Erdene Resource Development Corp. provided an update on progress at its high-grade, open-pit Bayan Khundii Gold Project in southwestern Mongolia. Early Works and Site Establishment: Erdene executed an early works contract with MCS Properties ("MCSP"), an affiliate of MMC near the end of Second Quarter-2023.

Additionally, Erdene is negotiating with a Mongolian power producer to secure the Project's energy needs. On August 15, 2023, Erdene announced results of an updated Feasibility Study ("FS") for Bayan Khundii. The FS was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and incorporates updated mineral resources and reserves, including maiden resources and reserves from the high-grade Dark Horse Mane deposit ("DH"), as well as current capital and operating cost estimates and metals prices.

The Technical Report will be filed on SEDAR in late September 2023. Base Case after-tax Net Present Value of USD 170 million (NPV5%) and 35.3% Internal Rate of Return (IRR), increasing to USD196 million and 38.95% IRR, respectively, at current gold price of USD 1,900/oz; Life of Mine Earnings Before Interest, taxes and Depreciation of USD 451 million, increasing to USD 495 million at a USD 1,900/oz gold price; Total recovered gold of 476,000 ounces, a 25% increase compared to the 2020 Feasibility Study from an average gold recovery rate of 93%; All-in sustaining cost ("AISC") of USD 869 per ounce and upfront capital costs of USD 88 million, plus a 12% contingent, and $2 million of pre-production costs; Measured and Indicated Resources of 674,700 ounces gold at an average grade of 2.6 g/t gold, and 319,000 ounces silver at an average grade of 1.38 g/t silver; Proven and Probable Reserves of 513,700 ounces gold at an average grade 4.0 g/t gold, and 220,500 ounces silver at an average grade the 1.7 g/t silver; Average annual gold production of 86,900 ounces during years 2 through 5 - Life of Mine annual average production of 74,200 ounces gold; Eight-year project, comprising one-year pre-production, six and three quarter-year operating life and one-year mine closure period; Adjacent high-grade resources and recent discoveries provide high probability growth options; Significant benefits to Mongolia, including Life of Mine royalties and taxes of USD 143 million and approximately 500 new jobs in Bayankhongor Province.