Erdene Resource Development Corporation

Thank you for standing by. This is the conference operator. Welcome to the Urethane Resources Development Third Quarter 2025 Financial and Operating Results 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 the number one on your telephone keypad. Should you need assistance during the conference call, 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. Now let me have the call over to John Vincic.

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 regime.com. Yesterday's news release, the financial statements, and the MD&A are all posted on our Dean's website and CDAR+. I'd also like to note that this conference call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs. It may also use terms that are non-IFRS performance measures. Please review Erdene's Q3 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 yours. Please note that otherwise noted. And today's speakers from Erdene are Peter Akerle, President and CEO, and Robert Jenkins, Chief Financial Officer. Please go ahead, Peter.

Thanks, John, and thank you for joining us today. This is our first quarterly conference call since we reached the major milestone of first gold production in the middle two weeks of the quarter. We wanted to initially move towards commercial production at year end. Before getting into our quarterly results, let me take a moment to quickly provide an overview of our company, Erdene Resource Development. Our journey began more than 20 years ago when my partners and I witnessed an opportunity to explore a portion of one of the world's great gold and copper belts. that had not previously received modern exploration, and in a country welcoming international investment and explorers for the first time. Radeem was founded at that time with the objective of exploring for and developing large, high-grade gold and copper deposits. Since that time, our company has been the most active explorer in Mongolia, investing tens of millions in exploration and evaluating one of the most prospective regions, which led to the discovery of the newest in four deposits comprised of gold, silver, molybdenum, and copper. Ten years ago, we made a discovery at Bayan Hundi. Our geologists picked up rock samples containing over 100 ounces of gold per ton. This led to successful drilling, with our first hole returning very high grades near surface, including seven meters of almost an ounce of gold, and continued successful exploration of gold deposit discovery. We initiated technical programs to establish resources and investigate. Over the next few years, we continued to define a high-grade open pit resource and identified several additional prospects in the vicinity. By 2019, we had established the economic viability of the project, and in an environment of depressed valuations and difficult equity markets, we made a decision to move forward with the development and move towards cash flow. Although interrupted by COVID, we moved through the remaining engineering and permitting work to advance the project, and by early 2020, around that same time, we struck a strategic partnership with a group whose principles I had known for some time, Mongolian Mining Corporation, who I'll refer to as MMC, Independent Mining Company. and the firm's largest beneficial shareholders, MCS Group, one of Mongolia's leading conglomerates. With businesses in engineering, construction, energy generation and transmission, communications and mining, they brought all the elements required to build out a new mining district. Through this alliance, MMC acquired a 50% equity interest in Erdan Mongol, the entity that holds Bayan Handi, as well as the Dark Horse, Altanar and Rulan deposits and prospects. MMC brought the equity and debt capital to finance Bayan Handi, However, most notably, they brought the ability to move the project from design to fruition effectively. This included affiliated companies that were the leading Mongolian contractors in mine building and power generation and transmission. They also brought the operating systems and processes to run a safe, efficient mining operation. With their support, we were able to build and commission buying Hyundai in just under two years, one of the most rapid progressions from discovery to production in our industry. I'd like to thank and congratulate our employees, contractors, investors, and strategic partner, Mongolian Mining Corporation, for helping us safely achieve this significant milestone. Now let me move to a review of performance for the quarter. We released our Q3 2025 results yesterday, which can be found on our website and CDAR+. During the third quarter, we completed construction of the Bayanhandi mine and successfully commissioned the mine's process plant. The project was delivered to the U.S. $114 million, within about 10% of our budget, which is a testament to the capabilities of our team and our EPC partner, MCS Property. By the end of Q3, the team had moved 2.1 million tons of material, including 133,000 tons of ore. At September 30th, we had 111,000 tons of ore stacked on the ROM pad, with an estimated average grade of 2.3 grams per ton, containing over 8,000 ounces of gold. In mid-September, we ran some initial trials and produced first gold, and in the quarter, we sold 342 ounces of gold at an average price of $3,805 per ounce. There's also a small silver bri-fi product by value. Gold was sold to the Bank of Mongolia, the country's central bank, and the price realized was equal to the L&E close the previous day. Since startup, the plant has performed as expected. Based on our feasibility design, we projected running the plant at approximately 50% throughput capacity initially. However, we've started to achieve daily mill throughput rates of approximately 80% and 90% of target are consistent with forecast. Low grade ore and mineralized waste was fed to the plant during wet conditioning and initial production and is being gradually ramped up as . As mentioned, there was over 8,000 ounces of gold on the ROM at the end of September at an average grade of 2.3 grams per ton. and a year-end target feed grade of 3.5 grams per ton or greater. Gold Dory production has been largely in line with the model used in the feasibility study, where we assume production would ramp up over the six months following ore commissioning. Everything we've seen to date supports our belief that we'll be nearing the targeted 1950 ton per day rate towards year-end, and commercial production levels of 650,000 tons of ore processing 85,000 ounces of gold per year as we move into steady state in 2026. It's the foundation for what we expect to be a multi-mine, multi-commodity district. With the ramp-up at Buying Hyundai on track, we're increasing our exploration activities as we seek opportunities to extend and expand mine life. Work has just commenced on a 9,300-meter drill program on the Hyundai license that will be completed by year-end. The program includes almost 4,000 meters of drilling proximal to the Bionhundi mine to expand resources, and over 5,000 meters of drilling at the Dark Horse and Alton Arrow prospects to test the potential expansion of near-surface oxide mineral resources. We expect to share results from this work towards year end. Just after the end of the quarter, we announced an updated mineral resource estimate for our wholly-owned Zumab Molybdenum Copper project. The updated estimate reported a 50% increase in resources with measured and indicated molybdenum resources now at 333 million pounds and inferred molybdenum resources at 300 million pounds. There's also a significant 700 million pounds as a byproduct to the molybdenum production. The full report will be filed in the middle of this month. An additional 3000 meters of drilling is also being undertaken at Zumad in Q4 2025 to improve our understanding of resources near surface, which we believe has the potential to materially impact the economic study plan for Q2 next year. Zumad is one of the largest undeveloped aluminum copper deposits and is located just 180 kilometers from China, the world's largest consumer, in an area witnessing exponential growth in infrastructure to support the natural resources industry. In addition to our technical work, marketing studies are also underway. And finally, in southeastern Mongolia, in July, we entered into an agreement to acquire an 80% interest in the Teregul Copper Gold Porphyry Prospect. This property is located just 10 kilometers southwest in a long trend of Oyu Togoi, soon to be the fourth largest copper gold deposit in the world. We have commenced surface exploration at Teregul, and we're very excited about what we've seen to date. Now I would like to turn the call over to Bob for some financial highlights in the quarter.