Erdene Announces Q3 2025 Results Provides Bayan Khundii Mining and Exploration Update
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www.erdene.com 1 [email protected]
ERDENE ANNOUNCES Q3 2025 RESULTS
PROVIDES BAYAN KHUNDII MINING AND EXPLORATION UPDATE
Press Release
Halifax, Nova Scotia
2025.11.04
Highlights:
• Produced first gold at Bayan Khundii on September 14 and expect to achieve
nameplate production by end of 2025
• Announced updated independent mineral resource estimate for Zuun Mod
molybdenum-copper porphyry project
• Entered option agreement to acquire up to 80% of the Tereg Uul Copper -Gold
porphyry prospect
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN ; OTCQB: ERFCF)
("Erdene" or the "Company") is pleased to announce operating and financial results for
the three months ended September 30, 2025, 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 Q3 2025 Financial Statements and MD&A, available on
the Company’s website and SEDAR+. All dollars are Canadian unless otherwise noted.
Peter Akerley, Erdene’s President and CEO stated, “The team achieved a major
milestone during the third quarter with first gold pour at the Bayan Khundii Gold Mine.
This achievement comes just 10 years from our first drill hole in the deposit, marking BK
as one of fastest projects to transition to production in recent memory. Ramp up is
progressing largely to plan and we expect BK to achieve nameplate capacity by year-
end.”
Mr. Akerley continued, “Exploration work is underway as we seek to grow resources to
expand or extend BK. EM plans to undertake 9,300 metres of drilling in the coming
months across the Khundii Mining license.”
Mr. Akerley concluded, “We also continued to advance our wholly owned projects. In
October, we announced an updated independent mineral resource estimate for our Zuun
Mod Molybdenum-Copper project, confirming the project as one of Asia’s largest
undeveloped projects. Additionally, in early July we executed an option agreement to
acquire an up to 80% interest in a property adjacent to Oyu Tolgoi, one of the largest
copper-gold deposits globally. Drilling is now underway on the Zuun Mod project and the
initial surface program is continuing at Tereg Uul.”
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Q3 2025 Highlights and Significant Subsequent Events:
Images – clockwise from top left: Bayan Khundii Process Plant, Mining Operation, First Gold and Process
Plant Opening Ceremony
Bayan Khundii Gold Mine – 50% Economic Interest
• Produced first gold on September 14 and expect to achieve nameplate production by
end of 2025
- EM sold 342 ounces (“oz”) gold (“Au”) and 96 oz silver (“Ag”) at a weighted average
price of US$3,805/oz and US$44/oz, respectively, during the quarter
- BK has been designed to process 650,000 tonnes of ore and produce 85,000 oz
of gold per annum
• Completed construction, commissioning and permitting for BK mine during the quarter
- Dry and wet commissioning of the processing plant was completed in September,
in advance of first gold pour
• Mined 2.1 million tonnes (“Mt”), including 1.8Mt of overburden and 133 thousand
tonnes (“kt”) of ore to the end of September
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- 111kt of ore on the run-of mine (“ROM”) at an estimated average grade of 2.30 g/t
Au and 1.27 g/t Ag at September 30
• Developed BK exploration drill program to expand and extend near mine resources
- 9,300 metres of drilling underway at BK, Dark Horse and Altan Arrow
• Delivered on community development and local employment stakeholder programs
- Approximately 35% of site personnel are residents of Bayankhongor province
- Subsequent to quarter end, EM executed an updated local cooperation agreement
with provincial and sub-provincial authorities
- Engaged local contractors on selected mine site services and environmental
stewardship programs
Khundii Minerals District Exploration & Development
• Announced updated mineral resource estimate for Zuun Mod on October 2
- 22% increase in Measured and Indicated molybdenum (“Mo”) resources to 333
million pounds (“Mlbs”) and 90% increase in Inferred Mo resources to 300 Mlbs
- 16% increase in Measured and Indicated copper (“Cu”) resources to 384 Mlbs and
75% increase in Inferred Cu resources to 350 Mlbs
- Technical report will be filed on SEDAR+ by mid-November
Corporate
• Entered option agreement on July 3 to acquire up to 80% of the Tereg Uul Copper-
Gold porphyry prospect
- Prospect is located ~10km southwest along trend of the Oyu Tolgoi copper deposit
• Completed 6:1 consolidation of common shares on September 2
- Reduced the number of outstanding Common Shares from 366,351,958 to
61,063,549
• Recorded net loss of $2,748,830 for the three months ended September 30, 2025,
compared to net loss of $1,687,580 for the three months ended September 30, 2024
- Exploration and evaluation expenses totaled $579,333 for the three months ended
September 30, 2025, compared to $215,903 in the prior year comparative quarter,
primarily due to exploration expenditures associated with the Tereg Uul property
optioned in July 2025 and increased new project evaluation costs
- Corporate and administrative expenses totaled $864,892 for the three months
ended September 30, 2025, compared to $582,089 for the three months ended
September 30, 2024, with the year-on-year change primarily due to an increase in
stock based compensation due to the grant of options to a strategic advisor as well
as higher professional and regulatory fees associated with the share consolidation
completed on September 2, 2025
- Loss from investment in associate, representing the Company’s joint venture
interest in the loss of EM, totaled $1,347,317 for the three months ended
September 30, 2025, compared to $918,649 in the prior year comparative quarter
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due to an increase in interest expenditures by EM to finance construction at BK,
partially offset by the proceeds from gold sales in September 2025
Results Conference Call
Management will host a webcast and conference call to discuss these results and current
business initiatives on Wednesday, November 5, 2025, at 10:00 AM Eastern Time. The
webcast will be accessible on Erdene's website 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
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.
About Erdene
Erdene Resource Development Corp. 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 licenses and two
exploration licenses in 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 and OTCQB Venture Market. 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
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 the ability to obtain required third party approvals,
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 o bligation to revise or update these
forward-looking statements, except as may be required under applicable securities laws.
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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-/