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ERD.TO ·

Erdene Announces Private Placement

Financings

ERDENE RESOURCE DEVELOPMENT CORP.

Erdene Announces Private Placement

Halifax, Nova Scotia – March 16, 2017 - Erdene Resource Development Corp. (TSX:ERD)

("Erdene" or "Company"), is pleased to announce it intends to issue, by way of a non-brokered private

placement, 543,478 shares to Teck Resources Limited ("Teck") at a price of $0.92 per share for gross

proceeds of $500,000 ("Private Placement"). This fulfils Teck’s equity investment obligation pursuant

to the Strategic Alliance between Erdene and Teck announced by Erdene on April 11, 2013. Net

proceeds of the Private Placement will be used for exploration of the Company's Teck-Alliance projects

in southwest Mongolia.

The Private Placement is expected to close on or before March 31, 2017, and is subject to certain

conditions, including, but not limited to, the receipt of all necessary approvals including the approval

and acceptance by the Toronto Stock Exchange. All securities to be issued pursuant to the Private

Placement will be subject to a four-month hold period from the closing date.

Erdene-Teck Alliance

The Alliance with Teck was entered into in April 2013, and was formed by the signing of option and

private placement agreements (collectively, “Agreement”) to fund and carry out mineral exploration in

the Trans Altai region of southwest Mongolia. Under the terms of the Agreement, Teck had the option

to subscribe for shares of Erdene, priced at the then current market plus 10%, until it had invested $3

million. Once the initial option agreement funding and initial program is complete, the Alliance will

continue to evaluate opportunities for acquisition and, depending on certain conditions, could enter into

future agreements to acquire and advance designated projects.

A multi-year program of regional exploration, designed to identify porphyry and porphyry -related

mineralization, has been underway since inception. The program has provided the Alliance with a

significant amount of technical information to support future acquisition and exploration. The 2016

exploration program consisted of surface geochemical sampling, geological mapping and prospecting,

and analysis of newly acquired satellite data.

Excluded from the Alliance are the Compa ny’s Bayan Khundii Gold Project, Altan Nar Gold-

Polymetallic Project, Altan Arrow Gold-Silver Project and the Zuun Mod Molybdenum-Copper Project.

About Erdene

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition,

exploration, and development of precious and base metal prospects in underexplored and highly

prospective southwest Mongolia. Exploration success has led to the discovery and definition of several

100%-owned prospects and deposits including the Company’s flagship and newly discovered, high -

grade, near-surface Bayan Khundii gold project; the 5.6 km long Altan Nar gold -polymetallic

mineralized trend that is host to 18 targets; the Altan Arrow gold-silver prospect and the Zuun Mod

molybdenum-copper deposit. For further information on the Company, please visit www.erdene.com.

Erdene has a working capital position of approximately $13.3 million, 145,390,586 issued and

outstanding common shares and a fully diluted position of 153,972,160 common shares, after giving

effect to the Private Placement.

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 been 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 currently foresees.

Factors that could cause actual results to differ materially from those in forward -looking statements

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

financing and general economic, 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

Ken W. MacDonald, Vice President and CFO

Phone: (902) 423-6419

E-mail: [email protected]

Website: www.erdene.com

Twitter: https://twitter.com/ErdeneRes