Developing a New Gold District in Southwest Mongolia

Erdene Resource
Development Corp.
Developing a New
Gold District in
Southwest Mongolia
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 has 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.
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 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, blanks and duplicates.
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
Corporate Highlights
Developing a New Gold District in Tian Shan Belt Through Greenfield Discovery
Advancing the Altan Nar Gold-Polymetallic Project Toward Production (100% Owned)
High-Grade Gold Discovery in Q3-2015 at Bayan Khundii Project (100% Owned)
Regional Copper-Gold Exploration Through Alliance with Teck Resources
Experienced Management and Technical Team; Exploring Mongolia Since 1997
3
Major 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
4
Tian Shan Gold Belt (2014-15 Gold Production & Highlights)
Annual Gold Production from TSX listed Companies >2M ounces
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
5
Southern Mongolia
Mining Activity & Regional Infrastructure Build-Up
Major Infrastructure Development With Access to Equipment & Manufacturing
6
Mongolia Highlights
•  In December, Rio Tinto closed $4.4 bln financing deal for Oyu Tolgoi mine in
southern Mongolia
•  In December, National Bank of Canada bought 10.5% stake in one of Mongolia’s
top banks; first strategic investment by a foreign commercial bank in the
Mongolian banking system
•  In January, significant Canadian Government-funded development projects
approved, aimed at improving governance and policy in mining sector
•  Mining sector critical component of Mongolian economy; 23% of GDP, 30% of
government revenue, and 89% of exports
•  Several mining-friendly legislative changes over the last 2 years including a
reduction in the gold royalty rate and a new Foreign Investment Law
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.”
7
Alliance with Teck Resources
§ 
Alliance established in 2013
§ 
Area of Focus: Tian Shan Copper-Gold Belt
(117,000 km2 area)
§ 
Extensive exploration by Erdene team from
2009 to present; multiple targets generated
§ 
Erdene projects (Altan Nar, Bayan Khundii,
etc.) excluded from Alliance agreement
§ 
Teck fully funding exploration for base/
precious metals on Erdene-generated targets
§ 
Teck required to invest a total of $3 mln or
acquire 19.9% of Erdene shares before right to
earn interest in any project
§ 
Teck currently owns 13% of ERD
§ 
Field work / license applications on-going
8
Southwest Gold District
Altan Nar and Bayan Khundii - Grassroots Discovery (100% Owned)
4 Million Hectare Exploration Program
Deep Seated Regional Structures
Altan Nar
200 km
Altan Nar Discovery - Ancient Pits
Containing Azurite and Malachite
20 km
Bayan Khundii
Bayan Khundii Discovery - Visible Gold on
Surface
9
Erdene Projects - Emerging Gold District
10
Altan Nar Gold Project - Highlights
Discovered 2011
Initial 43-101 Resource in 1Q15
Near-Surface Portion for First 2 of 18 Targets
High-Grade System
1Q15 Drilling Includes 19 m @ 7.8 g/t Gold Equiv.
Near-Surface
90% of Resources Within 150 m of Surface
Significant Exploration Upside
Limited Drilling on Remaining 16 Targets Along 5.6 km Trend
100% Ownership in Project
No Related Royalties or Burdens
Carbonate Gold, Base Metal System
Analogous to Some of Asia’s Largest Gold Deposits
11
Altan Nar Gold Project
Initial Resource Estimate on First 2 of 18 Targets
Extent of Initial
1Q15 Resource
Highlights
§  18 targets along 5.6 km trend
Union
North
§  Average vertical drilling depth: 105 metres
§  Initial 1Q15 NI 43-101 Resource Estimate
Discovery
Zone
§  62% of total drilling confined to Discovery
Zone and Union North
§  Resource open in all directions
500m
§  88% drilling success rate intersecting
target mineralized zones
§  Exploration license in 7th of 12th year
12
Altan Nar Gold Project - Discovery Zone
Intensely Mineralized, Near Surface, Open to North & at Depth
3Q-2015 Drill Result
Previous Drill Result
16 m @ 8.7 g/t AuEq
11 m @ 2.6 g/t AuEq
19 m @ 7.8 g/t AuEq
94 m @ 1.0 g/t AuEq
7 m @ 7.1 g/t AuEq
22 m @ 2.8 g/t AuEq
53 m @ 2.0 g/t AuEq
(5.8m @ 7.0 g/t AuEq)
9m @ 9.2 g/t AuEq
8 m @ 6.0 g/t AuEq
See cross-section
on following slide
16 m @ 7.1 g/t AuEq
21 m @ 3.0 g/t AuEq
13
Altan Nar Gold Project - Discovery Zone
Cross Section A
Continuous, High-Grade Mineralization From Surface and Open at Depth
14
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
15
Altan Nar Gold Project
1Q-2015 Initial Resource Estimate (First Two Deposits)
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
1.39
203,800
Inferred
4.23
0.65
8.3
0.31
0.45
1.17
158,800
Indicated
3.37
1.03
9.4
0.47
0.57
1.71
184,900
Inferred
3.02
0.85
9.4
0.35
0.51
1.43
139,300
Indicated
2.50
1.33
10.4
0.51
0.60
2.06
165,300
Inferred
2.00
1.19
10.1
0.38
0.54
1.81
116,500
Indicated
1.85
1.71
11.1
0.54
0.61
2.47
146,800
Inferred
1.50
1.49
10.4
0.39
