Slide 1: Developing a New High-Grade Gold District
DEVELOPING A NEW HIGH- GRADE GOLD DISTRICT CORPORATE UPDATE | MAY 2018
Slide 2: Forward Looking Statements
Forwarding Looking Statements Certain information regarding Erdene ("the Company") therefore true width is close to reported drill hole The Mineral Resource estimates for Altan Nar have been contained herein may constitute forward-looking intervals. All holes in Union North were drilled compiled und
Slide 3: Erdene at a Glance
Erdene at a Glance High-Grade, District-Scale, Experienced Team High-grade, near-surface, 100%-owned gold projects within an expanding mining region. The new Khundii Gold District provides exceptional discovery potential beyond our core projects. We are the longest-standing foreign exploration compa
Slide 4: Corporate Snapshot (as of May 7, 2018)
Corporate Snapshot (as of May 7, 2018) Share & Capital Structure (TSX:ERD) Shareholder Summary CAD USD Share Price $0.38 $0.30 25% 52-Wk Range $0.37-$1.40 $0.29-$1.10 55% Market Cap $56 mln $44 mln 11% 9% Shares O/S 146.4 mln - Retail Shares F/D 156.8 mln - Institutional (incl. 10 institutions; Cash
Slide 5: Highly Experienced Board of Directors
Highly Experienced Board of Directors Pioneers in Mongolia’s Post-Socialist Exploration Peter Akerley, President & CEO Layton Croft Mining executive/geologist with 25+ years experience Corporate executive, 23 years Mongolia in mineral exploration, corporate finance, project experience, with 14 years
Slide 6: Emerging Gold District in Southwest Mongolia
Emerging Gold District in Southwest Mongolia New Mining District Near Chinese Border The Khundii Gold District A Decade of Methodical, Regional Exploration in the Multiple Near-Surface Discoveries Edren Terrane for Epithermal Gold/Porphyry Copper in Unexplored Area Since 2010 TSX:ERD | www.erdene.co
Slide 7: Bayan Khundii
Bayan Mongolian word for Rich | Khundii Mongolian word for Valley Looking Northeast Through Striker Zone (2 kilometres)
Slide 8: Bayan Khundii Gold Project Snapshot
Bayan Khundii Gold Project Snapshot: 234 Holes with >18% Intersecting >30g/t Au Discovered: 2015 Total Drilling: 39,493 m No. of Holes: 240 Avg. Depth: 162 m (60° dip) System Size: 1.5 x 0.4 km Holes with 18% > 1 oz / t Au: Met Recovery: 92 - 99% TSX:ERD | www.erdene.com | 8
Slide 9: Deposit Plan; 0.3g/t gold shell
Bayan Khundii Gold Project Deposit Plan; 0.3g/t gold shell Looking NNE Incorporating drill data as at Jan 10, 2018 A’ Section Line Gold Hill NE ZoneStriker Midfield North Midfield North Midfield Midfield West Striker Striker West Striker Gold Hill A TSX:ERD | www.erdene.com | 9
Slide 10: Cross Section; 0.3 g/t gold shell with drill highlights
Bayan Khundii Gold Project Cross Section; 0.3 g/t gold shell with drill highlights Looking East A’ North Midfield Midfield Striker A 5.6g/t Au/37m 5.2g/t Au/41m 6.8g/t Au/31m NE Zone 5.3g/t Au/25m 6.0g/t Au/80m 11g/t Au/37m Gold Hill West Striker TSX:ERD | www.erdene.com | 10
Slide 11: High-Grade Zone Cross Sections
Bayan Khundii Gold Project High-Grade Zone Cross Sections (1g/t Au shell; 1m highlights) North Midfield Midfield Striker Limited drilling in high-grade zone, 95 High-grade begins 50m below surface, High-grade core of Striker exposed at metres from surface; projected continuity projected 100m continu
Slide 12: Broad Zones of Continuous Gold Mineralization
Bayan Khundii Gold Project Broad Zones of Continuous Gold Mineralization Striker Midfield North Midfield • Meter-wide, gold (g/t) Zone Zone Zone intersections from BKD-17 BKD-51 BKD-60 BKD-90 BKD-232 BKD-228 41m @ 7.8 39m @ 2.7 29m @ 3.1 47m @ 4.6 36m @ 5.7 48m @ 2.4 Striker, Midfield and g/t Au g/t
