Erdene Provides Update on Development of the Donkin Coking Coal Project

ERDENE RESOURCE DEVELOPMENT CORP.

Erdene Provides Update on Development of the Donkin Coking Coal Project

For Immediate Release

Halifax, Nova Scotia – April 20, 2010 - Erdene Resource Development Corp. ("Erdene") (TSX:ERD), is pleased to provide an update on the development plans for the Donkin Coal Project and announce that initial site construction work has commenced.

"We are extremely pleased with the way the Donkin Coal Project has advanced over the past two months," said Peter Akerley, President and CEO of Erdene. "During that time, in addition to the mine road construction, significant efforts have been dedicated to engineering the coal preparation plant, barge loading facility and working with the regulators to finalize the path to development. The strategic location, high quality resource and the strengthening of the seaborne export and coking coal markets bodes well for the future of the project.”

Erdene has a 25% interest in the Donkin Coal Project, located on Cape Breton Island, Nova Scotia with joint-venture partner Xstrata Coal Canada (“Xstrata Coal”). Xstrata Coal announced in early February its intention to develop the Donkin Coal Project based on sales to the coking coal market. The deposit is strategically located proximal to deep water with ready access to some of the world’s major shipping routes. The resource includes 227 million metric tonnes ("Mt") of Indicated and 254Mt of Inferred high volatile-A bituminous (12,000-14,000 Btu), high sulphur, and medium ash coal. The processed Donkin coal also has many excellent coking coal properties including low ash, medium sulphur, low phosphorus, high CSN (crucible swell number) and fluidity.

Project Update

Since making the announcement to move forward with the Donkin Coal Project in February, 2010, Xstrata Coal, as project manager, has initiated a number of key elements of the project including civil construction, engineering and pre-feasibility studies, environmental assessment studies and consultation with government officials.

Civil Works: During the past week, site development commenced with the awarding of the access road construction contract. Municipal Ready Mix Ltd, located in Sydney, Nova Scotia, is constructing the 2.5-kilometre long road with work beginning immediately. This work is expected to be completed by mid-July 2010.

Engineering Mine Design and Prefeasibility Study: In the past month, Xstrata Coal has initiated studies by Sedgeman and GW Engineering/Kellogg Brown & Root Pty Ltd to add a wash plant to the coal handling facility and to prepare prefeasibility level studies on the offshore transportation system. Mining consulting firm, Marston (Missouri), has been engaged to complete a pre-

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feasibility study of the revised project scope. Marston is an international full-service mine consulting firm headquartered in St. Louis, Missouri with extensive experience in open pit and underground coal mines.

Permitting & Regulatory: The Donkin Coal Project has previously received all necessary approvals to commence production of up to 350,000 tonnes of run-of-mine coal, with delivery in the initial years of the project via road transportation. The revised development plan includes an assessment of a Donkin headland sited offshore barge-to-ship coal transportation system and the construction of a wash plant which will require additional federal and provincial approvals. Xstrata Coal has contracted Stantec Inc., a North America based global environmental and engineering firm, to lead the environmental permitting and regulatory compliance process. Stantec provides comprehensive environmental services and testing to the mining industry and has undertaken environmental assessment work for projects in numerous geographic areas under a variety of environmental conditions.

Government Consultation: Meetings have been held with both federal and provincial government departments to determine the most efficient and effective procedures to follow to fulfill all regulatory requirements to secure operating permits. The intention is to file all applications within the next 12 months.

Personnel: The joint-venture currently employs nine people, directly and through contracts, the majority of which are underground mine personnel. In association with recent developments on the Donkin Coal Project, Xstrata Coal will appoint a Nova Scotia-based Project Manager and an Environment/Community Liaison Officer. These individuals will lead the project team to advance the Donkin project into the next phase of development.

Market

Washed coking coal from the Cape Breton coal fields has historically been sold to the steel industry in Europe and North America as well as the local thermal power generation units which currently consume in excess of 3 million tonnes annually. Demand for coking coal is expected to rise with the recovery in the steel market particularly in China, India and other Pan-Asian countries. In addition, U.S. steel utilization rates have increased to approximately 65% from recent lows of 45% and European steel mill production is also strengthening. Assuming receipt of all approvals, the revised Donkin Coal Project is expected to produce approximately 2.75 million tonnes per annum of washed export-grade coking coal at full production.

Donkin Coal Project Background

Located in Eastern Canada, the Donkin Coal Project was acquired by the joint-venture partners in 2006. Since that time, work has been carried out to de-water and refurbish the previously established 3.5-kilometre twin access tunnels. In addition, National Instrument 43-101 compliant resource estimates and preliminary assessment studies were completed and an environmental assessment study was filed with the Nova Scotia Environment Department.

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Qualified Person

J.C. (Chris) Cowan, P.Eng. (Ontario), is a 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 diversified resource company with multiple projects at various stages of development from exploration to production; all projects are focused on highgrowth commodities. Erdene has a current working capital position of approximately $12.8 million, including that of its controlled subsidiary APM, with 89,230,877 common shares issued and outstanding and a fully diluted position of 92,054,877 common shares.

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 subject to change after that date.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE

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Contact information

Peter C. Akerley, President and CEO or Ken W. MacDonald, Vice President Business Strategy and CFO

Phone: (902) 423-6419 e-mail: [email protected]

www.erdene.com