Erdene Corporate Presentation

DISCOVERING A NEW GOLD DISTRICT
IN SOUTHWEST MONGOLIA
Erdene Resource
Development Corp.
Forward Looking Statements
Certain information regarding Erdene ("the Company") contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forwardlooking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the
Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been
correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and
results may vary substantially from what the Company currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements
include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions.
All Mineral Resources for Altan Nar reported in this presentation represent estimates as at 19th February, 2015. RungePincockMinarco (“RPM”) have considered the costs,
recoveries and dilutions expected by comparing with other similar deposits in the region and adjusted these by considering the location of the Project and the deposit
characteristics. Mineral Resource grades are reported in accordance with the CIM Standards.
Mineral Resource Estimates for Altan Nar are reported on a dry in-situ basis. Gold equivalent (“AuEq”) values are used in an effort to express the combined value of gold, silver,
lead and zinc as a percentage of gold, and are provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually
result. Calculations use metal prices of US $1,200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.
The Mineral Resource estimates for Altan Nar have been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian
Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has
undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure.
Please refer to the NI 43-101 compliant mineral resource report for Altan Nar, dated March 24, 2015, entitled “Altan Nar Gold Project, National Instrument 43-101 Mineral Resource
Technical Report”, available on the Company’s profile at www.sedar.com, as well as the Company’s news release dated March 31, 2015, for further details on the Altan Nar mineral
resource estimate.
Reported drill hole intervals at Altan Nar represent drill intersection widths with most holes drilled at a 45 degree angle. For the Discovery Zone, the orientation of the mineralization
is near vertical and therefore true width is interpreted to be approximately 70% of the reported intervals. For Union North the mineralized zone has an interpreted dip of 45 degrees
therefore true width is close to reported drill hole intervals. All holes in Union North were drilled perpendicular to the trend of mineralization.
Reported drill hole intervals at Bayan Khundii represent drill intersection widths from holes drilled at a 45 to 60 degree angle. The Bayan Khundii mineralization is moderately
dipping (approximately 40 to 50 degrees) perpendicular to the drill hole angle.
Results for the metallurgical test programs summarized in this release were reviewed and approved by Andrew Kelly, P.Eng., of Blue Coast Research Ltd., a Qualified Person for
the purpose of National Instrument 43-101. All other technical/geologic information contained herein has been reviewed and approved by Michael MacDonald, P.Geo. (Nova
Scotia), Director of Exploration for Erdene, who is the Qualified Person as that term is defined in National Instrument 43-101. All drill result samples have been assayed at SGS
Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards and
blanks. All metallurgical testing and analysis was carried out by Blue Coast Research Ltd. at their facility in Parksville, British Columbia.
The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date
and subject to change after that date.
Unless otherwise indicated, all dollar values herein are in C$.
2
Investment Highlights
Discovering and Developing a New Gold District in the Tian Shan Belt
High-Grade Gold Discovery at Bayan Khundii Project (100% Owned)
Advancing the Altan Nar Gold-Polymetallic Project (100% Owned)
Regional Copper-Gold Exploration Through Alliance with Teck Resources
Recent $2.5 Million Financing and Royalty Sale with Sandstorm Gold
Experienced Management Team
3
Erdene in Mongolia
Focused on the Discovery of World Class Copper & Gold Projects
§  Erdene listed on the TSX in 2004 to focus on Mongolia
§  Principals working in Mongolia since 1996
§  Acquired Gallant Minerals (Mohamed Al-Fayed co.) in 2005
§  Partnered with Xstrata for coal exploration in 2006
§  Partnered with Teck Resources for copper exploration in 2013
§  Employ 6 full time and up to 25 seasonal personnel in Mongolia;
4 employees in Canada
§  Possess one of the largest geological and mineral resource
databases in the Country
§  Explored > 1,000 metal occurrences and > 200 coal occurrences
4
Erdene Board and Advisors
Board of Directors
Chris Cowan, Chairman
Mining executive/engineer with 40+ years in senior industry
positions, including 28 years with Falconbridge Ltd.
