Erdene AGM PresentationJune 2016

DEVELOPING 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 Mineral Belt
High-Grade Gold Discovery in 2015 at Bayan Khundii Project (100% Owned)
Advancing the High-Grade Altan Nar Gold-Polymetallic Project (100% Owned)
Recent Financing and Royalty Transaction with Sandstorm Gold
Recent Financing with Teck Resources to Fund Copper Exploration
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 Executive
Board of Directors
Chris Cowan, Chairman
Mining executive/engineer with 40+ years in senior industry positions,
including 28 years with Falconbridge Ltd.
Executive
Peter Akerley, CEO & Director
27 years international mining industry experience.
Geologist with extensive experience in foreign
jurisdictions, with a focus on Mongolia over the
last 20 years.
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.
Ken MacDonald, VP & CFO
35 year finance professional, CA, >20 years
in mining.
William Burton
Mining industry executive 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).
Layton Croft
Board of Director Nominees
Dr. Anna Biolik
Corporate executive with 12+ years in senior roles with several
Mongolia focused companies, including Oyu Tolgoi as Executive VP
Corporate Affairs and Social Responsibility.
One of the foremost Canadian experts on Central
Asian business and diplomacy. Former Canadian
Ambassador to Mongolia, Kazakhstan, Kyrgyzstan
and Tajikistan.
Phillip Webster
David Mosher
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.
Geologist and mining executive with 35 years
international experience; President & CEO of High
River Gold Mines; developed gold mines in Burkina
Faso and Russia.
5
Erdene Management Team
Canada Office
Mongolia Office
Ganzorig Enkhbaatar
Peter Akerley
Mike Gillis
CEO & President
Director of Operations
GIS Technician
Ken MacDonald
Bayarmaa Bagabandi
Gansukh Yakhuu
CFO
Mike MacDonald
Director of Exploration
Mike MacDonald
Director of Finance
Dawson Brisco
Corporate Development
Oyunaa Akerley
Administrative Manager
Administrative Manager
Geologist Assistant
Bat-Erdene Gendenjamts
Bilguun Ankhbayar
Senior Geologist
Advisor
Erdenebileg Pagva
Community Relations Manager
Ulambayar Uuganbayar
Bookkeeper
Erdenebaatar Otgonbaatar
Geologist
6
Corporate Snapshot
Stock Symbol
ERD (TSX)
Share Price (June 10)
$0.35
52 Week Range
$0.11 - $0.55
Market Capitalization
$41 M
Shares Outstanding
121 M
Shares Fully Diluted
132 M
Cash & Securities
$3 M
Debt
nil
5.9 M Warrants; Avg.
$0.19 Price (expiry 2016)
Value: $1.1 M
Share Performance Since Bayan Khundii
Discovery (Sept 2015 to June 2016)
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
Shareholder Summary
12.5% 10.8% 4.1% 61.3% 11.3% Erdene Mgmt & Directors
Teck Resources
Sandstorm Gold
Institutional
(Lion Selection Group, Khan
Investments, other)
Retail (14% Nova Scotian)
All Figures in Cad $
7
Sandstorm & Teck Financings Q2-2016
Sandstorm Gold Ltd. - A Leading Royalty and Streaming Company
§  $2.5M financing and royalty sale completed in April 2016
§  Comprised of $1.5M in common shares of Sandstorm, and $1.0M cash through equity
financing (18 month hold)
§  Sandstorm granted 2% NSR Royalty on Erdene’s Bayan Khundii and 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%
Teck Resources Limited - Canada’s Largest Diversified Miner
§  $500,000 private placement completed in May 2016
§  1.06M shares granted to Teck at $0.47/share
§  Fulfills Teck’s annual equity investment pursuant to copper exploration Strategic Alliance
8
Mongolia Highlights
Market Capitalization Re-Rating, YOY
$100
$90
Mongolia Highlights
§ 
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
§ 
Q2 2016 - Rio Tinto approves $5.3 bln expansion
for Oyu Tolgoi mine
§ 
Q2 2016 - Robert Friedland group merges with
Kincora Copper
§ 
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
$80
$70
$60
$50
$40
$30
$20
$10
$0
Kincora
Copper
Erdene
May 2015 Market Cap
Entrée
Gold
Khan
Xanadu
Resources Mines
May 2016 Market Cap
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.”
9
Regional Gold Developments
CSH, China
China Gold International
Boroo Gold Mine, Mongolia,
Centerra
5Moz open pit, heap leach. Producing 140 kt/yr
@ 0.5 g/t Au grade @ $700/oz cash cost.
