Erdene Commences Construction at the High-Grade Bayan Khundii Gold Project and Finalizes Strategic Alliance With Mongolian Mining Corporation - Seite 3

Additionally, EM has entered a power purchase agreement (“PPA”) with MCS International LLC (“MCSI”), another affiliate of MMC. Under the terms of the PPA, MCSI will build, own and operate under a take-or-pay arrangement a hybrid power station consisting of a 14.5 megawatt (“MW”) diesel station, 5 MW solar farm, 3 MWh battery storage system and associated infrastructure. Payments under the contract are expected to total US$44 million over the seven-year contract, excluding the cost of diesel, which has been matched to the initial mine life for Bayan Khundii. The PPA provides an option for MCSI to supply the power via an overhead transmission line (“OHTL”) under terms that will be no less favorable to EM than those for the hybrid station. Connection to power through an OHTL will provide access to lower incremental cost power for expansion opportunities and reduce diesel price risk for the project.

To date, approximately US$80 million has been invested in the Bayan Khundii Gold Project, including Erdene’s historic expenditures and the US$40 million funded by MMC under the Strategic Alliance Agreement. Erdene and MMC are finalizing arrangements for the balance of the funding required to complete the construction and expect to announce further details within Q1 2024.

About Erdene

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base metals in underexplored and highly prospective Mongolia. The Company has interests in three mining licenses and an exploration license in Southwest Mongolia, where exploration success has led to the discovery and definition of the Khundii Minerals District. Erdene Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges. Further information is available at www.erdene.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.

Forward-Looking Statements

Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include the ability to obtain required third party approvals, market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.