Layton Croft
Corporate executive with 12+ years in senior roles with
several Mongolia focused companies, including Oyu Tolgoi
as Executive VP Corporate Affairs and Social Responsibility.
William Burton
Mining industry executive/geologist with 30+ years in the
industry. Former President & CEO of MagIndustries Corp
(1997-2010). Previously VP Exploration for International
Pursuit, evaluating gold properties in Asia (incl Mongolia).
John Byrne
Finance industry professional with 30+ years experience in
the Canadian banking industry. President of Petroleum
Corporation of Canada Exploration Ltd (Petrex) since 1997.
Phillip Webster
President of Imperial Windsor Group, private investment
holding company, since 1998. Trustee of the R. Howard
Webster Foundation, the Zeller’s Family Foundation and the
Constance Lethbridge Foundation.
Executive
Peter Akerley, CEO, & Director
27 Years international mining industry
experience; 18 years involved in
Mongolia
Ken MacDonald, VP & CFO
35 year finance professional, CA,
>20 years in mining
Strategic Advisors
David Mosher
Geologist & mining executive with 35
years international experience;
President & CEO of High River Gold
Mines developed gold mines in
Burkina Faso and Russia
Bilguun Ankhbayar
Mongolian mining industry finance
professional, based in Ulaanbaatar.
Currently the CEO of domestic
investment dealer, Mongolian
Investment Banking Group,
5
Corporate Snapshot
Stock Symbol
ERD (TSX)
Share Price (May 6th)
$0.33
52 Week Range
$0.11 - $0.33
Market Cap
$38 M
Shares Outstanding
115 M
Shares Fully Diluted
131 M
Cash & Securities
$3 M
Debt
nil
8.7 M Warrants; Avg.
$0.20 Price (expiry 2016)
11.8%
11.4%
6.3%
56.3%
4.4%
4.4%
5.5%
Value: $1.76 M
Share Performance Since Bayan Khundii
Discovery (Sept 2015 to May 6)
$0.35
$0.30
$0.25
$0.20
$0.15
$0.10
Shareholder Summary
Erdene Mgmt & Directors
Teck Resources
Lion Selection Group
Khan Investments
Sandstorm Gold
Other Institutional
Retail
All Figures in Cad $
6
Sandstorm Financing April 20th, 2016
§  Closed a $2.5M financing with Sandstorm Gold, a leading Royalty and
Streaming company:
-  $1.5M in common shares of Sandstorm; and
-  $1.0M cash through equity financing comprising 5M common shares of Erdene at
$0.20/share with 18 month hold
§  Sandstorm granted 2% NSR Royalty on Erdene’s Bayan Khundii & Altan Nar
projects
§  Erdene granted a 3-year option to buy-back 50% of the NSR Royalty for $1.2M,
to reduce the Sandstorm NSR Royalty to 1.0%
§  Sandstorm granted a right of first refusal on future stream and/or royalty
financings related to the Bayan Khundii and/or Altan Nar projects
7
Mongolia Recent Highlights
§  Q4 2015 - $4.4 bln financing approved for Rio’s Oyu Tolgoi mine
§  Q4 2015 - National Bank of Canada buys 10.5% stake in one of
Mongolia’s top banks
§  Q1 2016 - Canadian Government-funded mining focussed development
projects approved
§  Q1 2016 - Centerra Gold’s Gatsuurt secures parliamentary approvals
§  Improved legislative environment over the last 2 years
§  Reduction in the gold royalty rate
§  Mining sector; 23% of GDP, 30% of govn’t revenue, and 89% of exports
Rio Tinto chief development officer on Oyu Tolgoi (Sept 2015)
“It's the biggest and best new project we've got, full-stop, across the group.”
