Erdene Resource Development Corp. announce the commencement of full construction at the high-grade, open-pit Bayan Khundii Gold Project in southwestern Mongolia and the close of the investment by Mongolian Mining Corporation as part of the Strategic Alliance Agreement to develop the Khundii Minerals District. Strategic Alliance with MMC On January 10, 2023, Erdene executed a Strategic Alliance Agreement with MMC to develop the Bayan Khundii Gold Project.

On January 23, 2024, the parties formally closed the SAA by issuing shares in Erdene Mongol LCC to MMC representing a 50% equity ownership. Details of the SAA include: MMC is Mongolia?s largest internationally traded mining company, listed on the main board of the Hong Kong Stock Exchange. MMC has invested USD 40 million in EM, Erdene?s Mongolian subsidiary holding the Khundii and Altan Nar mining licenses and the Ulaan exploration license.

Erdene retains a 50% equity interest in EM and a 5.0% Net Smelter Return royalty on production from the Khundii, Altan Nar and Ulaan licenses, as well as any properties acquired within a 700km2 area of interest, beyond the first 400,000 ounces gold recovered. Erdene maintains a 100% interest in its large Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project, located approximately 30 kilometres east of Bayan Khundii, and adjacent to a planned railway development. Bayan Khundii Construction On January 15, 2024, Erdene and MMC reached a formal decision to commence construction at Bayan Khundii.

With Proven and Probable reserves of 513,000 ounces of gold at an average head grade of 4.0 g/t gold, Bayan Khundii is scheduled to produce an average of 87,000 ounces of gold during years two through five of the seven year mine life. Furthermore, known resources in the District are expected to provide further reserves to significantly extend mine life. The construction decision follows the successful completion of the Project?s early works program during the second half of 2023.

Representing approximately 12% of the total construction effort, EM built temporary construction facilities, including aggregate crushing and concrete batch plants, fuel depot and construction camp, construction roads, and completed site leveling, detailed excavation, and all major reinforced concrete footings and columns installation for the Project?s process plant.