Mr. Peter Akerley reports

ERDENE PROVIDES UPDATE ON SHARE CONSOLIDATION

Erdene Resource Development Corp. has provided an update on the proposed consolidation of the company's issued and outstanding common shares on the basis of one postconsolidation common share for every six preconsolidation common shares, as approved at the 2025 annual general and special meeting of shareholders, held June 25, 2025.

Share consolidation

The company's board of directors has determined to implement the consolidation, effective on Sept. 2, 2025, subject to the receipt of all necessary regulatory approvals. In connection with the consolidation, trading of the common shares will be halted on the Mongolian Stock Exchange commencing Aug. 27, 2025, while trading will continue on the Toronto Stock Exchange. No fractional postconsolidation common shares will be issued in connection with the consolidation. Any fractional postconsolidation common share arising from the consolidation will be rounded up to the nearest whole common share.

Upon completion of the consolidation, the postconsolidation common shares will continue to trade on the TSX under the stock symbol ERD under a new Cusip: 29480N404 and a new ISIN: CA29480N4049. The postconsolidation common shares are expected to commence trading on the TSX at market open on or about Sept. 5, 2025.

Registered shareholders of the company will receive a letter of transmittal from the company's transfer agent, providing instructions for the exchange of their preconsolidation common shares as soon as practicable following the effective date. The letter of transmittal will contain instructions on how to surrender to the transfer agent the certificate(s) representing the preconsolidation common shares. The transfer agent will send to each registered shareholder who follows the instructions provided in the letter of transmittal a new share certificate representing the number of postconsolidation common shares to which the shareholder is entitled rounded up to the nearest whole number or, alternatively, a direct registration system advice/statement representing the number of postconsolidation common shares the shareholder is entitled rounded up to the nearest whole number following the consolidation. No action is required by beneficial shareholders of the company to receive postconsolidation common shares in connection with the consolidation. Beneficial shareholders who hold their preconsolidation common shares through intermediaries (for example, a broker, bank, trust company investment dealer or other financial institution) and who have questions regarding how their common shares will be processed in connection with the consolidation should contact their intermediaries.

As of the date of this news release, the company has 366,231,958 common shares issued and outstanding. Following completion of the consolidation on the effective date, the company is expected to have approximately 61,038,660 common shares issued and outstanding, subject to rounding of fractional common shares.

Further details regarding the consolidation are contained in the company's management information circular dated May 20, 2025, which is available on SEDAR+ under the company's profile.

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 two exploration licences in Mongolia, where exploration success has led to the discovery and definition of the Khundii gold district. Erdene is listed on the Toronto and the Mongolian stock exchanges and on the OTCQB Venture Market.

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