8
Giant Porphyry-Epithermal Gold
Terranes and Deposits
Prolific Tian Shan Gold Belt
Includes some of the largest economic gold accumulations in the world
Second only to Witwatersrand in South Africa for known gold resources
9
Tian Shan Gold Belt
2014-15 Gold Production from TSX listed Companies > 2 Moz
Polymetal buys
Bakyrchik Gold
Projects: US$618M
Bayan Airag: First
gold production in
Q2-2014
Centerra Gold advances
1.6 Moz Gatsuurt gold
deposit
Kinross’s Kupol, 37%
increase in production to
~750,000 oz Au
Erdene Eldorado’s three China
gold mines produced >
360,000 oz Au
Turquoise Hill (Rio
Tinto), 589,000 oz Au
produced
China Gold
production increases
22% to 180,674 oz Au
Polymetal, 130,000 oz Au
in concentrate (Mayskoye)
refined in China
10
Southern Mongolia
Mining Activity & Regional Infrastructure Build-Up
Major Infrastructure Development With Access to Equipment & Manufacturing
11
Southwest Mongolia
Gold & Copper Exploration (2009 to 2016)
§  Extensive exploration by Erdene since 2009
-  Gold discoveries 2010 to 2015
-  Created copper exploration alliance with Teck
in 2013
-  Excludes gold projects: Altan Nar and Bayan
Khundii
§  Alliance with Teck Resources (2013-16)
-  Objective to discover large, near surface metal
deposits on behalf of Alliance
-  Ultimately a 75:25 partnership
-  Area of Focus: Tian Shan Copper-Gold Belt
(117,000 km2 area)
-  Teck fully funding exploration through equity
placements
-  Teck required to invest a total of $3 mln or
acquire 19.9% of Erdene shares before right to
earn interest in any project
12
Erdene Projects - Emerging Gold District
13
Altan Nar Gold Project - Highlights
Ownership - 100% Erdene
Multiple Targets - 18 targets over 5.6 km trend
Shallow - Average drilling depth of 105 metres
Extent of Initial
1Q15 Resource
Union North
(UN)
Discovery
Zone (DZ)
Resource - Only 2 of 18 targets included
High-Grade - 2015 drilling: 19 m of 7.8 g/t AuEq
Metallurgy - 88% gold recovery (Discovery Zone North)
Expansion - Mineralization open in all directions
14
Altan Nar Gold Project
Discovery Zone
Intensely Mineralized, High-Grade, Near-Surface, and Open at Depth
N
Cross-section
100 m
15
Altan Nar Gold Project - Union North
Multiple Mineralized Structures Open in All Directions
3Q-2015 Drill/Trench Result
30 m @ 1.4 g/t AuEq
Previous Drill/Trench Result
6 m @ 6.7 g/t AuEq (T)
28 m @ 2.5 g/t AuEq (T)
5 m @ 7.7 g/t AuEq
12 m @ 5.4 g/t AuEq
19 m @ 15.2 g/t AuEq (T)
12 m @ 5.3 g/t AuEq
9 m @ 7.6 g/t AuEq (T)
9 m @ 5.4 g/t AuEq
11 m @ 6.7 g/t AuEq (T)
10 m @ 4.1 g/t AuEq
9 m @ 6.2 g/t AuEq
16
Altan Nar Gold Project
1Q-2015 Initial Resource Estimate
§ 
NI 43-101 Resource Estimate on first 2 of 18
priority targets
§ 
90% of mineral resource is <150m of surface;
all zones open along strike and at depth
§ 
Multiple undrilled and scout-drilled prospects
along the 5.6 km trend have the potential for
hosting additional gold-polymetallic resources
Extent of Initial
1Q15 Resource
Union North
(UN)
Discovery
Zone (DZ)
NI 43-101 Resource Estimate (February 19, 2015) 1
Cut-Off
Resource
Tonnes
Au
Ag
Pb
Zn
AuEq, g/t
Category
Mln
g/t
g/t
%
%
Indicated
1.85
1.71
11.1
Inferred
AuEq
g/t
oz
0.54 0.61
2.47
146,800
1.50
1.49 10.4 0.39 0.54
