Slide 1: Asia Mining Congress – 2011
Asia Mining Congress – 2011 Peter Akerley, President and CEO
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS ED) ES 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,
Slide 3: Commodity & Geographic Focus
COMMODITY & GEOGRAPHIC FOCUS Mongolia Canada U.S. Ind Minerals Coal Coal Metals DIVERSE MID-TIER RESOURCE EXPLORATION & DEVELOPMENT COMPANY 33
Slide 4: Market Facts (As of April 6th, 2011)
MARKET FACTS (As of April 6th, 2011) Capital Structure Share Performance (Monthly Average) Trading Info TSX: ERD 2 Shares Outstanding 90.3 M 13.6 Volume Millions 11.8 1.5 Shares Fully Diluted 93 M 10 Price $ 8.2 Working Capital CDN ~$7.4 M 6.4 1 52 Week High/Low CDN $0.26 / $1.84 4.6 0.5 2.8 Market
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Donkin Project (25% ERD / 75% Xstrata) Prefeasibility pending on 2.75Mt/annum coking coal project located near a deep water port in eastern Canada Zuun Mod Molybdenum-Copper Project Advancing very large molybdenum-copper deposit located on Chinese-Mongolia border; New copper di
Slide 6: Eastern Canada - Donkin Coal Project
EASTERN CANADA -DONKIN COAL PROJECT 25% Erdene / 75% Xstrata Coal (Manager) Large – Long Life Resource High Quality (Coking and Thermal) Proximal to Deep Water Significant Infrastructure Low Operating and Transportation Costs Experienced Workforce 6
Slide 7: Donkin Coal Project
DONKIN COAL PROJECT Resources & Coal Quality Harbour Seam - Processed High volatile-A bituminous, medium sulphur, very low ash, high CSN & fluidity Seam Indicated Inferred Product: Semi-soft to semi-hard Name (Mt) (Mt) Lloyd Cove 53 82 Hub 73 57 Harbour 101 115 Total 227 254
Slide 8: km from deep water port
30 km from deep water port Q Point Aconi ) Power Station Oo Al N MINED-OUT AREA cian 7 my DONKIN i FF ; COAL RESOURCE 7 | Ge , Lingan Power Station Slack . / \ f No. 26 / Jy < ; on Colliery f) bay ye i see 5 Tide nocsee Tena L ae \ ere i f k * | A, . fe
Slide 9: Donkin Coal Project - Recent History
DONKIN COAL PROJECT Recent History December - 10 Prime Minister Stephen Harper announces federal support (~$19M) for dredging Sydney Harbour, stating: “Looking forward, as we must, to the day when mining jobs return to Cape Breton, there will be new opportunities for shipping, along with the export
Slide 10: Donkin Coal Project - Going Forward
DONKIN COAL PROJECT Going Forward 2011 2012 / 13 2014 Pre-feasibility Complete Feasibility Full Production report delivered & Permitting 2.75 to 4 Mtpy Feasibility/Initial Continuous Miner Development ROM sales Financing Xstrata contributes Erdene’s initial $10M Erdene in discussions with various fi
Slide 11: Mongolia
MONGOLIA
Slide 12: Over a Decade in Mongolia
Over a Decade in Mongolia
Slide 13: Erdene - Mongolia
ERDENE - MONGOLIA r= ly) » Principals working in Mongolia since 1996 » Executive have >30 years of combined experience in Country » Erdene formed in 2002 to focus on Mongolia » Acquired Gallant Minerals (Zuun Mod) in 2005 » Partnered with Xstrata on coal in 2006 » Employ 14 full time and up to 100 s
Slide 14: LM Oo NEGL ONL .I7A
LM Oo NEGL ONL .I7A Bt 9 S DE get 7 < Galsher sy , Blde Springs TEE white Hills” 5 Biger — mr Wer A = ae ta Rich Gobi as shurtiin KRundii Zuun Mod » ™ Oye Folge! Khatsayel ul Ulsan Del . South Gobi Mandal Uul
Slide 15: Mongolia – Exploration/Mining
MONGOLIA – EXPLORATION/MINING Geology-Exploration World Class Metal and Coal Deposits Limited Exploration Excellent Exposure Licensing process Worked relatively well for most for 14 years Requires clarification on tender process and water and forestry act Transportation – Infrastructure Road network
Slide 16: Presidential Ban on the Processing of Exploration and Mining Licences