Now reclaimed. Produced 1.5 Moz at approx.
$500/oz cash cost.
Jinfeng Mine, China,
Eldorado Gold (sold)
Kumtor Mine, Kyrgyzstan,
Centerra
Biox plant produces 120 Koz/yr @ 3.2 g/t Au
grade @ 500/oz cash cost. Initial capex $95M.
CIL plant produces 315 Koz/yr @ 2.8 g/t Au
grade @ $655/oz cash cost
10
Strong Gold Fundamentals
Global Gold Discoveries Declining 1
Global Gold Mine Supply Declining 2
Tonnes
Mln Oz
3,200
3,000
2,800
2,600
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
150
125
100
75
50
25
0
Gold Exploration Activity at 7-Year Low 3
US$/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
11
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
12
Tian Shan Gold Belt
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 mine
produces 758,000 oz
AuEq in 2015
Erdene Eldorado sells three
China gold mines for
US$900 M
Turquoise Hill (Rio
Tinto), 653,000 oz Au
produced in 2015
China Gold Intnl
production increases
to 205,000 oz Au
Polymetal, 130,000 oz Au
in concentrate (Mayskoye)
refined in China
13
Southern Mongolia Infrastructure
Mining Activity & Regional Build-Up
Major Infrastructure Development With Access to Equipment & Manufacturing
14
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
15
Erdene Projects - Emerging Gold District
High Grade Gold: 18 targets along 5.6 km
mineralized trend, 2 deposits
High grade copper-gold discovery
Copper discovery
Large alteration zone, including up to 31.4 g/t
gold in trenching
Late 2015 high-grade gold discovery; Q2-2016
Drill Highlight - 63 m of 5.3 g/t gold
16
Altan Nar Gold Project - Highlights
Extent of Initial
1Q15 Resource
Ownership - 100% Erdene
Union North
(UN)
Multiple Targets - 18 targets over 5.6 km trend
Shallow - Average drilling depth of 105 metres
Discovery
Zone (DZ)
Resource - Only 2 of 18 targets included
High-Grade - 2015 drilling: 19 m of 7.8 g/t AuEq
500m
Metallurgy - 88% gold recovery (Discovery Zone North)
Expansion - Mineralization open in all directions
17
Altan Nar Gold Project - Discovery Zone
Intensely Mineralized Gold-Polymetallic Deposit
High-Grade, Near-Surface, Steeply Dipping Zones, and Open at Depth
Plan Map
N
100m @ 1.1 g/t AuEq
19m @ 7.8 g/t AuEq
51m @ 2.5 g/t AuEq
Cross-section
16m @ 7.1 g/t AuEq
100 m
NI 43-101 Resource - Near Surface - Discovery Zone
93,000 ounces indicated (2.4 g/t AuEq) & 76,000 ounces inferred (2.2 g/t AuEq)
18
Altan Nar Gold Project
Significant Potential at Depth
Epithermal Deposit Comparison Highlighting Expansion Potential at Depth
Average Depth
of Altan Nar
Drilling
High Grade Gold
19
Altan Nar Gold Project - Union North
Multiple Mineralized Structures Open in All Directions
Drill and Trench (T) Result
30 m @ 1.4 g/t AuEq
6 m @ 6.7 g/t AuEq (T)
28 m @ 2.5 g/t AuEq (T) - Q3 2015
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 - Q3 2015
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
4 m @ 11.0 g/t AuEq (T) - Q3 2015
Q1 2015: 31,000 Indicated ounces @ 4.3 g/t
AuEq & 15,000 Inferred ounces @ 2.7 g/t AuEq
20
Altan Nar Gold Project
Initial Resource Estimate on First 2 of 18 Targets
§ 
Shallow resource established for initial starter
pits on first 2 of 18 priority targets
§ 
90% of mineral resource is <150 m of
surface; all zones open along strike and at
depth
§ 
Multiple undrilled and scout-drilled prospects
along the 5.6 km trend
§ 
Extent of Initial
1Q15 Resource
Union North
(UN)
Discovery
Zone (DZ)
Significant potential for hosting additional
gold-polymetallic resources
NI 43-101 Resource Estimate (February 19, 2015) 1
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
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
500m
0.4
1.0
1. See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates
21
Bayan Khundii Gold Project
