Slide 1: Erdene Resource Development Corp.
Erdene Resource Development Corp. Advancing the Altan Nar Gold-Polymetallic Project Toward Production August 2015 TSX: ERD
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information regarding Erdene ("the Company") 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, guida
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Management Trading Info TSX: ERD Peter C. Akerley, President & CEO, Director Share Price (July VWAP) $0.14 Ken MacDonald, VP Bus.Dvpmt, CFO 52 Wk Range $0.09-0.17 Shares O/S 97.3 M Mike MacDonald, Director Exploration Shares F/D 113.9 M Mike Gillis, Director Oper
Slide 4: Company Highlights
Company Highlights § Advancing 100% Owned Altan Nar Gold Project Toward Production > Initial resource established on first 2 of 18 targets along 5.6 km trend § Alliance with Teck Resources > Invested $2M into Erdene’s project generation programs since 2013 § Option Agreement with Tian Poh Resourc
Slide 5: Erdene Exploration/Evaluations Underway
Erdene Exploration/Evaluations Underway § Altan Nar Gold-Polymetallic Project > Metallurgical Test Program - results Q3 > 1,500 Metre Drill Program - results Q3/Q4 > North Asia Market Evaluation Study - report Q3 § Khuvyn Khar Copper-Silver Porphyry Project > 1,000 Metre Drill Program Funded by Ti
Slide 6: Emerging District in Prolific Gold-Copper Belt
Emerging District in Prolific Gold-Copper Belt 6
Slide 7: Mongolia Legislative Reform
Mongolia Legislative Reform Last Two Years þ New Foreign Investment Law þ New Securities Law þ Reduction in gold royalty rate to 2.5% þ Draft Minerals Policy (base for new Mining Law) þ Low corporate taxes established at 10% to 25% þ Moratorium on issuance of new licenses lifted ✓ Oyu Tolgoi p
Slide 8: Oyu Tolgoi Phase II Approval
Oyu Tolgoi Phase II Approval § May 18, 2015: Rio Tinto, Turquoise Hill, and the Government of Mongolia reach agreement on the development and financing of the underground, second phase of the project § The underground mine, where 80% of Oyu Tolgoi’s mineral wealth lies, is expected to cost $5.4 Bi
Slide 9: South Mongolia: Emerging Mining Region
South Mongolia: Emerging Mining Region Regional Infrastructure Build-Up Major Highway, Rail, and Power Plant Construction With Easy Access to Equipment Manufacturing/Service 9
Slide 10: Golden Sun - Altan Nar
Golden Sun - “Altan Nar” Project Discovery & Exploration
Slide 11: The Prolific Tian Shan Gold Belt
The Prolific Tian Shan Gold Belt 2014 - 2015 Highlights of North Asia Gold Production Polymetal buys Bayan Airag: First Centerra Gold advances Kinross’s Kupol, 37% Bakyrchik Gold gold production in 1.6 M oz Gatsuurt gold increase in production to Projects: US$618M Q2-2014 deposit ~750,000 oz Au Eldo
Slide 12: Altan Nar Gold Project - Highlights
Altan Nar Gold Project - Highlights § Initial Mineral Resource Established on Near-Surface Portion of 2 of 18 Targets Along 5.6 km Trend § Indicated Resource of 147,000 ounces @ 2.5 g/t AuEq and Inferred Resource of 102,000 ounces @ 2.1 g/t AuEq using 1 g/t AuEq cut-off § Carbonate Gold, Base Met
Slide 13: Altan Nar Gold Project
Altan Nar Gold Project Erdene Grassroots Discovery (100% Owned) 4 Million Hectare Exploration Program Deep Seated Regional Structures Altan Nar 200 km 20 km Discovery - Ancient Pit Extensive Geochemical Soil Survey Lead Gold 2km 2 km 13
Slide 14: Early Indications of a Significant Gold System
Altan Nar Gold Project Early Indications of a Significant Gold System First Hole at Altan Nar Returned 21m @ 3.0 g/t AuEq Within 50m of Surface, and 50m Vertically Below the Discovery Hole 16m @ 7.1 g/t AuEq 14