Presidential Ban on the Processing QD of Exploration and Mining Licences So » In 2010 the President suspended the issuance and processing of both mining and exploration licences; » Extends to new or disputed licences » Converting from an Exploration licence to a mining licence permitted » Amendments
Slide 17: Land Status
Land Status
Slide 18: Mongolia - Coal Production (top 10)
Mongolia - Coal Production (top 10) ERX'D) 140.0 Metallurgical 120.0 7) m= Thermal 2 100.0 i ~~ Domestic Consumption c 80.0 2 —— Export =
Slide 19: Mongolia Mining Export Revenues
Mongolia Mining Export Revenues Growth - Top Ten Developments $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0 2010 2011 2012 2013 2014 2015 » Centerra Gold = Placer Gold & Other = Oyu Tolgoi Gold Oyu Tolgoi Cop
Slide 20: Mongolia - Coal
MONGOLIA - COAL
Slide 21: Coal Deposits and Rail Developments
Coal Deposits and Rail Developments
Slide 22: Mongolia Coal Xstrata Alliance
MONGOLIA COAL XSTRATA ALLIANCE PRIORITY TARGETS: High Quality Thermal & Coking (open pit, <5:1, 200Mt+, >5800 kcal/kg GAR) XSTRATA TERMS: •Option to earn up to 75% of any coal opportunity in Mongolia •Must fund all work through to completion of feasibility study •Must maintain a 5% shareholding 2010
Slide 23: Erdene Coal Overview
Erdene Coal Overview Extent of Exploration mo NGOt Ln Maanit . Jargalant: oe Existing Railway Proposed Railway Ci\H INA Jiayuguan } 0 250 500 kilometers Ay Ulaanbaata Chita e o.: 7 Drill Tested “~A Gaishar i A © 2006 7 j A ». ; @ 2007 . Khoot ESG ‘@; @rs. @ 2008 : : xe & Due-Diligence | |+ : Ad 2006
Slide 24: Erdene's 2009-10 Coal Activity
ERDENE’S 2009-10 COAL ACTIVITY E2D y avan Tolgoi Tender Olon & Bid P ABulag [7 W Bid Preparation ome data collection & ae Ovoot Tolgoi avan ey. \: 8 e e T Ss 00,800 f sleet € y 7 = 2. O ob er gy : 7e = pee Progra Ceke —— Due-D Existing Railway ell Proposed Railway CiH INA Baotou ; ic ‘lo 250 500 pl
Slide 25: Tavan Tolgoi
Tavan Tolgoi Erdene data collection and digitization 1053 154 105.5 _ 105.6 1057 12383 N S275 11953 Le if 11984 UKHAA HUDAG COALFIELD Kon iSLBel OK vos son 11982 om ety, Se ii =) ) rN EC ZEA XG = . ™ PE, AC 7 | wa ics , 1]; EASTERN ner 8 = = — te gs... = GOI COALFIELD SY! ‘ ae! HCC Ll TS ax oe + oem
Slide 26: Mongolia - Metals
MONGOLIA - METALS
Slide 27: Mongolia Metals – 100% ERD
MONGOLIA METALS – 100% ERD Target: World Class Copper-Gold- Molybdenum Porphyry Deposits Exploration Programs: • Zuun Mod Development • Multi-million program in South Gobi exploring for porphyry Cu, Mo, Au systems 8 years 2011 Program: Exploration underway on Zuun Mod, Khuvyn Khar and Nomin, additio
Slide 28: Carboniferous-Permian Arcs in Mongolia
Carboniferous-Permian Arcs in Mongolia North Selenga-Gobi-Khanga arc: South Selenga- Gobi-Khanga Arc Magmetic_arcs shp Carboniterous-Pemian [) Mongolia_dd_031102 shp HB Late pz akaine intrusions shp New Kazakh-Mongol Are Late pz volcanic arcs. shp Late pz accretionary complex.shp Middie-late pz fore
Slide 29: Aer tae Tat
Aer tae Tat 2274 3 i soomdsl II lisi c=) £ - Ww 333 ges aes So.E S & c= 2 s 22 =3s oc Bs 31
Slide 30: Zuun Mod Mo-Cu Project
ZUUN MOD MO-CU PROJECT Molybdenum and Copper Highlights Located on China border Image/map... Large Mo-Cu resource Sexy shot of ZM perhaps New copper discovery Access to lower capex plant and equipment Growing local infrastructure and skilled labour force 30
Slide 31: Zuun Mod Mo-Cu Project - Regional Moly & Steel Industry
ZUUN MOD MO-CU PROJECT Regional Moly & Steel Industry World’s Largest Steel Producing Region China’s Largest Molybdenum Producing Regions 31
Slide 32: Zuun Mod Mo-Cu Project - Property / Deposit Map
ZUUN MOD MO-CU PROJECT Property / Deposit Map UB Khuvyn Khar Zuun Mod Mo-Cu Deposits Direction of View 32
Slide 33: Zuun Mod - June 2009 NI 43-101 Resource Estimate
