Mr. Peter Akerley reports

ERDENE PROVIDES PROJECT REVIEW AND YEAR-END FINANCIAL RESULTS; ANNOUNCES Q2 DRILL PROGRAM AT BAYAN KHUNDII AND REGIONAL GOLD-COPPER PROJECTS

Erdene Resource Development Corp. has provided a review of its 2017 activities and an outlook for 2018, including plans for the company's principal gold projects in southwest Mongolia. This release should be read in conjunction with the company's 2017 financial statements, management discussion and analysis, and annual information form on the company's website or on SEDAR.

Erdene project locations

"The past year was very successful in establishing the potential for substantial, high-grade, near-surface gold mineralization at both our Bayan Khundii and Altan Nar projects, while adding new exploration opportunities with high-grade drill intercepts on other targets within the Bayan Khundii licence area," said Peter Akerley, Erdene's president and chief executive officer. "Our objectives are clear, advance our core gold projects through the various studies required to support development, balanced with exploration designed to bring growth through refining the potential of the known prospect areas and identifying new targets. We will also be opportunistic regarding the acquisition of additional land that complements and brings value to our current portfolio."

Project and financial highlights

Bayan Khundii gold project -- 100 per cent Erdene

• Exploration to date has established a gold mineralized body spread over a 1.4-kilometre-long trend, locally coming to surface, up to 400 metres wide and 250 metres deep;
• Of the 234 holes completed, 31 per cent have reported visible gold, with 18 per cent intersecting greater than one ounce of gold over one- to two-metre intervals;
• The 2017 drill program discovered significant new zones including Midfield, Midfield North, Striker West, and between Midfield and Striker, with the following drill highlights:
• Midfield North zone:
  • Stepout drilling north of the Midfield zone extended mineralization for up to 280 metres, returning:
  • 2,200 grams per tonne gold over one metre, within 14 metres of 158 g/t gold (BKD-231);
  • 108 metres of 2.8 g/t gold, including 20 metres of 7.2 g/t gold (BKD-110);
  • 40 metres of 3.3 g/t gold (BKD-179);
  • 120 metres of 1.14 g/t gold including three metres of 33 g/t gold (BKD-188);
  • 22 metres of 8.3 g/t gold, within 36.5 metres of 5.6 g/t gold (BKD-232).
• Midfield zone:
  • Drilling established strong continuity of high-grade zones and confirmed greater depth potential, with results including:
  • 80 metres of six g/t gold (BKD-98);
  • 56 metres of 6.1 g/t gold (BKD-99);
  • 25 metres of 5.8 g/t gold (BKD-230).
  • While most of the drilling in the Midfield zone focused on extending the northern limits of mineralization, hole BKD-210, located 80 metres east of Midfield's eastern boundary, returned 43 metres of 1.8 g/t gold and included gold values up to 44.8 g/t.
• Striker-Midfield zone connection:
  • Two thousand seventeen drilling successfully demonstrated continuity of Midfield down dip, vertically below the surface exposure of Striker, and has also begun to define a new, near-surface, high-grade zone between Striker and Midfield.
  • BKD-222 intersected 23 metres of 6.7 g/t gold with individual samples (one metre) up to 139 g/t gold within 50 metres of surface with earlier, adjacent holes (BKD-86 and BKD-153) returning individual samples of 94.8 g/t gold and 31.4 g/t gold, respectively, within wider mineralized intervals up to 150 metres of 1.5 g/t gold, again within 50 metres of surface.
  • Prior to the 2017 exploration season, limited drilling had taken place in the 200-metre-wide zone, separating Striker from Midfield.
• West Striker zone:
  • Twenty-seven holes have been completed in the area west of the Striker zone at 20-metre to 80-metre spacing, over a 375-by-250-metre area. Of the 27 holes, 26 have intersected anomalous gold mineralization, with 13 returning high-grade intervals of greater than 10 g/t gold.
  • In Q4 2017, stepout drilling 250 metres west of the Striker zone returned the best intersection to date in this area with 15 metres of 9.2 g/t gold, including one metre of 116 g/t gold (BKD-220), further establishing the potential that exists at West Striker.
• Striker zone:
  • While all 51 holes within the Striker zone have intersected anomalous gold, approximately 70 per cent have returned intervals of greater than 10 g/t gold, and up to 306 g/t gold (one metre);
  • Closer-spaced drilling to establish continuity of a very high-grade domain returned multiple, high-grade intervals (one metre) of between 19 g/t and 111 g/t gold, within a broader interval of 61 metres averaging 4.2 g/t gold (BKD-227), supporting continuity of the very high-grade zone intersected in adjacent holes.
• During 2017, Erdene completed 138 drill holes at Bayan Khundii, totalling 25,567 metres, bringing the total drilled since the Q4 2015 discovery hole to 234 diamond drill holes, totalling 38,072 metres.
• Metallurgical testing in 2017 on two master composites yielded similar results to previous metallurgical testing, indicating Bayan Khundii is free milling and amenable to conventional processing techniques, with recoveries ranging from 91 per cent to 99 per cent.