Slide 15: Initial Resource Estimate on First of Targets
Altan Nar Gold Project Initial Resource Estimate on First 2 of 18 Targets Highlights § 18 targets along 5.6 km trend Union North § Average vertical drilling depth: 105 m § Initial Resource Estimate: • Indicated Resource (DZ & UN): 147,000 oz Discovery @ 2.5 g/t AuEq (1 g/t AuEq cut-off) Zone • In
Slide 16: Discovery Zone – Drill and Trench Highlights
Altan Nar Gold Project Discovery Zone – Drill and Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth 11 m @ 2.6 g/t AuEq 16 m @ 8.7 g/t AuEq 94 m @ 1.0 g/t AuEq 19 m @ 7.8 g/t AuEq 8 m @ 6.0 g/t AuEq 7 m @ 7.1 g/t AuEq B 15 m @ 3.7 g/t AuEq (T) See cross-sections 1
Slide 17: Discovery Zone – Cross Section A
Altan Nar Gold Project Discovery Zone – Cross Section ‘A’ Continuous, High-Grade Mineralization From Surface, Open at Depth 15 m @ 1.1 g/t AuEq 38 m @ 2.1 g/t AuEq 15 m @ 2.4 g/t AuEq 30 m @ 1.5 g/t AuEq 6 m @ 4.4 g/t AuEq 16 m @ 7.1 g/t AuEq 6 m @ 1.3 g/t AuEq 10 m @ 1.9 g/t AuEq 17
Slide 18: Discovery Zone – Cross-Section B
Altan Nar Gold Project Discovery Zone – Cross-Section ‘B’ Continuous, High-Grade Mineralization From Surface, Open at Depth 11 m @ 4.6 g/t AuEq 16 m @ 8.7 g/t AuEq 19 m @ 7.8 g/t AuEq 18
Slide 19: Union North Highlights
Altan Nar Gold Project Union North Union North Highlights Union § 1.2 km NW of Discovery Zone North § High grade & near surface over 300 m strike length (open) § 1,115 m of drilling & 610 m of trenching § Drill Highlight: 24 m @ 2.1 g/t Au, 5.8 g/t Ag, & 1.4% combined Pb-Zn 500m § Trench Highli
Slide 20: Union North – Drill and Trench Highlights
Altan Nar Gold Project Union North – Drill and Trench Highlights Multiple Mineralized Structures Open in all Directions 6 m @ 6.7 g/t AuEq (T) 30 m @ 1.4 g/t AuEq 12 m @ 5.4 g/t AuEq See cross-section 19 m @ 15.1 g/t AuEq (T) on following slide 12 m @ 3.0 g/t AuEq 9 m @ 5.4 g/t AuEq 9 m @ 7.6 g/t Au
Slide 21: Union North – Cross-Section
Altan Nar Gold Project Union North – Cross-Section Limited Drilling and Trenching Has Established Continuity of Mineralized Zones 19 m @ 15.1 g/t AuEq 12 m @ 5.4 g/t AuEq 6.4 m @ 3.1 g/t AuEq 8 m @ 1.7 g/t AuEq 21
Slide 22: Initial Resource Estimate
Initial Resource Estimate
Slide 23: Resource Estimate Overview
Altan Nar Gold Project Resource Estimate Overview § Includes only near-surface Discovery Zone and Union North § 90% of resource within 150m of surface § Target areas open in all directions § 16 other targets identified along 5.6 km mineralized trend § Domain gold cut-off grade of 0.3 g/t § Res
Slide 24: Initial Resource Estimate - Discovery Zone & Union North
Altan Nar Gold Project Initial Resource Estimate - Discovery Zone & Union North High-Grade, Near-Surface Resource Estimate on First 2 of 18 Priority Targets (open in all directions) Cut-Off Resource Tonnes Au Ag Pb Zn AuEq AuEq, g/t Category Mln g/t g/t % % g/t oz Indicated 4.55 0.80 8.2 0.40 0.51 1
Slide 25: Indicated + Inferred Resource for DZ & UN
Altan Nar Gold Project Total Ounces Gold Equivalent at Decreasing Cut-off Significant Increase in Tonnage at Lower Cut-off Grades While Maintaining >1.0 g/t AuEq Average Grade 1.1 g/t AuEq 1.3 g/t AuEq (0.6 g/t Au) 400,000 (0.7 g/t Au) 1.6 g/t AuEq Indicated + Inferred Resource for DZ & UN 350,000 (
Slide 26: Early in the Discovery Process
Altan Nar Gold Project Early in the Discovery Process Intense alteration & breccia zone over 400m, incl. 300m2 area of anomalous soil (includes up to11.6% Pb, 0.7% Mo, 0.2 g/t Au) & rock Trench returned 4m @ 3.8g/t Au, chip (3.3g/t Au) samples. Trenching: 9m @ 1.3g/t Au, 6.6g/t Ag & 4.3g/t Ag & 1.0%
