Resource World Magazine

MINING ERDENE AND TECK FORM MONGOLIAN ALLIANCE Erdene Resource Development Corp. [ERD-TSX] has formed a joint venture with Teck Resources Ltd. [TCK.B-TSX; TCKNYSE] to finance and explore Erdene's mineral prospects in the Trans Altay region of southwest Mongolia. The program will first focus on the Khuvyn Khar copper porphyry prospect as well as exploration of select targets across the Trans Altay region. Excluded from the Alliance is Erdene's Altan Nar gold project and its Zuun Mod molybdenum-copper deposit. Under the terms of the agreement, Teck will subscribe for up to $3-million Erdene shares by way of a non-brokered private placement. The initial tranche will be for 5 million shares priced at $0.20/share for proceeds of $1 million. The initial tranche for proceeds of $1 million has now been completed. Erdene will commit 85% of the proceeds from each tranche to exploration. With the closing of the initial tranche, JUNE 2013 Teck has the option to acquire additional shares of Erdene, priced at the then current market plus 10%, until it has invested $3-million or acquired through subscriptions 19.9% of the outstanding shares of Erdene, whichever occurs first. As long as Teck holds at least 5% of Erdene's shares on an undiluted basis, Teck has a pre-emptive right to participate proportionately in any future equity financing by Erdene. Once Erdene has spent 85% of the proceeds on the initial program, Teck will have the option to acquire up to a 75% interest in designated projects through a two-stage option process by financing exploration expenditures of up to $10 million on Erdene's Khuvyn Khar Project and up to $5 million on other existing or acquired projects within the Trans Altay project area. The Khuvyn Khar licence hosts multiple copper and molybdenum porphyry centres. Multiple copper mineralized zones have been intersected in wide-spaced drilling, including 34 metres of 1.3% copper and 9.24 grams silver/tonne. This zone remains untested at depth and to the south. The initial program will further define priority drill targets by drill core relogging, mapping and geochemical and geophysical surveys to be carried out in Q3 and Q4 2013. Drilling will be considered following completion of the surface work program. Over the past several years, Erdene has carried out regional exploration in an area of southwest Mongolia designated as the Trans Altay Project area. This has led to a number of prospects being generated on licenses currently held by Erdene as well as on open areas that are expected to be available for licensing in the future. Erdene expects the alliance will evaluate the project area for further exploration. In another development, the Mongolia Alliance agreement of February 2006 between Xstrata Coal Canada Limited and Erdene has been discontinued. n www.resourceworld.com 37

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