“The PEA confirms that the Khundii Gold Project is a high-return, low-capital and low-operating cost project that will form the cornerstone development in the emerging Khundii Gold District,” said Peter Akerley, the President, and CEO of ERD. “The project has the potential to provide strong returns to investors, bring industry and employment to a remote area of Mongolia and add to national gold reserves. We have a long history of operating responsibly in the Country and we look forward to creating value for all stakeholders as we continue to develop this exciting project.”

“Next steps include a Pre-Feasibility Study carried out in parallel with mining license, construction and operating permit applications in early 2019,” continued Mr. Akerley. “In addition, we will continueefforts to add resources through follow-up drilling on the Khundii licenses and with further exploration in the highly prospective surrounding district. We will also opportunistically acquire additional licenses in the region as they become available.” Furthermore, the initial capital cost is expected comprise primarily of construction of the process plant and supporting infrastructure. The PEA incorporates the use of a mining contractor utilizing mining equipment, which if purchased outright, would add USD 38 million to capital costs for the life of the mine.