Mr. Peter Akerley reports

ERDENE ANNOUNCES Q1 2024 RESULTS AND PROVIDES BAYAN KHUNDII GOLD PROJECT UPDATE

Erdene Resource Development Corp. has released its operating and financial results for the three months ended March 31, 2024, and provided an update on progress at its Bayan Khundii gold project (BK), being developed with Mongolian Mining Corp. (MMC). This release should be read in conjunction with the company's Q1 2024 condensed consolidated interim financial statements and MD&A (management's discussion and analysis), available on the company's website and SEDAR+.

Peter Akerley, Erdene's president and chief executive officer, stated: "During the first quarter, Erdene and MMC closed their strategic alliance and formally launched construction of the Bayan Khundii gold project, one of the highest-grade, open-pit gold mines under development globally. Bayan Khundii will be Mongolia's largest primary gold producer when it reaches full production, providing new opportunities for the Mongolian mining sector, increasing the industry's contribution to the national economy and creating long-term value for Erdene shareholders."

He continued: "Construction at Bayan Khundii is proceeding to schedule and budget with approximately 15 per cent of works complete at the end of the first quarter. There are now over 400 personnel on site working safely towards first gold in Q2 2025."

Mr. Akerley concluded: "During the first quarter, we also launched our 2024 exploration program, as we look to expand mineralization in the Khundii minerals district (KMD), located in an underexplored, world-class gold and copper belt. Ground truthing of high-potential drill targets at Dark Horse and Ulaan commenced in Q2, along with surface exploration of Zuun Mod gold and copper targets, and other regional exploration work."

Q1 2024 highlights and significant subsequent events:

• Bayan Khundii gold project:
  • Announced formal construction decision for Bayan Khundii on Jan. 15, 2024:
    • Mobilized for full construction during Q1 2024 with over 400 personnel now on site;
    • Project is proceeding to budget and schedule -- construction expected to be substantially complete by the end of 2024, commissioning in Q1 2025 and first gold production in Q2 2025.
  • Reached 15 per cent construction progress at Bayan Khundii by the end of Q1 2024:
    • Achieved one million hours construction effort without a lost-time incident;
    • Finished detailed design work and completed procurement of critical long-lead equipment;
    • Commenced process plant structural steel erection.
  • Advanced community development and local employment stakeholder programs:
    • Local co-operation agreement in place to support 2024 local development programs;
    • Recruitment and training of Bayan Khundii mine work force well advanced, with 100 local residents completing mining equipment operator training.
• Khundii minerals district exploration:
  • Completed 2024 exploration program planning for the Khundii minerals district:
    • Near-term focus on mine geology for Bayan Khundii and near-pit expansion opportunities;
    • Planning completed for follow-up drilling at Zuun Mod to confirm resources in advance of planned preliminary economic assessment.
  • Field program commenced in early Q2 on high-priority targets within the KMD, including mapping and surface sampling to ground-truth drill targets.
• Corporate:
  • Closed strategic alliance on Jan. 23, 2024, to advance construction of BK project:
    • MMC invested $40-million (U.S.) for a 50-per-cent equity interest in EM, the company holding the BK project;
    • Erdene retains a 50-per-cent equity interest in EM as well as a 5-per-cent net smelter return (NSR) royalty on production from the Khundii district after the first 400,000 ounces of gold production and 100-per-cent interest in Zuun Mod.
  • Secured BK finance from strategic partner MMC:
    • Up to $80-million (U.S.) shareholder loan to EM, the entity co-owned by Erdene and MMC;
    • Five-year bullet maturity, bearing interest at 13.8 per cent, payable in arrears;
    • Secured by Erdene's interests in EM and preferential rights over Erdene's properties.
  • Recorded a net loss of $2,678,373 for the three months ended March 31, 2024, compared with a net income of $5,405,927 for the three months ended March 31, 2023:
    • Exploration and evaluation expenses totalled $783,156 for the three months ended March 31, 2024, compared with $66,827 for the same quarter in 2023, with the increase from the comparative prior-year period, primarily due to the timing of annual staff performance bonuses and stock option grants, which were incurred in the current quarter compared with the second quarter of 2023;
    • Corporate and administrative expenses totalled $2,777,588 for the three months ended March 31, 2024, compared with $580,111 for three months ended March 31, 2023, with the change from the prior-year comparative quarter resulting from the recognition of financing costs following the close of the BK project loan in Q1 2024, as well as the timing of annual staff performance bonuses and stock option grants, which were incurred in the current quarter versus Q2 2023;
    • Non-cash gain on dilution of investment in associate of $1,070,737 with the issuance of equity in EM to MMC on Jan. 23, 2024, compared with a gain of $6,544,863 in the first quarter of 2023, following the loss of control of EM due to the strategic alliance with MMC;
    • Loss from investment in associate of $257,016 for the three months ended March 31, 2024, compared with a loss from investment in associate of $564,206 for the three months ended March 31, 2023, with the period-over-period change primarily due to a 50-per-cent reduction in Erdene's ownership of EM during the current period with the close of the strategic alliance.

Qualified person

Peter Dalton, PGeo (Nova Scotia), senior geologist 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.

About Erdene Resource Development Corp.

Erdene Resource Development 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 licences and an exploration licence in southwest Mongolia, where exploration success has led to the discovery and definition of the Khundii minerals district. Erdene Resource Development is listed on the Toronto and the Mongolian stock exchanges.

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