Mr. Peter Akerley reports

ERDENE ENTERS AGREEMENT TO ACQUIRE TEREG UUL COPPER-GOLD PORPHYRY PROSPECT

Erdene Resource Development Corp. has executed an option agreement to acquire an up-to-80-per-cent ownership interest in the Tereg Uul copper-gold porphyry prospect, located approximately 10 kilometres southwest of the Oyu Tolgoi deposit.

Peter Akerley, Erdene's president and chief executive officer, stated: "We are excited to explore for copper and gold along trend of Oyu Tolgoi, soon to become a top-four global copper producer. With the high-grade Bayan Khundii gold project on track for first gold production this quarter and exploration continuing in the Khundii minerals district, we are in a position to take advantage of new opportunities to create additional value for shareholders."

Mr. Akerley continued: "The Tereg Uul property is located within a corridor of copper-gold porphyry-related deposits and prospects that extend over 50 kilometres along trend of the Oyu Tolgoi deposits. This option agreement provides Erdene a low-risk opportunity to explore proximal to one of the largest copper-gold systems globally."

Tereg Uul

The 6,694-hectare Tereg Uul exploration licence, located in Khanbogd and Bayan-Ovoo soums, South Gobi province, is held by the private Mongolian company Tereg Uul Mines LLC (TUM). The licence was issued on April 5, 2023, is in its third year of a maximum 12-year term and can be converted to a mining licence at any time prior to the end of the 12th year by meeting the requirements prescribed under the Minerals Law of Mongolia.

The property is located approximately 10 kilometres southwest from the Oyu Tolgoi mine, along the Oyu Tolgoi mineralization corridor, and five kilometres south of the Oyu Tolgoi licence boundary near Entree/Oyu Tolgoi's joint venture Railway copper-gold prospect. The porphyry trend continues south through the Tereg Uul licence to the Khatsavach Uul porphyry copper prospect located 10 kilometres south of Tereg Uul. Although modern exploration is limited due to closure since 2009, state-sponsored mapping in the late 1980s and exploration on the licence in the early 2000s by Ivanhoe Mines identified geophysical and geochemical anomalies, which remain undrilled. The licence is underlain by favourable Paleozoic host rocks of similar ages to those that host the Oyu Tolgoi deposits. The Tereg Uul property also contains several anomalous gold occurrences related to epithermal-style veins at surface and base metal geochemical signatures. Exploration is expected to commence in late Q3.

Terms of arrangement

Under the terms of an option agreement, Erdene may acquire an up-to-80-per-cent interest in TUM through a series of exploration and payment milestones.

Upon signing the option agreement, Erdene will commit to invest $300,000 (U.S.) in specified exploration expenditures within 12 months and make a payment of $200,000 (U.S.) to the option grantor. On the first, second and third anniversaries of the option agreement, the company shall make payments of $400,000 (U.S.), $500,000 (U.S.) and $900,000 (U.S.), respectively, to the option grantor and commit to a total of $3-million (U.S.) in exploration expenditures. The company may acquire a 51-per-cent equity ownership stake in TUM between the third and fourth anniversaries through a payment of $5-million (U.S.) to the option grantor. Erdene will direct all exploration activities at the property during the term of the option and may terminate the option agreement without penalty at any time.

Erdene can acquire an up-to-80-per-cent equity ownership stake through the investment of a further $10-million (U.S.) in exploration and evaluation expenditures and through an additional payment of $8-million (U.S.) to the option grantor, on or before the eighth anniversary of the agreement.

About Erdene Resource Development Corp.

Erdene is a Canada-based resource company focused on bringing the Bayan Khundii gold mine into production in late 2025 and 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 southwestern Mongolia, where exploration success has led to the discovery and definition of the Khundii gold district. Erdene Resource Development is listed on the Toronto and the Mongolian stock exchanges.

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