Mr. Peter Akerley reports

ERDENE PROVIDES YEAR-END FINANCIAL RESULTS AND PROJECT REVIEW

Erdene Resource Development Corp. is providing a review of 2014 and first quarter 2015 activities on the company's principal projects in Mongolia in conjunction with its Dec. 31, 2014, year-end financial results.

Project and financial highlights

Altan Nar gold-polymetallic project (100 per cent Erdene) -- initial mineral resource estimate:

• Indicated resource of 147,000 ounces of gold equivalent, averaging 2.5 grams per tonne AuEq, and inferred resource of 102,000 ounces AuEq, averaging 2.1 g/t AuEq, at a 1.0-gram-per-tonne AuEq cut-off, within 1.8 million tonnes indicated and 1.5 Mt inferred, respectively;
• 90 per cent of mineral resource within 150 metres of surface; open along strike and downdip;
• Initial mineral resource completed for two targets (the Discovery zone and Union North) with 16 undrilled and scout-drilled target areas along the 5.6-kilometre mineralized trend that have good potential for hosting additional resources;
• Expansion drilling and preliminary scoping study planned for 2015 to consider development options including evaluating the concept of producing a high-value gold, silver, lead and zinc concentrate(s) sold into neighbouring China.

Altan Nar gold-polymetallic project -- drilling highlights:

• Definition drilling at the Discovery zone returned widest and highest-grade zone to date with 30 m of 5.1 g/t AuEq including eight m of 13.6 g/t AuEq;
• Drilling at the northern extent of the Discovery zone returned broad zones of low-grade mineralization including 96 m of 1.0 g/t AuEq that remains open along strike and at depth;
• Drilling at Union North, 1.3 km northwest of the Discovery zone, returned 22 m of 2.9 g/t AuEq and below that 12 m of 5.4 g/t AuEq, within 35 m of surface.

Agreement with Tian Poh Resources Ltd.:

• Tian Poh was granted a period of exclusivity to exercise an option to acquire an interest in Erdene's Zuun Mod molybdenum-copper project;
• Tian Poh can acquire and retain a 51-per-cent interest in Zuun Mod for $4.8-million (U.S.) in cash and equity in Tian Poh, and by meeting certain work commitments.

Teck Resources Ltd. alliance:

• Erdene continued to evaluate opportunities through its alliance with Teck, focused on regional exploration for base and precious metal targets in southwest Mongolia;
• Erdene initiated an acquisition program under the alliance.

Mongolian government update:

• Mongolia has made, and continues to focus on, significant legislative improvements for the mining and financing sectors; reduced the gold royalty from 10 per cent to 2.5 per cent; extended the maximum term of an exploration licence from nine to 12 years; and reopened the mineral licence staking system after a five-year hiatus.

Financials:

• General and administrative costs decreased 22 per cent compared with 2013 and a total of 57 per cent compared with 2012;
• Erdene secured $2.03-million in financing in 2014 during challenging market conditions.

Project summaries

Altan Nar gold-polymetallic project

The 2014 and Q1 2015 exploration program on the Altan Nar gold-polymetallic project resulted in the establishment of an initial resource for the two most advanced prospects, the Discovery zone and Union North, and established 16 additional mineralized target areas within the overall 5.6-kilometre-long mineralized trend. An independent National Instrument 43-101 technical report outlining the resource estimate at Altan Nar was completed and is available on SEDAR.

An attached table shows the indicated and inferred mineral resource estimate for the Discovery zone and Union North prospects as at Feb. 19, 2015. The mineral resource was completed by RungePincockMinarco (RPM) in accordance with the recommended guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum's CIM Definition Standards referenced in National Instrument 43-101. The mineral resources are provided at a number of AuEq cut-offs; however, RPM suggests reporting the mineral resource at a 1.0-gram-per-tonne AuEq cut-off. The mineral resources for the 0.6-gram-per-tonne and 1.4-gram-per-tonne AuEq cut-off grades are provided for illustrative purposes.

