Erdene Resource Development Corp. The Altan Nar Gold-Silver-Lead-Zinc Project Exploring for the Next Giant Ore Deposit of the Tian Shan October 2014 Forward Looking Statements 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, 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. 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 Snapshot CAPITAL STRUCTURE (6-10-2014) MANAGEMENT Trading Info TSX: ERD Share Price $0.145 52 Wk Range $0.06-0.26 Shares O/S 76.7 M Shares F/D 89.1 M Mike MacDonald, Director Exploration Market Cap $11 M Mike Gillis, Director Operations SHAREHOLDER REGISTRY Chris Cowan, VP Asia, Director Ken MacDonald, VP Bus.Dvpmt, CFO BOARD OF DIRECTORS William Burton, Former President & Teck CEO of MagIndustries Corp. 12% ERD Mgmt & 12% Directors Retail Peter C. Akerley, President & CEO, Director John Byrne, President of Petroleum Corp. of Canada Exploration Ltd. 51% 25% Institutional Phillip Webster, President of Imperial Windsor Group Inc. 3 Company Highlights Altan Nar Gold Discovery Advancing 100% Owned Altan Nar Gold Project Commencing resource drilling with tremendous upside Alliance with Teck Resources in 2013 Khuvyn Khar Copper Porphyry Target Establishing drill targets on copper porphyry target Large 43-101 Molybdenum-Copper Deposit Adjacent to world’s largest molybdenum consumer Zuun Mod Molybdenum Deposit Experienced Management Team Principles Working in Mongolia Since Late 1990s Exploring Mongolia Since 1997 Improving Mongolia Investment Environment Favourable new Investment Law & reduction in gold royalty 4 Major Gold Terranes & Deposits The 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 5 The Prolific Tian Shan Gold Belt Tian Shan belt well endowed with giant orogenic, mesothermal, porphyry and epithermal gold deposits (Muruntau, Kumtor, Axi, Xitan, Oyu Tolgoi) 6 Emerging Mining Region Improving Accessibility and Infrastructure 7 Mongolia Metals Projects - 2014 Includes One of the World's Largest Gold Mines Oyu Tolgoi Copper – Gold Project Top 6 gold deposit in world, 700,000 ounces of gold in 2014 $7 billion invested to date, 4 years from Feasibility Study to 1st ore 15 banks signed: IMF, EBRD, IFC and US Export-Import Bank Phase II funding expected in 2014, additional $5 billion Kharmagtai Copper – Gold Project ASX listed Xanadu Mines share price up 200% since July on Cu-Au drill results Boroo Gold Mine, Gatsuurt Gold Deposit, ATO Gold Prospect TSX listed Centerra Gold’s top three Mongolia gold projects Bayan Airag Gold Mine Kerry Holdings owned private company, initial gold production Q3 2014 8 Altan Nar Gold Project 2011 Erdene Gold Discovery (100% Owned) 4 Million Hectare Exploration Program Deep Seated Regional Structures Altan Nar 200 km 20 km Initial Discovery; ancient pit Expanded Geochemical Soil Survey Lead 2 km Gold 2 km 9 Discovery Zone: First Hole Return 23m of 2.1 g/t Gold and the first hole below that 26m of 4.7 g/t Gold 10 Altan Nar Gold Project Discovery Zone – Drill & Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth 11 Altan Nar Gold Project Discovery Zone – Drill & Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth Multiple Parallel zones to main Discovery Zone including 20m @ 0.7g/t gold with 2m @ 2.9g/t Gold Eq. 32m @ 3.6 g/t gold, 23 g/t silver & 1.7% combined lead-zinc, Including 5m @ 17.7 g/t gold, 69 g/t silver, & 4.6% combined lead-zinc Plunging under cover to north with 121m @ 1.1g/t Gold Eq. Multiple Intersections of >20m @ >2g/t Gold Parallel Zone, 6m of 2.1g/t Gold Eq. Deepest