Erdene Announces Q1 2026 Results
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www.erdene.com 1 [email protected]
ERDENE ANNOUNCES Q1 2026 RESULTS
Press Release
Halifax, Nova Scotia
2026.05.06
Highlights:
• Produced and sold 8,527 ounces gold at an average price of US$4, 872/oz for
US$42M in gross project revenues
• Achieved commercial production at Bayan Khundii, operating at 94% of target
throughput and recovering 96% of gold in Q1 2026
• Advanced preliminary economic assessment for Zuun Mod molybdenum-copper
porphyry project expected in Q3 2026
• Commenced maiden drill program at Tereg Uul near Oyu Tolgoi
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN ; OTCQ X: ER DCF)
("Erdene" or the "Company") is pleased to announce operating and financial results for
the three months ended March 31, 2026, and to provide an update on the Bayan Khundii
Gold Mine (“BK”), operated by Erdene Mongol LLC (“EM”), the Company’s joint venture
with Mongolian Mining Corporation (“MMC”). This release should be read in conjunction
with the Company’s Q1 2026 Financial Statements, MD&A, and Annual Information Form,
available on the Company’s website and SEDAR+. All dollars are thousands of Canadian
dollars, unless otherwise noted.
Peter Akerley, Erdene’s President and CEO stated, “During the first quarter of 2026 the
Bayan Khundii gold mine achieved commercial production, realizing average plant
throughput of over 90% of nameplate capacity. Gold recovery during the quarter averaged
over 96%, exceeding projections in the most recent feasibility study. The average grade
processed by Bayan Khundii ramped up steadily throughout the quarter.”
Mr. Akerley continued, “With a 20% increase in sales compared to the first quarter of
operations, Bayan Khundii has produced 15,961 ounces of gold to date.”
Mr. Akerley concluded, “With the proceeds from the financing completed during the
quarter, Erdene is strongly positioned to advance our wholly -owned precious and base
metal projects in the Khundii and Oyu Tolgoi districts. Technical work is underway on the
Zuun Mod preliminary economic assessment, expected to be released in Q3 2026 with
geophysics and drilling scheduled for later in 2026 to test the copper potential of the
Khuvyn Khar project. Additionally, drilling has commenced at Tereg Uul, testing target s
along trend from the Oyu Tolgoi copper-gold system.”
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Q1 2026 Highlights and Significant Subsequent Events:
Bayan Khundii Gold Mine – 50% Economic Interest
• Produced and sold 8,527 ounces gold and 3,135 ounces silver in Q1 2026
− Represents a 20% increase over Q4 2025
− EM realized weighted average prices of US$4,872/oz and US$80/oz, respectively,
generating total revenue of US$42 million (C$57 million)
• Achieved commercial production operating at 94% of target throughput rate in Q1 2026
− Processed 151 thousand tonnes of ore, averaging 1,675 tonnes per day
− Gold recoveries of 96% were superior to the forecast average of 93%
− Quarterly average feed grade of 1.9 g/t gold, supported by March monthly average
of 2.7 g/t gold
• Reported results of over 5,000 metres drilling at DH and Altan Arrow testing mine
resource expansion
− Expanded high-grade gold mineralization in Dark Horse South with near surface
intersections including 9 g/t gold over 19 metres and 28.7 g/t gold over 3 metres
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− Intersected multiple zones of gold mineralization within transition to primary
material at Dark Horse North, including 43 metres of 1.9 g/t gold that are potentially
suitable for heap leaching
− Returned near surface intersections, including a meter of 16.2 g/t gold within a
wider interval of 16 metres averaging 1.4 g/t gold, beginning 6 metres from surface,
as well as silver intersections of up to 124 g/t over two metres at Altan Arrow
• Delivered on community development and local stakeholder programs
− Over 40% of site personnel are residents of Bayankhongor province, and 15% of
direct EM employees are female, as at the end of the quarter
− Engaged local contractors on mine site services and environmental stewardship
programs
Exploration & Development
• Announced results from the 18 holes drilled at the Zuun Mod Mo-Cu deposit
− Drilling returned multiple intersections of ore -grade mineralization in areas
modelled as waste
− ZMD-98, extended to 450 metres depth, intersected near continuous Mo and Cu
mineralization over 374 metres, averaging 0.066% MoEq
• Progressed Zuun Mod Preliminary Economic Assessment ("PEA"), planned
for completion in mid-2026
− Recent drill results are being incorporated into an updated resource model
− Metallurgical test work is underway to develop a conceptual process flow sheet
• Completed planning for 2026 field exploration season
− Engaged consultants to carry out geophysics to generate copper porphyry targets
on the Khuvyn Khar license
− Analyzed Tereg Uul geophysical and geochemical data to select targets for drill
testing in Q2 2026
Corporate
• Closed a bought deal private placement for gross proceeds of $28,747 in February
2026
− Issued 3,230,000 common shares at a price of $8.90 per common share
• Recorded net income of $4,764 for the three months ended March 31, 2026, compared
to net loss of $4,501 for the three months ended March 31, 2025
− Exploration and evaluation expenses totaled $891 for the three months ended
March 31, 2026, compared to $974 for the three months ended March 31, 2025,
with the quarter over quarter decrease primarily due to an increase in expenditures
reimbursed by associate in the current year
− Corporate and administrative expenses totaled $1,444 for the three months ended
March 31, 2026, compared to $1,501 for three months ended March 31, 2025, with
the change compared to the prior year quarter primarily due to reduction in non -
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cash share -based compensation costs partially offset by increased investor
relations, professional fees and regulatory costs
− Income from investment in associate, representing the Company’s joint venture
interest in the income of EM, totaled $6,963 for the three months ended March 31,
2026, compared to a loss of $2,084 for the three months ended March 31, 2025,
due to production from Bayan Khundii in the current period, while the mine was
under construction during the prior year quarter
Results Conference Call
Management will host a webcast and conference call to discuss these results and current
business initiatives on Thursday, May 7, 2026, at 9:00 AM Eastern Time. The webcast
will be accessible at the following link: HERE
A replay of the webcast will be available at the same link for one year after the event.
The dial-in numbers for the conference call are as follows:
• North America (toll free): 1-800-717-1738
• Overseas or local (Toronto): 1-289-514-5100
Qualified Person
Jon Lyons, FAusIMM, Chief Development Officer for Erdene, is the Qualified Person as
that term is defined in National Instrument 43-101 and oversees the Bayan Khundii Mine
operations for the Corporation and has reviewed and approved the technical information
related to the BK Mine contained in this news release.
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 oversees the Corporation’s
exploration programs and has reviewed and approved the technical information related
to exploration contained in this news release.
About Erdene
Erdene Resource Development Corp. is a Canada -based resource company producing
gold at the high -grade, low-cost Bayan Khundii Gold Mine in underexplored and highly
prospective Mongolia. The Company has interests in a portfolio of precious and base
metal projects near the Bayan Khundii Gold Mine in the Khundii Minerals District, which
provides a robust organic growth pipeline. Erdene Resource Development Corp. is listed
on the Toronto (“ERD”) and the Mongolian stock (“ERDN”) exchanges and OTCQX
Market (“ERDC F”). 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.
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
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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 Erd ene
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 avai lability 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
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-/