Slide 13: Structural Targeting of Ultra High-Grade Feeder Zones
Bayan Khundii Gold Project Structural Targeting of Ultra High-Grade Feeder Zones • 4DGeo Q3-Q4 Structural Location of Study and Interpretation Breach North Midfield, 2200 g/t Au Major Fault Major(Potential Fault- Feeder potenZone) Hanging Wall tial feede Relay ramp geometry and kinematics r zone Sou
Slide 14: Process Test Work
Bayan Khundii Gold Project Process Test Work • Bayan Khundii is characterized by gold-rich quartz- adularia veins within a disseminated gold-bearing, altered volcanic host defined by hypogene iron oxides, silification and illite alteration • Free milling and amenable to conventional processing • Com
Slide 15: 2018 Definition & Expansion Drilling
Bayan Khundii Gold Project - Exploration Potential 2018 Definition & Expansion Drilling Testing N and NE Extension Potential • 5,400 metres (~30 holes) in Q2-2018 Testing NW Structure • Defining high-grade areas for Testing Ulaan to Interpreted as Potential continuity and extension the West for Feed
Slide 16: Drill Results from May 8th, 2018 Press Release
Bayan Khundii Gold Project Drill Results from May 8th, 2018 Press Release Cross-Section - Looking Northwest Through North Midfield Zone TSX:ERD | www.erdene.com | 16
Slide 17: Khundii Regional Gold Exploration
KHUNDII REGIONAL GOLD EXPLORATION SEVERAL UNTESTED & NEWLY DISCOVERED TARGETS
Slide 18: Bayan Khundii Regional Gold Prospects
Regional Exploration Potential Bayan Khundii Regional Gold Prospects • Expanding region of gold mineralization over 6 km x 3 km area • Multiple parallel structures Q4/17 Shallow Drilling intersects 70g/t/2m & identified hosting anomalous 39g/t/1m Au gold with similar alteration and geology to Bayan
Slide 19: Altan Arrow: New High-Grade Intersections in Q4-2017
Altan Arrow Gold-Silver Prospect New High-Grade Intersections in Q4-2017 Two areas testing gold-in-soil and rock chip anomalies, 300 metres apart, return very high-grade intersections in Q4-2017 Main structure hosts broad zones of gold mineralization in drilling; 17 to 28 m of 0.39 to 0.43 g/t Au TS
Slide 20: Altan Nar Gold-Polymetallic Project
ALTAN NAR GOLD-POLYMETALLIC PROJECT 5.6 KM LONG, HIGH-GRADE, AND NEAR-SURFACE
Slide 21: Altan Nar Snapshot
Altan Nar Gold-Polymetallic Project Snapshot Discovered: 2011 Total Drilling: 18,987 m No. of Holes: 122 Avg. Depth: 157 m (45° dip) System Size: 5.6 x 1.5 km Mineralized 18 Target Areas TSX:ERD | www.erdene.com | 21
Slide 22: 5.6 km Trend, High-Grade Au-Ag-Pb-Zn System
Altan Nar Gold-Polymetallic Project 5.6 km Trend, High-Grade Au-Ag-Pb-Zn System • Significant exploration potential within 5.6 km mineralized trend • Detailed exploration completed on 2 of 18 targets • Updated Mineral Resource See Inset Map established May 2018 on Next Slide • Intermediate sulfidati
Slide 23: May 2018 Resource Areas with Significant Upside
Altan Nar Gold-Polymetallic Project May 2018 Resource Areas with Significant Upside § Indicated AuEq Resource increased by 208% and Inferred AuEq Resource increased by 172%, compared to Mar’15 maiden resource estimate § Indicated Resource of 453k oz AuEq @ 2.8 g/t AuEq and Inferred Resource of 277k
Slide 24: May 2018 Resource Estimate
Altan Nar Gold-Polymetallic Project May 2018 Resource Estimate Resource Grade Contained Metal Cut-off Quantity Classi- Au Ag Zn Pb AuEq Au Ag Zn Pb AuEq AuEq g/t (Mt) fication g/t g/t g/t g/t g/t Koz Koz Kt Kt Koz 0.4 Indicated 5.6 1.8 13.5 0.6 0.5 2.6 323 2,412 33.2 29.9 464 0.4 Inferred 3.7 1.6 7.