ZUUN MOD MO-CU PROJECT June 2009 NI 43-101 Resource Estimate 0.050% Mo 0.050% Mo 0.052% Mo 0.048% Mo 0.060% Mo Cut-off Resource Category Resources Contained Grade Mo% Mt Cu% Mo% Mo Metal Mlbs 0.04% Total Measured 180 0.064 0.054 215 & Indicated 0.04% Total Inferred 185 0.066 0.051 208 33
Slide 34: 2010 Drill Program – New High Grade Zone
ZUUN MOD MO-CU PROJECT 2010 Drill Program – New High Grade Zone ZMD-51 ext 432 m 1km 0.061% Mo / 0.072% Cu Incl:118m 0.106% Mo / 0.098% Cu ZMD-115 300 m 0.071% Mo / 0.11% Cu Incl: 66m 0.108% Mo / 0.129% Cu ZMD-116 336 m New or Extended Hole 2010 0.062% Mo / 0.071% Cu Previously Drilled Hole Incl: 78
Slide 35: New Results Expand Previous Resource
ZUUN MOD MO-CU PROJECT New Results Expand Previous Resource 35
Slide 36: Pending Pre-Feasibility Study (PFS)
ZUUN MOD MO-CU PROJECT Pending Pre-Feasibility Study (PFS) Components of PFS Initiated; Mine Planning / Pit Optimization Environment Baseline Study / Community Relations Geotechnical Review Hydro-geology / Water Resource Identification Metallurgical Testing Marketing Study Infrastructure Review 36
Slide 37: Zuun Mod Mo-Cu Project - Timeline
ZUUN MOD MO-CU PROJECT Timeline 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Pre-feasibility Strategic Partner Evaluation Feasibility Development Start-up / Production 37
Slide 38: Molybdenum Supply & Demand
ZUUN MOD MO-CU PROJECT Molybdenum Supply & Demand New supply needed, > 300 Mlbs; Equivalent of 1-2 additional world class mines each year Mlb Mo 750 575 Consumption trend Need for new sources Improved recoveries China expansions Recycling Existing mines Consumption 400 2009 2010 2011 2012 2013 2014
Slide 39: Khuvyn Khar Copper Discovery
ZUUN MOD MO-CU PROJECT Khuvyn Khar Copper Discovery UB Khuvyn Khar Zuun Mod Mo-Cu Deposits Direction of View 39
Slide 40: Khuvyn Khar Cu Prospect (1 Qtr 2011)
KHUVYN KHAR CU PROSPECT (1 Qtr 2011) st ZMD-121 (34m of 1.3 % Cu and 9.2 g/t Ag) 3.9% Cu and 25 g/t Ag 310-312m Chalcopyrite in Breccia Zone 4.1% Cu and 21 g/t Ag 316-318m Chalcopyrite in Quartz Breccia Zone 4.1% Cu and 27 g/t Ag 334-336m Chalcopyrite & Pyrite in Monzonite Breccia 40
Slide 41: Khuvyn Khar Copper Prospect – 1st Qtr 2011
ZUUN MOD MO-CU PROJECT Khuvyn Khar Copper Prospect – 1st Qtr 2011 Cu in Soil Anomaly 118m @ 0.08% Cu ZMD-08 ZMD-121 373m @ 0.19% Cu (34m @ 1.3% Cu & 9.2 KKMD-13 g/t Ag) Drill Hole 152m @ 0.16% Cu (32m of 0.22% Cu) 41
Slide 42: Khuvyn Khar Drill Program Commenced April 5th, 2011
Khuvyn Khar Drill Program Commenced April 5th, 2011 Hi-lighted Chargeability Anomaly – Initial Target H
Slide 43: 5km
5km
Slide 44: Cu in Soil
Cu in Soil ppm
Slide 45: Nomin Copper – Gold Discovery 2010
Nomin Copper – Gold Discovery 2010 Ancient mining pit workings Largest of a series of 5 shallow pits along a 250m strike length Hosted within Paleozoic felsic volcanics and granodiorite Average Grades: Au 1.7 g/t, Cu 2.2%
Slide 46: Nomin Copper-Gold Project
Nomin Copper-Gold Project Ancient mining pit workings . Average Grades: Au 1.7 g/t, Cu 2.2% Secondary ancient mining pit Average Grades: Au 1.15g/t, Cu1.6%
Slide 47: Market Cap Peer Group Comparison (March 2011)
ERDENE RESOURCE DEVELOPMENT Market Cap Peer Group Comparison (March 2011) Donkin Zuun Mod < 2 Mtpy met coal producer > 15Mlbs/y primary Mo producer $1,000 $400 $800 $300 $600 $200 $400 $200 $100 $0 $0 Erdene Corsa Cline Grande Erdene Avanti Creston General Moly Cache Moly Moly Mines 47
Slide 48: Value Drivers
VALUE DRIVERS Developing Large Coastal Coking Coal Project with Xstrata Advancing Major Molybdenum- Copper Project on China-Mongolia Border Drilling Underway on New Copper Discovery 48
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Slide 50: Erdene Resource Development Corp
Erdene Resource Development Corp Corporate Office 99 Wyse Road, Suite 1480 Dartmouth, Nova Scotia Canada B3A 4S5 Tel 902-423-6419 Fax 902-423-6432 NA Toll Free 800-261-1422 Email info@erdene.com www.erdene.com