Exploration At The Dark Horse Gold Prospect And Bayan Khundii Gold Project

HALIFAX - Erdene Resource Development Corporation reported an update on exploration at the new Dark Horse gold prospect as well as announcing the launch of an Employment Orientation program and advise on the current COVID-19 situation in Mongolia.

Highlights: Drilled nine scout holes totaling 1,900 meters in February 2021 to define the extent of the delineation program at the main Dark Horse Prospect, Holes AAD-65 to AAD-67, in the northern half of the target, intersected broad zones of alteration, establishing continuity and supporting further drilling: AAD-65 returned 7 meters of 1.15 g/t gold beginning 113 meters downhole, AAD-66 returned 14 meters of 1.31 g/t gold beginning 53 meters downhole, as well as 20 meters of 1.74 g/t gold, beginning 112 meters downhole, AAD-67 returned 6 meters of 0.32 g/t gold beginning 110 meters downhole; Holes AAD-68 to AAD-73, testing areas peripheral to the north-south structure intersected gold and/or pathfinder elements: AAD-68 returned 2 meters of 1.41 g/t gold beginning 192 meters downhole, AAD-70 returned 2 meters of 4.24 g/t gold beginning 64 meters downhole, Commenced 3,000 meter delineation drilling program in late March, Delineation drilling will utilize 100-meter fence spacing along the main trend, Approximately 600 meters will target the southern extension of the trend (including the area around AAD-58, which intersected 45m of 6 g/t gold), Results are pending for ~1,100 meters of core, currently at the lab, Completed geophysical modeling, surface sampling, spectral analysis and other work over a 4 by 3 kilometer area in advance of further exploration, Studies continue to improve Erdene’s understanding of the mineralization in the greater Dark Horse area, Launched an Employment Orientation program at the Bayan Khundii Project camp for local community members, Two cohorts of 36 received training from Erdene’s HSEC team, Further 140 residents are registered for upcoming sessions, Bayankhongor province registered its first COVID-19 infection on March 24, Provincial government has introduced precautionary measures in response, Erdene provided relief funding to the Provincial Emergency Commission, Dark Horse drilling continues with appropriate COVID safeguards, and Reported intervals are downhole apparent widths. Continued exploration is required to confirm anisotropy of mineralization and true thicknesses.

“Following the announcement of the exciting Dark Horse gold discovery in January 2021, our technical team completed a staged exploration plan over the past quarter,” said Peter Akerley, President and CEO. “This Q1 program confirmed continuity of a gold mineralized system along a 1.2 km north-south trending structure and improved our understanding of the discovery and its setting relative to the Bayan Khundii Deposit and the large Ulaan-Khundii alteration system, which we believe hosts a much more significant gold mineralizing event and hydrothermal alteration system than previously recognized. In late March we commenced a 3,000 meter shallow delineation drilling program on the main Dark Horse discovery area,” continued Mr. Akerley. “Although focused on the 1.2km northern portion of the Dark Horse structure, testing will cover a 2.5km strike length. The first batch of core is currently in the lab with results expected to be announced in the coming weeks. Although we have been able to continue fieldwork with minimal disruption, Mongolia has seen increasing spread of COVID-19, including the first reported cases in our host province of Bayankhongor.”