HALIFAX, Nova Scotia, March 26, 2019 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD;
MSE:ERDN) ("Erdene" or the
"Company") is pleased to announce its intention to repurchase a 1% net smelter return royalty (“NSR”) from
Sandstorm Gold Limited (“Sandstorm”) on its Khundii Gold Project in southwest Mongolia by April 14, 2019 for C$1.2 million.
“Considering the results of our recent Preliminary Economic Assessment and the exploration potential of the
Khundii Gold Project license area, the fair value of the 1% NSR is well in excess of the repurchase price. Buying back the NSR will
create significant value for our shareholders,” said Peter Akerley, Erdene’s President and CEO. “We would like to acknowledge
Sandstorm’s support during the formative stages of the Khundii Gold Project and look forward to continuing to work with them as we
move toward production.”
As announced on April 21, 2016, Erdene completed a transaction granting Sandstorm a 2% NSR royalty on a select
area that included the Khundii Gold Project as part of a C$2.5 million financing transaction. This transaction provided Erdene with
a three-year option to buy back 50% of the 2% NSR Royalty for C$1.2 million. Erdene will fund the repurchase from cash on hand.
Review of Khundii Gold Project Development
Erdene’s deposits are located in the Edren Terrane, within the Central Asian Orogenic Belt, host to some of the
world’s largest gold and copper-gold deposits. The Company has been the leader in exploration in southwest Mongolia over the past
decade and is responsible for the discovery of the Khundii Gold District comprised of multiple high-grade gold and gold/base metal
prospects, two of which are being considered for development: the 100%-owned Bayan Khundii and Altan Nar projects. Together, these
deposits comprise the Khundii Gold Project (the “Project”).
The Company delivered the Project’s maiden mineral resource estimate in Q3 2018 with a Measured and Indicated
(“M&I”) resource of 751,000 ounces (“oz”) gold at an average grade of 2.3 g/t gold and an Inferred resource of 291,000 oz gold
at an average grade of 1.8 g/t gold (cut-off grade of 0.7 g/t gold). This was followed by a National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”) Preliminary Economic Assessment in December 2018 which returned an after-tax Net
Present Value at a 5% discount rate (“NPV5%”) and a US$1,200/oz gold price of US$99 million and Internal Rate of Return (“IRR”) of
56%. The initial development has a life of mine head grade of 3.42 g/t gold with an average annual gold production of 51,200 oz
over an eight-year mine life. Based on the potential for additional discovery and expansion on the current license areas the
planned development is considered as a foundation for growth.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration,
and development of precious and base metals in underexplored and highly prospective Mongolia. The Company has interests in four
exploration licenses and a mining license in Southwest Mongolia, where exploration success has led to the discovery and definition
of the Khundii Gold District. Erdene Resource Development Corp. is listed on the Toronto and Mongolia stock exchanges. Further
information is available at www.erdene.com. Important
information may be disseminated exclusively via the website; investors should consult the site to access this information.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that
future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued
availability of capital and financing and general economic, market or business conditions. The forward-looking statements are
expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current
date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking
statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
