Erdene Commences 18,000 Metre Drill Program at the Khundii Gold District - Seite 3

At Striker SW, recent drilling intersected anomalous gold (≥ 0.2 g/t) in all 11 holes in a 100m x 50m area within 25 metres of surface. Hole BKD-290 intersected 20 metres of 5.9 g/t gold beginning 8 metres from drill collar, including one metre of 91.2 g/t gold, and BKD-292 intersected 15 metres of 29 g/t gold beginning 0.9 metres from drill collar, including one metre of 353 g/t gold. This program established continuity of this very high-grade zone in an area currently classified predominantly as low-grade or below cut-off grade material, that is scheduled to be mined in the first year of the Bayan Khundii development. Western continuity and potentially southern extensions of the Striker SW area will be tested in the current drill program.

Bayan Khundii – Extensions and Exploration Beyond Planned Pit:  The Bayan Khundii Mineral Resource² includes 521,000 ounces of 3.16 g/t gold Measured and Indicated (“M&I”) and 103,000 ounces of Inferred resources at 3.68 g/t gold. Within the M&I resource, a proven and probable open-pit reserve³ totals 409,000 ounces at 3.7g/t (see the full press release here).  Several mineralized zones and exploration areas peripheral to the planned open-pit at Bayan Khundii host intervals of exceptionally high-grade (30 to 150 g/t gold intersections over 1 meter) gold-bearing veins. This provides significant potential growth of reserves with the development of the remaining M&I and Inferred resources and areas beyond the current resources.  In addition, the reported resource is an open-pit constrained resource beyond which drilling has previously intersected significant gold mineralized zones. These areas will also be the subject of Phase I drilling to evaluate resource expansion.

Striker West and Southern Extension: Located approximately 210 metres west of the planned Bayan Khundii open-pit, drilling in 2019 confirmed and extended the Striker West target with the best intersection of this deposit area to date with 3 metres of 40 g/t gold at a vertical depth of 136 metres (BKD-265).  Results from this hole also broadened the mineralized domain at shallow depth and outside the defined resource boundary with a 16-metre interval of 1.1 g/t gold, including 5 metres of 2.7 g/t gold, beginning only 28 metres from the surface. This area is open to the south, where BKD-266 was drilled in Q2 2019, approximately 250 metres west-southwest of the planned open-pit, and outside the currently defined resource boundary. This hole intersected a high-grade, one-metre interval of 51.9 g/t gold at a depth of 264 metres within a broad zone of silica-illite and magnetite altered volcanic tuff, suggesting a down-dip continuation of high-grade gold mineralization from the currently defined Bayan Khundii pit. The 2020 drill programs will seek to increase confidence in the high-grade core of Striker West and expand this zone to the south.