Slide 1: The Altan Nar Gold Project
Erdene Resource TSX: ERD Development Corp. The Altan Nar Gold Project A New Discovery with Exceptional Upside Corporate Presentation, May 2014
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, guidan
Slide 3: Exploring for the Next Major Gold Mine in the Tian Shan Gold Belt
Exploring for the Next Major Gold Mine in the Tian Shan Gold Belt Along Trend of Giant Deposits China - World’s Largest Gold Producer and Consumer Provides Access to Investment and Lower Cost Equipment 3
Slide 4: Why Erdene?
Why Erdene? Advancing 100% Owned Altan Nar Gold Discovery - Early in exploration phase with significant upside Alliance with Teck Resources in 2013 - Establishing drill targets on copper porphyry target Experienced Management Team - A leading Mongolia metals exploration company since mid 1990’
Slide 5: Erdene Share Structure & Performance
Erdene Share Structure & Performance Share Structure Shareholders Shares O/S 74.9 M Retail 58% Shares F/D 88.5 M Institutional/Corporate (Teck 12%) 30% Market Cap $14 M Management & Directors 12% Erdene vs. Mongolia Focused Metals Exploration Peers; 1 year share performance $0.25 Erdene Haranga Kinc
Slide 6: Strong Technical Management Team
Strong Technical Management Team Peter C. Akerley, President & CEO, Director Geologist with 25 years of international experience in mineral exploration, corporate financing, project development and management of publicly listed resource companies. Chris Cowan, VP Asia, Director Minerals consultant,
Slide 7: Mongolia Update
Mongolia Update New Foreign Investment Law New Securities Law Reduction in gold royalty rate (10% to 2.5%) Draft Minerals Policy (base for new Mining Law) Low corporate taxes established at 10 to 25% Amended Mining Laws Moratorium on issuance of new licenses lifted Oyu Tolgoi phase t
Slide 8: Emerging Mining Region
Emerging Mining Region Improving Accessibility and Infrastructure 8
Slide 9: Extensive Gold Geochemical Footprint
Altan Nar Gold Project Extensive Gold Geochemical Footprint Widespread Gold-Silver-Lead-Zinc Mineralization Traced Over 5.5 km x 1.5 km Area Hosted in Low Sulphidation Epithermal Alteration Zones up to 100 m in Width 1 Following greenfield discovery, initial drilling (6 holes) at Nomin June Tal gold
Slide 10: Early in Discovery Process
Altan Nar Gold Project Early in Discovery Process Regional Scale Mapping, Geochemical and Geophysical Surveys Completed, Including; 9,300m Shallow Drilling and 1,870m Trenching Inset Map 10
Slide 11: Central Altan Nar – 2013 Trench Results
Altan Nar Gold Project Central Altan Nar – 2013 Trench Results Northbow Union North 9m @ 1.3g/t Au, 7m @ 20g/t Au, 6.6g/t Ag & 1.3% Pb-Zn 138g/t Ag, & 22% Pb-Zn See Inset Map Southbow Maggie Untested Target; Largest 38m @ 1.6g/t Au, chargeability anomaly at 2.6g/t Ag & 0.8% Pb-Zn Altan Nar Riverside
Slide 12: Drill Core and Trench Samples
Altan Nar Gold Project Drill Core and Trench Samples 12
Slide 13: Discovery Zone – Drill & Trench Highlights
Altan Nar Gold Project Discovery Zone – Drill & Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth 8m @ 4.5g/t Au, 5m @ 4.8g/t Au, 25.4g/t Ag, & 2.3% Pb-Zn 6.0g/t Ag, & 1.1% Pb-Zn (within 28m @ 1.8g/t Au) (end of hole, 230m) 44m @ 1.1 g/t Au & 11.3 7m @ 3.4g/t Au,
Slide 14: Discovery Zone – Cross Sections
Altan Nar Gold Project Discovery Zone – Cross Sections Discovery Zone North Discovery Zone South 23m @ 1.2 g/t Au 7m @ 3.5 g/t Au 8m @ 4.5 g/t Au 5m @ 5.3 g/t Au (within 27m @ (within 50m @ 1.1 g/t Au) 29m @ 1.1 g/t Au 1.8 g/t Au) 12m @ 1.2 g/t Au 8m @ 3.9 g/t Au 5m @ 4.8 g/t Au (within 23m @ 2.1 g/
Slide 15: Union North – Drill & Trench Highlights
