The highlights of an update provided by
Erdene Resource Development on its ongoing exploration programs for coal and
metals in Mongolia include:

–
New Copper-Gold Discovery – Detailed Nomin Exploration Program Initiated

–
Regional Coal Targets Being Tested – Zarman Coal Drilling Initiated

–
Galshar Coal Royalty – Xanadu Acquires Galshar Project

–
Zuun Mod Molybdenum-Copper Deposit – Scoping Study Level Work Underway

–
Zuun Mod Exploration – Geophysical Program Commences.

The
Nomin Project is providing encouraging early stage copper-gold results and will
be subject to more detailed exploration during the remainder of 2010. The Nomin
prospect is a new discovery; however, previously undocumented ancient workings
(shallow pits) have been found on the property.