Erdene Provides Q3 2026 Update and Notice of Conference Call and Webcast

Erdene Resource Development Corporation (ERD) released its quarterly operations update for the third quarter of 2026, covering the Bayan Khundii Gold Mine (BK) operated by Erdene Mongol LLC (EM), its 50:50 joint venture with Mongolian Mining Corporation (MMC).

During the quarter, BK processed 164,000 tonnes of ore at a rate of 1,788 tonnes per day. The average processed grade was 2.3 grams per tonne of gold, with a gold recovery rate of 96%. EM sold 11,853 ounces of gold and 3,046 ounces of silver at average prices of US$4,315 per ounce for gold and US$62 per ounce for silver, generating gross revenues of US$51 million (C$71 million). The company also repaid a further US$20 million of debt, reducing the outstanding balance to US$93 million (C$132 million).

The update included a recap of the Zuun Mod Preliminary Economic Assessment (PEA), previously announced on October 14, 2026. The PEA outlines a 34-year life of mine containing 672 million pounds of molybdenum and 947 million pounds of copper. At metal prices of US$25.00 per pound for molybdenum and US$5.00 per pound for copper, the project has an after-tax net present value at an 8% discount rate (NPV8%) of US$745 million and an internal rate of return (IRR) of 16.1%. At spot prices of US$33.00 per pound for molybdenum and US$6.50 per pound for copper, the NPV8% rises to US$2.0 billion with an IRR of 27.8%. The assessment includes standard caveats regarding inferred resources and the absence of proven or probable reserves.

Following the PEA, value work is underway, including approximately 4,000 metres of drilling to confirm and expand near-surface resources, alongside a deep 3D DCIP and magnetotelluric survey. For the fourth quarter of 2026, exploration plans include approximately 16,000 metres of drilling. This includes roughly 9,000 metres at Bayan Khundii West for gold, 3,000 metres at Dark Horse–Altan Arrow for gold oxide and heap-leach evaluation, and 4,000 metres at Zuun Mod–Khuvyn Khar for molybdenum-copper. Quantec has been engaged to conduct an ORION 3D DCIP+MT survey consisting of 17 lines covering 102 line-kilometres.

Management, led by Peter Akerley, described the third quarter as slightly ahead of the second quarter and guided toward stronger fourth-quarter production as mining advances into higher-grade zones. ERD is scheduled to release its Q3 2026 financials on November 4, 2026, with a conference call and webcast set for November 5, 2026, at 9:00 AM ET.

Erdene Resource Development Corporation (ERD) issued a routine operations update for the third quarter, reporting a marginal sequential increase in gold production. Output reached 11,853 oz in Q3, compared to 11,709 oz in Q2 and 8,527 oz in Q1, representing a gain of approximately 1.2%. This result aligns with management’s characterization of performance as “slightly ahead” and reflects a continuation of the production ramp rather than a step-change.

Grade metrics showed a slight softening, with Q3 grade coming in at 2.3 g/t, down from 2.4 g/t in Q2. This remains well below the feasibility-study reserve grade of approximately 3.8 g/t. While higher-grade step-ups have been repeatedly promised, they have not yet been delivered.

Revenue for the quarter was US$51 million, lower than the US$53 million reported in Q2. The decline was driven by a drop in realized gold prices from US$4,493/oz to US$4,315/oz. This price impact was partially offset by increased throughput, with 164 kt of material processed in Q3 compared to 153 kt in Q2.

The company continued its deleveraging efforts, repaying a further US$20 million. This reduced debt at the Erta Range (EM) level to US$93 million, a move described as a positive, cash-generating signal.

Regarding financial consolidation, the US$51 million in revenue and US$93 million in debt cited in the update pertain specifically to the EM/BK project, which is 50%-owned and equity-accounted. Erdene’s consolidated as-reported financials show revenue of 0 and total debt of 0, as the Erta Range is treated as an associate. Consequently, gold economics flow through “income from investment in associate” rather than consolidated revenue.

This operational update follows the Preliminary Economic Assessment (PEA) announced on October 14, 2026. While the PEA is material, this release serves as prior announced context and adds no new PEA figures.

Prior-period context, drawn from the Q2 2026 MD&A and transcript rather than today’s release, indicates a Q2 net income of C$9.99 million, a cost of revenue of approximately $2,000/oz, and a grade target of 3.5 g/t by year-end 2026.

Erdene Resource Development Corporation (TSX:ERD; MSE:ERDN; OTCQX:ERDCF) is a Canada-based explorer, developer, and producer operating in southwestern Mongolia’s Khundii Minerals District, located within the Trans Altai Terrane and less than 200 km from the Chinese border.

The company’s flagship asset is the Bayan Khundii Gold Mine, a high-grade, low-cost open-pit CIP operation that entered commercial production in Q1 2026 following its first gold pour in September 2025. Designed for a throughput of 650,000 t/yr, the mine is expected to produce up to approximately 85,000 oz of gold per year at full capacity. The facility is operated under Erdene Mongol LLC, a 50:50 joint venture with MMC.

Additional district assets include the Dark Horse project, a planned satellite pit targeted for Year 3, as well as the Altan Nar and Ulaan gold exploration properties. The company also holds mining licenses for the Zuun Mod molybdenum-copper project and the Khuvyn Khar copper project, alongside an optioned stake in the Tereg Uul Cu-Au porphyry deposit, located approximately 10 km southwest of Oyu Tolgoi. Infrastructure supporting operations includes a 242 km transmission line and a dry-stack tailings facility that recovers more than 80% of water.