Erdene Provides Q2 2026 Bayan Khundii Gold Mine Update and Notice of Conference Call and Webcast

Erdene Resource Development Corporation reported second-quarter 2026 production of 11,709 ounces of gold at its Bayan Khundii Gold Mine, a 37% increase from the 8,527 ounces produced in the first quarter of 2026. The mine processed 153,000 tonnes of ore during the period, averaging 1,682 tonnes per day. The ore grade averaged 2.4 grams per tonne of gold, representing a 25% improvement over the 1.9 grams per tonne recorded in Q1. Gold recovery rates reached 96%, consistent with or exceeding the 93% forecast outlined in the feasibility study.

Gross revenue for the quarter totaled US$53 million (C$75 million), derived from the sale of 11,709 ounces of gold at an average price of US$4,493 per ounce and 3,317 ounces of silver at US$72 per ounce. Cumulative production since the first pour in September 2025 has reached 27,670 ounces. The company attributed the improved performance to better ore control, enhanced mine-to-mill practices, reduced dilution, and continued optimization efforts.

Looking ahead, Erdene plans to continue aligning operations with the targets set in the 2023 Feasibility Study. Unaudited financial results for the second quarter are scheduled for release on August 14, 2026, followed by a conference call on August 17.

Erdene Resource Development Corporation reported a quarter-on-quarter increase in production, a development that aligns with management’s guidance that grade and throughput would improve as the ramp-up progressed. March 2026 grades had already reached 2.7 g/t. However, the Q2 grade of 2.4 g/t remains well below the feasibility study reserve grade of 4.0 g/t, indicating the mine is still early in the ramp-up and has not yet demonstrated head grades that would confirm reserve estimates.

Revenue of US$53 million represents a material improvement from Q1’s US$42 million. The company’s share of cash flows is limited to its 50% joint venture interest, and the net income impact is not broken out, though income from the associate was C$6.96 million in Q1.

The update confirms that the ramp-up is proceeding on track, a scenario the market likely expected. The stock has declined from approximately $10 to $5 over the last nine months. This release will not reset the narrative unless it demonstrates a clear path to nameplate output of 85,000 oz/yr.

Erdene Resource Development Corporation is a Canada-based junior mining company focused on gold, copper, and molybdenum in southwestern Mongolia. Its flagship asset is the Bayan Khundii Gold Mine, a 50% joint venture with Mongolian Mining Corporation (MMC), which achieved commercial production in Q1 2026. The mine holds reserves of 513,700 oz Au at 4.0 g/t, with a planned throughput of 650,000 t/yr and an expected production of approximately 85,000 oz/yr at full capacity. The first gold was poured in September 2025.

The company also holds several other key assets, which are 100% owned unless noted. These include the Dark Horse satellite pit, which contains a 48.8 koz reserve at 7.0 g/t within the joint venture; the Altan Nar gold-polymetallic deposit, featuring a 317.7 koz indicated Au resource; and the Ulaan gold discovery. Additional holdings include the Zuun Mod molybdenum-copper porphyry, which has 333 Mlb Mo M&I and a PEA expected in mid-2026; the Khuvyn Khar copper discovery, noted for high-grade intercepts; and the Tereg Uul copper-gold prospect, which is an 80% option located near Oyu Tolgoi.