Erdene Resource Development Corporation announce the execution of Strategic Alliance and Investment Agreements with Mongolian Mining Corporation for the development of its Bayan Khundii Gold Project. This Strategic Alliance brings together Mongolia's pre-eminent precious metals explorer with an exceptional national miner in a partnership to unlock the riches of the Khundii Minerals District. Summary of Strategic Alliance: Under the Strategic Alliance and Investment Agreements, MMC will invest USD 40 million in Erdene's wholly-owned subsidiary, EM, in a three-stage transaction to acquire a co-controlling equity interest in the company.

Erdene will retain a 50% equity interest in EM, as well as a 5.0% NSR royalty over all licenses held by EM, and those acquired within 5 kilometres of the existing licenses, following 400,000 ounces of gold production. The key terms of the Strategic Alliance are as follows: Stage 1 – To Be Completed in January 2023 – MMC advances USD 5 million to EM to finance an updated FS and LOM Plan for the Bayan Khundii Gold Project, and to conduct exploration on the Khundii, Altan Nar and Ulaan licenses. Stage 2 – Targeting Q2-2023 – MMC will advance a further USD 5 million to EM upon delivery of the updated FS and LOM Plan to complete pre-construction works and follow-up exploration in the Khundii Minerals District.

Stage 3 – Targeting Q3-2023 – MMC will advance a final USD 30 million following a positive construction decision to fund the equity component of the Bayan Khundii Gold Project. Funds invested by MMC in EM during Stages 1 and 2 will be in the form of convertible loan instruments. Upon completion of Stage 3, MMC's investment in EM will be registered as a 50% equity interest in the company with the Mongolian State Registration Office.

Until conclusion of Stage 3, EM will be governed by a Steering Committee of four members, two of which will be appointed by Erdene, and two of which will be appointed by MMC. Upon conclusion of Stage 3, EM will be governed by a Board of four directors, two of which will be appointed by Erdene and two of which will be appointed by MMC. Erdene will remain the operator of the Bayan Khundii Gold project until the completion of the third phase.

After Stage 3, the board of EM will assume joint responsibility for EM's operations, with MMC focusing on development and production and Erdene leading exploration. Erdene maintains a 100% interest in its subsidiary Anian Resources LLC, the entity that holds the Zuun Mod Copper-Molybdenum mining license located approximately 30 kilometres east of the Bayan Khundii Gold Project.