Erdene Resource Development Corp. has said its Zuun Mod
exploration license was recently renewed until May 28, 2011. Erdene has been
carrying out work over the past year in preparation for conversion of the Zuun
Mod exploration license to a mining license. This included work by Mongolian
consulting companies that prepared technical reports in support of the mining
license application. These reports have been finalized and submitted to the
Mongolian Mineral Resource Council, for registration of the mineral resource at
Zuun Mod, a prerequisite to the granting of a mining license. Upon registration
of the Zuun Mod resource by the Minerals Resource Council, the Corporation will
have all necessary documentation to apply for a mining license for the Zuun Mod
Molybdenum Project covering approximately 10,000 hectares. Under the Minerals
Law of Mongolia, the initial term for a mining license is 30 years with an
option for two 20-year extensions.

Minarco-MineConsult of Australia, the Corporation”s
independent technical consultants, are in the process of conducting pit
optimization and scheduling studies on the Zuun Mod deposit to combine with the
previously completed preliminary assessment level work initiated in 2008. Zuun
Mod is one of the largest undeveloped molybdenum-copper deposits in the Asia
region.