* Reported intervals at Bayan Khundii are not true width. At this time, there are insufficient data with respect to the shape of the new mineralized zones to calculate true orientations in space.

Altan Nar gold-polymetallic project -- 100 per cent Erdene (16 kilometres north of Bayan Khundii)

• Exploration has established 18 gold-silver base metal target areas within a 5.6-by-1.5-kilometre mineralized corridor.
• Drilling in 2017 focused on further defining and expanding the two most advanced targets, Discovery zone and Union North, while completing limited drilling on other high-priority targets.
• Drilling at the DZ deposit intersected high-grade gold-polymetallic zones including five metres of 29.7 g/t gold within a 20-metre interval of 10.3 g/t gold (TND-110). This zone remains open at depth.
• In 2017, Erdene completed 31 diamond holes at Altan Nar totalling 5,794 metres.

Altan Arrow and Khundii North gold prospects -- 100 per cent Erdene

• Significant exploration was completed during 2017 within the 11.4-kilometre-long Bayan Khundii licence, with a focus on the Altan Arrow and Khundii North target areas.
• The Altan Arrow prospect, 3.5 kilometres north of Bayan Khundii, is a 0.5-by-one-kilometre epithermal gold target area with multiple zones of epithermal quartz veining.
• Two thousand seventeen drilling at Altan Arrow returned 70 g/t gold over two metres (AAD-12), and drilling of a new target area 300 metres west of AAD-12 returning 39 g/t gold over one metre, near surface (AAD-11).
• The Khundii North target, 2.5 kilometres east of Altan Arrow, has now been traced over one kilometre through gold-in-soil anomalism with rock chip samples returning values up to 22 g/t gold.

Ulaan copper-gold porphyry prospect -- 51 per cent Erdene

• In Q3 2017 Erdene announced the acquisition of a 51-per-cent interest, with the option to acquire up to 100 per cent, in the Ulaan licence, located immediately west of its Bayan Khundii licence.
• Ulaan hosts a very large, three-kilometre diameter, intense alteration zone with characteristics thought to be related to a porphyry complex at depth as well as epithermal gold targets peripheral to the porphyry centre.
• In 2017, Erdene conducted an initial exploration program at Ulaan, consisting of geological mapping, prospecting, rock chip sampling, soil-grid geochemical sampling and an induced polarization geophysical survey, which has produced several drill targets.

Water, energy, permitting and HSEC

• Water: In 2017, a preliminary water resource was identified approximately 15 kilometres from Altan Nar, which is believed to be sufficient to meet the processing needs of both projects (Altan Nar and Bayan Khundii). Additional work will be required in 2018 to 2019 to better define the water resource.
• Energy: Through an initiative of the International Finance Corp., the company is participating in a co-financed study of renewable energy supply options at Bayan Khundii and Altan Nar, which is expected to result in a site-specific business case for renewable energy and the potential co-benefits of integrating renewables into future mine planning.
• Permitting: In 2017, Erdene engaged several consulting firms in preparation of anticipated resource estimates and preliminary economic studies, mining licence applications, and geological modelling and targeting for the Bayan Khundii and Altan Nar projects. Erdene also continued to update the baseline surveys at Bayan Khundii and Altan Nar to fulfill Mongolian regulatory requirements for registering mineral resources.
• HSEC: In 2017, Erdene approved contributions for over 10 different initiatives at the county and province levels focused on improving local livelihoods, basic education and public health.

Teck-Erdene alliance

• Separate from its 100-per-cent-owned gold projects, Erdene continued to be active through its alliance with Teck Resources in assessing regional base and precious metal opportunities in southwest Mongolia's prolific Tian Shan copper-gold belt.
• With the completion of a $500,000 private placement by Teck and the renewal of the alliance agreement on March 21, 2017, the alliance's 2017 exploration program commenced in Q2 2017, consisting of follow-up work to assess anomalous targets identified during the 2016 exploration program.

Corporate update

• In Q1 2018, Erdene strengthened its board with the addition of Cameron McRae and Byambasaikhan Bayanjargal.
  • Mr. McRae brings 28 years experience with Rio Tinto including the role of president for Oyu Tolgoi LLC where he led the construction and start-up of the Oyu Tolgoi copper-gold mine.
  • Mr. Bayanjargal is a prominent Mongolian businessman with an impressive background, both in Mongolia and central Asia, including serving as the former chief executive officer of Erdenes Mongol, Mongolia's state-owned resource development company.

