ERD.TO · 2021-06-17 12:00:00

Erdene Adds Second Rig and Commences Drilling Ulaan GOLD Target Adjacent Bayan Khundii GOLD Deposit

Exploration Programs

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ERDENE ADDS SECOND RIG AND COMMENCES DRILLING ULAAN

GOLD TARGET ADJACENT BAYAN KHUNDII GOLD DEPOSIT

Press Release

Halifax, Nova Scotia

2021.06.17

Erdene Resource Development Corporation (TSX: ERD | MSE: ERDN) (“Erdene” or the

“Company”) is pleased to report the commencement of drilling on the Ulaan Gold Target,

located 350 metres west of the Bayan Khundii Gold deposit.

Quotes from the Company:

“We are excited to test the potential of the southern portion of the Ulaan licen se area

following the acquisition of 100% of the pr operty in late 2020 ,” said Peter Akerley,

Erdene’s President and CEO . “This license, adjacent our Bayan Khundii Project, is part

of the broader Ulaan-Khundii alteration system. Based on the trend of mineralization from

the Bayan Khundii gold deposit, supporting surface alteration and anomalous

geochemical survey test results, we believe there is a high probability that the

mineralization defined at Bayan Khundii continues onto the Ulaan License. We expect to

report initial drill results from the Ulaan exploration drilling in mid Q3 2021.”

Ulaan Target Overview and Drill Program Plans

Following the discovery of the Company’s 100%-owned Bayan Khundii gold deposit in

2015, the Company initiated a land consolidation effort leading to the acquisition of a 51%

interest in the adjacent Ulaan licen se in 2017. The remaining 49% interest in the Ulaan

license was acquired in December 2020.

The northern portion of the 1,780 hectare Ulaan license is situated along the western

boundary of Erdene’s Khundii license. The southern area of the Ulaan license is

approximately 350 metres west of the Bayan Khundii gold deposit , separated by the

Khuren Tsav license held by the Mongolian government-owned gold company, Erdenes

Alt LLC (EA). (See appendices).

Based on Erdene’s drilling near the western Khundii license boundary, satellite imagery,

geophysical analysis and surface alteration, the hydrothermal system that hosts the

Bayan Khundii gold deposit is expected to extend W-SW of the Bayan Khundii deposit

across the Khuren Tsav license and along the southern boundary of the Ulaan license.

Drilling results along the western boundary of Khundii license intersected thick sequences

of gold mineralization, locally beginning at surface, with highest grades at 100 to 160

metres depth. Highlight intersections from drilling near the border include 7 metres of 18

g/t gold in BKD-220; 5 metres of 25 g/t gold in BKD-265; and 28 metres of 2.4 g/t gold in

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BKD-334, the latter of which is located to the north of and outside the reported resource

at Bayan Khundii.

Further supporting this hypothesis, in 2020, prior to the issuance of the Khuren Tsav

license to Erdenes Alt LLC, the Mongolian National Geological Survey conducted

diamond drilling on the portion of license situated between Erdene’s Bayan Khundii and

Ulaan licenses. Though details of this drilling have not been publicly announced, in early

2021 Erdenes Alt LLC announced plans to undertake further drilling and geologic work

on the property. Erdene has been in discussions with Erdenes Alt LLC since the company

was granted the license on opportunities to develop the property in the best interests of

all stakeholders.

The Company has established a series of drill targets in the southern portion of the Ulaan

license. Initial drilling will be wide spaced, testing targets over an approximately 2

kilometre strike length to a maximum depth of 350 meters. The target area (see maps

below) is underlain by the same lithologic units associated with the Bayan Khundii gold

deposit, namely, Carboniferous volcanic tuffs and intrusive rocks ( syenites and

monzonite). These units display similar alteration styles as at Bayan Khundi, silicification

and clay (illite/sericite) alteration with gold bearing quartz veins (up to 13 g/t gold in grab

samples) observed along the western extent of the area. Approximately 50% of the target

area is covered by recent sediments or younger lithologies, however, there is strong gold

in soil anomalism in the target area.

Khundii Gold District

Erdene’s deposits are in the Edren Terrane, within the Central Asian Orogenic Belt, host

to some of the world’s largest gold and copper-gold deposits. The Company has been the

leader in exploration in southwest Mongolia over the past decade and is responsible for

the discovery of the Khundii Gold District comprised of multiple high -grade gold and

gold/base metal prospects, two of which are being considered for development: the

100%-owned Bayan Khundii and Altan Nar projects. Together, these deposits comprise

the Khundii Gold Project.

The Bayan Khundii Gold Resource 1 includes 521,000 ounces of 3.16 g/t gold Measured

and Indicated (“M&I”)² and 103,000 ounces of Inferred resources at 3.68 g/t gold. Within

the M&I resource, a proven and probable open -pit reserve totals 409,000 ounces at 3.7

g/t (see the full press release here), providing significant potential growth of reserves with

the development of the remaining M&I and Inferred resources1.

