Erdene Resource Development Corporation · TSX:ERD
Erdene Resource Development — Corporate Update (November 2006)
52 slides from Erdene Resource Development's corporate update, November 2006
Slide 1: Activities Update 4th Quarter 2006
Activities Update Ath Quarter 2006
Slide 2: President and CEO
a Akegrley>> mal: President and CEO
Slide 3: Forward-looking statements
Certain intormation regarding Hrdene ("the Company) contained herein may, CoOnsuilite Torwardloolang statements within the meaning of applicable securities laws: Korward looking statements may inclide estimates, plans, expectations, opinions, Torecasts, projections, guidance or other statements that
Slide 4: Exploration Projects in Mongolia; Outlook
©) Exploration Projects in Mongolia> © Outlook >:
Slide 5: High Growth, Diversified Exploration Opportunities
® High Growth, Diversified Exploration Opportunities © Stable Platform of Near-Term Cash Elow Projects ® Strategic Alliances and Joint Ventures with Experienced Operators
Slide 6: Erdene Properties
' High Growth, Diversified Exploration Oppentim lat Erdene Properties ~
Slide 7: Commodities: Gold, Molybdenum, Coal, Aggregate
Gold Molybdenum Coal Aggregate Copper Uranium Kaolin — A A ry Precious Metals Base Metals Energy Industrial Minerals
Slide 8: Erdene North America
re Erdene North America _— =e ee # Douteth Coall (Xstrata) Sparta Kaolin (Huber) Maddox Aggregate (Rinker)
Slide 9: Strategic Alliances and Joint Ventures
NTERNATIONAL GaLtavt Mivenats |= poo ee CH SID) (USA) CORPORATION — Strategic Alliances — Joint Ventures \ : Donkin, Ng CPF SS a Mongolia Georgia, tt Rinker <)) D«& HUBER ENGINEERFD MATERIALS x<strata
Slide 10: Erdene Gold: Project Status Summary
Erdene Gold North America “NOSp Coal: Xstrata managed Donkin feasibility underway. Bt Aggregate: Rinker (Ageregate):.development decision pair to year-end. Kaolm: 150,000 tons minéd in 2006, development. of neering areas. Mongoli = ongolia oP Uranium: 1UC/Denison funding current dri ball Magra SS Me
Slide 11: Donkin Ownership and Feasibility
~WNETSIP 90% Erdene Ownership Xstrata 66% , AGE 14% $15M feasibility underway with completion anticipated in early 2008 . . J ——————————— as ST
Slide 12: Donkin Coal Market and Location
PointAconi " ATLANTIC Power Station | OCEAN Demand from U.S. coal-fired plants increasing, / me 4110) milliadfonnes over the Hex 46 years > *Declining production sInfrastructure and regulatory constraints *Market demand for high quality thermal and» Explanation Roads a ie Rail Roads“. we" | metallur
Slide 13: Donkin Project History and Coal Seam
® Exploration in 1977-79 (drill ship) ® 11 total drill holes ® Two access tunnels driven (mid 80s) ® Access to Harbour seam (top economic seam) ® Water filled (early 90s) ® 3.5km in length ® 7.6m in diameter ® Tunnel portals sealed ® Coal in the Donkin Coal Resource Block is classified as high volat
Slide 14: Donkin Project Targets
| | © Target: 200 M tonne high grade tidewater coal resource in Nova Scotia, Canada ® Major infrastructure in place: ee ~$100 M in previous expenditures po ® $15M feasibility study underway ® Production: High productivity longwall underground operations ® On development decision: Production expected
Slide 15: Donkin Project Timeline - Major Milestones
Pdonkin: Project Timeline-Mayjor Milestone Q107 Q2 07 Q3 07 co Q108 f Q2 08 ie Q4 08 Q109 Complete Tunnel Pumping and reclaim Long Hole Drilling Program 2000t Bulk Sample Complete Feasibility Study Internal Approval Process (= ee...
