In a major move to capitalize on the recent exploration successes in southwest Mongolia, Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN; OTCQB:ERFCF) has entered into an agreement with a syndicate of underwriters for a $25,000,100 bought deal private placement.

The financing, co-led by Paradigm Capital Inc. and National Bank Financial Inc., comes at a pivotal moment for the company. Following the successful first gold pour at the Bayan Khundii Gold Mine in late 2025, Erdene is now pivoting to aggressively expand its broader portfolio. This new capital is specifically earmarked for assets held outside its primary Strategic Alliance with Mongolian Mining Corporation (MMC).

Unlocking the Khuvyn Khar Copper-Porphyry System

A primary focus of the $25 million investment will be the Khuvyn Khar copper-porphyry system. Just weeks ago, on January 14, 2026, the company reported significant drill results from this system, including a 30-metre intersection of 1.25% copper.

The funding will support:

• Advanced Technical Studies: Paving the way for a Preliminary Economic Assessment (PEA) on the Zuun Mod molybdenum-copper deposit, expected in mid-2026.
• Deep Drilling Programs: Testing the copper-rich portions of the 20-square-kilometre hydrothermal footprint at Khuvyn Khar.
• Molybdenum Resource Expansion: Building upon the updated resource estimate released in November 2025, which positioned Zuun Mod as one of Asia's largest undeveloped molybdenum-copper resources.

Financing Structure and Efficiency

The "bought deal" format provides Erdene with immediate certainty of funds, as the underwriters have committed to purchasing 2,809,000 common shares at $8.90 per share. Additionally, an "Underwriters' Option" allows for the purchase of up to 421,000 additional shares, which could push the gross proceeds beyond the initial $25 million mark.

The offering utilizes the Listed Issuer Financing Exemption (LIFE). This regulatory pathway is highly beneficial for the market, as it allows the newly issued shares to be freely tradable in Canada without the standard four-month hold period typically associated with private placements.

Positioned for a Multi-Commodity Future

While the Bayan Khundii Gold Mine is currently ramping up to its steady-state production of 85,000 ounces per year, Erdene’s leadership has been vocal about their vision of becoming a "multi-mine, multi-commodity" enterprise.

"With the gold mine in production and generating cash flow, this financing allows us to maintain 100% control over the massive potential of our copper and molybdenum assets," noted the company in recent updates.

The proximity of these projects to the Chinese border—a global hub for copper and steel production—adds a strategic layer to the development of the Khundii Minerals District.

Next Steps for Investors

The offering is expected to close on February 5, 2026. Investors can review the official offering document on the company’s profile at www.sedarplus.ca or via the company’s investor portal at www.erdene.com.