Q4 2025 Erdene Resource Development Corp Earnings Call

March 25, 2026

<unk> financial and operating results for 2025 conference call and webcast. As a reminder, all participants on the telephone are in listen only mode and the conference is being recorded after the presentation. There will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad.

Operator: Welcome to the Erdene Resource Development Q4 and full year financial and operating results for 2025 conference call and webcast. As a reminder, all participants on the telephone are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press Star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing Star then 0. Participants on the webcast may type their questions in the chat feature of the webcast. Now, let me hand the call over to John Dinsick. Please go ahead.

Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Participants on the webcast may type their questions in the chat feature of the webcast.

Now, let me hand, the call over to Jonathan. Please go ahead.

Thank you operator, and Hello, everyone. Thank you for joining our call today, some housekeeping items to note.

John Dinsick: Thank you, operator, and hello, everyone. Thank you for joining our call today. Some housekeeping items to note. The accompanying presentation for today's call is available for download from the company's website at erdene.com. Yesterday's press release, the financial statements, and the MD&A are all posted on Erdene's website and SEDAR+. It's also important to note that this conference call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs and may also use the terms that are non-IFRS performance measures. Please review Erdene's Q4 2025 disclosure materials and the company's most recent annual information form for the risks associated with this forward-looking information and the use of non-IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in Canadian dollars unless otherwise noted.

[Analyst] (Cormark Securities): Thank you, operator, and hello, everyone. Thank you for joining our call today. Some housekeeping items to note. The accompanying presentation for today's call is available for download from the company's website at erdene.com. Yesterday's press release, the financial statements, and the MD&A are all posted on Erdene's website and SEDAR+. It's also important to note that this conference call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs and may also use the terms that are non-IFRS performance measures. Please review Erdene's Q4 2025 disclosure materials and the company's most recent annual information form for the risks associated with this forward-looking information and the use of non-IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in Canadian dollars unless otherwise noted.

Accompanying presentation for today's call is available for download from the company's website at <unk> Dot com.

Yesterday's press release, the financial statements and the MD&A are all posted on her deans web site and SEDAR plus it's also important to note that this conference call contains forward looking information that is based on the company's current expectations estimates and beliefs that may also use the term.

That or not I FRS performance measures. Please review of <unk> Q4, 2025 disclosure materials and the company's most recent annual information form for the risks associated with this forward looking information and the use of non <unk> performance measures. Please note that all dollar amounts mentioned on today's call are in Canadian dollars unless.

Otherwise noted.

Today's speakers from redeem our Peter acre Lee, President and CEO, and Robert Jenkins, Chief Financial Officer.

John Dinsick: Today's speakers from Erdene are Peter Akerley, President and CEO, and Robert Jenkins, Chief Financial Officer. I'd now like to turn the call over to Peter. Please go ahead, Peter.

[Analyst] (Cormark Securities): Today's speakers from Erdene are Peter Akerley, President and CEO, and Robert Jenkins, Chief Financial Officer. I'd now like to turn the call over to Peter. Please go ahead, Peter.

Now I'd like to turn the call over to Peter. Please go ahead Peter.

Yeah.

John Hello, everyone and thanks for joining us today.

Starting on slide four by.

Peter Akerley: Thanks, John. Hello, everyone, and thanks for joining us today. Starting on slide 4, the Bayan Khundii Gold Mine is an emerging high-grade, low-cost gold producer in Mongolia, with first gold delivered in September 2025. The mine is owned 50% by Erdene and 50% by Mongolian Mining Corporation through the joint venture Erdene Mongol LLC. Our company also holds a 5% net smelter royalty on all minerals produced by the joint venture after the first 400,000 ounces of gold production, which is expected to be achieved in the first 5 years. Once at full production, based on the feasibility, the mine is forecast to produce approximately 80,000 ounces of gold annually, with 93% recoveries from high-grade ore.

100 gold mine as an emerging high grade low cost gold producer of Mongolia with first gold delivered in September of 2025.

It's owned 50% by your Dean and 50% by Mongolian Mining Corporation through the joint venture or didn't Mongol L. L. C.

Our company also holds a 5% net smelter royalty on all nine of those produced by the joint venture. After the first 400000 ounces of gold production, which is expected to be achieved in the first five years.

Once the full production based on the feasibility the mine is forecast to produce approximately 80000 ounces of gold annually with 93% recoveries from high grade ore.

The government is expected to sit firmly in the top quartile globally of all in sustaining costs generating significant cash flow in today's strong gold price environment.

Peter Akerley: Bayan Khundii is expected to sit firmly in the top quartile globally of all-in sustaining costs, generating significant cash flow in today's strong gold price environment. Turning now to slide 5 and the operating performance in Q4 2025, our first quarter of operations. The Erdene Mongol mining team delivered 365,000 tons of ore to the run-of-mine pad at an average estimated grade of 2.4 grams per ton. This was about 55% higher tonnage than projected in our feasibility study, largely due to lower cut-off grade of 0.45 versus 0.67, and driven by higher gold prices. During this initial ramp-up phase, which included overburden stripping and establishing consistent working levels, and while our mining workforce transitions from bulk mining experience to selective mining in a high-grade open pit environment, dilution was elevated.

Turning now to slide five and the operating performance in the fourth quarter of 2025.

First quarter of operations here at <unk>.

The mining team delivered 365000 tonnes of ore to the run of mine pad had an average estimated grade of two four grams per tonne.

This was about 55% higher tonnage than projected in our feasibility study largely due to a lower cutoff grade of <unk> 45 versus <unk>, 67, and driven by higher gold prices.

Turning this initial ramp up phase, which included overburden stripping and establishing consistent working levels and while our mining workforce transitions from bulk mining experience to selective mining and a high grade open pit environment dilution was elevated.

As seen on slide six in Q4, we said 145000 tons into the plan at a measured fee grade of two grams per tonne.

Peter Akerley: As seen on slide six, in Q4, we fed 145,000 tons into the plant at a measured feed grade of 2 grams per ton. This produced 7,434 ounces of gold, sold at an average price of $4,187. This generated $31 million in revenues. We also produced a silver byproduct of 2,634 ounces. On the processing side, our target is 1,950 tons per day, equating to 650,000 tons annually. At reserve grade, this supports approximately 80,000 ounces per year of production. In 2025, throughput averaged 77% of target but reached nameplate by year-end, and that performance has continued into Q1. Gold recovery has exceeded expectations consistently above 96%.

It's produced 7434 ounces of gold sold at an average price of 4187.

Generated 31 million in revenues. We also produced the silver byproduct of 2600 34 ounces.

On the processing side, our target is 1950 tons per day, equating to 650000 tons annually.

