Erdene Resource Development Corp has entered into an agreement whereby Paradigm Capital Inc, as lead underwriter, and Canaccord Genuity Group Inc have agreed to purchase, on a bought deal basis, 12.988 million common shares for gross proceeds of more than C$10 million.

Erdene has also granted the underwriters an over-allotment option to increase the size of the offering by up to an additional 15%, with the option being exercisable in whole or in part at any time on or before 48 hours prior to the closing of the offering.

The company intends to use the net proceeds to advance its high-grade Bayan Khundii and Altan Nar gold projects, and to further explore and develop its other gold properties in southwest Mongolia, as well as for working capital and general corporate purposes.

The closing is expected to occur on or about February 23 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

In consideration for their services, the underwriters will receive a cash commission of 6% of the gross proceeds of the offering and shall receive such number of compensation options as is equal to 6% of the shares issued pursuant to the offering.

Erdene Resource Development Corp is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base metal prospects in underexplored and highly prospective southwest Mongolia.

Exploration success has led to the discovery and definition of several prospects and deposits including the flagship and newly discovered, high-grade, near-surface Bayan Khundii gold project; the 5.6km-long Altan Nar gold-polymetallic mineralised trend that is host to 18 targets; Altan Arrow gold-silver prospect; and Zuun Mod molybdenum-copper deposit.

In addition, the company has an alliance with Teck Resources on regional copper-gold exploration in the prospective Trans Altay region of southwest Mongolia.

www.erdene.com

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