Slide 16: Donkin Project: September 2006 Activity
Slide 17: Sparta Kaolin Project - Huber Engineered Materials
' Sparta Kaolin Project — Huber Engineered Materals — —} Kaolin (Primary), High Quality ~$12 M by previous owner (KRI) 1998-2002, 2002-2006 Fully Funded Huber Development Dupre roiec ri | et Ns Royalties generated from commercial production of high quality clay for gloss and brightness in ® paper pr
Slide 18: Sparta Kaolin Resource
= or = " , be a Miwa ‘Co ate Wa nlin Dentant Chae eT el ae ae : 4 4 Al { i WeSC re 1A Je ® Georgia is a world kaolin centre, producing $1 billion of kaolin annually but with declining high ali reserves ® Erdene has control over large primary high quality kaolin resource | ® 2,407 drill holes totallm
Slide 19: Aggregate - Crushed Stone
oduct — Aggregate — Crushed Stone (Highway — Construction Material) Tnvestmen Fully funded by Rinker -drilling program, testing, engineering- mining plan and processing plant, environmental plan Project/Target Erdene receives 7.5% of selling price Resource of 90M tonnes, Class A Aggregate 1 to 4M to
Slide 20: Sparta Quarry Conceptual Final Pit
. Sparta Quarry Rinker Hancock County, Georgia Figure 4 Conceptual Final Pit Configuration be Legend = = Meta one—] ery serve 5 Pomme Property Boundary and Mine Limits to be established in the Feld with 2” PVC stakes placed every 250. Silt Fence te be installed ‘At mine limit prior to disturbance. 0
Slide 21: Quarry Permit Submission
® Submitted documents for a quarrying permit to the State of Georgia; local approvals anticipated in November 2006 ® Rinker is designing a ~$30 to $40 million quarry and processing plant with a start-up capacity of 1 to 2 million tons per annum for the Maddox Quarry ® Lead time for development ofthe
Slide 22: Mongolia: Potential Mineral Wealth
| Eee Datent: Cionieta tty a eee. Potential Mires Factor Government a
Slide 23: Democracy, Labour Force, Great Geology
x { » Sey 1 Democracy Labour Force Great Geology
Slide 24: Tsenkher Gol Project
ki | Tsenkher Gol Project Gold: >600,000 oz., open pit Ownership/Investment ~ 100% Erdene* *Gallant Minerals (Al Fayed): 0.5-1.5% Royalty aD) Project Located on paved highway 180km east of the capital 2005-2006: Extensive mapping, surface geophysics and geochemical program First drill program July-A
Slide 25: Tsenkher Gol Drill Hole Map
eT lNLH §281000 5280000 364000 365000 LEGEND Q sediments Felsic dike Mafic dike Carb grante (Cg- undit) PC metemorphic (Pm) Faut - interpreted QSP +g0Id in rook Drill hole Cart microgranite (Cmg) a a TGD-03 +34m @ 0.21 + 10m @ 0.15 re 367000 TGD-08 + 42m @ 0.18 bi ev, AX : _ | TGD-01 re + 21m @ 0.29
Slide 26: Altan Suult Zone Potential
Li eAltan Suult Zone identified as having best potential in Phase I *Three holes spaced 400m to 900m apart intersected wide zones of highly anomalous gold to maximum vertical depth of 176m *Altan Suult holes all terminated in thick zones of anomalous gold hosted by intrusives *Target includes low an
Slide 27: Fall 2006
\ Fall 2006
Slide 28: Zuun Mod Project
= f Zuun Mod Project — SSS Molybdenum: >300 million lbs, open pit 100% Erdene* *Gallant Minerals (Al Fayed): 1.5% Royalty 2005-2006: Discovered by Gallant/WMC 2003 26 holes drilled in extensive porphyry system Scoping Study/JV discussions
Slide 29: Zuun Mod Location Map
Cb | Te at oilae | , ’ ‘ie Busan Bor, se ir ee pall . ow ONGOLIA c ), Blde fe Springs. pipes White H
Slide 30: Zuun Mod Bulk Tonnage Potential
Ae. fGy ® Large bulk tonnage open pit potential ® Strategically located near China’s steel industry ® Close to rail and power grid ® Scoping study underway
Slide 31: Zuun Mod Geology
,. / Drill Hole 5s GEOLOGY Y/ A Cover ¢ ¢ _—,!, Zone Cretaceous Sedimets Volcanics e , Racetrack Quartz Porphyry e Zon e Granodiorite Quartz Monzonite Syenite PY) Rhyoiite w “4 Stockwork Zone
Slide 32: Zuun Mod Cross Section
Zuun Mod Racetrack Zone Line 51700E (looking west) NWOOPESBY NWOOL69B8Y NwoOEEoer § E Z vA 1300mRL Molybdenum Mineralization (average % Mo) 1200mMRL 1100mMRL Quartz Monzonite Granodiorite Andesite 1000mRL Syenite Zuun Mod Plans: Develop Joint Venture and Proceed to Feasibility
Slide 33: Erdenet Project