2.12
102,100
Indicated
1.50
2.03
0.56 0.60
2.80
134,400
Inferred
1.17
1.77 10.7 0.39 0.53
2.41
90,600
Indicated
0.82
2.99 13.5 0.63 0.63
3.83
100,900
Inferred
0.61
2.47
3.18
62,500
1.0
11.5
500m
1.2
2.0
11.8
0.45 0.58
1. See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates
17
Erdene Projects - Emerging Gold District
Bayan Khundii Discovery Q2 2015
18
Bayan Khundii Gold Project
Intense Mineralization Over 475 x 300 m Area
Initial Surface Rock Chip/Grab Sampling Returned Very High Grade Gold Results
19
Bayan Khundii Gold Project
Q4-2015 and Q2-2016 Exploration Programs
§  695 metres of drilling completed in Q4-2015;
§  Maximum drill depth: < 50 metres
§  Visible gold identified in 10 of 15 holes
§  Results included 35 m of 5.9 g/t gold in hole BKD-10 (including 12 m of
16.2 g/t gold) from surface to the bottom of the hole
§  Follow-up drill program (3,500 metres) initiated Q2-2016
§  Results of first 7 of 30 holes released May 9th
§  Continuity of Striker Zone traced 100m down-dip with 63 m of 5.3 gold in
hole BKD-17
§  Broad zones of mineralization increase confidence in much larger system,
with 83 m of 0.6 g/t gold in hole BKD-16
§  Western extension of Striker Zone supported by field observation with
visible gold identified in most holes and trenches
§  Additional drill results anticipated in late Q2-2016
20
Bayan Khundii Gold Project
Q4-2015 and Q2-2016 (on-going) Drill Programs
21
Bayan Khundii Gold Project
Line 4 (Striker Zone): High-Grade Gold Over 500m
BKD-­‐09; 1m samples from 33 to 59m (g/t) 0.21 79.40 18.50 0.03 0.11 0.08 0.28 0.08 0.06 0.24 0.18 0.77 38.90 0.30 5.21 4.56 0.25 1.04 0.60 1.37 0.67 1.09 0.19 0.22 0.43 0.33 22
Bayan Khundii Gold Project
Line 5: 40m Southeast of Striker Zone
BKD-­‐10; 1m (g/t Au) 0.11 0.15 0.18 0.11 0.17 0.10 0.09 0.08 0.17 0.11 0.14 2.98 0.69 3.01 1.25 0.05 0.12 4.22 2.65 2.27 3.37 167.00 6.27 0.30 0.10 0.07 0.31 0.12 1.14 0.15 0.28 0.67 0.05 0.14 23
Bayan Khundii Gold Mineralization
24
Bayan Khundii Gold Project
Growth Potential - Looking Northeast from Westridge 25
Bayan Khundii Gold Project
Multiple Gold Targets Over 4 km Trend
High-Grade Gold Discovered 3.5 km
Outside of Main Mineralized Zone
High-Grade Gold 3.5 km From Main Mineralized Zone
6.9 g/t Au
3.5 g/t Au
1.3 g/t Au
0.9 g/t Au
4.1 g/t Au
Main Zone
500 metres
Anomalous Gold Sample
2015 Drill Hole
26
Bayan Khundii Gold Project
High Resistivity and Chargeability Connect Targets Under Cover
High-Grade Gold 3.5 km From Main Mineralized Zone
6.9 g/t Au
3.5 g/t Au
1.3 g/t Au
0.9 g/t Au
4.1 g/t Au
Main Zone
500 metres
Anomalous Gold Sample
2015 Drill Hole
27
Bayan Khundii Gold Project
Excellent Initial Metallurgy
§  Gold is free milling and amenable
to conventional processing
techniques
§  Gravity concentration and
cyanidation of the gravity tails
yielded:
-  99% recovery from highgrade composite (24.9 g/t Au)
and
-  92% from low-grade
composite (0.7 g/t Au)
28
Bayan Khundii Gold Project
2016 Exploration Program Underway
§  3,500 m diamond drill program - commenced on April 8th
§  35 line km of IP Gradient Array geophysical surveys - underway
§  20 line km of IP Dipole-Dipole geophysical surveys - underway