At reserve grade this supports approximately 80000 ounces per year production.

In 2020, fives throughput averaged 77% of target, but reached nameplate by year end and that performance has continued into Q1.

Gold recovery has exceeded expectations consistently above 96%.

Looking at mining operations the left the image on slide seven shows the surface areas mined during start up while the middle highlights New high grade zones opened up in late Q1, and we're mining will continue in Q2.

Peter Akerley: Looking at mining operations, the left image on slide 7 shows the surface areas mined during startup, while the middle highlights new high-grade zones opened up in late Q1 and where mining will continue in Q2. As shown, mining is scheduled to move into denser high-grade zones, providing greater optionality. As we continue with our ramp-up phase, we're conducting ongoing training supported by experts in open pit mining. Grade control and improved mining processes are our focus as we move through Q2. One challenge to date has been blast fragmentation, which left approximately 15% of ore stockpiled, as is oversized for the crusher. Because the hardest ore hosts the highest grades, fully crushed material is expected to yield better results. A mobile crushing unit was introduced in late Q1 and is allowing the plant to operate more efficiently.

As shown in mining is scheduled to move into denser high grade zones, providing greater optionality.

As we continue with our ramp up phase, we're conducting ongoing training supported by experts in open pit mining grade control and improved mining processes, our focus as we move through Q2.

One challenge to date has been blast fragmentation, which left approximately 15% of ore stockpiled as was oversized for the crusher.

Because the hardest or host the highest grades fully crushed material is expected to yield better results.

Our mobile crushing and it was introduced in late Q1 and is allowing the plant to operate more efficiently.

In addition consultants have recently been on site advising on blasting improvements, which are being observed in the mine.

Peter Akerley: In addition, consultants have recently been on-site advising on blasting improvements, which are being observed in the mine. Through January and February, we blended lower-grade stockpile material, but as we added the ability to feed whole ore and continually improved our mining and blasting processes, as well as adjustments to ROM pad blending, grades began trending upwards. Our objective is to deliver feed at the reserve grade of Bayan Khundii, approximately 3.8 grams per ton, as established in our feasibility study. We will provide a Q1 production update for the Bayan Khundii mine in late April. Achieving this feed grade target requires managing dilution through strong grade control modeling, precise dig lines, well-defined blasting, and efficient blending. With 85% of the Bayan Khundii deposit contained in just 25% of the ore, selective mining discipline is critical.

Through January and February we blended lower grade stockpile material, but as we added the ability to feed all ore and continually improve their mining and blasting processes as well as adjustments to ROM pad blending grades began trending upwards.

Our objective is to deliver feed at the reserve grade of Brian Henry approximately three eight grams per tonne is established in our feasibility study we will provide our Q1 production update for the buying 100 mines in late April.

Achieving this feed grade target requires managing dilution through strong grade control modeling precise dig lines, well defined blasting and efficient blending with 85% of the buy 100 deposit contained in just 25% of your selective mining discipline is critical.

Okay.

Slide eight provides a recap of the production projections from the 2023 feasibility study.

Peter Akerley: Slide eight provides a recap of the production projections from the 2023 feasibility study. We targeted 67,000 ounces in the first year of production, reaching greater than 80,000 ounces a year thereafter. As we complete our ramp up in Q2, we will have our improved understanding of production for the remainder of 2026. At full production and accounting for inflation and higher royalties at current gold prices, we continue to target all-in sustaining costs in the lowest quartile globally. Overall, we are very pleased with progress to date and confident in Bayan Khundii's potential to become one of the highest grade open pit gold mines globally. Our highest priority remains reaching and consistently producing gold at the rates we've discussed. However, looking ahead, slide nine displays the wide range of growth opportunities offered by the Khundii district.

Targeted 67000 ounces in the first year of production, reaching greater than 80000 ounces a year thereafter.

As we complete our ramp up in Q2, we will have our improved understanding of production for the remainder of 2026.

At full production and accounting for inflation and higher royalties at current gold prices, we continue to target all in sustaining costs in the lowest quartile globally.

Overall, we are very pleased with progress to date and confident in buying Hyundai has potential to become one of the highest grade open pit gold mines globally.

Our highest priority remains reaching and consistently producing gold at the rates. We've discussed however, looking ahead slide nine displays the wide range of growth opportunities offered by the 100 District. These include dark horse expansion west of the <unk> pit kulan Altener and broader.

Peter Akerley: These include Dark Horse, expansions west of the Bayan Khundii pit, Ulaan, Altan Nar, and broader exploration across our licenses and potential acquisitions in the area. Moving on to slide 10. The Bayan Khundii epithermal system is a 10-km series of gold mineralized structures that host the main Bayan Khundii deposit, as well as the Dark Horse satellite deposit north of Bayan Khundii, slated to begin production in late 2027. Our immediate exploration focus is on the Dark Horse area and west of the mine at Khundii West. As shown on slide 11, Dark Horse is located just 2.5 km north of the Bayan Khundii deposit on the same mining license. This area hosts a satellite pit with an established reserve of 48,000 ounces grading 7 grams per ton, with additional low-grade oxide resources.

Across our licenses and potential acquisitions in the area.

Moving on to slide 10, the <unk> thermal systems 10 kilometers series of Goldman realized structures that host the main by Hyundai deposit as well as the dark horse satellite deposit north of buying 100 slated to begin production in late 2027.

Our immediate exploration focus is in the dark horse area and west of the mine at <unk> West.

As shown on slide 11, Dark horse is located just two five kilometers north of the buying 100 deposit on the same mining license.

This area of hostess satellite pit with an established reserve of 48000 ounces grading seven grams per tonne.

With additional low grade oxide resources.

Development of the high grade pit is scheduled to begin in Q4 of 2027, allowing for a 12 month period, while the <unk> advances into deeper high grade zones.

Peter Akerley: Development of the high-grade pit is scheduled to begin in Q4 2027, allowing for a 12-month period while the Bayan Khundii mine advances into deeper high-grade zones. Dark Horse also contains an extensive zone of near-surface oxide mineralization along a 3-kilometer trend, with exploration extending into the Altan Nar area. This provides a tremendous opportunity to expand resources and extend mine life. Turning to slide 12. Our Q4 drill program at Dark Horse intersected impressive grades, 9 grams per ton over 19 meters, 28 grams per ton over 3 meters, adding to the existing high-grade reserve. Resource updates for Dark Horse are planned for Q2 2026, with further drilling to fully define reserves and complete grade control ahead of mine planning in 2027.

Dark horse also contains an extensive zone of near surface oxide mineralization, along a three kilometer trend with exploration extending into the ultimate Arrow area.

This provides a tremendous opportunity to expand resources and extend mine life.

