"We are now at the mid-point of the initial 2017 drill campaign in the Bayan Khundii region and thus far have defined several new areas that will require definition drilling, particularly west and east of Striker, the Northeast Zone, and importantly north and west of Midfield. It is very encouraging to continue to intersect broad zones of gold mineralization along the margins of the established 1.3 kilometre by 500 metre mineralized trend," said Peter Akerley, Erdene's President and CEO. "As we continue to expand outward from that area in Q3 we will be testing six new target areas up to 1 kilometre from the original discovery at Striker Zone. In addition, as drilling progresses through Q3, we will move into the untested 3.5 kilometre long gold-in-soil anomaly that continues north to Altan Arrow, and ultimately return to drilling at our Altan Nar project, 16 kilometres to the northwest."

Highlights

Success from step-out drilling and geophysical surveys leads to an expanded target area at Bayan Khundii
Drilling west of the Striker and Midfield zones returns multiple, high-grade, 1-metre intervals between 10 g/t and 22 g/t gold
Drilling up to 150 metres west of the Striker Zone returns multiple gold mineralized intersections over a 250-metre by 200-metre area, including 28 metres of 1.4 g/t gold (BKD-172)
Drilling west of Midfield Zone returns 36 metres of 1.1 g/t gold (BKD-166)
Upcoming Q3 drilling of five untested targets and continued definition of new targets north and east of the Midfield and Striker zones with closer-spaced drilling
Regional structural analysis and detailed structural analysis of Bayan Khundii and Altan Nar projects will be undertaken during Q3
Drill results to continue throughout Q3