Erdene Resource Development (ERD) Q1 2025 earnings summary

Executive summary

• Achieved 87% construction progress at Bayan Khundii Gold Project as of March 31, 2025, with first gold production targeted for late Q3 2025.

• Over 700 personnel on-site, with operational readiness advancing and key facilities commissioned.

• Infill drilling confirmed high-grade mineralization and expanded resource potential at Bayan Khundii.

Financial highlights

• Net loss of $4,500,861 for Q1 2025, compared to $2,678,373 in Q1 2024.

• Exploration and evaluation expenses rose to $973,590 from $783,156 year-over-year, driven by incentive payments and staff transfers.

• Corporate and administrative expenses decreased to $1,500,855 from $2,777,588 year-over-year, mainly due to prior year write-offs.

• Loss from investment in associate increased to $2,084,431 from $257,016 year-over-year, due to higher non-capitalized interest expenditures.

• US$96 million in project expenditures incurred to end of Q1 2025, with potential cost increases expected to remain within available funding.

Outlook and guidance

• Construction expected to be substantially complete in Q2 2025, with first gold production in late Q3 2025.

• Updated mine plan to incorporate results from ongoing drilling of 200 shallow holes.

• Updated independent mineral resource for Zuun Mod scheduled for mid-2025, with a preliminary economic assessment planned for late 2025.