Turning to slide 12, our Q4 drill program of dark horse intersected impressive grades nine grams per tonne over 19 meters 28 grams per tonne over three meters, adding to the existing high grade reserves.

Resource updates for dark horse a plan for Q2 2026 with further drilling to fully define reserves and complete Greg control ahead of mine plan in 2027.

A dark horse North Q4 drilling intersected shallow oxidize zones of Golden Regiment expanded mineralization and increase Greg was mineralized zones extended it including 43 meters of one nine grams per tonne gold.

Peter Akerley: At Dark Horse North, Q4 drilling intersected shallow oxidized zones of gold enrichment, expanded mineralization, and increased grade, with mineralized zones extended at depth, including 43 meters of 1.9 grams per ton gold. The oxides are now being evaluated for heap leach processing, potentially complementing the Bayan Khundii carbon-in-pulp plant. At Altan Nar, in the northeast portion of the greater Dark Horse area, the Q4 drill program returned multiple shallow intersections of gold-bearing oxidation zones, including 1 meter of 16 grams per ton of gold within a broader zone of 16 meters at 1.4 grams per ton, beginning just 8 meters from surface. Overall, some very exciting results that we plan to build upon in 2026. As you can see on slide 13, we have a substantial opportunity to expand production next to the current open pit in the Striker West and Ulaan areas.

The oxides are now being evaluated for heap leach processing potentially complementing the buy in Hyundai carbon in pulp plant.

But ultimately the arrow in the northeast portion of the greater Dark horse area. The Q4 drill program returned multiple shallow intersections of gold bearing oxidation zones, including a meter at <unk> 16 grams per tonne of gold within a broader zone of 16 meters at one four grams per ton beginning just eight meters from surface overall, some very exciting.

<unk> that we plan to build upon in 2026.

As you can see on slide 13, we have a substantial opportunity to expand production next to the current open pit and the Stryker west any lawn areas.

Stryker West the most recent drilling intersected high grade zones, including 42 meters with seven grams per tonne of gold.

Peter Akerley: At Striker West, the most recent drilling intercepted thick high-grade zones, including 42 meters with 7 grams per ton of gold. We'll look to incorporate Striker West into the mine plan as we move through 2026. Further west, the Ulaan prospect returned broad low-grade intervals, 330 meters of over 1 gram per ton beginning at 80 meters depth, as well as very high-grade intersections of 20 to 40 meters exceeding 8 grams per ton. Overall, the vast epithermal system at Bayan Khundii is still in the early stages of exploration, and we are excited about the potential it offers. We've established a cornerstone reserve at Bayan Khundii and Dark Horse to support the initial mining period and the related infrastructure to support expansion in the region.

We will look to incorporate Stryker west into the mine plan as we move through 2026.

Further west you lap prospect return broad low grade intervals 330 meters over a gram per ton beginning at 80 meters depth as well as very high grade intersections of 20 to 40 meters exceeding eight grams per tonne.

Overall, the vast thermal system by 100 is still in the early stages of exploration and we are excited about the potential. It offers we've established a cornerstone reserve it by and Hyundai and dark horse to support the initial mining period and the related infrastructure to support expansion in the region. The.

The exploration of opportunities on the 100 underlying licenses to potential to upgrade production at our current carbon in pulp plant and a possible heap leach opportunity provides us with a solid foundation for long term growth.

Peter Akerley: The exploration opportunities on the Khundii and Ulaan licenses, the potential to upgrade production at our current carbon-in-pulp plant, and a possible heap leach opportunity provide us with a solid foundation for long-term growth. As you can see on slide 14, Erdene Mongol also holds the Altan Nar gold deposit, located just 16km north of Bayan Khundii. The license hosts a 5.6-km mineralized trend that is comparable in style of deposit to Fruta del Norte in Ecuador and Porgera in Papua New Guinea. Altan Nar has received limited exploration since our focus shifted to Bayan Khundii a decade ago, but is scheduled to see exploration later this year. This work will seek to upgrade our resources beyond the current shallow resource of approximately 500,000 ounces of gold.

As you can see on slide 14 urban model also holds the ultimate our gold deposit located just 16 kilometers north of buy and Hyundai.

The license hosts a five six kilometer mineralized trend that is comparable in style deposit to further them nor are they in Ecuador, and port mirror in Papa New Guinea.

<unk> received limited exploration since our focus shifted to buy and Hyundai a decade ago, but is scheduled to see exploration later this year.

We will seek to upgrade our resources beyond the current shallow resource of approximately 500000 ounces of gold.

Metallurgical test work to date indicates that selective high grade ore could be trucked to by Monday for processing are processed in a standalone flotation plant.

Peter Akerley: Metallurgical test work to date indicates that selective high-grade ore could be trucked to Bayan Khundii for processing or processed in a standalone flotation plant. In addition to the planned resource expansion, work in 2026 and 2027 will include metallurgical testing and technical studies aiming for a feasibility study being delivered by late 2027. Let me now turn to our wholly owned exploration and development projects. Starting on slide 15, Zuun Mod is one of the largest undeveloped molybdenum copper deposits in Asia. In October 2025, the company reported an updated independent mineral resource, significantly expanding on the previous estimate. Additionally, drilling in late 2025 outlined further molybdenum mineralization in the near surface that is expected to positively influence the preliminary economic assessment scheduled to be delivered in Q3 of this year. To slide 16.

In addition to the planned resource expansion work in 2006, and 2007 will include metallurgical testing and technical studies aiming for a feasibility study being delivered by late 2007.

Let me now turn to our wholly owned exploration and development projects starting on slide 15.

<unk> is one of the largest undeveloped molybdenum copper deposits in Asia.

October 25, the company reported an updated independent mineral resource significantly expanding on the previous estimate. Additionally.

Additionally, drilling in late 'twenty five outline further molybdenum mineralization in the near surface that is expected to positively influence the preliminary economic assessment scheduled to be delivered in Q3 of this year.

To slide 16, the drill program just mentioned also tested the human heart target three five kilometers northwest of the Zuma molybdenum deposit, but in the same intrusive complex.

Peter Akerley: The drill program just mentioned also tested the Khuvyn Khar copper target, 3.5km northwest of the Zuun Mod molybdenum deposit, but in the same intrusive complex. Drilling returned a strongly mineralized copper zone with 65m averaging over 0.6% copper, including 30m of 1.2% copper. We're very excited about this discovery as it confirms a substantial copper component in the Khuvyn Khar porphyry system beyond the molybdenum copper deposit defined at the nearby Zuun Mod deposit. Our plans for 2026 for Khuvyn Khar include a large-scale geophysical program to define targets throughout the complex for drill testing later in 2026. Moving on to slide 17. Also outside of the alliance is the Tsenkher Gol copper-gold porphyry prospect, where we have an option to acquire an 80% interest.

