Erdene Closes $2.5 Million Private Placement

Erdene Closes $2.5 Million Private Placement

Halifax, Nova Scotia – February 28, 2019 - Erdene Resource Development Corp. (TSX:ERD ;

MSE:ERDN) ("Erdene" or the "Company") is pleased to announce that it has closed its previously

announced non-brokered private placement raising gross proceeds of $2,533,345 (the “Offering”). The

Offering, announced on February 12, 2019 , was oversubscribed from the initial targeted proceeds of

$1.75 million. Erdene’s’ management, directors and employees subscribed for 10% of the Offering.

Pursuant to the Offering, Erdene has sold 11,014,544 units of the Company (the “Units”) at a price of

$0.23 per Unit. Each Unit consists of one common share and one common share purchase warrant (the

“Warrant”). Warrants are exercisable by the holder into one common share of the Company within two

years of the closing date, at a price of $0.40 per share if exercised within twelve months of the closing

date and at a price of $0.50 per share if exercised more than twelve months after the closing date .

Erdene paid f inder’s fees in the aggregate of $ 62,116 and issued 270,070 finder’s warrants in

connection with the Offering. The finder's warrants are exercisable on the same terms as the unit

Warrants.

Proceeds of the Offering will be used to fund the independent Pre-Feasibility Study of the Company's

Khundii Gold Project (the “Project”) , the mining license applications for the Project’s properties ,

potential acquisitions, including areas of interest recently opened through the Mongolian Government’s

license tender process, and for general working capital purposes.

Securities issued under the Offering are subject to a four month hold period from the closing date of

the Private Placement.

Background on the Khundii Gold Project

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

some of the world’s largest gold and copper -gold deposits. Although epithermal gold and porphyry

copper-gold deposits are well documented across the border in China and along the Belt’s westward

trend, exploration in Mongolia was limited until the mid-1990s, when the country opened its lands to

foreign exploration . Exploration since that time in southeast Mongolia led to t he discovery of the

world-class Oyu Tolgoi gold-copper deposit. Erdene has been the leader in exploration in southwestern

Mongolia over the past decade and is responsible for the discovery of the Khundii Gold District. The

District is comprised of multiple high-grade gold and gold/base metal prospects, two of which are being

considered for development: Bayan Khundii and Altan Nar. The Company has to date invested US$17

million in exploration and resource development on the Bayan Khundii and Altan Nar projects which

are referred to collectively as the Khundii Gold Project.

About Erdene

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 four expl oration licenses and a mining license 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 Mongolia stock exchanges.

Further in formation 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 informa tion 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 st atements 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 t hose 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 t heir 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

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

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

YouTube: https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA