Source: Erdene Resource Development Corp.                 Date: 30 September, 2010

The highlights of an update provided by Erdene Resource Development on its ongoing exploration programs for coal and metals in Mongolia include:

-- New Copper-Gold Discovery - Detailed Nomin Exploration Program Initiated

-- Regional Coal Targets Being Tested - Zarman Coal Drilling Initiated

-- Galshar Coal Royalty - Xanadu Acquires Galshar Project

-- Zuun Mod Molybdenum-Copper Deposit - Scoping Study Level Work Underway

-- Zuun Mod Exploration - Geophysical Program Commences.

The Nomin Project is providing encouraging early stage copper-gold results and will be subject to more detailed exploration during the remainder of 2010. The Nomin prospect is a new discovery; however, previously undocumented ancient workings (shallow pits) have been found on the property. 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 2010 regional porphyry evaluation program.

Drilling of coal targets in the Zarman basin commenced September 14 with a planned eight-hole, 2,700meter drill program designed to test an area 10 km by 17 km. A budget of USD1.9 million is in place for 2010 coal exploration programs, which is fully funded by Xstrata Coal Canada Ltd. through the Erdene-Xstrata Coal Alliance.

Following the official registration of the Zuun Mod Resource by the Mongolian Minerals Resource Council in July, the company accelerated its efforts in regard to exploration and development of the Zuun Mod project. In September, the Company continued to advance the project with the initiation of hydro-geological studies which will include a geophysical survey and a drilling program designed to confirm water resources in support of mine development. Zuun Mod is a porphyry molybdenum-copper deposit in Bayankhongor Province and Erdene controls it through a single exploration license totaling 49,538 hectares.

Several new drill targets have been identified and preparations are under way to conduct a specialized geophysical induced polarization survey to test for possible extensions of mineralization in this area and to better define and prioritize drill targets. The planned survey is expected to start before the end of September.