Drilling returned a strongly mineralized copper zone with 65 meters, averaging over 6% copper, including 30 meters of one 2% copper.

Very excited about just discovered as it confirms a substantial copper component and the human higher porphyry system beyond the molybdenum copper deposit defined at the nearby <unk> deposit.

Our plans for 2026 for Hulu and higher include a large scale geophysical program to define targets throughout the complex for later.

Drill testing later in 2006.

Moving on to Slide 17 also outside of the alliance is the Terra Google copper porphyry prospect, where we have an option to acquire an 80% interest this.

This property is located 10 kilometers southwest and a long trend of Oyu Tolgoi, one of the largest copper gold deposits in the world.

Peter Akerley: This property is located 10km southwest in the long trend of Oyu Tolgoi, one of the largest copper gold deposits in the world. In 2025, Erdene completed license-wide exploration programs, resulting in the identification of several geophysical targets, but also a zone of anomalous gold mineralization over an area of approximately 2km by 800m. A series of scoping drill holes are planned in Q2 to test the extent and grade of the gold mineralization, as well as select geophysical targets. In summary, Bayan Khundii is our foundation, but the exploration pipeline is our future. By systematically de-risking these exploration targets, we're building a district with significant leverage to new discoveries, providing significant upside for our shareholders. Now, I'd like to turn the call over to Bob for some of the financial highlights in the quarter.

2025 are being completed licensed wide exploration programs, resulting in the identification of several geophysical targets, but also as dawn of anomalous gold mineralization over an area of approximately two kilometers by 800 meters. A series of scout drill holes are planned in Q2 to test the extent and grade of gold mineralization as well as select Geophys.

Nickel targets.

In summary.

100, <unk>, our foundation, but the exploration pipeline as our future are systematically de risking. These exploration targets. We are building a district with significant leverage to new discoveries, providing significant upside for our shareholders.

Now I'd like to turn the call over to Bob for some of the financial highlights in the quarter.

Thank you Peter.

Moving on to Slide 18, let me provide an overview of the financial highlights for the year ended December 31.

Robert Jenkins: Thank you, Peter. Moving on to slide 18, let me provide an overview of the financial highlights for the year ended 31 December 2025. As a reminder to everyone on the call, Erdene's investment in Bayan Khundii is held through its joint venture interest in the Mongolian company, Erdene Mongol LLC. Therefore, our consolidated results, prepared in accordance with International Financial Reporting Standards, reflect only our investment in this company and our proportionate share of Erdene Mongol's operating results, as well as our corporate operations. For 2025, we recognized a loss from our investment in Erdene Mongol of CAD 1.3 million, reflecting our portion of the company's pre-operating costs for the first nine months of the year, partially offset by the net proceeds from gold sales following first pour in September 2025.

25.

As a reminder to everyone on the call ratings investment in buying Hyundai has held through its joint venture interest in the Mongolian company burden model LLC.

Therefore, our consolidate results prepared in accordance with international financial reporting standards reflect only our investment in this company and our proportionate share of <unk> operating results as well as our corporate operations for.

For 2025, we recognized a loss from our investment in urban model, a $1 $3 million, reflecting our portion of the company's pre operating costs for the first nine months of the year, partially offset by the net proceeds from gold sales. Following first pour in September 2025.

At December 31, 2025, our investment and earn Mongo was valued at $46 $5 million on our balance sheet, representing 84% of the corporation's total assets as reported under Ifr Ias.

Robert Jenkins: At 31 December 2025, our investment in Erdene Mongol was valued at CAD 46.5 million on our balance sheet, representing 84% of the corporation's total assets as reported under IFRS. Corporately, we incurred approximately CAD 2.5 million of exploration and evaluation expenses on our wholly owned projects in 2025, compared to CAD 1.9 million in 2024, with the year-on-year increase primarily due to exploration expenditures at the recently optioned Tsenkher Gol property. Corporate and administrative expenses in 2025 were nearly CAD 4 million, down from CAD 5 million in 2024, with the year-on-year reduction primarily due to one-time financing costs of CAD 1.5 million in 2024, partially offset by modest increases in administrative services, professional fees, and regulatory and compliance costs in the current year due to inflationary pressures.

Corporately, we incurred approximately $2 5 million of exploration and evaluation expenses on our wholly owned projects in 25 compared to one 9 million in 2024 with the year on year increase primarily due to exploration expenditures at the recently option tariff will proper.

<unk>.

Corporate and administrative expenses in 2025 were nearly $4 million down from $5 million in 2024 with a year on year reduction primarily due to onetime financing costs of $1 5 million in 2024.

Offset by modest increases in administrative services professional fees and regulatory and compliance costs in the current year due to inflationary pressures.

Urban Manuel ended the year with 13 million use of cash on hand, However, no further capital injections are expected from <unk> to earn Manuel to fund operations at by Hyundai as the mine is now generating positive cash flow from operations.

Robert Jenkins: Erdene Mongol ended the year with $13 million of cash on hand. However, no further capital injections are expected from Erdene to Erdene Mongol to fund operations at Bayan Khundii, as the mine is now generating positive cash flow from operations. Corporately, Erdene ended the year with CAD 5 million of cash. However, Erdene has CAD 30 million in the treasury today following the proceeds from the bought deal private placement closed in February 2026. This liquidity will allow us to invest in the exploration and technical programs at Zuun Mod and Tsenkher Gol mentioned by Peter earlier on today's call. This concludes the review of our financial performance and position. I'll turn the call back to Peter.

Corporately urging ended the year with Canadian and $5 million of cash however has $30 million in the treasury today. Following the proceeds from the bought deal private placement closed in February 2026. This liquidity will allow us to invest in the exploration and technical programs at Zen Modern Terry Gohl, Matt.

Bye Peter earlier on today's call.

This concludes the review of our financial performance and position ill turn the call back to Peter.

Thank you Bob.

On slide 19, I would like to highlight our commitment to safety environment and communities.

Peter Akerley: Thank you, Bob. On slide 19, I'd like to highlight our commitment to safety, environment, and communities. Our success depends on our people and ensuring their health and safety is our top priority. At the end of Q4 2025, Erdene Mongol had 476 staff and contractors on site, with approximately 40% of those local residents of Bayan Khundii project. Since construction began, the Bayan Khundii project has logged 4.9 million person-hours, and by year-end, our total recordable injury frequency rate was 1.8 per million person-hours. On the environmental front, I'm proud to report zero reportable incidents in 2025. Our stewardship efforts remain focused on mitigating impacts and advancing protection initiatives, such as endemic vegetation trials at the 2-hectare plantation at Bayan Khundii. In Q4, Erdene Mongol executed an updated local cooperation agreement with provincial and sub-provincial governments.

