exploration licenses.

Pursuant to the Alliance Teck has the option of making additional private placements in Erdene, priced at the then current market (10-day volume weighted average price) plus 10%, until Teck has invested at least $3 million or acquired through those subscriptions 19.9% of the outstanding shares of Erdene, whichever occurs first (the "Teck Placements"). A minimum of $500,000 is to be subscribed on each anniversary date of the closing of the initial tranche. Teck has participated in four Erdene private placements since April 2013 for a total of $2.0 million, bringing Teck's holdings of Erdene's outstanding common shares to 15.1%. Once Erdene has spent 85% of the proceeds from the Teck Placements on the initial program, Teck will have the option to acquire up to a 75% interest in designated projects through a two stage option process by funding exploration expenditures of up to $5 million on each of the designated projects within the Trans Altay project area.