Erdene Reports Higher Q2 2026 Gold Production and Revenue at Bayan Khundii

• Bayan Khundii produced 11,709 ounces of gold in Q2 2026, up 37% from the prior quarter, bringing total production since first pour in September 2025 to 27,670 ounces.
• Processed ore grade averaged 2.4 grams per tonne, a 25% increase quarter over quarter, attributed to improved ore control and mine to mill practices.
• Gold and silver sales generated gross revenue of $53 million (C$75 million) during the quarter, at average prices of $4,493 per ounce of gold and $72 per ounce of silver.
• The mine processed 153,000 tonnes of ore at an average rate of 1,682 tonnes per day, with gold recoveries averaging 96% for the quarter.
• Erdene will release its Q2 2026 financial results on August 14, 2026, followed by a conference call and webcast on August 17, 2026.

Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN; OTCQX:ERDCF) is a Canada-based mining company operating the Bayan Khundii Gold Mine in Mongolia, a project known for its high ore grades and low production costs. The company also holds a broader portfolio of precious and base metal projects nearby in the Khundii Minerals District.

Q2 2026 Bayan Khundii Gold Production of 11,709 Ounces Representing 37% Quarter-Over-Quarter Increase

Bayan Khundii, operated by Erdene Mongol LLC (EM), the company's joint venture with Mongolian Mining Corporation, produced 11,709 ounces of gold in the second quarter of 2026, an increase of 37% from the first quarter. The mine has produced 27,670 ounces in total since its first gold pour in September 2025.

The company attributed the increase to improved mining performance combined with steady operation of the process plant, the facility that crushes and treats the ore to extract gold.

President and CEO Peter Akerley said:

"Gold production of 11,709 ounces in Q2 was 37% higher than the previous quarter, reflecting improved mining performance and continued strong operation of the process plant. In total, Bayan Khundii has produced 27,670 ounces of gold since first pour in September 2025."

Improved Ore Grade and Mine-to-Mill Practices Driving 25% Processed Grade Increase and $53 Million Gross Revenue

The average grade of ore processed during the quarter rose 25% to 2.4 grams of gold per tonne. Grade measures how much gold is contained in each tonne of rock, so a higher processed grade means more gold recovered from the same amount of material mined and milled. The mine processed 153,000 tonnes of ore during the quarter, at an average rate of 1,682 tonnes per day, with gold recoveries averaging 96%, meaning nearly all the gold contained in the ore was extracted.

The company attributed the grade improvement to better ore control and mine to mill practices, the coordination between mining and processing teams to reduce dilution and ore loss. Dilution occurs when waste rock mixes with ore during mining, lowering the grade that reaches the mill.

These operational results translated into gross revenue of $53 million (C$75 million) for the quarter, from the sale of 11,709 ounces of gold and 3,317 ounces of silver at average prices of $4,493 and $72 per ounce, respectively.

President and CEO Peter Akerley added:

"The average processed ore grade increased 25% during the quarter, driven by improved ore control and mine-to-mill practices which significantly reduced dilution and ore loss."

Continued Operational Optimization Targeting Feasibility Study Production Projections for H2 2026

For the remainder of 2026, Erdene Mongol's focus is on further optimizing mining operations at Bayan Khundii. Planned improvements include precision mining and blasting techniques, stockpile management, and upgrades to crushing and processing throughput, aimed at bringing production in line with the projections set out in the mine's 2023 Feasibility Study.

These measures target the same operational areas that contributed to Q2 results, including ore grade, processing rates, and recovery.

President and CEO Peter Akerley concluded:

"With performance at Bayan Khundii continuing to improve, and exploration and technical studies advancing across our key projects, Erdene is well positioned to deliver value for shareholders."

Milestones and Next Steps

Erdene's next scheduled disclosure is its unaudited financial and operating results for the quarter ended June 30, 2026, due after market close on August 14, 2026. A conference call and webcast to discuss those results will follow on August 17, 2026, at 10:00 AM Eastern Time, with a replay available for one year afterward. The company also continues to advance exploration and technical studies across its broader project portfolio in the Khundii Minerals District.

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