Erdene Strikes Gold: Bayan Khundii Mine Ignites Mongolian Production

HALIFAX, Nova Scotia – March 24, 2026 – Erdene Resource Development Corp. has officially joined the ranks of gold producers, announcing the successful commissioning of its high-grade Bayan Khundii Gold Mine in Mongolia and reporting its first significant revenues. The milestone, detailed in the company's 2025 year-end results, marks a pivotal transition from developer to operator and establishes a new stream of cash flow that underpins an ambitious growth strategy across Mongolia’s emerging Khundii Minerals District.

In a landmark year, Erdene and its joint venture partner, Mongolian Mining Corporation (MMC), completed construction of the Bayan Khundii mine in the third quarter of 2025, pouring first gold in September. In the final months of the year, the operation sold 7,434 ounces of gold and 2,634 ounces of silver, generating gross project revenues of US$31 million. The results signal a strong start for a project poised to become a cornerstone of Mongolia's resource sector.

“The Bayan Khundii Gold Mine is the foundation for the development of the emerging Khundii Minerals District, one of the most exciting new mineral regions in Asia,” stated Peter Akerley, Erdene’s President and CEO, in the company’s official release. “With a strong partner in MMC and several growth projects, we are excited to expand opportunities within the district and contribute to the communities in which we operate.”

From Construction to Cash Flow: The Bayan Khundii Era Begins

The launch of the Bayan Khundii mine represents the culmination of years of exploration and development in Mongolia’s underexplored Bayankhongor province. Construction of the mine and its processing facility was completed with direct costs totaling US$120 million, a figure the company reported as being within approximately 20% of the project budget—a notable achievement in an industry often plagued by cost overruns.

The operational ramp-up has been swift. The processing mill, designed to handle 650,000 tonnes of ore annually, was already achieving up to 88% of its nameplate throughput in December. The mine is designed to produce up to 85,000 ounces of gold per year, a target the company is on track to approach as it reaches steady-state production. The initial sales campaigns yielded a weighted average price of US$4,187 per ounce of gold, a figure that includes revenue from silver by-products, with all gold sold directly to Mongolia's Central Bank.

Mr. Akerley expressed satisfaction with the initial performance. “We are very pleased with progress during the initial months of operations at the Bayan Khundii Gold Mine,” he noted, highlighting that recent exploration has already expanded mineralization at the nearby Dark Horse deposit, which contains high-grade reserves scheduled for processing beginning in 2027. The company sees “multiple opportunities on license to extend the mine life or expand operations at Bayan Khundii.”

Beyond Gold: A Strategic Pivot to Copper and Molybdenum

While the Bayan Khundii mine provides a robust foundation, Erdene is aggressively pursuing a broader strategy to unlock the full potential of its mineral licenses, with a sharp focus on copper and molybdenum. This diversification is timed to coincide with a bullish outlook for industrial metals, particularly copper, which has seen prices surge on the back of supply constraints and rising demand from global electrification and infrastructure projects.

In October 2025, the company announced a significantly updated independent mineral resource estimate for its wholly-owned Zuun Mod molybdenum-copper project. The update confirmed Zuun Mod as one of Asia's largest undeveloped molybdenum-copper deposits, with a 22% increase in Measured and Indicated molybdenum resources to 333 million pounds and a 16% increase in Measured and Indicated copper resources to 384 million pounds. A Preliminary Economic Assessment for the project is now underway and expected by mid-2026, which will provide the first glimpse into the project's economic potential.

Further bolstering its copper portfolio, Erdene entered into an option agreement to acquire up to an 80% interest in the Tereg Uul Copper-Gold Project. The property’s strategic value is immense, located just 10 kilometers along the same geological trend as the world-class Oyu Tolgoi copper-gold mine. Initial prospecting has already identified promising targets for a drill program planned for 2026, creating significant exploration upside for the company.

A Powerful Partnership and Prudent Financing

Erdene's recent successes are built on a framework of strategic partnerships and astute financial management. The Bayan Khundii mine is operated through a 50-50 joint venture with Mongolian Mining Corporation, Mongolia's largest internationally traded mining company. MMC's US$40 million investment in the project provided crucial capital and, more importantly, deep local expertise, operational synergies, and strong government relations.

Under the joint venture, Erdene retains a 50% equity interest in the mine and a 5.0% Net Smelter Return (NSR) royalty on production after the first 400,000 ounces of gold are recovered, positioning it to capture a majority of the long-term economic benefits.

On the corporate front, Erdene has been proactive in structuring itself for growth. A 6:1 share consolidation completed in September 2025 was designed to make the stock more attractive to institutional investors. This was followed by a successful C$28.7 million bought deal private placement in February 2026. Crucially, the proceeds from this financing are earmarked for advancing Erdene’s wholly-owned assets like Zuun Mod and Tereg Uul, allowing the cash flow from the Bayan Khundii JV to be directed toward debt repayment and district-scale exploration.

Digging Deeper: Exploration Success and Community Roots

Even as the Bayan Khundii mine ramped up, Erdene’s exploration teams were actively working to expand the resource base. Drilling at the Dark Horse satellite deposit, part of the Bayan Khundii license, yielded impressive near-surface results, including an intersection of 19 metres grading 9.0 g/t gold. These results not only de-risk future production but also highlight the potential to extend the mine’s operational life well beyond its initial projections.

Parallel to its operational and exploration efforts, the company has emphasized its commitment to local community development. As of year-end 2025, approximately 40% of the mine's site personnel were residents of the local Bayankhongor province, and 14% of direct employees were female. This focus on local employment and engagement with local contractors is a core part of the company's strategy to ensure sustainable and mutually beneficial resource development in the region.

As Mr. Akerley concluded, the recent financing has put the company in a strong position to build on its momentum. “Funds from the financing in early 2026 position us to accelerate development of these projects,” he stated, referring to the company’s promising copper and molybdenum assets that now complement its new status as a gold producer.