Our success depends on our people and ensuring their health and safety is our top priority.

At the end of Q4, and 2025, Britta Mongo had 476 staff and contractors on site with approximately 40% of those local residents of buy and homegrown products.

Since construction began to buy 100 project is large $4 9 million person hours and by year end. Our total recordable injury frequency rate was one eight per million person hours.

Environmental front I'm proud to report zero reportable incidents in 2025, our stewardship efforts remain focused on mitigating impacts in advancing protection initiatives such as endemic vegetation trials at the two hectare plantation that by 100.

In Q4 urban Mongol executed an updated local cooperation agreement with provincial and sub provincial governments through this we continue supporting local development programs focused on infrastructure education and health care.

Peter Akerley: Through this, we continue supporting local development programs focused on infrastructure, education, and health. We are deeply committed to the communities and proud of the progress achieved through these programs. Slide 20 summarizes our 2026 roadmap with a clear focus on transitioning Bayan Khundii into a steady state producer. This operational foundation allows us to capture maximum value from current gold prices while simultaneously executing a district scale exploration strategy to grow our mineral inventory. This two-pronged strategy, mine expansion and exploration, is in our view, the path to driving shareholder value. In closing, 2025 was a transitional year for Erdene. I want to congratulate our teams at Erdene and Erdene Mongol and thank our strategic partners, Mongolian Mining Corporation. Together, we safely built a gold mine in less than 2 years and joined the ranks of gold producers during a period of market strength.

We are deeply committed to the communities and proud of the progress achieved through these programs.

Slide 20 summarizes our 2026 roadmap with a clear focus on transitioning <unk> to a steady state producer.

This operational foundation allows us to capture maximum value from current gold prices.

Simultaneously executing a district scale exploration strategy to grow our mineral inventory.

Two pronged strategy mine expansion and exploration is in our view the path to driving shareholder value.

In closing 2025 was a transitional year for Dean I want to congratulate our teams at urban and urban Mongo and thank our strategic partners Mongolian Mining Corporation together, we safely build a gold mine in less than two years and joined the ranks of gold producers during a period of market strength.

As we execute our growth plans expanding by Hyundai and advancing adjacent opportunities I believe we're very well positioned to deliver value for shareholders and stakeholders alike.

Peter Akerley: As we execute our growth plans, expanding Bayan Khundii and advancing adjacent opportunities, I believe we're very well positioned to deliver value for shareholders and stakeholders alike. With that, I'll hand it back to the operator to begin the Q&A. Thank you.

I will hand, it back to the operator to begin the Q&A. Thank you.

Thank you Sir.

Reminder, to join the question queue. You May Press Star then one on your telephone keypad should you need assistance you may signal, an operator by pressing Star then zero and participants on the webcast.

Operator: Thank you, sir. As a reminder, to join the question queue, you may press star then one on your telephone keypad. Should you need assistance, you may signal an operator by pressing star then zero. Participants on the webcast may type in their questions in the chat feature of the webcast. Thank you. For those on the phone, you may press star one now if you have questions. Your first question will be from John Ogden at Eastern Value Limited. Please go ahead, John.

Questions in the chat feature the webcast. Thank you.

For those on the phone you May press Star one now if you have questions.

Okay.

And your first question will be from John Ogden at Eastern value Limited. Please go ahead John.

Yes.

Thank you.

Nicole.

Great.

Mine up and running.

John Ogden: Thank you, Peter, for the call, and great to see the mine up and running. Excuse me. Just wanted to sort of go to the mathematics on the production because I calculated 1.6 grams per ton that you're actually mining. So, you know, it's quite a way off. I mean, I was actually on the call with Mongolian Mining. They are sort of seeing it gradually creeping up towards 3 grams in the next few months. Maybe you can give us a bit more, you know, understanding why it's taking so long to get to reserve grade. Was it a case of-

Excuse me.

Jon Ogden: Thank you, Peter, for the call, and great to see the mine up and running. Excuse me. Just wanted to sort of go to the mathematics on the production because I calculated 1.6 grams per ton that you're actually mining. So, you know, it's quite a way off. I mean, I was actually on the call with Mongolian Mining. They are sort of seeing it gradually creeping up towards 3 grams in the next few months. Maybe you can give us a bit more, you know, understanding why it's taking so long to get to reserve grade. Was it a case of-

Just wanted to see the gaps in the mouth. Some I think some of the.

On the production because I calculated one six grams a tonne.

Lee.

Mining.

It's quite a while.

I mean, how has that gone Nicole with Mongolian mining.

They are.

Hey, Ron should be creeping up towards three grams.

The next few months, maybe you can give us a bit more.

You know understanding why it's taking so long to get to reserve grade.

What was it a case of uses.

And they have great control drilling all it is.

An experienced operators.

Peter Akerley: Mm-hmm.

John Ogden: You know, not getting enough grade control drilling or bit of inexperience from the operators? That's one question. Then the other one is just, you know, you got CAD 30 million in the bank, and obviously a lot of drill targets and so on. Probably not gonna get money back from the JV yet. How are you gonna approach that? Are you expecting to do a capital raise later in the year? Thanks.

Jon Ogden: You know, not getting enough grade control drilling or bit of inexperience from the operators? That's one question. Then the other one is just, you know, you got CAD 30 million in the bank, and obviously a lot of drill targets and so on. Probably not gonna get money back from the JV yet. How are you gonna approach that? Are you expecting to do a capital raise later in the year? Thanks.

So that's one question.

And then the other one is just you know you got.

$13 million in bank.

And obviously a lot of drill targets and so on so.

I'm, probably not going to get money back from that.

Yeah. So.

How are you going to approach I expect you to the capital raise later in the year.

Thanks.

Yes.

Thanks, John Yeah. So when you look at the ramp up we had always anticipated that we would be producing at a rate was 50% of projected production as we move through.

Peter Akerley: Thanks, John. Yeah. When you look at the ramp up, we had always anticipated that we would be producing at a rate that was 50% of projected production as we move through, you know, what you would expect in terms of training up staff that are largely experienced in coal mining, so bulk mining moving into selective mining. As I mentioned in the presentation, we've had a number of experts on site assisting with things like blasting and just improving on the dig lines. During the first few months, we mined an average of 2.4 and put 2 gram into the plant. You're probably looking at about a 20% dilution in that equation. As we moved into Q1 of this year, we did blend some of that large stockpile that we had into the plant.

