Erdene Announces Private Placement; Drilling to Commence on the Bayan Khundii Gold Project

HALIFAX, NOVA SCOTIA--(Marketwired - Oct 20, 2015) - Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Company"), is pleased to announce that it intends to undertake a non-brokered private placement ("Private Placement") to raise up to $1 million.

Private Placement

Erdene is undertaking a non-brokered Private Placement to sell up to 7,142,857 units at a price of $0.14 per unit for gross proceeds of up to $1,000,000. Each unit will consist of one common share of the Company and one-half of one common share purchase warrant, with each whole common share purchase warrant ("Warrant") entitling the holder to purchase one common share of the Company at a price of $0.18 for a twelve month period from the closing date. Finder's fees will be paid on a portion of the Private Placement, consisting of up to 6.5% of the gross proceeds raised and finder's fee warrants equal to up to 6.5% of the number of common shares issued in the Private Placement. Each finder's fee warrant will be exercisable into one common share of the Company at $0.14 per share, for a period of 12 months from the closing date.

Proceeds of the Private Placement will be used to advance the Company's Bayan Khundii gold discovery and the Altan Nar gold-polymetallic project, as well as for general working capital purposes. At Bayan Khundii, the Company plans to conduct a geophysical survey and to complete a maiden drill program as follow-up to the results reported on October 5, 2015 (click here to view news release) that included 30 m of 2.70 g/t gold from Trench BKT-01. At Altan Nar, work is expected to include additional metallurgical process test work, evaluations of the mining, engineering, transportation, and marketing options, exploration and development related programs, and work required for a mining licence application (click here to view the Company's latest news releases on Altan Nar).

The Private Placement is expected to close on or before November 3, 2015, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the TSX. All securities to be issued pursuant to the Private Placement will be subject to a four-month hold period from the closing date.

Qualified Person

Michael MacDonald, P.Geo. (Nova Scotia), Director of Exploration 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. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards and blanks.

About Erdene

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration, and development of base and precious metals in underexplored and highly prospective Mongolia. The Company holds four exploration licenses and a mining license located in southwest Mongolia. These include: Altan Nar - an extensive, high-grade, near-surface, gold-polymetallic project that the Company is aggressively advancing toward a production decision, however the Company has not yet completed a mining study to support the technical feasibility and economic viability of the Altan Nar project; Bayan Khundii - an early-stage, high-grade gold discovery made in Q3-2015; Khuvyn Khar - an early-stage, copper-silver porphyry project with multiple drill targets and significant copper intersections; Zuun Mod - a large molybdenum-copper porphyry deposit; and Altan Arrow - an early-stage, high-grade, gold-silver project. In addition to the above properties, the Company has an Alliance with Teck Resources Ltd. on regional, copper-gold exploration in the prospective Trans Altay region of southwest Mongolia. For further information on the Company, please visit www.erdene.com. Erdene has 97,277,377 issued and outstanding common shares and a fully diluted position of 113,649,988 common shares.

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.

Contact

Erdene Resource Development Corp.
Peter C. Akerley, President and CEO
(902) 423-6419
Erdene Resource Development Corp.
Ken W. MacDonald, Vice President Business Strategy and CFO
(902) 423-6419
info@erdene.com
www.erdene.com
https://twitter.com/ErdeneRes