Slide 25: Q3-2017 Drilling of New High-Grade Zone
Altan Nar Gold-Polymetallic Project - Discovery Zone Q3-2017 Drilling of New High-Grade Zone Long-Section Through Discovery Zone (Looking Northwest) See Forward Looking Statements on slide 2 for cautionary statements regarding Gold Equivalent calculations TSX:ERD | www.erdene.com | 25
Slide 26: Carbonate Base Metal Gold Deposit Comparison
Altan Nar Gold-Polymetallic Project Carbonate Base Metal Gold Deposit Comparison High Grade, Steeply Dipping Zones, Open at Depth and Along Strike TSX:ERD | www.erdene.com | 26
Slide 27: Cu & Mo Projects
Cu & Mo PROJECTS DEPOSITS & EXPLORATION TARGETS TSX:ERD | www.erdene.com | 27
Slide 28: Ulaan Property: Epithermal Gold and Porphyry Copper Target
Ulaan Property – Q3-2017 Acquisition Epithermal Gold and Porphyry Copper Target Intense Alteration Zone Measuring 3 KM in Ulaan Property Diameter Adjacent to BK Gold System Highlights • Alteration, geochemical and geophysical signature consistent with porphyry- style mineralization • Epithermal quar
Slide 29: Zuun Mod: One of Asia's Largest Undeveloped Molybdenum Deposits
Zuun Mod Project – Advanced Stage Moly-Copper Porphyry Deposit One of Asia’s Largest Undeveloped Molybdenum Deposits • 100% owned by Erdene NI 43-101 Resources OWNERSHIP • 30-year Mining License Cut Contained granted Tonnes Grade Off Metal • 40 km from Bayan % % M lb M lb % Mt Khundii Project Mo Cu
Slide 30: Path Forward
PATH FORWARD A BALANCE BETWEEN GROWTH & DEVELOPMENT TSX:ERD | www.erdene.com | 30
Slide 31: 2018 Technical Program
Path Forward 2018 Technical Program Q2 > Drill testing of ultra-high grade targets at Bayan Khundii (5,400 metres) > Follow-up drilling of new high-grade intersections at Altan Arrow (1,000 metres) Q3 > Commence maiden drill program at Ulaan copper-gold prospect > Announce Global Resource Estimate f
Slide 32: Processing, Permitting, and Infrastructure
Path Forward Processing, Permitting, and Infrastructure Mining/Processing Studies > Bayan Khundii is free milling, with master composites averaging 0.7 to 25 g/t providing 91% to 99% recovery using conventional gravity and leach at ~80% passing 60 to 150 micron > RPM engaged on pre-scoping studies >
Slide 33: Developing Mongolia's Capital Markets
Path Forward Developing Mongolia’s Capital Markets Erdene is preparing a cross-listing of shares on the Mongolia Stock Exchange • Provide Mongolians with greater access to Erdene shares in local currency • Would be first of its kind transaction in Mongolia • Increase Mongolian shareholders at time o
Slide 34: Erdene's 2018 Milestones
Path Forward Erdene’s 2018 Milestones Drill Results from Bayan Q2 Khundii, High-Grade Zones Targeting Mongolia Stock Q2 Exchange Listing Q3 Resource Estimates Regional Exploration Drill Q3 Results Launching Economic Studies Q4 and Permitting Process Q4 Drilling Continues TSX:ERD | www.erdene.com | 3
Slide 35: For More Information
FOR MORE INFORMATION: TEL: 902-423-6419 EMAIL: INFO@ERDENE.COM WWW.ERDENE.COM @ERDENERES