Peter Akerley: Thanks, Jon. Yeah. When you look at the ramp up, we had always anticipated that we would be producing at a rate that was 50% of projected production as we move through, you know, what you would expect in terms of training up staff that are largely experienced in coal mining, so bulk mining moving into selective mining. As I mentioned in the presentation, we've had a number of experts on site assisting with things like blasting and just improving on the dig lines. During the first few months, we mined an average of 2.4 and put 2 gram into the plant. You're probably looking at about a 20% dilution in that equation. As we moved into Q1 of this year, we did blend some of that large stockpile that we had into the plant.

You would expect in terms of training up staffs that are largely experienced in coal mining so bulk mining moving into selective mining as I mentioned in the presentation. We've had a number of experts on site assisting with things like blasting and just improving on the big lines, but.

During the first few months, we mined an average of two four.

Quick two gram into the plan, so you're probably looking at about a 20% dilution in that equation as we moved into Q1 of this year, we did blend with some of the large stockpile that we had into the plant so grades would've been in that one five to two gram range, but as we've seen these.

<unk>, including that of the Crusher, we are seeing the great start to move up towards that target number. So I'm actually very pleased with the progress that we've seen to date, that's still a work in progress I mean, those things I've mentioned, we will still be worked upon in it's not a switch we can flip on to go from two rooms to four grams, it's sort of a.

Peter Akerley: Grades would have been in that 1.5 to 2 gram range. As we've seen these improvements, including that of the crusher, we are seeing the grades start to move up towards that target number. I'm actually very pleased with the progress that we've seen to date. It's still a work in progress. I mean, those things I mentioned will still be worked upon, and it's not a switch we can flip on to go from 2 grams to 4 grams. It's sort of an incremental thing where you see these improvements along the way. I'm very optimistic given what we're seeing in the last few weeks, that we're moving towards that point where we want to be. On the CAD 30 million, I'm not quite sure what you're referring to in terms of a raise later this year.

Incremental thing where you see these improvements along the way, but I am very optimistic given what we're seeing in the last few weeks that we're moving towards that point, where we want to be.

On the $30 million I'm, not quite sure what you're referring to referring to in terms of a raise later this year. So the minus cash flow positive to $30 million is certainly sufficient to fund the exploration plan.

Peter Akerley: The mine is cash flow positive. The CAD 30 million is certainly sufficient to fund the exploration we have planned at our 100% owned projects. It also gives us the ability to act on acquisitions should we decide to, but there's certainly no consideration at this point of any raises in the near future or any need for it in our current plans.

Our 100% on projects.

It also gives us the ability to act on acquisition should we decide to but there's certainly no.

Consideration at this point if any.

In the near future any need for it in our current plans.

Oh, Thank you personally know that greenhouse said that.

Yeah, I'm sorry, when you great target go for also what Youre going to have a very aggressive drill campaign, but.

John Ogden: Oh, thank you, Peter. No, the reason I said that is just that you have so many great targets to go for. I thought you're gonna have a very aggressive drill campaign. But, and of course, in Mongolia, the drilling is cheap, and it won't be elsewhere such as Canada. Yeah, fair point.

Jon Ogden: Oh, thank you, Peter. No, the reason I said that is just that you have so many great targets to go for. I thought you're gonna have a very aggressive drill campaign. But, and of course, in Mongolia, the drilling is cheap, and it won't be elsewhere such as Canada. Yeah, fair point.

And of course, the Montgomery Israelis tape and it will be an outsized such as Canada.

Yes My point.

Yes.

Maybe just expand on that a little bit and good point on the on the drilling I think were probably around $110 a meter here, but when we look at the projects that we are funding 100% of we will do that first phase drilling of Terry gohl, particularly interested in a gold target beginning.

Peter Akerley: I'll maybe just expand on that a little bit. Good point on the drilling. I think we're probably around CAD 110 a meter here. When we look at the projects that we are funding 100% of, we will do that first phase drilling at Ulaan, particularly testing that gold target, beginning at the end of April. That'll be a first phase. With success there, we would continue to ratchet that program up. Let's see what we get in the first go around. That will include testing that 2-kilometer gold target, but also some geophysical targets. Let's really just see what happens with the first stage. The same can be said about Khuvyn Khar.

Beginning at the end of April and that will be a first phase. So with success. There. We would continue to ratchet that program up but let's see what we get in the first go around that will include testing that two kilometer gold target, but also some geophysical targets. So that's really just let's see what happens with the first stage.

The same can be said about who've inherit that could turn into a fairly expensive program, but what im focused on there is to get our deeper geophysics completed and we are going to bring in our international group to complete that.

Peter Akerley: You know, that could turn into a fairly expensive program, but what I'm focused on there is to get our deeper geophysics completed, and we are gonna bring in an international group to complete that program, and that's a summer program following which we will test some of those targets. Again, it's one of those things where, you know, I can't commit to a large scale program until we get that first phase in. Excited about both of them, and let's see.

Program and Thats, a summer program, following which we will test some of those targets and again, it's one of those things were.

I can't commit to a large scale program until we get the first phase in but excited about both of them and let's see.

Great. Thanks, Peter.

Okay.

Question will be from Don Maclean paradigm capital.

John Ogden: Great. Thanks, Peter.

Jon Ogden: Great. Thanks, Peter.

Peter Akerley: Okay.

I had done.

Operator: Question will be from Don MacLean at Paradigm Capital. Please go ahead, Don.

Hey, good morning, Peter and congratulations to you and your team for.

A great year last year, we look forward to a good one this year or two with the with the mind running away.

Don MacLean: Hey, good morning, Peter, and congratulations to you and your team for a great year last year. We look forward to a good one this year too, with the mine running away at full speed, hopefully by the midterm of the year. You touched on it, this new discovery at Zuun Mod. Just wondering, with the drill program that's planned, what is it you're looking for? We know that porphyries come in clusters, and this one's different than Zuun Mod. Maybe you could just give us some of the insights that you and your team have into what's happening in that neighborhood and the potential.

And at full speed hopefully by mid term of the year.

You touched on it with this new discovery Zune mud.

Just wondering with the drill program that's planned.

What is it you are looking for we know that.

<unk> come in clusters and this one is different than the New Zealand Board, maybe you could just give us some of the insights that you and your team have into what's happening into that in that neighborhood and the potential.

No.

It has.

A very interesting project for us for some time and largely because of the.

Peter Akerley: Yeah. You know, Khuvyn Khar has been a very interesting project for us for some time, and largely because of the large volume of copper mineralization that we had seen in some reconnaissance holes or regional holes in that area. It was not unusual for us to be seeing a couple hundred meters of 0.1% to 0.2% copper, but we hadn't anchored into those high grades. This most recent drilling intersected 30 meters of over 1%, 60 meters of 0.6%. The characteristics of that mineralized dome are what were most exciting. We're seeing textures that suggest we're at the top of a porphyry system. We're seeing UST textures. We're sort of seeing breach and seal as you'd expect to see as you're blowing the top off of one of these cupola features.

