Erdene Resource Development Corporation
TSX : ERD

Erdene Resource Development Corporation

June 30, 2009 17:15 ET

Erdene Reaffirms Strategic Plan at Annual General Meeting

HALIFAX, NOVA SCOTIA--(Marketwire - June 30, 2009) - Erdene Resource Development Corp. (TSX:ERD), a diversified minerals company with assets in Canada, the U.S. and Mongolia, reaffirmed its strategic growth plan for its four distinct lines of business at its Annual General Meeting of Shareholders, held on June 25, 2009. The meeting and subsequent presentation is available on Erdene's website at www.erdene.com.

2008 Achievements

- Completed Underground Rehabilitation and Drilling at Donkin

- Announced first ever NI 43-101 resource at Zuun Mod Project

- Successfully completed private placement of $18.6 million

- Sold Galshar Coal Project for Cash and Royalty

- Spun-out Kaolin business through a reverse takeover to acquire majority position in new public company: Advanced Primary Minerals (APM) (TSX-V:APD)

"Erdene is focused on building value through our resource exploration and development efforts in the China-Mongolia region, in eastern North America through our Donkin Coal project, construction materials efforts and industrial minerals developments through our controlled subsidiary, APM," said Peter Akerley, President and CEO. "Our established team, partners and knowledge-base, coupled with our strong financial position, enables us to advance our projects along the development pipeline to create shareholder value."

Strategic Growth Plans

Erdene has established its strategic growth plans for each of its four distinct lines of business.

In the China-Mongolia region, Erdene will continue to search for new world class resource discoveries while establishing itself as the partner of choice for companies that are active in the country. During 2009-2010, Erdene will be seeking to increase its inventory of metals and coal projects in the region.

At its wholly-owned Zuun Mod molybdenum project located within 200 kilometres of China's border, Erdene plans to advance Zuun Mod to the pre-feasibility/mining licence stage and secure a partner for its development.

As for its Mongolian coal division, Erdene plans to advance its Mongolian projects under the Xstrata alliance and assist its partners in advancing the Galshar project toward production accelerating the royalty interest secured during the sale in 2008.

Erdene, through its Donkin joint venture has a two-phase development plan for the Donkin Coal project, located in eastern Canada, which is operated by Xstrata Donkin Coal Management Limited. In the near-term, Erdene expects the Donkin Coal project to be advanced to Continuous Miner ("CM") production and to complete a longwall feasibility study. This phase is currently pending a sales contract with domestic and international consumers. Following a 12 to 18 month CM production phase, a longwall decision would be made and upon a positive decision, production could begin in 2013-2015, which will establish significant cash-flow for Erdene and its investors.

On the Construction Materials front, Erdene is anticipating a royalty cash flow from its Granite Hill project to begin in 2010. Erdene also aims to secure and advance through feasibility and permitting, world-class construction aggregate projects in strategic areas relative to its target east coast U.S. markets.

Through APM, Erdene's 60% owned subsidiary, the Company's goal in the near-term is to gain commercial acceptance as a specialized primary kaolin producer and generate significant cash flow. By 2012, APM plans to significantly expand its business by implementing the second phase of its development program.

Re-Appointment of Board

At the annual general meeting, the shareholders of Erdene re-appointed the existing board, which consists of nine directors: Peter Akerley, Bill Burton, John Byrne, Dave Carnell, Chris Cowan, Jamie Frankcombe, Ken MacDonald, Stuart Rath and Philip Webster to be the Directors of the Corporation, to hold office until their successors are duly elected or appointed.

Following the AGM the Erdene board of directors appointed the following executive: President and Chief Executive Officer - Peter Akerley; Vice President Asia - Christopher Cowan; Vice President Business Strategy and CFO - Ken MacDonald; Secretary - Suzan Frazer.

Options Approved

The Company approved the issuance of up to 1.55 million options with an exercise price of $0.30. An aggregate of 900,000 were granted to a total of nine officers and directors. The Board also authorized the President to grant up to an additional 650,000 options to employees. No individual officer, director or employee will receive an allotment exceeding 200,000.

About Erdene

Erdene Resource Development Corp. is a diversified resource company with multiple projects at various stages of development from exploration to production, all focused on high-growth commodities. Erdene has a current working capital position of approximately $17 million, including that of its controlled subsidiary APM, with 89,230,877 common shares issued and outstanding and a fully diluted position of 94,208,377 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.

Contact Information

  • Erdene Resource Development Corporation
    Peter C. Akerley
    President and CEO
    902-423-6419
    or
    Erdene Resource Development Corporation
    Ken W. MacDonald
    Vice President Business Strategy and CFO
    902-423-6419
    info@erdene.com
    www.erdene.com