         ALTAN NAR PROJECT -- MINERAL RESOURCE ESTIMATE SUMMARY AS AT FEB. 19, 2015

AuEq                                       Grade                     Contained metal
cut-off  Resource        Tonnes   Au    Ag    Zn    Pb  AuEq   Au     Ag    Zn    Pb  AuEq
g/t      classification      Mt  g/t   g/t     %     %   g/t  koz    koz   Mlb   Mlb   koz

0.6      Indicated          3.4  1.0   9.4  0.57  0.47   1.7  112  1,014  42.4  34.8   186
0.6      Inferred           3.0  0.8   9.4  0.51  0.35   1.4   83    913  33.9  23.5   135
1.0      Indicated          1.8  1.7  11.1  0.61  0.54   2.5  102    657  24.7  22.1   147
1.0      Inferred           1.5  1.5  10.4  0.54  0.39   2.1   72    498  17.7  12.8   102
1.4      Indicated          1.3  2.3  12.1  0.61  0.58   3.1   92    486  16.8  15.9   130
1.4      Inferred           1.0  2.0  10.8  0.53  0.40   2.6   63    342  11.5   8.6    84

Notes:
1. The mineral resource estimate summary has been compiled under the supervision of Jeremy
   Clark, who is a full-time employee of RPM and a member of the Australian Institute of 
   Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of 
   mineralization and type of deposit under consideration, and to the activity that he has
   undertaken to qualify as a qualified person as defined in the CIM Standards of 
   Disclosure.
2. All mineral resource figures reported in the table represent estimates as at Feb. 19, 
   2015. Mineral resource estimates are not precise calculations, being dependent on the 
   interpretation of limited information on the location, shape and continuity of the 
   occurrence, and on the available sampling results. The totals contained in the table 
   have been rounded to reflect the relative uncertainty of the estimate. Rounding may 
   cause some computational discrepancies.
3. Mineral resource grades are reported in accordance with the CIM standards.
4. Mineral resources are reported on a dry in situ basis.
5. Totals may differ due to rounding.
6. Gold equivalent values were used in an effort to express the combined value of gold,
   silver, lead and zinc as a percentage of gold, and are provided for illustrative 
   purposes only. No allowances have been made for recovery losses that may occur, should
   mining eventually result. Calculations assume metal prices of $1,200 (U.S.)/ounce for
   gold, $18 (U.S.)/ounce for silver, and 90 U.S. cents/pound for lead and zinc.

With the initial resource established, Erdene will work toward the completion of a preliminary scoping study in 2015 which will consider options for expedited development, including evaluating the concept of producing a potentially high-value gold, silver, lead and zinc concentrate(s) to be sold into China (rail link 175 kilometres to the south of Altan Nar) for final processing. As stated by RPM in the resource report, this option has the potential to enable relatively low capital and operating costs during start-up, and for the generation of early cash flow. Simultaneously, in the first half of 2015, Erdene intends to complete additional evaluation of the remaining target areas to assist in determining the high-priority areas for defining additional near-surface resources at Altan Nar. The potential for increasing the mineral resource is considered by RPM to be good, with the Discovery zone and Union North open along strike and at depth, and multiple priority targets throughout the remaining 16 target areas.

For details on key parameters/assumptions considered in the Altan Nar mineral resource estimate and for a map of the mineral resource area, the reader is directed to the company's March 31, 2015, press release announcing the resource estimate.

Agreement with Tian Poh Resources

On Feb. 12, 2015, Erdene announced that it had granted Tian Poh Resources a period of exclusivity to exercise an option to acquire an interest in Erdene's Zuun Mod molybdenum-copper project in southwest Mongolia. The exclusivity and option period expires on June 9, 2015.

Tian Poh can acquire and retain a 51-per-cent interest in Zuun Mod for $4.8-million (U.S.) in cash and equity in Tian Poh, and by meeting certain work commitments. If Tian Poh exercises its option and meets milestones to retain its 51-per-cent interest (details provided in the company's Feb. 12, 2015, press release), it will have the right to increase its interest to up to 100 per cent through additional cash and/or equity payments. Erdene will retain a 1-per-cent net smelter return royalty, which will be subject to certain buydown provisions. The transaction is subject to approval from the Toronto Stock Exchange, the Australian Stock Exchange and Tian Poh's shareholders.

As consideration for the exclusivity period, Erdene received a non-refundable deposit of $50,000 (U.S.) paid on signing. Additionally, $200,000 (U.S.) was paid on signing pursuant to a non-interest-bearing debenture issued by Erdene. If Tian Poh does not exercise its option by June 9, 2015, the principal amount of the debenture will be converted into common shares of Erdene at 14 cents per share. If Tian Poh exercises its option, the debenture will be deemed to be redeemed and the funds applied to the amount due on closing, which is expected to be on or about June 11, 2015.