0.54
2.12
102,100
Indicated
1.50
2.03
11.5
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
11.8
0.45
0.58
3.18
62,500
0.4
0.6
0.8
1.0
1.2
2.0
Initial Resource
Areas
500m
Note: See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates
16
Altan Nar Strategic Option Analysis
Metallurgy and Process Options
§  Strategic Option Analysis being completed by RPM (“RungePincockMinaraco”)
§  Metallurgical Testing Program completed by Blue Coast Research Ltd. on
Discovery Zone North Material
- 
Gold responded very well to direct leaching with recoveries of 88%
- 
High-grade gold-lead-silver concentrates can be produced with good recoveries using
conventional lead-zinc differential flotation
Au
Assay
Ag
Pb
Zn
(%)
(g/t)
(g/t)
(%)
100
2.5
16.1
Lead Concentrate
0.97
229.1
Zinc Concentrate
0.84
Sulphide Concentrate
Combined
Processing
Flowsheet
Mass
Head Grade
Recovery
(%)
Au
(%)
Ag
(%)
Pb
(%)
Zn
(%)
0.81
0.67
-
-
-
-
1,029
61.87
5.53
74.7
64
74.4
7.8
20.2
242
5.78
50.28
5.7
13
6.0
61.3
4.01
6.2
14
0.82
0.52
8.4
3.5
4.1
3.1
5.82
-
-
-
-
88.8
81
84.5
72.2
100
-
-
-
-
87.8
64
-
-
Flotation
Cyanidation (48 hour)
Source: Blue Coast Research Ltd. Altan Nar Metallurgical Study, 3Q-2015
17
Erdene Projects - Emerging Gold District
18
Bayan Khundii Gold Discovery
§  Ownership: New discovery on 100% owned license
announced October 2015
§  High Grade: up to 4,380 g/t gold in surface samples;
187 g/t gold over 1m in drilling
§  Scale: Pervasive, low-grade gold in alteration system
enveloping high-grade zones (16 g/t gold over 12m)
§  Metallurgy: Visible gold observed in multiple locations
(10 of 15 drill holes) with no significant sulphide
material present
§  Mining: Initial drilling establishes good continuity and
favorable geometry for possible open pit development
§  Expansion: All targets tested within 50 metres of surface
and open along strike and at depth
§  Plans: Second drill program expected to commence in
April 2016
19
Bayan Khundii Gold Discovery
Intense Mineralization Over 550 m x 300 m Area
20
Bayan Khundii Gold Discovery
Cross-Section 1: High-Grade Gold Over 400 Metres
BKD-­‐09; 1m samples from 33 to 59m 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 21
Bayan Khundii Gold Discovery
Cross-Section 2: 60m Step-Out Hole from 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 22
Bayan Khundii Gold Discovery
Coincident Resistivity Anomaly with Structure
ohm-­‐m 23
Bayan Khundii Gold Discovery
Visible Gold Showings in 10 of 15 Drill Holes
24
Moving Forward – 2016
Bayan Khundii Gold Discovery
Ø  Second Phase of Drilling
Ø  Metallurgical Testing Initiated
Ø  Resource Drilling
Altan Nar Gold-Polymetallic Project
Ø  Additional Metallurgical Process Testwork
Ø  Independent Strategic Options Analyses
Ø  Mining License Application to be Initiated
Regional Exploration; Teck Alliance
Ø  Copper-Gold Prospecting and Tenement
Applications Funded Through Alliance with Teck
25
What Sets Erdene Apart?
‒ 
‒ 
‒ 
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
Explora5on Discovery Feas-­‐ Const-­‐ ibility ruc5on Prod-­‐ uc5on Very high grades
Mineralized zones near vertical, exposed at surface
Excellent Metallurgy
‒ 
‒ 
88% gold recovery using conventional processing at DZN,
Altan Nar
Coarse gold, low sulfide association at Bayan Khundii
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
26
Corporate Snapshot
Capital Structure
Trading Info
Share Price
52 Wk Range
Shares Outstanding
Shares Fully Diluted
Market Cap
TSX: ERD
$0.15
$0.10-0.17
105 M
124 M
$16 M
Share Distribution
Management
Peter Akerley, President & CEO, Director
Ken MacDonald, VP Bus. Development, CFO
Mike MacDonald, Director of Exploration
Mike Gillis, Director of Operations
Dawson Brisco, Manager Corporate Dvpmt
Board Of Directors
Chris Cowan (Chairman), Mining executive/engineer
with 40+ years in senior industry positions
12% 11% Teck Resources
William Burton, Mining industry executive/geologist with
ERD Mgmt & Directors
John Byrne, Finance industry professional with over 30
Lion Selection Group
59% 6% 4% 2% 6% Khan Investments
Glencore
Other Institutional
Retail
30+ years in the industry
years experience in the Canadian banking industry
Layton Croft, Experienced Mongolian mining industry
professional (Oyu Tolgoi LLC & Peabody)
Phillip Webster, President of Imperial Windsor Group
---------David Mosher (strategic advisor), Mining industry
executive with 35 years in the industry. Former CEO of High
River Gold Mines Ltd.
27
ERD Performance - 24 Months
10% Increase vs. TSX-V Comp over 24 months
35% Increase vs. TSX-V Comp over 12 months
Mkt Cap CDN Millions ERD - TSX Market Capitalization: 4 fold increase since Q4 2013
$20 $16 $12 $8 $4 $-­‐ Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q1 2016 28
Erdene Resource
Development Corp.
January
2016
Developing a New
Gold District in
Southwest Mongolia
TSX: ERD
Peter C. Akerley
President & CEO, Director
Tel
902-423-6419
Email
[email protected]
Website www.erdene.com
Twitter
@ErdeneRes