APM Andean Precious Metals Corp

Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Corporation")
announced today that an agreement in principle has been reached whereby Advanced
Primary Minerals Corp. (TSXV-APD) ("APM") will acquire all of Erdene's North
American interests, comprised primarily of Erdene's interest in the Donkin Coal
Project ("Donkin").


Erdene will receive shares of APM in consideration for the sale of its North
American interests. These shares, together with the 60% of the issued and
outstanding shares of APM currently owned by Erdene, will ultimately be
delivered to the Erdene shareholders.


The transaction is subject to signing a definitive agreement and receipt of
approvals from the TSX, the TSX-V, the Nova Scotia Supreme Court, the
shareholders of Erdene and the minority shareholders of APM, as well as
compliance with all other requirements governing related-party transactions.


On behalf of the Corporation, an independent committee of Erdene's board of
directors was authorized to negotiate the terms of the proposed transaction with
APM, including an appropriate structure and share exchange ratio.


Erdene intends to schedule a special meeting of shareholders to obtain the
required approval. Full details of the proposed transaction will be contained in
future news releases and the notice of meeting, management information circular
and supporting documents that will be mailed to shareholders in due course.


The objective of this proposed transaction is to unlock and maximize shareholder
value by creating two strategically-positioned public companies, one focused on
Donkin and the other focused on Mongolia minerals exploration and development.
Given Xstrata's announcement of its intent to sell its interest in Donkin, the
project is expected to go through a transformational ownership process later
this year, which is anticipated to bring the project to production. 


Recently, Erdene has concentrated much of its Mongolian exploration efforts on a
new gold discovery, Altan Nar, and advancement of the Zuun Mod copper-molybdenum
project. Having these assets in a separate public company will result in a
dedicated Mongolia management team with greater flexibility to access capital
for future programs.


APM recently announced the sale of its kaolin production assets and associated
mining operation, which is scheduled to close on June 29, 2012. In addition to
its kaolin assets, APM also has a significant land ownership in the State of
Georgia. The proposed transaction will provide the current minority shareholders
of APM with exposure to Donkin, a world-class coal project with exceptional
upside potential. 


About Erdene

Erdene Resource Development Corp. is a diversified resource company with metal
and coal interests in Mongolian as well as the Donkin Coal Project and
industrial mineral assets in North America. Erdene has 95,802,901 common shares
issued and outstanding and a fully diluted position of 102,915,901 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 is subject to change after that date. The Corporation does not
assume the obligation to revise or update these forward-looking statements,
except as may be required under applicable securities laws.


NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE

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