Erdene Reports 2009 Second Quarter Financial Results and Provides Project Updates

HALIFAX, NOVA SCOTIA, Aug 17 (MARKET WIRE) --
Erdene Resource Development Corp. ("Erdene") (TSX: ERD), today provided
an update on its principal projects in conjunction with the release of
its 2009 second quarter financial results.

2009 Second Quarter Highlights

- Donkin coal project work progressed with planning for the Exploration
and Development Phase implementation and some tenders being provisionally
awarded. Coal sales discussions are continuing.

- Finalizing Zuun Mod mineral resource estimate expected to be released
in the third quarter of 2009

- Final stages of installation of process equipment in new kaolin
processing facility in Dearing, Georgia with commercial production to
begin in the third quarter of 2009.

- $17,012,520 of cash and cash equivalents as at June 30, 2009

"Erdene is committed to generating shareholder value through its
concentration on coal, molybdenum and copper, and industrial minerals
focused on two regions: China-Mongolia and the eastern seaboard of North
America," said Peter Akerley, President and CEO. "While focusing on
strategically located projects and commodities that have strong,
long-term market fundamentals, we will be advancing our projects using a
measured and disciplined approach, effectively managing risk."

Project Summaries and Updates

Donkin Coal Project

Erdene has a 25% joint venture partnership in the Donkin Coal Alliance
("DCA") with Xstrata Coal Donkin Limited. The DCA was formed to secure
the rights to the Donkin coal project and to explore, assess, study and
if feasible, develop the high-grade Donkin coal resource. The Donkin coal
project is located in Cape Breton, Nova Scotia, proximal to deep water
ideal for seaborne shipping into the major markets on North America's
east coast and Europe. The Donkin coal project is being evaluated as a 4
million tonne per annum underground longwall operation with both domestic
and export markets. The project is within 35 kilometers of a coal-fired
electrical generating plant and a deep-water coal loading facility.

In May, 2008 the DCA announced a commitment to fund a feasibility study
of an Evaluation and Development Program ("Program") for the Donkin coal
project. The Program, utilizing a continuous miner, is an interim step in
the development path leading towards establishing a large scale
underground longwall mining operation.

The project partners endorsed this interim step in the project to obtain
further information deemed critical to the assessment of the feasibility
of the large scale underground mining options under consideration.

During the latter part of 2008 and first half of 2009 work progressed on
the feasibility study for the Program with some tenders being
provisionally awarded and requests for pricing issued for the long lead
time items and major contracts associated with the project. The
feasibility study for the Program will be finalized upon conclusion of
sales agreements.

Zuun Mod Molybdenum Project

The Zuun Mod project is a porphyry molybdenum ("Mo") (with copper and
rhenium) deposit and consists of a single license totaling 49,538
hectares. It is located in Bayankhongor Province approximately 950
kilometres southwest of Ulaanbaatar and 215 kilometres from railhead on
the Mongolia-China border at Ceke. The railhead is located 20 kilometres
south of the Nariin Sukhait and Oyuut Tolgoi coal mines.

The Zuun Mod project has been under exploration and evaluation since
2002. Subsequent to signing an agreement with Gallant Minerals Limited in
March 2005 to acquire the license, the Company carried out extensive
exploration that has resulted in establishing Zuun Mod as one of the
largest and most advanced pre-development molybdenum projects in the
North Asia Region.

In May 2008 the Company received a NI 43-101 compliant resource report
for the project from Minarco. The Zuun Mod resource includes 110Mt in the
measured and indicated resource categories with an average grade of 0.06%
Mo. This equates to 148 million pounds of contained Mo metal.

Following the release of the resource estimate, additional drilling was
carried out in 2008 to test for high-grade mineralization at depth, to
explore areas peripheral to the deposit and to better define localized
zones of higher grade mineralization, particularly those nearer surface.
A total of 32 new holes were completed and eight holes were deepened,
totaling 10,785 metres.

The 2008 program was successful in defining localized higher grade zones
and enlarging the overall deposit, both vertically and laterally. The
deposit was confirmed to extend to depths exceeding 500 metres over a
minimum strike length of 1.7 kilometres while locally coming to within 22
metres of surface. Drilling confirmed several continuous intersections
exceeding 350 metres of 0.06% Mo and multiple high grade zones exceeding
50 metres of 0.10% Mo.

In the second quarter, 2009, Minarco carried out work to incorporate the
2008 drilling results into the May 2008 resource estimate with a focus on
higher-grade zones. The updated Minarco mineral resource estimate is
expected to be released in August 2009.

Erdene also initiated a license-wide exploration program in 2009
consisting of stream sediment and rock chip geochemical surveys along
with geological and alteration mapping. Much of the field work was
completed by the end of June. Preliminary results include a newly
identified molybdenum in rock geochemical anomaly 4 kilometres northeast
of the main deposit area. The geochemical results for this area are of
the same magnitude as those overlying the main deposit area. Anomalous
gold values (up to 1.3 g/t) were also identified to the southwest of the
main deposit, approximately 2.5 kilometres from a previously identified
gold in soil geochemical anomaly.

In addition to Zuun Mod the company is carrying out evaluations of
multiple metal and coal projects throughout southern Mongolia.

Advanced Primary Minerals Corp.

As a result of an aggressive exploration and acquisition program in the
late 1990s, the Company acquired a large high brightness primary kaolin
(clay) resource through its U.S. subsidiary, Erdene Materials Corporation
("EMC"). EMC's in-ground, "premium" quality, primary kaolin resource in
Georgia has a total NI 43-101 compliant resource of 25.5 million tons
(Measured and Indicated).

