Exploration efforts to date at the Zuun Mod Molybdenum Project have resulted in the discovery of a new, strongly mineralized molybdenum-copper porphyry system. Erdene’s management believes Zuun Mod to be a world-class molybdenum deposit poised for development at a very opportune time. In the past year, markets for molybdenum have reached historic highs and the outlook for molybdenum suggests that new mines will need to be developed to meet forecast demand over the longer term. Zuun Mod is strategically located just 180 kilometres north of the Chinese border. China’s world leading economic growth continues with no sign of abating. China’s consumption of commodities such as molybdenum, a key ingredient in high strength and stainless steels, continues at historic levels. Zuun Mod is ideally located to meet China’s need for molybdenum resources.

The Zuun Mod property is a porphyry molybdenum prospect located in Bayankhongor Province approximately 950 kilometres southwest of Ulaanbaatar. The property consists of a single exploration license totaling 49,538 hectares, was acquired in 2005 from Gallant Minerals Limited and is subject to a net smelter royalty.

The Zuun Mod Porphyry Complex measures 12 kilometres in circumference and hosts broad zones of molybdenum mineralization. In a three-kilometre long portion of the system, referred to as the South Corridor, Erdene identified three mineralized zones known as the Racetrack North (“RTN”), Racetrack South (“RTS”) and the Stockwork zones (see Zuun Mod March 11, 2008 maps). Initial drilling of these zones intersected thick intervals of significant mineralization proximal to surface and open at depth.

In 2007 Erdene appointed Minarco MineConsult (formerly Minarco Asia Pacific Pty Limited) ("Minarco") to evaluate strategic options and advise on project planning and design for the Zuun Mod molybdenum project. Minarco recommended a two-phase drilling program focusing on the South Corridor. The program commenced in May 2007 and consisted of sixty-four, 100 and 200-metre spaced drill holes in the RTN, RTS, and Stockwork zones under the direction of Minarco. The objective of the programs was to further delineate the zones of mineralization and to complete a National Instrument 43-101 compliant molybdenum resource for the Zuun Mod project.

The resource delineation drilling confirmed the continuation of wide molybdenum intercepts significantly expanding both the Racetrack North (“RTN”) and Racetrack South (“RTS”) zones. The RTN Zone has been expanded and now extends over an area 1.2 kilometres in length and up to 700 metres (arcuate zone adjacent to ring dyke) in width. The final results of the 2007 drilling demonstrate that wide molybdenum intercepts extend the RTN Zone 250 metres to the east and 300 metres to the south. The southern portion of the RTN and alone represent an arcuate zone 700 metres by 200 metres that comes to within 18 metres of surface. Results include 268 metres of 0.064% Mo including 66 metres of 0.103% Mo from hole ZMD-79 that ended in 12 metres of 0.243% Mo. The RTN zone remains open locally in all directions.

The most significant result from the RTS drilling is confirmation of continuity of the mineralized zone to the west, plunging under the andesite cover. The RTS zone is now extended an additional 150 metres west, comes within 24 metres of surface, remains intensely molybdenum-mineralized with a substantial increase in copper grades and remains open to the west. Hole ZMD-72, located in the west central portion of the RTS Zone, returned 138 metres of 0.06% Mo with 0.103% Cu. Copper grades up to 0.23% over 12 metres were reported in the lower 50 metres of the hole. Two additional holes, located on the eastern side of the RTS Zone (ZMD-64 and 65) extended the zone of mineralization towards the Ring Dyke and to the southeast.

Preliminary data validations, geostatistical, geologic and economic analyses and modeling have been completed by Minarco-MineConsult, utilizing the available data and molybdenum assays received to September 2007. The preliminary “first-run” models indicate the coherent distribution of highly anomalous, potentially economic concentrations of molybdenum within the Zuun Mod South Corridor RTN, RTS and Stockwork zones. Once received, all of the pending assays from the completion of Phase II drill testing will be integrated into the resource estimate and modeling. The initial molybdenum resource for the Zuun Mod project is expected in April and a scoping study is underway.

In late 2007 Erdene completed a detailed surface exploration geochemical (rock and soil) and geophysical (gradient Induced Polarization and Dipole) program across the entire Zuun Mod complex covering the 12 kilometre circumference. The company has identified broad zones of anomalous molybdenum and copper mineralization in addition to the South Corridor area with the Racetrack and Stockwork zones leaving significant potential for expansion. The Zuun Mod porphyry complex remains highly prospective for the discovery of additional molybdenum and copper resources. Follow-up drilling of these additional targets will be carried out in 2008.