Mr. Peter Akerley reports

ERDENE PROVIDES CORPORATE FINANCE UPDATE

Erdene Resource Development Corp.'s Erdene Mongol LLC (EM) has executed an up to $50-million (U.S.) working capital facility with Trade and Development Bank of Mongolia (TDB). The facility is designed to finance commissioning and ramp-up of the high-grade, open-pit Bayan Khundii gold project (BK), under development with Mongolian Mining Corp. (MMC).

Additionally, the company is pleased to provide an update on recent warrant exercises.

Peter Akerley, Erdene's president and chief executive officer, stated: "We are very pleased to announce the working capital financing from TDB, one of Mongolia's leading financial institutions. Proceeds will fund premining and commissioning for the Bayan Khundii gold project as we work toward first gold in mid-2025 and commercial production in Q3 2025. This financing will provide liquidity during ramp-up. We have begun to close in the process plant and complete critical non-process infrastructure buildings, in advance of mechanical and electrical works completion in Q1 and commissioning beginning in Q2 2025. In addition, the 13,700-metre grade-control drilling program and the first phase of the project's integrated waste facility construction, supporting year one mining, are on track to be complete this month positioning the project to commence preproduction mining in Q2 2025."

Mr. Akerley continued: "We have also received commitments for the exercise of approximately $5-million [Canadian] of warrants, including from our cornerstone investor, Mr. Eric Sprott. These proceeds will allow the company to advance other projects including our Zuun Mod project, one of Asia's largest undeveloped molybdenum resources."

Bayan Khundii working capital facility

Erdene Mongol LLC (EM) has executed financing documents with TDB for a working capital facility to commission the Bayan Khundii gold project. The up to $50-million (U.S.) facility has a term of 24 months, and will be repayable through six equal payments during the final six months of the loan term. The facility will bear interest at a rate of 13.3 per cent per annum and is secured by Bayan Khundii's process plant assets. See Erdene press release dated Jan. 29, 2024, for details on the Erdene-MMC strategic alliance, "Erdene Commences Construction at the High-Grade Bayan Khundii Gold Project and Finalizes Strategic Alliance with Mongolian Mining Corporation."

December, 2024, warrant exercises

Erdene is pleased to announce that the company has received commitments to exercise all common share purchase warrants with an expiry of Dec. 21, 2024, including those held by Mr. Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him. Pursuant to these commitments, the company has issued 6,689,697 shares and will issue a further 6,370,755 shares by Dec. 21, 2024, for aggregate gross proceeds of $5,224,181. Proceeds will be used to advance projects outside the EM area of interest, including the company's Zuun Mod molybdenum-copper project and for general corporate purposes. See Erdene press release dated Dec. 22, 2022, for details, "Erdene completes $7M Private Placement Led by Investment from Eric Sprott."

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.

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