The large volume of copper mineralization that we had seen in summary.

Recognizance holds a regional holes in that area. It wasn't unusual for us to be seeing a couple of hundred metres of 1% to copper, but we hadn't anchored into those high grades and so this most recent drilling intersected.

30 meters of over 1% 60 meters of <unk> six.

But the.

The characteristics of the mineralized zone and what we're most exciting we're seeing textures.

That suggests we're at the top of a porphyry system or seeing the USP textures.

We're seeing breaches seal as you would expect to see is <unk>.

Blowing the top off of one of these.

Cooper features and then these interstitial fractures are filled with chalcopyrite.

So we're pretty confident we're near the top of the system and now the question is which way do we go in and find the rest of that.

Peter Akerley: Then these interstitial fractures are filled with chalcopyrite. We're pretty confident we're near the top of the system. Now the question is, you know, which way do we go to find the rest of that? Yeah, the geological side of this, the character of it is what's most exciting.

Yes, the geological side of this to characterize it is what's most exciting.

Okay.

Terrific well.

Wish you lots of luck.

Thanks, Tom.

Don MacLean: Terrific. Well, we wish you lots of luck.

Okay.

And at this time there are no further questions from the telephone I'll now pass the call over to Jonathan.

Peter Akerley: Thanks, Don.

Operator: Thank you. At this time, there are no further questions from the telephone. I'll now pass the call over to John Dinsick to ask management the questions that have come in from email and on the webcast. Please go ahead, John.

To ask management the questions that have come in from email and on the webcast. Please go ahead John.

Thank you operator.

First question through the webcast is.

Given all of the opportunities across your portfolio of projects, how do you allocate capital.

John Dinsick: Thank you, operator. The first question through the webcast is, given all the opportunities across your portfolio of projects, how do you allocate capital?

[Analyst] (Cormark Securities): Thank you, operator. The first question through the webcast is, given all the opportunities across your portfolio of projects, how do you allocate capital?

So we have a lot of projects as you know we.

We focus on <unk> first off the priority there is really to focus on those opportunities that can most readily add to our production. So when you look at dark horse. We are scheduled to begin mining there late next year and we hadn't completed.

Peter Akerley: We have a lot of projects. As you know, if we focus on Erdene Mongol first off, the priority there is really to focus on those opportunities that can most readily add to our production. When we look at Dark Horse, we are scheduled to begin mining there late next year, and we hadn't completed much of the exploration along trend. There's a 3-kilometer trend of gold mineralized oxides along that strike. We want to fully explore that so we can ensure that as we get up there to open up that 50,000 ounces of 7 grams, we can understand fully how big that pit may get.

Much of the exploration along trend Theres, a three kilometer trend of gold mineralized oxides, along that strike and so we want to fully explore that so we can ensure that as we get up there to open up that 50000 ounces of certain brands, we can understand fully how big that pit Meg yet and with the current with.

The recent drilling that we've just.

<unk> released today.

Dark horse North area is starting to come together as a substantial ore body as well.

Peter Akerley: With the recent drilling that we've just included in our release today, the Dark Horse North area is starting to come together as a substantial ore body as well. That introduces this concept of potentially a heap leach. There's work to do there, but if you can imagine, we can take the high grade and put it into the CIP and take a lot more low grade now that we have the higher gold price and put that onto a heap leach. It'd be a great complement to one another. Excited about that opportunity, and I'd say that's the priority in the coming months. You know, immediately after that and really part of our near-term plan is to fully define that potential as we move west.

Introduces this concept of potentially a heap leach so there's work to do there, but if you can imagine we can take the high grade and put it into the CIP and take.

A lot more low grade now that we have the higher gold price and put that onto the heap leach and be a great complement to one another so excited about that opportunity and I would say that's the priority.

In the coming months.

We didn't react to that and really part of our near term plan is to fully define that potential as we move west.

You would've seen in the image I shared in the presentation.

Substantial intersections across that area from the 40 meters of seven grams that we intersected at.

Peter Akerley: As you would have seen in the image I shared in the presentation, substantial intersections across that area from, you know, the 40 meters of 7 grams that we intersected at Striker West over to Ulaan, where we're seeing similar intersections of up to 40 meters of 8. Terrifically high-grade zones that we want to start to incorporate into our plans moving forward. Those would be the two highest priorities at EM. You know, I think when you come back to the 100% owned projects, we talked about Tsenkher Gol and Khuvyn Khar, you know, earlier stage, but very exciting grassroots projects, one next to the fourth largest copper gold mine in the world and the other part of a very large porphyry copper system.

West Stryker over to alarm or we're seeing similar intersections in up to 40 meters of hate so terrific. We high grade zones that we want to start to incorporate into our plans moving forward. So those are the two highest priorities.

I think when you come back to the 100% owned projects, we talked about Terra GUL in scoop and higher.

Earlier stage with very exciting grassroots projects one next to the fourth largest copper gold mine in the world and the other part of our very large porphyry copper system so be very.

<unk>.

Exciting to see those drills turning on both those targets this year, but I'd say on the 100% owned projects the real value driver there is so much.

Peter Akerley: It'd be very exciting to see those drills turning on both those targets this year. I'd say on the 100%-owned projects, the real value driver there is Zuun Mod. You know, I think it's sometimes hidden in our portfolio that we're sitting on an 800 million pound molybdenum equivalent resource that's exposed at surface, great low stripping ratio. If there was a knock against it in the past, it was that it was remote and infrastructurally challenged. Here we are in a region now that we just brought power in from the border, 240 kilometers away. There's coal mine haul roads now passing by this district. The infrastructure's come, and it's at a time when there's a molybdenum deficit in China.

I think it's sometimes hidden in our portfolio that we're sitting on.

And 800 million pound molybdenum equivalent resource that's exposed at surface, great lower stripping ratio and if there was a knock against it in the past it was that it was.

Remote and infrastructural a challenge, but here we are in a region now that we just brought power and from the border or 240 kilometers away.

Coal mine haul roads, passing by this district, so the infrastructure has come and it's at a time when there's a molybdenum deficit in China. So I'm very excited about zoom out and looking forward to getting our PGA delivered later this year, we have a couple of people in Asia working with upstream producers to <unk>.

Peter Akerley: I'm very excited about Zuun Mod and looking forward to getting our PEA delivered later this year. We have a couple of people in Asia working with upstream moly producers to talk about potential relationships moving forward. That project, I think, will be a surprise for our shareholders as we move through the latter part of this year. Lots on our plate, but that's sort of the sequencing of both the EM and the Erdene projects.