Altan Nar Gold Project Union North – Drill & Trench Highlights Good Continuity of Trench and Drill Results 7m @ 5.0g/t Au, 7.6 g/t Ag, 19m @ 8.9g/t Au, 66 g/t Ag, 18m @ 1.8g/t Au, 1.4 g/t 1.2% Pb, & 0.2% Zn 7.7% Pb, & 2.5% Zn Ag, 0.8% Pb, & 0.6% Zn (incl. 5m @ 6.0 g/t Au) 22m @ 2.1g/t Au, 5.8 g/t 24
Slide 16: Union North – Cross Section
Altan Nar Gold Project Union North – Cross Section Open at Depth and Along Strike 2m @ 5.4g/t Au, 20g/t Ag, 1.1% Pb, & 1.2% Zn 9m @ 4.4g/t Au, 12g/t Ag, 9m @ 1.3g/t Au, 8.2g/t Ag, 1.0% Pb, & 0.8% Zn 1.0% Pb, & 1.1% Zn 7m @ 2.2g/t Au, 5.7g/t Ag, 0.7% Pb, & 1.0% Zn 16
Slide 17: Union North – Cross Section
Altan Nar Gold Project Union North – Cross Section Open at Depth and Along Strike 22m @ 2.1g/t Au, 5.8g/t Ag, 0.6% Pb, & 0.8% Zn 4m @ 2.7g/t Au, 7.0g/t Ag, 0.8% Pb, & 0.8% Zn 24m @ 2.1g/t Au, 5.8g/t Ag, 0.6% Pb, & 0.8% Zn (incl 12m @ 4.0g/t Au) 17
Slide 18: Geophysical Targeting
Altan Nar Gold Project Geophysical Targeting High Grade, Steeply Dipping Zones, Open at Depth and Along Strike Line 1 - Northbow (untested) & Union North (Drill: 9m @ 4.4 g/t Au) Northbow Union North Line 2 - Southbow (untested) & Union South (Trench: 10m @ 4.5 g/t Au) Line 1 Line 2 Southbow Union S
Slide 19: Peer Comparison – Low Sulphidation Deposits
Altan Nar Gold Project Peer Comparison – Low Sulphidation Deposits High Grade, Steeply Dipping Zones, Open at Depth and Along Strike Deepest Hole Ended In 5 m @ 4.8 g/t Gold Gold Mineralization 19
Slide 20: Metallurgy
Altan Nar Gold Project Metallurgy 12 samples of mineralized core were collected from across the deposit area Samples collected from the Discovery Zone North, Union North and Union South drill core had an average 24hr gold recovery of 81% using bottle roll testing while samples from Discovery Zon
Slide 21: Exploration and Development Plan
Altan Nar Gold Project Exploration and Development Plan High Potential for Discovering & Developing Near-Surface, Gold-Polymetallic Deposits 2014 2015 2016 onwards Detailed Property Wide Complete Economic Evaluation Engineering & Design Exploration; Mapping, Geophysics, & Geochemistry Establish Requ
Slide 22: Highlights
Altan Nar Gold Project Highlights Regional Gold Mines “Early in” - A new gold district discovery Jinfeng Mine, China, Eldorado Gold 100% Ownership Very large gold system; 5.5 km x 1.5 km; potential for >1.5M ounces CSH, China, China Gold International Excellent exploration upside Region of
Slide 23: Zuun Mod & Khuvyn Khar
Zuun Mod & Khuvyn Khar World-Class Moly-Copper Project & Porphyry Copper Target Ownership • Zuun Mod: 100% Erdene • Khuvyn Khar: Teck Alliance Zuun Mod; molybdenum-copper • Mining license granted in 2011 • One of Asia’s largest Moly deposits • Drilling includes; 118m @ 0.106% Mo • Moly prices increa
Slide 24: Erdene's Investment Proposition
Erdene’s Investment Proposition Regional Gold Mines New Gold Polymetallic Discovery at Opportune Jinfeng Mine, China, Eldorado Gold Period in Mining Investment Cycle Tremendous Exploration Potential CSH, China, China Gold International Upside of Teck Alliance Copper Exploration Kumtor Mine, Kyrgyzst
Slide 25: Erdene Resource Development
Erdene Resource Development Peter C. Akerley President & CEO, Director Website www.erdene.com Email info@erdene.com Twitter @ErdeneRes TSX: ERD
Slide 26: Appendix: Experienced Executive and Board
Appendix Experienced Executive and Board Peter C. Akerley William Burton President & CEO, Director Director Former President & CEO MagIndustries Corp. Chris Cowan VP Asia, Director John Byrne Director President of Petroleum Corp. of Ken MacDonald Canada Ex. Ltd. VP Bus Development, CFO Phillip Webst
Slide 27: Appendix: Altan Nar Project Photos
Appendix Altan Nar Project Photos 27