[ Erdenet t Project Target Copper: >0.65% copper, Target is driven more by grade than tonnage Ownership/Investment 100% Erdene* *Gallant Minerals (Al Fayed): 1.5% Royalty Project 10 holes currently testing target surrounding mine site to identify porphyry-style copper mineralization extensions from
Slide 34: Erdenet Copper District
ifs d ; >» Major porphyry copper district, produces the equivalent 130,000 tonnes (30% Cu concentrate) of copper annually plus significant molybdenum by-product >» Head grade has decreased from ~0.8% Cu in the 1980's to 0.59% today >» Erdene controls 168 km? immediately surrounding the Erdenet Mine,
Slide 35: Location of Drill Holes at Ikh Tal
Pee Meee Location of the Drill holes at Ikh tal license areas. Drill hole location
Slide 36: Drilling Continues
es O Drilling Continues Baise or preclensr Wiis Sits © Kesnitsang intone. Ping Noysmiber 2006
Slide 37: IUC Investment and Terms
Investment IUC equity investment $1 M in mid-2005 1érms J = IUC to spend $6 million over 4 years i (start 12005) to cam65% of uranium properties . mo
Slide 38: Erdene Properties Map
——_ > - zAul Ez = — F al {senkher’Gol ‘ y *s.. Galshar, 9) <x shi =) ‘ | Erdene Properties ‘ mS » @ Tolgol South Gobi as
Slide 39: Uranium Location Map
2 f Uranium Location Map o Vig, 7 a od ia ns = J 2//, "a — a =. I = %, ~ | Sandstone-hosted U Bi on, dl t= | = a ©| ® Volcanic-hosted U wy am a A Granite-hosted U _ 4 i =i : =.=) & MRAM-U oce i 2 , ° |_| @ Airborne U anomaly Fas a . | 2 i ; o_- = -—- -GURVANSAIAN gS | i: YY ved § Beitemuyjin2 a i 7&
Slide 40: IUC-Erdene Uranium Project
/ IUC-Erdene Uranium Project Currently Drilling Yant and Tsagaan Del Properties @ |
Slide 41: Investment and Terms
oh.) Investment Jan 2006 - $3 M to acquire 9.8% Erdene ownership Current ownership ~ 6% Terms Option to earn up to 75% of any coal opportunity in Mongolia Must fund all work through to completion of feasibility study
Slide 42: China - Mongolia Coal
China - Mongolia Coal ® [EO 2006 Coal Use Projections ® Increase of 2.4 billion short tons between 2003 and 2015 ® Another 2.7 billion short tons between 2015 and 2030 ® China and India accounting for 70 percent of the total world increase ® China will require another 600M tonnes annually by 2010 (A
Slide 43: Coal Properties
' Coal Properties ee a i , — | k Erdene Properties
Slide 44: Coal Properties - Galshar
l Coal Properties - - Galshar == , ® 65km from Trans- Mongolian railway and ~200km from China ® Large thermal coal resource identified at Galshar ® 49m seam intersected in late 2005 with 20m of good quality thermal coal ss ie Tsenkher Gol © . sagam Savaga goi
Slide 45: Galshar Coal Drill Program
GALSHAR COAL DRILL PROGRAM —_——-s @52 9024X GHR-05 GHR-04 (Erdene) 51 ° 7 GHR-10 IN orn @ GHR-03 GHR-08 | GHR-06 : 6 13@ r) LEGEND A Erdene drilihole J Erdene drillhole (pending) @ Erdene drilthole (05) © Russian drillhole ('77) @ Russian drillhole (74) Russian deposit reserve boundary Exploration f
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Slide 48: Outlook: Erdene Share Price
OUTLOOK Erdene Share Price (Since May 2004) 16 14 International Zuun Mod Xstrata Kaoclay 12 Tivaniun: Drill Results Alliance Acquisition ; Strategic ¥ we : wo Alliance <—Mongolia 2 1 Gallant ve Windfall Tax im Minerals ail if Oo. Acquisition t os | ath rie Ni 1 Ly A 4 y \ MO Listing on i Sj 4 \ \ Er
Slide 49: Market Facts (September 30, 2006)
! Market Facts (September 30, 2006) ®Common Shares Issued! and Outstanding ©53,041,127 @Shares Fully Diluted ©62,780.852 ® Working Capital L ®CDN$10.1 million ®Exchange Listing - Ticker Symbol @TSX (Toronto) - ERD
Slide 50: Erdene Share Structure - Outstanding
! Erdene ~ Share Structure - Outstanding Fis, Erdene ~ Share Structure - Outstanding Management and Directors (14) 10.00% Major Shareholders >1% Institutions and Funds (6) 12.00% Private Estates (2) 6.60% Xstrata Coal 6.00% Private Equity Investment Companies (3) 5.10% Private Investors (2) 2.50% In
Slide 51: Erdene Project Status Summary
Erdene Gold North America Coal: Xstrata managed Donkin feasibility underway- Aggregate: Rinker (Aggregate): dévelopment decision Se. year-end. Kaolin: 150,000 tons mined in 2006, development of new tigre areas. Mongolia 5 Se Sx Uranium: see funding, current dill ae P= ; and: : ‘ underway at Galshar.
Slide 52: Visit Our Website
Visit Our Website www.erdene.com
Erdene Resource Development — Corporate Update (November 2006) on 6ix