Mr. Peter Akerley reports

ERDENE PROVIDES Q3 2026 UPDATE AND NOTICE OF CONFERENCE CALL AND WEBCAST

Erdene Resource Development Corp. has provided an update on operations, including Bayan Khundii gold mine (BK) production for Q3 2026, operated by Erdene Mongol LLC (EM), the company's joint venture with Mongolian Mining Corp. (MMC). All dollars are U.S. dollars, unless otherwise noted.

Peter Akerley, Erdene's president and chief executive officer, stated: "Gold production in Q3 was slightly ahead of production from the second quarter as operating performance continues to improve. Continued strong cash flow from operations allowed EM to repay a further $20-million (U.S.) of debt. Looking ahead to the fourth quarter, pit expansion will allow mining to move into higher-grade zones in the deposit, supporting a projection of stronger gold production during the quarter."

Mr. Akerley continued: "Just after the end of the quarter, we delivered the preliminary economic assessment (PEA) for the Zuun Mod project. The PEA confirmed the project as one of Asia's largest undeveloped molybdenum deposits with compelling economics at current metal prices. With the PEA complete, we have moved into value-add work programs, including drilling to confirm and expand the near-surface resources that drive the early years of the mine plan and a deep 3-D geophysical survey to define further molybdenum and copper potential."

Mr. Akerley concluded: "We are entering a very active exploration period across the Khundii minerals district. Three rigs will complete approximately 16,000 metres of drilling during the fourth quarter on gold, copper and molybdenum targets. Many of these targets were refined during recent site visits as part of the Canada-Mongolia GeoSymposium. The programs are designed to grow resources at Bayan Khundii, Dark Horse-Altan Arrow and Zuun Mod and to test new copper potential at Khuvyn Khar."

Bayan Khundii gold mine -- Q3 2026 update

Bayan Khundii processed 164,000 tonnes of ore, averaging 1,788 tonnes per day, during the quarter ended Sept. 30, 2026. The processed grade averaged 2.3 grams per tonne gold for the quarter and quarterly gold recoveries averaged 96 per cent.

EM sold 11,853 ounces of gold and 3,046 ounces of silver at average prices of $4,315 per ounce and $62 oer ounce gold and silver, respectively, generating gross revenues of $51-million ($71-million (Canadian)) during the quarter ended Sept. 30, 2026.

During the quarter ended Sept. 30, 2026, EM repaid a further $20-million ($28-million (Canadian)) of debt, reducing the total balance outstanding to $93-million ($132-million (Canadian)).

Mining at Bayan Khundii is expected to advance into higher-grade zones during the fourth quarter, and EM anticipates a strong Q4.

Zuun Mod molybdenum-copper update

On Oct. 14, 2026, Erdene announced results of a preliminary economic assessment (PEA) for the wholly owned Zuun Mod molybdenum-copper project in southwestern Mongolia. The PEA outlines a long-life, large-scale project that is forecast to produce 672 million pounds (305,000 tonnes) of molybdenum and 947 million pounds (430,000 tonnes) copper over a 34-year mine life, confirming the project as one of Asia's largest undeveloped primarily molybdenum deposits.

Under the PEA's base-case commodity price assumptions of $25 per pound molybdenum and $5 per pound copper, the project's after-tax net present value is $745-million using an 8-per-cent discount rate and the internal rate of return is 16.1 per cent. The project's after-tax NPV rises to $2-billion and the internal rate of return increases to 27.8 per cent at spot prices of $33 per pound molybdenum and $6.50 per pound copper.

Following the PEA, Erdene has commenced value-add work programs to derisk and enhance the project. This work includes approximately 4,000 metres of drilling to confirm and expand near-surface resources that support the early years of the mine plan and a deep, 3-D DCIP (direct-current induced polarization) and magnetotelluric survey to refine the geological model and identify extensions to the deposit and copper targets at the adjacent Khuvyn Khar prospect (see exploration update -- gold, copper and molybdenum targets below).

Exploration update

Erdene is commencing a very active exploration period, with approximately 16,000 metres of drilling planned across the Khundii minerals district during the fourth quarter to test gold, copper and molybdenum targets at the following prospects:

• Bayan Khundii West (gold): approximately 9,000 metres of drilling in areas west of the Bayan Khundii pit to further define continuity of high-grade zones and to test expansion potential beyond the limits of the planned pit;
• Dark Horse-Altan Arrow (gold): approximately 3,000 metres of drilling that will seek to extend the strike length of gold oxide resources within the upper 100 metres of the Dark Horse-Altan Arrow structure, supporting the company's evaluation of heap-leach viability, as well as testing of targets identified during the recent Canada-Mongolia GeoSymposium field visits;
• Zuun Mod-Khuvyn Khar (molybdenum-copper): approximately 4,000 metres of drilling is planned to confirm mineralization within the upper 100 metres of the Zuun Mod deposit and test extensions adjacent to current resource blocks in high-priority areas, seeking to maximize resources in the early years of the mine plan; drilling will also test shallow copper targets at Khuvyn Khar, and moving into 2027 deeper targets using the results of the geophysical survey described below.

Alongside these drill programs, Erdene has engaged Quantec Geoscience Ltd. to complete an Orion 3-D DCIP and magnetotelluric (MT) survey over the Zuun Mod-Khuvyn Khar licence. The survey comprises 17 lines, each six kilometres long and spaced 400 metres apart, for a total of 102 line kilometres. The survey will provide high-resolution 3-D resistivity and chargeability imaging to depths of more than 600 metres, mapping the geological structures that may control mineralization, such as faults, fractures and alteration zones. The survey will also delineate mineralized zones at depth beneath and adjacent to the Zuun Mod molybdenum-copper deposit and map lithology, refining the geological model. Results will be used to prioritize drill targets, particularly for copper at Khuvyn Khar and for extensions of the Zuun Mod deposit.

Q3 2026 conference call details

Erdene will release its unaudited financial and operating results for the three months ended Sept. 30, 2026, on Wednesday, Nov. 4, 2026, after market close.

The company will host a conference call and webcast to discuss the results on Thursday, Nov. 5, 2026, at 9 a.m. Eastern Time. The webcast will be accessible on-line.

A replay of the webcast will be available on-line for one year after the event.

The dial-in numbers for the conference call are as follows.

North America (toll-free):  1-800-717-1738

Overseas or local (Toronto):  1-289-514-5100

Qualified person

Jon Lyons, FAusIMM, chief development officer for Erdene, is the qualified person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

About Erdene Resource Development Corp.

Erdene is a Canada-based resource company producing gold at the high-grade, low-cost Bayan Khundii gold mine in underexplored and highly prospective Mongolia. The company has interests in a highly prospective portfolio of precious and base metal projects in close proximity to the Bayan Khundii gold mine in the Khundii Minerals District, which provides a robust organic growth pipeline. Erdene Resource Development is listed on the Toronto Stock Exchange (symbol: ERD), the Mongolian Stock Exchange (symbol: ERDN) and the OTCQX market (symbol: ERDCF).

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