Erdene Announces Q2 2026 Results

Q2 2026 Highlights:

• Bayan Khundii Gold Mine produced and sold 11,709 ounces gold at an average price of US$4,493/oz for US$53M in gross revenues
• Operated Bayan Khundii at 94% of target throughput and recovered 96% of gold, exceeding expectations
• Advanced preliminary economic assessment for Zuun Mod molybdenum-copper porphyry project with results expected in mid-H2 2026
• Completed maiden drill program at Tereg Uul near Oyu Tolgoi intersecting anomalous gold and silver along a 1.5 kilometre mineralized structure 
  

HALIFAX, Nova Scotia, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN; OTCQX: ERDCF) ("Erdene" or the "Company") is pleased to announce operating and financial results for the three and six months ended June 30, 2026, and to provide an update on the Bayan Khundii Gold Mine (“BK”), operated by Erdene Mongol LLC (“EM”), the Company’s joint venture with Mongolian Mining Corporation (“MMC”). This release should be read in conjunction with the Company’s Q2 2026 Financial Statements, MD&A, and Annual Information Form, available on the Company’s website and SEDAR+. All dollars are thousands of Canadian dollars, unless otherwise noted.

Peter Akerley, Erdene’s President and CEO stated, “We delivered another quarter of improved performance, achieving gold production of 11,709 ounces at Bayan Khundii, a 37% increase over the previous quarter, driven by stronger mining performance and continued steady operation of the process plant. The average processed ore grade rose 25% during the quarter, reflecting enhanced ore control and mine-to-mill practices that significantly reduced dilution and ore loss.”

Mr. Akerley continued, “In parallel, Erdene made strong progress at our wholly-controlled precious and base metal projects in the Khundii and Oyu Tolgoi districts. Technical work is well advanced on the Zuun Mod preliminary economic assessment, expected to be released in mid-H2 2026 with geophysics and drilling planned later this year to test the copper potential of the Khuvyn Khar project on the license. At the Tereg Uul property, adjacent to the Oyu Tolgoi copper-gold system, our maiden drill program confirmed anomalous gold and silver mineralization along a 1.5 kilometre trend at the Web prospect, while deeper drilling intersected native copper and anomalous gold. Based on these encouraging results, we have extended our option on this property for another year.”

Q2 2026 Highlights and Significant Subsequent Events:

Bayan Khundii Gold Mine – 50% Economic Interest

• Produced and sold 11,709 ounces gold and 3,317 ounces silver in Q2 2026
  • Represents a 37% increase over Q1 2026
  • EM realized weighted average prices of US$4,493/oz and US$72/oz, respectively, generating total revenue of US$53 million (C$75 million)
  • Total cost of revenue of US$24 million (C$33 million)
• Processed 153 thousand tonnes of ore, averaging 1,682 tonnes per day
  • Quarterly average feed grade of 2.4 g/t gold, approximately 25% higher than in Q1 2026
  • Gold recoveries of 96%, above planned recoveries of 93%
• Prepared mineral resource estimates for Erdene Mongol’s gold projects
  • Updates to BK, Dark Horse and Altan Nar deposits to incorporate depletion at BK, recent exploration at DH and the impact of current gold prices
  • Maiden mineral resource estimate for the Ulaan deposit immediately west of BK
• Delivered on community development and local stakeholder programs
  • Over 40% of site personnel are residents of Bayankhongor province and 13% of direct EM employees are female, as at the end of the quarter
  • Supported renewal and expansion of public facilities for Shinejinst community events
  • Engaged local contractors on mine site services and environmental stewardship programs

Exploration & Development

• Progressed Zuun Mod Preliminary Economic Assessment ("PEA"), planned for completion in mid H2-2026
  • Mine planning, marketing and metallurgical test work is largely complete
  • Contract has been executed for deep geophysics exploration program commencing in late Q3
• Drilled 11 holes totaling 2,710 metres in maiden program at Tereg Uul, about 10km south of Oyu-Tolgoi
  • Eight shallow holes in the Web prospect intersected anomalous gold (over 0.1 g/t Au and up to 1g/t and up to 15g/t Ag) along a 1.5 kilometre mineralized structure
  • Testing of deeper geophysical target intersected a coal seam within 150 metres of surface and traces of native copper mineralization
  • Extended Tereg Uul option agreement in July with US$400,000 option payment
    

Corporate

• Recorded net income of $9,993 for the three months ended June 30, 2026, compared to net loss of $4,122 for the three months ended June 30, 2025
  • Income from investment in associate, representing the Company’s joint venture interest in the income of EM, totaled $11,201 for the three months ended June 30, 2026, compared to a loss of $2,995 for the three months ended June 30, 2025, due to production from Bayan Khundii in the current year quarter, while the mine was under construction during the prior year quarter
  • Exploration and evaluation expenses totaled $726 for the three months ended June 30, 2026, compared to $514 for the three months ended June 30, 2025, with the increase compared to the prior year quarter attributable to exploration at the Tereg Uul property optioned in July 2025
  • Corporate and administrative expenses totaled $1,617 for the three months ended June 30, 2026, compared to $1,488 for three months ended June 30, 2025, with the change compared to the prior year quarter primarily due to increased investor relations and regulatory costs
  • Income from investment in associate, representing the Company’s joint venture interest in the income of EM, totaled $11,201 for the three months ended June 30, 2026, compared to a loss of $2,995 for the three months ended June 30, 2025, due to production from Bayan Khundii in the current year quarter, while the mine was under construction during the prior year quarter
• Launched Normal Course Issuer Bid on June 30, 2026        
  • Allows the Company to purchase up to 4,900,000 common shares for cancellation, representing approximately 10% of the public float
  • Repurchased and cancelled 94,400 shares at an average price of $5.21 per share to date
    

Results Conference Call

Management will host a webcast and conference call to discuss these results and current business initiatives on Monday, August 17, 2026, at 10:00 AM Eastern Time. The webcast will be accessible at the following link: HERE

A replay of the webcast will be available at the same link 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 oversees the Bayan Khundii Mine operations for the Corporation and has reviewed and approved the technical information related to the BK Mine contained in this news release.

Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist for Erdene, is the Qualified Person as that term is defined in National Instrument 43-101 and oversees the Corporation’s exploration programs and has reviewed and approved the technical information related to exploration contained in this news release.

About Erdene

Erdene Resource Development Corp. 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 portfolio of precious and base metal projects near the Bayan Khundii Gold Mine in the Khundii Minerals District, which provides a robust organic growth pipeline. Erdene Resource Development Corp. is listed on the Toronto (“ERD”) and the Mongolian stock (“ERDN”) exchanges and OTCQX Market (“ERDCF”). 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 the ability to obtain required third party approvals, 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

Erdene Contact Information

Peter C. Akerley, President and CEO, or
Robert Jenkins, CFO

Phone:	(902) 423-6419
Email:	info@erdene.com
Twitter:	https://twitter.com/ErdeneRes
Facebook:	https://www.facebook.com/ErdeneResource
LinkedIn:	https://www.linkedin.com/company/erdene-resource-development-corp-/

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/45b03eb6-fae0-4c0f-bfa9-08c27284e5c9