Erdene Drilling Intersects Multiple High-Grade Gold Zones 

HALIFAX, NS - Erdene Resource Development Corp. reported the highest-grade gold intersection encountered to date at its 100%-owned Bayan Khundii Gold Project in southwest Mongolia. "We are excited by this intersection, not only because of the ultra high-grade nature but by the continuity that continues to be demonstrated within multiple, high-grade gold domains within a broad lower-grade halo throughout this 1.4 kilometer long system," said Peter Akerley, Erdene's President and CEO. "The continuity of these high-grade gold bearing veins, that extend from surface and up to 150 meters vertically, provides an excellent base for advancing the project. These results clearly demonstrate the continued exploration upside potential of this relatively new gold discovery. They also support further detailed exploration targeting gold bearing structures not only within the Bayan Khundii deposit area but also within the larger district which we are confident will lead to additional discoveries."

The exploration program reported on herein was developed by the Erdene technical team in conjunction with an independent expert's review to identify high priority structural targets within the Bayan Khundii project area. This included: testing the recently discovered North Midfield Zone with more detailed, closer-spaced drilling and testing structural concepts and extensions at depth; testing the Midfield area for the presence of shallower zones of mineralization; testing the continuity of broad mineralized zones in the central portion of the North Midfield target area; and testing the southeast extension of the Striker Zone.

Six holes (BKD-229 to BKD-234), totaling 1,192 meters, were completed at Bayan Khundii in November and three holes were completed in the Midfield Zone (BKD-229, 230, and 233), two holes were completed in the North Midfield Zone (BKD-231 and 232), and one hole was completed along the southeast end of the Striker Zone (BKD-234). 

Hole BKD-231 intersected one meter of 2,200 g/t gold and 948 g/t silver within a 14 meter interval of 158 g/t gold at 193 meters depth (140 meters vertical depth). The mineralization was hosted by multi-phase quartz-adularia-specularite veins and hematite breccia, with abundant fine-grained visible gold (see attached photo of drill core). The 14 meter interval is enveloped by a 112 meter wide interval of gold mineralization starting at 118 meters depth, ranging from 0.1 to 2.8 g/t gold. This high-grade intersection confirms strong continuity down-dip from earlier holes, including BKD-110, 30 meters north, which intersected 1 meter of 115 g/t gold and 1 meter of 108 g/t gold, and BKD-111, 30 meters northwest, which intersected 1 meter of 44 g/t gold and 1 meter of 33 g/t gold. The discovery of this high-grade vein represents an important new target area that will require additional, closer-spaced drilling in 2018.

Hole BKD-232 was completed approximately 65 meters north of BKD-231 and 100 meters north of the Midfield Zone, within an area that previously had 80-meter hole spacing and relatively lower grade results. This hole returned 22 meters of 8.3 g/t gold, and included multiple zones grading over 10 g/t gold (see Table 1 above). The top of the mineralized interval was intersected at 90.5 meters depth (74 meters vertical depth).

Three holes were completed along the south and southeast end of the Midfield Zone (BKD-229, 230 and 233). Hole BKD-230, completed near the center of Midfield, intersected a continuously mineralized 127 meter interval starting at 31 meters depth (24 metres vertical) that averaged 1.8 g/t gold, and included a 25 meter wide interval that averaged 5.8 g/t gold. Two additional holes (BKD-229 and BKD-233) successfully intersected high-grade gold mineralization, and in the case of BKD-233, although lower grade, expanded the southeast boundary of the Midfield Zone which remains open to the east (see attached plan map for drill hole locations) while BKD-229 intersected gold mineralization at the shallowest levels to date.

During Q1-2018 the Company's technical team will assess results of the 2017 drill and exploration programs to determine what additional drilling may be required prior to an independent resource evaluation. Timing of the eventual resource studies for both Bayan Khundii and the Company's neighboring Altan Nar gold-polymetallic project will be influenced by that determination, however, it is anticipated that the studies will be completed in 2018.