Talk about potential relationships moving forward. So that project I think will be a surprise for for.

For our shareholders as we move through the latter part of this year, so lots on our plate, but that's sort of the sequencing of both <unk> and <unk>.

<unk> projects.

Peter The next question is a follow on to something you alluded to in your answer. The question is what is the potential for heap Leach and as Mongolia is climate compatible and do you have indications of potential recovery from the low grade ore.

John Dinsick: Peter, the next question is a follow-on to something you alluded to in your answer. The question is, what is the potential for heap leach? Is Mongolia's climate compatible? Do you have indications of potential recovery from the low-grade ore?

[Analyst] (Cormark Securities): Peter, the next question is a follow-on to something you alluded to in your answer. The question is, what is the potential for heap leach? Is Mongolia's climate compatible? Do you have indications of potential recovery from the low-grade ore?

So it's interesting when we first came into this district, which was quite some time ago now, but I wouldn't have imagined that we would've been talking today about sick.

Peter Akerley: You know, it's interesting when we first came into this district, which was quite some time ago now, but I wouldn't have imagined that we would have been talking today about thick zones of oxide. You know, at Dark Horse South, we're seeing that oxide zone going down 80 to 100 meters. So, you know, deep 100-meter thick zones of oxide. We're not just seeing it at Dark Horse South. We discovered it later in the exploration life at Bayan Khundii, where we had Midfield Southeast, again, giving these supergene enriched zones of 100-gram plus intersections. We're now looking at Altan Nar again, and, you know, a lot of our drilling was below sort of 50, 60 meters coming in at an angle.

<unk> zones of oxide.

A dark horse so we're seeing that oxidation zones were down 80% to 100 meters.

So.

Do you.

Thick zone of oxide and we're not just seeing a dark horse service we discovered it.

Later in the exploration life by.

By <unk>, where we had the midfield so to use again, given the Super gene enriched zones of underground plus intersections. We're now looking at <unk> again.

A lot of our drilling was below sort of 50 to 60 meters coming in at an angle, but now as we go back and look at the trends samples were seeing enrichment there as well so I think there is.

Peter Akerley: Now as we go back and look at the trench samples, we're seeing enrichment there as well. I think there's a very strong likelihood that we can come up with substantial oxide resources, certainly at Dark Horse, but likely in other areas, and begin to develop that heap leach opportunity. We also have a significant volume of low grade at Bayan Khundii, which because of the higher gold price that cut off has dropped, as I mentioned at the outset, and that potentially could be blended in as well. I wouldn't anticipate as high a recovery, but nonetheless an opportunity for us to gain value from that low-grade material. We've done the bottle roll testing on the Dark Horse material.

Very strong likelihood that we can come up with substantial oxide resources, certainly a dark horse, but likely in other areas and begin to develop acute bleach opportunity. We also have a significant volume of low grade at buy and Hyundai, which because of the higher gold price. Our cutoff was dropped as I mentioned at the outset.

And that potentially could be blended in as well I wouldn't anticipate us higher recovery, but nonetheless, an opportunity for us to gain value from that low grade material.

We've done the <unk>.

<unk> testing on the dark horse material it looks like good recoveries in that material has now been sent us a bulk sample off to a lab in Canada Davita column Leach work, which will be delivered over the summer. So a number of French advancing there, but yes.

Peter Akerley: It looks like good recoveries, and that material has now been sent as a bulk sample off to a lab in Canada to do the column leach work, which will be delivered over the summer. A number of fronts advancing there. Yeah, very excited about that. There are a number of heap leach mines now operating in Mongolia, so I often get questions about cold weather here, but a very viable opportunity here in Mongolia. Yeah, excited about that.

<unk> excited about that there are a number of heap Leach mine is now operating in Mongolia. So you don't have to get questions about cold weather here, but.

A very viable opportunity here in Mongolia, so excited about that.

Okay.

Peter next question <unk>.

Said.

Consistently that Brian <unk> as a low cost mine can you give us an indication or a range of what you think the all in sustaining costs will be.

John Dinsick: Peter, next question. You've said consistently that Bayan Khundii is a low-cost mine. Can you give us an indication or range of what you think the all-in sustaining costs will be?

[Analyst] (Cormark Securities): Peter, next question. You've said consistently that Bayan Khundii is a low-cost mine. Can you give us an indication or range of what you think the all-in sustaining costs will be?

Okay.

Yes, I think to be.

Fair on that when we need a couple of commercial quarters to really be able to establish what that all in sustaining costs will be but the.

Peter Akerley: Yeah, I think to be, you know, fair on that one, we need a couple of commercial quarters to really be able to establish what that all-in sustaining costs will be. To set the stage for that, when we did our feasibility in 2023, the independents had assessed or determined that the all-in sustaining costs would be $869. Obviously, there's been inflation. Mongolian inflation runs at about 8% per annum. With the higher gold price, the royalties that we pay to the state increase proportionate to that. If you apply those two elements to the $869, we would be somewhere in that $1,250 range. That would be the math.

To set the stage for that when we did our feasibility in 2023 the independents.

First the or determined that the all in sustaining costs would be 869 U S. Obviously, there's been inflation Mongolian inflation runs at about 8% per annum and with the higher gold price.

Royalties that we pay to the state.

Increased proportionate to that so if you apply those two elements to the 869, we would be somewhere in that $12 50 range.

So that would be the math, but let's see when we get a couple of quarters of commercial production under our belt, we'll have a better understanding of the all in sustaining cost.

Peter Akerley: Let's see when we get a couple of quarters of commercial production under our belt, we'll have a better understanding of the all-in sustaining costs.

Thank you Peter and operator that concludes our calls from the webcast an E mail or.

John Dinsick: Thank you, Peter. Operator, that concludes our questions from the webcast and email.

[Analyst] (Cormark Securities): Thank you, Peter. Operator, that concludes our questions from the webcast and email.

Pardon me questions from the webcast and email.

I'll now turn the call back over to Peter.

Yeah.

Well. Thank you everyone I'd just like to.

Operator: We will now turn the call back over to Peter.

Thank you all for joining us today and.

Peter Akerley: Well, thank you, everyone. I'd just like to, you know, thank you all for joining us today and look forward to our next update. We will be issuing Q1 production numbers as we move towards the end of April. Certainly welcome any questions you want to send our way. Thanks again.

Look forward to our next update we will be issuing Q1 production numbers as we move towards the end of April.

Certainly welcome any questions you want to send our way thanks again.

Thank you Sir.

Ladies and gentlemen, this does indeed conclude your conference call for today.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your line.

Once again, thank you for attending and at this time, we do ask that please disconnect.

Yeah.

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