Source: Erdene Resource Development Corp.                 Date: 17 August, 2010

Erdene Resource Development Corp. has announced that its Zuun Mod molybdenum-copper deposit has recently been registered by the Mongolian Minerals Resource Council, a prerequisite for applying for a mining license. The application for the license will cover approximately 10,000 hectares, a reduction from the current 49,538 hectare exploration license.

A report interpreting geological, geochemical and geophysical data from the Zuun Mod project with a focus on identifying additional exploration targets in the vicinity of the Zuun Mod Mo-Cu deposit was received during the second quarter. The company is now evaluating the results, at the same time preparing for a specialized geophysical induced polarization survey of certain areas of the deposit to test for possible extension of mineralization.

The company has continued to advance the project and is in the planning stages of a drilling program designed to confirm water resources in support of mine development. In addition, independent technical consultants have conducted pit optimization and scheduling studies on the deposit. The information will be used to create a financial model on which to base decisions regarding the advancement of the project to the pre-feasibility stage.

During the second quarter, field work was started for both the coal and metals exploration programs in Mongolia. The coal exploration program is focused on evaluating the potential of several large basins (Zarman and Nomin) in southwestern Mongolia, and a drilling program is expected to commence by early September. The company has also been carrying out a detailed regional evaluation of a large area in south-western Mongolia evaluating the potential to host porphyry related copper-gold-molybdenum mineralization. The 2010 metals exploration program is focused on evaluating newly acquired exploration licenses, follow-up of anomalous results from the 2009 regional exploration program and field evaluation of the expanded regional porphyry evaluation program. Multiple new targets have been generated to date and are receiving further work. As part of the 2010 metals exploration program, 211 rock-chip geochemical samples have been collected and sent for analysis. Finals results are pending.

Erdene recorded a net loss of USD1.5 million in the second quarter of 2010. As of June 30, 2010, Erdene had USD11.1 million of cash and cash equivalents on hand, on a consolidated basis, compared with approximately USD13.8 million on December 31, 2009.