Erdene Resource Development (ERD) investor relations material

Executive summary

• Achieved first gold production at Bayan Khundii in September 2025, with commercial/nameplate production targeted by year-end and steady-state operations expected in 2026.

• Completed construction, commissioning, and permitting for Bayan Khundii mine for $114 million, within 10% of budget.

• Strategic partnership with Mongolian Mining Corporation enabled rapid project development and financing.

• Announced updated mineral resource estimate for Zuun Mod, confirming it as one of Asia's largest undeveloped projects.

• Entered an option agreement to acquire up to 80% of the Tereg Uul Copper-Gold prospect.

Financial highlights

• Sold 342 oz gold and 96 oz silver at weighted average prices of US$3,805/oz and US$44/oz in Q3.

• Recognized a $1.3 million loss from investment in Erdenet Mongol in Q3, mainly due to corporate financing and operating costs, partially offset by first gold sales.

• Net loss for Q3 2025 was $2,748,830, compared to $1,687,580 in Q3 2024.

• Exploration and evaluation expenses rose to $579,333 from $215,903 year-over-year, mainly due to Tereg Uul and new project evaluations.

• Corporate and administrative expenses increased to $864,892 from $582,089 year-over-year, driven by share consolidation, stock option grants, and higher professional fees.

Outlook and guidance

• Commercial/nameplate production at Bayan Khundii expected by year-end 2025, ramping up to 1,950 tpd and 85,000 oz gold/year in 2026.

• 9,300 metres of drilling planned across the Khundii Mining license to expand and extend resources.

• Aggressive exploration to extend mine life and expand resources, with results expected late Q4 and Q1 2026.

• Altan Nar project to move toward investment decision in 2026; Zuun Mod and Tereg Uul projects advancing with drilling and studies.

• Cash flow priorities: exploration, debt repayment ($115–$125 million), and future dividends/share buybacks post-2027.