§  18 km2 of gravity geophysical surveys - underway
§  Infill (25 m) and reconnaissance (100-200 m) soil sampling over
specific target areas
§  Additional geologic mapping over larger license area
§  Mineralogical studies; mineralogy, alteration, and characteristics of
mineralization
§  Mining Licence Application Studies: Hydro, Environmental
29
Bayan Khundii Gold Project
2016 Drilling Program
Extent of Drilling for
Remaining Holes in
Q2 program (~1700m);
10 to 12 holes
Completed Hole
Collars and Traces
Holes BKD-01 to 31
(results for BKD-23 to
31 pending)
30
Bayan Khundii Gold Project
§  100% Ownership
§  High Grade
§  Large Scale - 1.7 km Trend
§  Excellent Metallurgy
§  Near Surface
§  Open at Depth
§  Regional Scale Targets
31
Bayan Khundii and Altan Nar Projects
Objectives
§  Establish limits and size potential of gold mineralization
at Bayan Khundii
§  Grow the resource base at Bayan Khundii and Altan Nar
§  Complete the necessary studies required to secure a
mining license and necessary permits for both projects
§  Complete the various technical studies to support
scoping through feasibility required to make
development decision
32
Strong Gold Fundamentals
Global Gold Discoveries Declining 1
Global Gold Mine Supply Declining 2
Tonnes
Mln Oz
3,200
3,000
2,800
2,600
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
150
125
100
75
50
25
0
Gold Exploration Activity at 7-Year Low 3
US$/oz
Index
Gold Price
Gold Pipeline Activity Index
$2,000
200
$1,600
160
$1,200
120
$800
$400
80
Q1'08
Q1'09
Q1'10
Q1'11
Q1'12
Q1'13 Q1'14
Q1'15
40
2,400
2010
2011
2012
2013
2014
2015e
2016e
2017e
Grade Declining and Costs Increasing 4
Cost, US$/oz
1200 1000 800 All-in Sustaining Cash Cost
Mine
Grade, g/t
d Gr
ade 2.0 1.5 600 1.0 400 0.5 200 0 2.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0.0 Sources: 1) SNL Metals Economics Group; 2) Thomson Reuters GFMS Gold Survey 2015; 3) SNL Metals and Mining; ICE Benchmark, World Gold Council; 4) GFMS Mine Economics and World Gold Council
33
Why Invest in ERD?
‒ 
‒ 
‒ 
Developing a new gold district through greenfield discovery
Early in exploration to development value curve
Low point in commodity cycle = low valuations
Ownership
‒ 
100% interest in Projects
Growth Potential
‒ 
‒ 
Limited drilling to date
All targets open for expansion over large areas
High-Grade & Near Surface
‒ 
‒ 
Development Stage of a Successful Mining Company
Value / ~Market Cap Early-In Opportunity
Bayan Khundii /
Altan Nar
ExploraEon Discovery Feas-­‐ Const-­‐ ibility rucEon Prod-­‐ ucEon Very high grades
Mineralized zones near vertical, exposed at surface
Excellent Metallurgy
‒ 
‒ 
99% gold recovery for high-grade Bayan Khundii
88 to 92% for Low Grade Bayan Khundii & Altan Nar (DZN)
Experience
‒ 
Very experienced management team; in Mongolia since the
mid-1990’s
Location & Infrastructure
‒ 
‒ 
Region receiving rapid rail & road upgrades
Next door to world’s second largest gold consumption
region and largest gold producer
34
Erdene Resource
Development Corp.
Developing a New
Gold District in
Southwest Mongolia
Q2 - 2016
TSX: ERD
Peter C. Akerley
President & CEO, Director
Tel
902-423-6419
Email
[email protected]
Website www.erdene.com
Twitter
@ErdeneRes