Slide 27: Very Large Target Area
Altan Nar Gold Project Very Large Target Area [Comparison with Multi-Million Ounce Open Pit: Pueblo Viejo] Scale Comparison: Barrick’s Pueblo Viejo mine, 30 Moz gold-copper-silver deposit 500m (one of the world’s largest gold deposits) Rock Sample > 1 g/t Au 27
Slide 28: Favourable Carbonate Base Metal (CBM) Gold Model
Altan Nar Gold Project Favourable Carbonate Base Metal (CBM) Gold Model Characteristics of CBM Gold Deposits § Large vertical extent; can have a vertical dimension of 1,000+m; Kelian 500m deep pit; Altan Nar only shallow drilling completed to date § Known deposits include: Porgera (>25 Moz), Kelia
Slide 29: Bulk Tonnage Potential
Bulk Tonnage Potential Altan Nar Recent Drilling: 100 Metres @ 1.1 g/t AuEq Penasquito - Mexico’s Largest Producing Altan Nar Cross-Section Through Gold-Silver Mine Northern End of Discovery Zone (open) § Bulk tonnage, low grade operation § 2014 production: 568,000 oz (AISC $813/oz) § Resource of
Slide 30: Moving Forward
Altan Nar Gold Project Moving Forward May Jun Jul Aug Sep Oct Nov Dec ITEM PHASE I PHASE II Bottle Roll Tests Process Design Work North Asia Market Evaluation Field Support/Exploration Community Development PHASE II Internal Scoping Work Technical Support Drilling Laboratory/Analytical North Asia Ma
Slide 31: Two-Pronged Approach - Shared Objective
Two-Pronged Approach - Shared Objective Target >1M Gold Ounce Reserve; >75,000 Ounce Per Year Production Definition Mining Engineering/ Drilling in License Design, & Economic Evaluation of DZ & UN Submission Geotechnical 5 Year Open Pit; >40k 2017 Production. oz/yr, >2 g/t AuEq Near term cash flow.
Slide 32: The Next Giant Gold Deposit of the Tian Shan?
Altan Nar Gold Project The Next Giant Gold Deposit of the Tian Shan? Early-In Opportunity Development Stage of a Successful Mining Company ‒ New gold district discovery; early in exploration cycle Value / ~Market Cap ‒ Period of low valuations in sector Ownership ‒ 100% interest in Project Altan Nar
Slide 33: Trans-Altai Regional Exploration
Trans-Altai Regional Exploration Multiple Epithermal & Porphyry Targets Highlights § Trans-Altay region; Tian Shan Copper- Gold Belt § 117,000 km2 area § Identified by Erdene as most prospective and under-explored terrane for porphyry and epithermal exploration in Mongolia § Extensive exploratio
Slide 34: Teck Strategic Alliance
Teck Strategic Alliance § Alliance established April 2013 § Erdene selected as Mongolia partner owing to copper-gold project portfolio, extensive in- country experience (16 years) and large geologic/mineral resource database § Teck fully funding exploration for base and precious metals on Erdene
Slide 35: Agreement With Tian Poh Resources
Agreement With Tian Poh Resources § Option agreement entered into on 12-Feb, 2015 § Tian Poh can earn 51% in Erdene’s Zuun Mod Molybdenum-Copper Project by paying US$4.8M in cash and equity over 5 years, with the option to earn 100% by paying $14M to $18M § Tian Poh backed by the Poh family, owne
Slide 36: Zuun Mod Project
Zuun Mod Project World Class Molybdenum-Copper Project Khuvyn Khar Project: Porphyry Copper Target NI 43-101 Mineral Resource Estimate 1 34 m of 1.3% Copper and 9.2 g/t Silver Cut Contained Tonnes Grade Off Metal % M lb M lb % Mt % Mo Cu Mo Cu M&I 0.04 218 0.057 0.069 273 331 Inf 0.04 168 0.052 0.06
Slide 37: Erdene Resource Development Corp.
Erdene Resource Development Corp. August 2015 TSX: ERD Advancing Altan Nar Toward Production Peter C. Akerley President & CEO, Director Tel 902-423-6419 Email info@erdene.com Website www.erdene.com Twitter @ErdeneRes