In July 2020, Erdene announced the results of an independent Feasibility Study for the

Bayan Khundii Gold Project (press release here). The Feasibility Study results include an

after-tax Net Present Value at a 5% discount rate and a US$1,400/oz gold price of

US$100 million and Internal Rate of Return (“IRR”) of 42%. The Feasibility Study

1 For details of the Mineral Resources see Khundii Gold Project NI 43-101 Technical Report, Tetra Tech December 4,

2019 – SEDAR

2 M&I: 171,000 ounces of 3.77 g/t gold Measured, and 349,700 ounces of 2.93 g/t gold Indicated

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envisions an open -pit mine at Bayan Khundii, producing an average of 63,500 oz gold

per year, for seven years, at a head grade of 3.71 g/t gold, utilizing a conventional carbon

in pulp processing plant. Production is expected to commence in early 2022 based on the

current project schedule.

Erdene Resource Development Corp. 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 licenses and two exploration licenses in Southwest Mongolia, where exploration

success has led to the discovery and definition of the Khundii Gold District. Erdene

Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges.

Further information is available at www.erdene.com. Important information may be

disseminated exclusively via the website; investors should consult the site to access this

information.

Qualified Person and Sample Protocol

Peter Dalton, P.Geo. (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. All samples have been ass ayed at

SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS

Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared

standards and blanks. All samples undergo standard fire assay analysis for gold and ICP-

OES (Inductively Coupled Plasma Optical Emission Spectroscopy) analysis for 33

additional elements. For samples that initially return a grade greater than 5 g/t gold,

additional screen-metallic gold analysis is carried out which provides a weighted average

gold grade from fire assay analysis of the entire +75 micron fraction and three 30 -gram

samples of the -75 micron fraction from a 500 gram sample.

Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 metre

intervals (depending on the lithology and style of mineralization) over the entire length of

the drill hole, excluding minor post -mineral lithologies and un -mineralized granitoids.

Sample intervals were based on meterage, not geological controls, or mineralization. All

drill core was cut in half with a diamond saw, with half of the core placed in sample bags

and the remaining half securely retained in core boxes at Erdene’s Bayan Khundii

exploration camp. All samples were organized into batches of 30 including a commercially

prepared standard, blank and either a field duplicate, consisting of two quarter -core

intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to

SGS in Ulaanbaatar via Erdene’s logistical contractor, Monrud Co. Ltd.

Forward-Looking Statements

Certain information regarding Erdene contained herein may constitute forward -looking

statements within the meaning of applicable securities laws. Forward-looking statements

may include estimates, plans, expectations, opinions, forecasts, projections, guidance, or

other statements that are not statements of fact. Although Erdene believes that the

expectations reflected in such forward-looking statements are reasonable, it can give no

assurance that such expectations will prove to have b een correct. Erdene cautions that

actual performance will be affected by a number of factors, most of which are beyond its

control, and that future events and results may vary substantially from what Erdene

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currently foresees. Factors that could cause actual results to differ materially from those

in forward-looking statements include the ability to obtain required third party approvals,

market prices, exploitation, and exploration results, continued availability of capital and

financing and general economi c, market or business conditions. The forward -looking

statements are expressly qualified in their entirety by this cautionary statement. The

information contained herein is stated as of the current date and is subject to change after

that date. The Company does not assume the obligation to revise or update these

forward-looking statements, except as may be required under applicable securities laws.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE

CONTENTS OF THIS RELEASE

Erdene Contact Information

Peter C. Akerley, President and CEO, or

Robert Jenkins, CFO

Phone: (902) 423-6419

Email: [email protected]

Twitter: https://twitter.com/ErdeneRes

Facebook: https://www.facebook.com/ErdeneResource

LinkedIn: https://www.linkedin.com/company/erdene-resource-development-corp-/

Ulaan

Exploration License

Erdene

100

% Ownership

Khundii

Mining License

Erdene

100% Ownership

S Dilation Corridors

2 Kilometres

Phyllic

Alteration Zone

Ulaan–Khundii Location Map

Ulaan

Exploration Inset Map

Bayan

Khundii

Gold Deposit

Ulaan Exploration Target

Bayan Khundii Gold Trend Interpretation

Ulaan

Exploration Licence

100

Erdene

Erdenes

Alt Exploration

Licence

100

% Mongolian State

Khundii

Mining Licence

100

Erdene

Ulaan

–

Drill Target Area

Bayan

Khundii

Proposed Pit

Bayan

Khundii

Gold

Deposit

and

Mineralized

Trend

Dark Horse

1.3

Kilometres

500 Metres

Gold in Soil +

Rock Chip Anomaly

Structural Lineation

Tenement Boundary

Projected Trend

Gold Mineralization

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