Erdene says its 25% of Donkin coal project worth $265 million

Nova Scotia’s Erdene Resource Development Corp. on Monday provided an update on the Company’s principal projects in conjunction with the release of its second quarter financial results to June 30, 2011. Erdene has a current working capital position of approximately $4.4 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 90,323,377 common shares issued and outstanding.Highlights:

Marston and Xstrata’s Donkin NI 43-101 report concludes that Erdene’s 25% Donkin Coking Coal Project interest has a $265 million Net Present Value (“NPV”) at an 8% discount rate

Xstrata filed a draft Donkin Coking Coal Project description document with Federal and Provincial regulators as the initial step in the Environmental Assessment (“EA”) process

Zuun Mod NI 43-101 compliant molybdenum and copper resource estimate issued and 30-year Mining Licence granted

Initial drilling program extends mineralized zone at Khuvyn Khar copper-silver discovery and new geophysical targets identified

Drilling confirms a new base and precious metal discovery on Nomin property; expanded exploration program underway

Construction phase for royalty-generating construction aggregate quarry in Georgia, USA, nearing completion
Ends quarter with $5.0 million in working capital

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