As part of Erdene's business plan, Erdene created a dedicated vehicle for
its primary kaolin operations by initiating a reverse takeover of Beta
Minerals Inc. ("Beta"), a TSX Venture-listed company. Beta changed its
name to Advanced Primary Minerals Corporation ("APM") and is listed on
the TSX Venture Exchange (TSXV: APD) with Erdene as its majority
shareholder.

The goal of APM is to be North America's leading specialized kaolin
producer. Much of the premium kaolin clay deposits in Georgia and the UK
have been depleted over the past century. APM's primary kaolin products
meet or exceed the quality of comparable foreign imports and domestic
sources. APM looks to take advantage of that situation with its unique,
high quality primary clay deposits and modern processing facilities to
focus on small to moderate-volume opportunities and high-margin specialty
products. Proximity to domestic markets and elimination of foreign
exchange risk add a strong competitive advantage over comparable foreign
imports. Kaolin is used in the manufacture of value-added products within
a number of industries which include ceramics, paint and paper.

APM is currently producing kaolin products for its initial customers in
the ceramics industry as well as continuing trials with potential
customers. It is in the final stages of installing the process equipment
in its new state-of-the-art kaolin processing facility in Dearing,
Georgia that is scheduled to begin commercial production in the third
quarter of 2009.

Granite Hill

The Company's Granite Hill project is a former producing granite
aggregate quarry in central Georgia. The Company owns the 342-acre
property, which holds in excess of a 120 million-ton resource and is
situated on an existing rail line. Ready Mix USA ("RMU") holds, through a
lease with the Company, an exclusive right to mine, process, and sell
aggregate from the Granite Hill property. The sale of all aggregate from
the property is subject to an industry competitive royalty payable to the
Company.

RMU's quarry development plan provides for an estimated start-up
production rate of one million tons of granite aggregate per year, with
an initial design capacity of up to 2.5 million tons. Based on current
production projections, the Granite Hill quarry will have an estimated
lifespan in excess of 30 years. RMU has designed a quarry mining plan,
processing plant and facilities, and produced an environmental impact
plan. RMU has also acquired additional land adjacent to the Granite Hill
property to secure rail access to the site. The construction phase is
expected to be completed nine to twelve months after a production
decision by RMU. RMU is responsible for fully funding the development and
operating program.

Production from the Granite Hill project will target markets in the
southeastern U.S. where urban sprawl, depleted resources and the shutdown
of mining in Florida's Lake Belt aggregate district have combined to
create a pending shortage of crushed stone. At the same time the U.S.
government stimulus package is expected to initiate over $90 billion in
infrastructure spending over the next 12 to 18 months expected to spark
demand for aggregate material. The Lake Belt district is in northwestern
Miami-Dade County and on average produces approximately 45 million tons
of limestone or about half the state of Florida's annual production.
There is currently no mining taking place in this area as a U.S. District
Judge has stayed all mining permits over concerns regarding impact on the
Everglades' watershed and the environment. In addition to the Granite
Hill project, the company is completing evaluations of aggregate
opportunities in eastern Canada and the Caribbean.

2009 Second Quarter Financial Results Summary

Erdene's 2009 second quarter financial statements and Management's
Discussion and Analysis were filed with regulatory authorities on August
14, 2009 and are available on the Company's website at www.erdene.com and
on SEDAR at www.sedar.com. These statements are provided on a
consolidated basis incorporating that of its controlled subsidiary,
Advanced Primary Minerals Corp.

For the three months ended June 30, 2009, exploration and operating
expenses amounted to $681,862 compared to $222,477 in the second quarter
2008. Including capitalized costs and excluding write-offs, exploration
expenses were $1,041,685 for the second quarter of 2009 and $2,870,442
for the second quarter of 2008 respectively.

Erdene's second quarter expenditures were primarily directed toward the
continued advancement of the Company's primary projects, namely the
Donkin coal project and Zuun Mod molybdenum project as well as
approximately $422,168 in purchases of plant and equipment for a new
processing plant being constructed by Erdene's controlled subsidiary APM.

Administrative expenses totaled $551,654 (including $99,120 in stock
based compensation) for the second quarter of 2009, compared to $498,141
in second quarter 2008.

The Company recorded a loss of $1,478,796, or $0.02 per share, in the
second quarter of 2009 compared with a loss of $724,571, or $0.01 per
share, in the second quarter of 2008. The loss in the second quarter of
2009 includes a write down of non performing assets of $960,986, compared
to a write down of $75,723 in the same quarter in 2008. At June 30, 2009,
Erdene had approximately $17,012,520 of cash and cash equivalents on
hand, including cash acquired on closing of the Beta Transaction,
compared with $16,195,175 million at December 31, 2008.

About Erdene

Erdene Resource Development Corp. is a diversified resource company with
multiple projects at various stages of development from exploration to
production, all focused on high-growth commodities. Erdene has a current
working capital position of approximately $16.3 million, including that
of its controlled subsidiary APM, with 89,230,877 common shares issued
and outstanding and a fully diluted position of 94,208,377 common shares.

Forward-Looking Statements

Certain information regarding Erdene contained herein may constitute
forward-looking statements within the meaning of applicable securities
laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although Erdene believes that
the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to
have been correct. Erdene cautions that actual performance will be
affected by a number of factors, most of which are beyond its control,
and that future events and results may vary substantially from what
Erdene currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploitation and exploration results, continued availability of
capital and financing and general economic, market or business
conditions. The forward-looking statements are expressly qualified in
their entirety by this cautionary statement. The information contained
herein is stated as of the current date and subject to change after that
date.

Contacts:
Erdene Resource Development Corporation
Peter C. Akerley
President and CEO
902-423-6419

Erdene Resource Development Corporation
Ken W. MacDonald
Vice President Business Strategy and CFO
902-423-6419
info@erdene.com
www.erdene.com

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