Alliance with Teck Resources

In 2014, Erdene continued to evaluate opportunities through its alliance with Teck Resources, focused on regional exploration for base and precious metal targets in southwest Mongolia. The exploration program identified prospects that have been recommended for acquisition. Subsequent to year-end, the Mongolian mineral licence staking system reopened after a five-year hiatus with designated areas in the western half of Mongolia available for staking. Since the opening of the licensing system, Erdene has had one exploration licence application accepted with the issuance of an exploration licence pending final regulatory approval. The exploration program is in progress and has been designed to be a multiyear program. This program is being financed through the alliance with Teck.

In April, 2013, the Teck alliance was formed by the signing of option and private placement agreements with Teck to finance and explore the company's mineral tenements, and to evaluate acquiring new mineral tenements in the Trans-Altay region of southwest Mongolia.

Teck has the option to acquire additional shares of Erdene, until it has invested $3-million or acquired through subscriptions 19.9 per cent of the outstanding shares of Erdene, whichever occurs first. A minimum of $500,000 is to be subscribed on each anniversary date of the closing of the initial tranche. At the time of this press release, Teck owns 11.1 per cent of the company's issued and outstanding common shares.

Mongolia update

In 2014, Mongolia made, and continues to focus on, significant legislative improvements for the mining and financing sectors. In January, 2014, the Mongolian government announced the passing of an amendment to the Minerals Law, reducing the royalty for gold from 10 per cent to 2.5 per cent under the condition that producers sell their output to Mongolia's central bank. In July, 2014, the Parliament of Mongolia passed the Law of Mongolia on Amending the Minerals Law, amending the 2006 Minerals Law. The amendment introduced 13 new provisions and altered a number of existing provisions of the Minerals Law with the aim of improving the existing legal framework relating to mining. The maximum term for an exploration licence was extended from nine to 12 years.

Subsequent to year-end, the Mineral Resources Authority of Mongolia reopened the mineral licence staking system after a five-year hiatus, further signalling the country's efforts to reignite foreign direct investment in the mining sector.

In addition to the legislative changes, the Mongolian government has signalled that one of its top priorities is to approve the terms with Turquoise Hill Resources Ltd. and Rio Tinto PLC for advancing the Oyu Tolgoi project to the multibillion-dollar phase II development stage. In 2014, the mine produced 598,000 ounces of gold and 148,400 tonnes of copper which is forecast to be exceeded in 2015. This development is expected to benefit all stakeholders from the perspective of improved investor sentiment, infrastructure and services.

Financial results summary

Erdene's year-end 2014 financial statements, management's discussion and analysis, and annual information form were filed with regulatory authorities on March 31, 2015, and are available on the company's website and on SEDAR.

For the 12 months ended Dec. 31, 2014, the net loss was $2,616,553 or four cents per basic and diluted share, compared with a net loss of $2,760,423 or five cents per basic and diluted share in 2013.

Exploration expenditures, including capitalized costs, totalled $2,043,461 in fiscal 2014 compared with $1,916,116 in fiscal 2013. Expenditures were primarily directed toward the Altan Nar project and the Zuun Mod/Khuvyn Khar licence under the Teck-Erdene alliance. Direct expenditures by project were as follows:

• Altan Nar: Approximately $1,107,000 for the 12 months ended Dec. 31, 2014 (2013 -- $692,000);
• Zuun Mod/Khuvyn Khar: Approximately $791,000 for the 12 months ended Dec. 31, 2014 (2013 -- $849,000);
• Regional and other: Approximately $145,000 for the 12 months ended Dec. 31, 2014 (2013 -- $375,000).

Although year-over-year total expenditures remained similar, the company was able to invest approximately $500,000 more on fieldwork including drilling, assaying, analytical work and preparing resource estimates in 2014 from the savings generated with reduced personnel, and general and administrative costs.

Total 2014 general and administrative cash costs were $624,535. Total cash and non-cash administrative expenses totalled $729,074 in 2014 compared with $939,455 in 2013 and $1,678,298 in 2012. Management has remained focused on rationalizing and streamlining operations, and was successful in reducing overhead costs by 22 per cent in 2014 on top of the 44-per-cent reduction in 2013.

The company was successful in securing financing totalling approximately $2.03-million during 2014, in challenging market conditions. A total of $1,630,678 was raised via private placements; $293,303 was raised via the exercise of options and warrants; and $107,142 was raised on signing a loan with Teck (the loan will be settled with the issuance of shares at a future date).

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. All samples have been assayed at SGS Laboratory in Ulan 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.

We seek Safe Harbor.