Financial performance -- year-end financial results summary

• Erdene's year-end 2017 financial statements, management discussion and analysis, and an annual information form were filed with regulatory authorities on March 27, 2018, and are available on the company's website and on SEDAR.
• For the year ended Dec. 31, 2017, the company recognized a net loss of $4,027,465 or three cents per share, compared with a loss of $2,499,739, or two cents per share in 2016.
• Exploration expenditures, including capitalized costs, totalled $10,244,775 in 2017 compared with $4,664,490 in 2016, an increase of 120 per cent. The Bayan Khundii project represented $6,109,190 or 60 per cent of total 2017 exploration expenditures. Together, the Bayan Khundii and Altan Nar projects represented $7,589,759 or 74 per cent of total 2017 exploration expenditures.
• Excluding non-cash share-based compensation and depreciation, the 2017 corporate and administrative expenses were $1,495,106 compared with $1,093,111 in 2016 and the corresponding cash exploration expenditures were $9,625,936 in 2017 and $4,468,154 in 2016. The corporate and administrative cash expenses represented 16 per cent of cash exploration expenditures incurred in 2017 compared with 24 per cent in 2016.

Financial position and financing

The company financed its 2017 operations as follows:

• Proceeds from a bought deal private placement financing in February, 2017, for net proceeds of $12.8-million (gross proceeds of $13.8-million);
• Proceeds from a non-brokered private placement financing with Teck in April, 2017, for net proceeds of $500,000;
• The company has a current working capital position of $2.3-million.

Outlook

Erdene has discovered a new gold district in southwest Mongolia that includes seven targets, two of which are considered significant prospects for development: Bayan Khundii and Altan Nar. Over the past two years, Bayan Khundii has rapidly advanced from the discovery of very high-grade gold samples at surface to the company's flagship asset. Drilling and surface exploration have also defined multiple targets in the surrounding areas, adjacent to and farther north on the Bayan Khundii licence, that have significant potential for additional gold resources. The near-term objectives of the company are to complete the necessary drilling to allow for the completion in Q3 2018 of a maiden resource estimate at Bayan Khundii and an updated resource estimate for Altan Nar, while continuing to advance exploration on various targets within the larger Khundii gold district, most importantly Altan Arrow, Khundii North and Ulaan.

In Q2 2018, Erdene will commence a 5,400-metre drill program at Bayan Khundii to establish continuity and extent of recent high-grade intersections identified in 2017. This will be followed by a 1,000-metre drill program at Ulaan and an approximate 1,000-metre drill program at Altan Arrow to follow up on recent high-grade zones discovered in 2017. Results of the Q2 Bayan Khundii drilling will be included in the anticipated Q3 maiden resource estimate. Following the completion of the resource estimates, the company will advance the projects into the studies phase for both scoping through feasibility and for securing the necessary licences and permits to move the projects toward commercial production.

In addition the company will continue with its regional, district-scale exploration program to identify additional high-grade precious and base metal projects and will consider opportunities to consolidate the district with future acquisitions like the Ulaan acquisition in Q3 2017.

Qualified person and sample protocol

Michael MacDonald, PGeo (Nova Scotia), vice-president, exploration, for Erdene, is the qualified person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaan Bator, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a quality assurance/quality control sample protocol utilizing prepared standards and blanks.

Erdene's sampling protocol for drill core consisted of collection of samples over one m or two m intervals (depending on the lithology and style of mineralization) over the entire length of the drill hole, excluding minor postmineral lithologies and unmineralized granitoids. Sample intervals were based on metreage, not geological controls or mineralization. All drill core was cut in half with a diamond saw, with half of the core placed in sample bags and the remaining half securely retained in core boxes at Erdene's Bayan Khundii exploration camp. All samples were organized into batches of 20 samples including a commercially prepared standard, blank and either a field duplicate, consisting of two, quarter-core intervals or a laboratory duplicate. Sample batches were periodically shipped directly to SGS in Ulan Bator via Erdene's logistical contractor, Monrud Co. Ltd.

About Erdene Resource Development Corp.

Erdene Resource Development is a Canada-based resource company focused on the acquisition, exploration and development of base and precious metals in underexplored and highly prospective Mongolia. The company has interests in five exploration licences and a mining licence in southwest Mongolia, where exploration success has led to the discovery and definition of several prospects and deposits including: Bayan Khundii -- the company's flagship and newly discovered, high-grade, near-surface gold project; Altan Nar -- an extensive, high-grade, near-surface, gold-polymetallic project located 16 kilometres northwest of Bayan Khundii; Altan Arrow -- an early-stage, high-grade gold-silver project 3.5 kilometres north of Bayan Khundii; Ulaan -- a recently acquired copper-gold porphyry prospect adjacent to Bayan Khundii; Khuvyn Khar -- an early-stage, copper-silver porphyry project; Nomin Tal -- a narrow, high-grade copper-gold discovery; and Zuun Mod -- a large molybdenum-copper porphyry deposit. In addition to the above projects, Erdene has an alliance with Teck Resources Ltd. on regional copper-gold exploration in the prospective Trans Altai region of southwest Mongolia. The Bayan Khundii licence has a 2-per-cent net smelter returns royalty (NSR royalty) in favour of Sandstorm Gold Ltd. with a buyback option to reduce the NSR royalty to 1 per cent.

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