Erdene Resource Development Corporation
TSX : ERD

Erdene Resource Development Corporation

November 28, 2008 07:00 ET

Erdene Provides Update on Donkin Coal Project

Feasibility Study Expected in First Quarter 2009

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 28, 2008) - Erdene Resource Development Corp. ("Erdene") (TSX:ERD), today provided an update on the Donkin coal project located in Cape Breton, Nova Scotia.

The feasibility study on the Continuous Miner Exploration and Development Program (the "Program") is expected to be completed in the first quarter of 2009 (For more information please refer to the release dated May 16, 2008). An Environmental Assessment report for the Program was filed with the Province of Nova Scotia on October 22, 2008. All of the required information is expected to be in hand and the feasibility study complete within the first quarter of 2009.

It is expected the Program will commence within a year of obtaining all requisite external and internal approvals with coal generated from the Program to be marketed domestically and internationally in order to establish a customer base for future levels of forecast production.

"Together with Xstrata Coal, Erdene is committed to advancing the Donkin coal project toward production," said Peter Akerley, Erdene President and CEO. "All work related to the Exploration and Development Program is moving forward including the issuance of all relevant Program tenders. We look forward to updating investors on our progress in the New Year."

The Donkin Project is a joint venture between Xstrata Coal Donkin Limited (a subsidiary of Xstrata plc) (75%) and Erdene Resource Development Corp. (25%). The Program is the first of a two stage development program toward establishing the feasibility of the proposed large scale underground longwall mining operation.

About Erdene Resource Development Corp.

Erdene (formerly Erdene Gold Inc.) is a diversified resource development company with multiple projects at various stages of development from exploration to production all focused on high-growth commodities. Erdene has a working capital position of approximately $18.7 million with 89,230,877 common shares issued and outstanding and a fully diluted share position of 98,633,352 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 subject to change after that date.

For additional information visit Erdene's website at www.erdene.com or contact the company via email at info@erdene.com

Contact Information

  • Erdene Resource Development Corp.
    Peter C. Akerley,
    President and CEO
    902-423-6419
    or
    Erdene Resource Development Corp.
    Ken W. MacDonald,
    Vice-President Business Strategy and CFO
    902-423-6419