Q3 2015 - Multi-Ounce Gold Surface Samples
Initial Surface Sampling - up to 4,380 g/t Gold
Striker
Westridge
Gold Hill
Stockwork
22
Bayan Khundii Gold Project
Drill-Trench Plan Map
500 m
STRIKER
WEST
STRIKER
WESTRIDGE
GOLD HILL
23
Bayan Khundii Gold Project
Looking Northeast from Westridge
24
Bayan Khundii Gold Project
Drill-Trench Plan Map
500 m
Line 4
25
Bayan Khundii Gold Project
Line 1: 40m Northwest of Striker Zone
BKD-­‐28 1m (g/t Au) 0.23 1.23 0.35 0.27 0.23 1.40 3.13 5.91 0.12 0.16 0.18 0.12 0.13 0.11 0.75 0.34 0.20 0.09 0.12 0.21 0.55 0.71 0.13 0.61 0.72 0.69 0.67 1.31 0.60 0.37 0.22 0.11 0.19 0.63 0.21 1.07 2.76 0.38 0.41 0.36 0.28 0.33 0.40 0.43 0.3 0.34 0.21 0.40 3.77 18.4 1.33 0.89 0.49 1.08 7.00 0.42 0.11 1.34 1.18 26
Bayan Khundii Gold Project
Line 2 (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 27
Bayan Khundii Gold Project
Line 3: 40m Southeast of Striker Zone
1m @
19.6 g/t
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 28
Bayan Khundii Gold Project
Line 4: Long Section Through Striker Zone
35m
70m
105m
140m
29
Bayan Khundii Gold Project
Low Sulphidation Epithermal Model
500m
Striker
Zone
Silica Cap
(silicification)
Gold
Hill
Silica Cap
(silicification)
Source: Adapted from Buchanan (1990); Hollister (1995); Beger & Eimson (1990)
Stockwork
Zone
30
Bayan Khundii Gold Project
June 14th Drill Highlights
Hole BKD-32
115m @ 0.43 g/t,
continuous mineralization
below 35 m younger cover
500 m
Trench BKT-17
7 m @ 8.7 g/t within
37 m of 2.1 g/t Au
350 m
Hole BKD-20 extension
1 m @ 19.6 g/t
Hole BKD-40
2 m @ 15.3 g/t and 18 m of
0.4 g/t below younger cover
Hole BKD-34
26 m of 2.0 g/t within
66 m @ 1.0 g/t
31
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
Northeast Zone
6.9 g/t Au
3.5 g/t Au
1.3 g/t Au
Main Zone
4.1 g/t Au
500 metres
Anomalous Gold Sample
Drill Hole
32
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)
33
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
34
Strategic Options Analyses
Preliminary Evaluations in Preparation for Feasibility Level Study
§  Study to evaluate mining and processing
parameters/options/costs for
development
§  Testing through RPM and Blue Coast
Research Labs; Gravity, Carbon-in-pulp
(CIP) and Flotation on Bayan Khundii
and Altan Nar
§  Evaluating various throughput rates for
scheduling
§  Evaluations will continue leading up to
formal studies following final resource
estimate
35
Regional Infrastructure
§  Road
-  175 km to rail head / mining center (Ceke Port
of Entry on China border)
§  Water
-  Hydrogeological study completed in Tsahildag
Khudag Basin (cost $460,000); 40 km
northeast of Altan Nar and Bayan Khundii
-  Study included 104 line km of geophysics and
2,944 m of drilling
Tsahildag
Khudag
Basin
Shinejinst Soum
Geophysical
Survey &
Drill Holes
Altan Nar
Bayan Khundii
-  Large aquifer identified, with estimated water
resource at 116 L/sec
§  Power
-  35 kV electrical grid located 70 km northnortheast at Shinejinst Soum
25 km
36
Regional and Local Community
Scholarship Fund
Open House Event
Educational Field Trips
Bayankhongor Aimag
Shinejinst Soum
Tsogt Soum, Govi-Altai Aimag
Herder Well Protection
Medical Equipment
Monastery Renovation
Bayan Khundii project area
Shinejinst Soum
Bayan Undur Soum
!
37
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; 1.7km at Bayan
Khundii and 5.6 km at Altan Nar
Development Stage of a Successful Mining Company
Value / ~Market Cap Early-In Opportunity
Bayan Khundii /
Altan Nar
Explora>on Discovery Feas-­‐ Const-­‐ ibility ruc>on Prod-­‐ uc>on High-Grade & Near Surface
‒ 
‒ 
Very high grades
Mineralized zones steeply dipping, 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
38
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