Erdene Announces Q2 2023 Results and Provides Khundii Minerals District Update - Seite 2

• Completed 4,100 metre drill program at ZM
  • Expanded mineralization on the fringes of current resource
  • Discovered resource grade mineralization 1.7km from current deposit
• Conducted first phase of 2023 gold exploration program at the Greater Dark Horse prospect at the Bayan Khundii Gold Project
  • Drilled 1,040 metres intersecting anamolous gold and/or indicator elements in 16 of 18 shallow holes
  • IP survey over 9km² area identified several targets for follow-up exploration

Corporate

• Closed the second tranche of the MMC Strategic Alliance
  • MMC has invested US$10M into Erdene Mongol to date
  • Final advance tranche of US$30M expected in Q3, following delivery of the NI 43-101 Feasibility Study update and a BK construction decision
• Progressed BK Project Finance with international financial institutions
  • Due diligence largely complete, pending review of 2023 FS update
  • Discussions are proceeding in parallel with Mongolian and International financiers for the balance of capital
• Recorded a net loss of $2,507,581 for the three months ended June 30, 2023, compared to a net loss of $1,697,748 for the three months ended June 30, 2022
  • Exploration and evaluation expenditures, including capitalized expenditures, totaled $5,478,394 for the three months ended June 30, 2023, compared to $3,032,415 for the comparative prior year quarter due to an increased drilling activity, expenditures on the FS update, payments on long-lead items, and an increase in non-cash share-based compensation due to the timing of the annual options grant.
  • Corporate and administrative expenses totaled $1,391,455 for the three months ended June 30, 2023, compared to $475,599 for the three months ended June 30, 2022, with the year-on-year increase primarily due to expenditures associated with the negotiation and announcement of the MMC Strategic Alliance as well as higher administrative salaries due to the timing of annual performance bonuses and cost-of-living adjustments due to the timing of the annual performance grants.