Mr. Peter Akerley reports

ERDENE ANNOUNCES PRIVATE PLACEMENT; DRILLING TO COMMENCE ON THE ALTAN NAR GOLD PROJECT

Erdene Resource Development Corp. intends to issue, by way of a non-brokered private placement, up to 4,062,500 units at a price of 16 cents per unit for gross proceeds of up to $650,000. Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase one common share of the company at a price of 24 cents for a 24-month period from the closing date. If the closing price of the company's common shares trading on the Toronto Stock Exchange is 36 cents or higher for 30 consecutive trading days, the company may, in its sole discretion, accelerate the expiry period of the warrants by providing written notice of such acceleration by way of a news release, such that the exercise period of the warrants will expire on that day which is 30 days from the date of the company's acceleration notice. Net proceeds of the private placement will be used for exploration of the company's metal projects in Mongolia, including drilling at the company's 100-per-cent-owned Altan Nar gold-polymetallic project, to commence in late April. The private placement is expected to close on or before May 2, 2014, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the TSX. All securities to be issued pursuant to the private placement will be subject to a four-month hold period from the closing date. Finders' fees may be payable on a portion of the financing.

Altan Nar gold project -- drill program

Altan Nar exploration results, announced on Jan. 22, 2014, included multiple high-grade gold, silver and base metals zones. Follow-up drilling is expected to commence in late April and will include 10 drill holes totalling approximately 1,000 metres. The drill program will test continuity of these high-priority targets, some of which have yet to be drill tested. Erdene field crews were mobilized to site the first week of April. Detailed surface work is under way, including higher-density geochemical sampling, mapping and an expanded induced polarization survey. This work will provide a greater understanding of the extent of the multiple mineralized structures identified to date and provide a stronger base for designing a more extensive follow-up resource delineation drill program.

Targets included in the drill program will be the Discovery zone, Union North, Union South, Maggie, Northbow and Southbow.

Discovery zone

Drilling and trenching over the Discovery zone have demonstrated vertical and lateral continuity of gold-polymetallic mineralization along a 400-metre strike length and to a maximum depth of 230 metres. In the fourth quarter of 2013, three continuous trenches over a 250-metre strike length returned 44 to 50 metres of greater than one gram per tonne gold. The prospect is characterized by near-surface, subvertical zones of gold and silver mineralization up to 50 metres in width with high-grade zones that include intervals up to 29 metres averaging 4.3 grams per tonne gold and 24.1 grams per tonne silver. This prospect has received the majority of the drilling to date albeit at shallow levels with the deepest hole ending in five metres of 4.7 grams per tonne gold at 230 metres depth.

Union North

Located 1.3 kilometres northwest of the Discovery zone, Union North has been tested by a series of four east-west-oriented trenches and a single drill hole. An intensely mineralized system has been outlined within a 150-metre-by-150-metre area that is open along strike and at depth. The target is centred on high-grade mineralized quartz-sulphide breccia shoots with trenches returning up to 19 metres of 8.9 grams per tonne gold, 66 grams per tonne silver, 7.7 per cent lead and 2.5 per cent zinc, including seven metres of 20.2 grams per tonne gold, 138 grams per tonne silver, 17.3 per cent lead and 5.3 per cent zinc. The single drill hole returned 47 metres of 1.3 grams per tonne gold, including nine metres of 4.3 grams per tonne gold, 12 grams per tonne silver and 1.7 per cent combined lead-zinc.

Union South

The Union South prospect is located approximately 550 metres south of Union North. A trench intersected a high-grade zone that returned 10 metres of 4.5 grams per tonne gold, 8.9 grams per tonne silver and 2.2 per cent lead. This trench is located 120 metres north of a drill hole which returned 10 metres of 1.7 grams per tonne gold, including four metres of 3.7 grams per tonne gold and a second zone of 11 metres of 0.8 gram per tonne gold.

Maggie

The Maggie prospect is located approximately one kilometre north of the Discovery zone and 700 metres east of the Union North prospect. A single trench uncovered a well-mineralized zone, 38 metres wide and hosted by an altered andesite cut by two, barren, postmineralization dikes (seven metres and two metres wide). Excluding the nine metres of postmineralization dike, the central mineralized zone returned 17 metres of 3.4 grams per tonne gold, 4.9 grams per tonne silver and 1.4 per cent combined lead-zinc. The target is open along strike, and has not been drill tested.

Northbow and Southbow

The Northbow prospect, located 600 metres to the west of Union North, is defined by a north-south-trending, strong gradient-IP chargeability anomaly. This feature extends 800 metres south where it widens and intensifies into the sediment-covered Southbow prospect. Recent trenching on the northern edge of sediment cover returned nine metres of 1.3 grams per tonne gold, 6.6 grams per tonne silver and 1.3 per cent combined lead-zinc. Results from Northbow are significant in that they are the first confirmation that gold mineralization is associated with the Southbow geophysical anomaly, the largest and most intense anomaly identified to date on the Altan Nar property. The Northbow and Southbow targets have not been drill tested.

Qualified person

J.C. (Chris) Cowan, PEng (Ontario), vice-president, Asia, for Erdene, is a 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.

We seek Safe Harbor.