Intersection at Altan Nar 6m @ 5.7g/t Gold Eq. Note: Gold equivalents based on current metal values (Au, Ag, Pb, Zn) 12 Altan Nar Gold Project Multiple, Large, Gold and Base Metal Mineralized Targets Highlights 18 targets along 5.5 km trend Discovery Zone 65 drill holes completed for 9,100 m 88% drilling success rate intersecting target mineralized zones 50% of drilling confined to Discovery Zone Average drilling depth: 100m 13 Altan Nar Gold Project Only Shallow Drilling Completed Epithermal deposits can extend for >1,000m; Kelian 500m deep pit Deposit comparisons: Porgera (>25 Moz), Kelian (5.7 Moz), Amatok (10 Moz), Fruta del Norte (6.7 Moz), and Rosia Montanna (17 Moz) 100m depth 14 Altan Nar Gold Project Union North Target Highlights Union North 1.2 km NW of Discovery Zone High grade & near surface over 300 m strike length 440 m of drilling & 600 m of trenching Drill Highlight: 24 m @ 2.1 g/t Au, 5.8 g/t Ag, & 1.4% combined Pb-Zn Trench Highlight: 19m @ 8.9 g/t Au, 66 g/t Ag, & 10.2% combined Pb-Zn 15 Altan Nar Gold Project Recent Drill Results - Union North Cross Section - June 2014 Drill Program 19m @ 8.9 g/t gold, 66 g/t silver, 10.2% combined lead-zinc 12m of 4.0 g/t gold, 10 g/t silver and 2.5% combined lead-zinc 24m of 2.9g/t Gold Equiv. 16 Altan Nar Gold Project Recent Drill Results - Union North IP Chargeability Drill Target - June 2014 Drill Program 17 Altan Nar Gold Project Other Priority Targets Highlights 3 Maggie: 500m2 target with coincident high chargeability under cover; 17 m of 3.4 g/t Au, 4.9 g/t Ag & 1.4% Pb-Zn 4 Northbow: Intense alteration & breccia zone over 400m; most intense gold-moly anomaly at Altan Nar; 9 m of 1.3 g/t Au & 1.3% combined Pb-Zn 5 Junction: Very intense, widespread gold- lead-zinc soil anomalism; 4 m of 4.9% combined Pb-Zn within 26 m of 0.8% Zn 7 Union South: 1km geophysical & geochemical anomaly ; 600m long buried target; 2 zones – 10 m of 2.3 & 11 m of 1.5 Au equivalent 18 Altan Nar Gold Project Moving Forward Near Term Objectives • Q2-2014: Detailed geochemical, induced polarization & mapping program • Q2-Q3 2014: 1,000m drilling & 2,000m trenching program over high priority targets to improve drill targeting & increase confidence for resource estimation • Q4-2014: Resource definition drilling over Discovery Zone & Union North, along with reconnaissance drilling to further evaluate & prioritize remaining targets • Q1-2015: Establish initial near surface, open pitable resources at Discovery Zone & Union North in late 2014/early 2015 • Q1- 2015: Complete high-level scoping & metallurgical studies to determine options for development & processing 19 Altan Nar Gold Project Moving Forward Discovery Zone (testing 500m strike length) Recent drilling: 32m @ 3.6 g/t gold, 23 g/t silver & 1.7% combined lead-zinc, including 5m @ 17.7 g/t gold, 69 g/t silver, & 4.6% combined lead-zinc 900 m of planned resource definition drilling Union North (testing 300m strike length) Recent drilling: 22 m @ 2.1 g/t gold, 5.8 g/t silver, & 1.3% combined leadzinc, and below that 12 m of 4.0 g/t gold, 10 g/t silver & 2.5% combined lead-zinc 800 m of planned resource definition drilling Regional (multiple targets) 10 m of 2.3 g/t gold and 11 m of 1.5 g/t gold equivalent (Union South) 1,300 m of planned exploration drilling 20 Altan Nar Gold Project Discovery Zone Long Section (looking Northwest) High Confidence, Near-Surface Resource Definition Drill Program 38m @ 2.0 g/t Au Eq 19m @ 3.1 g/t Au Eq 16m @ 7.1 g/t Au Eq 24m @ 6.2 g/t Au Eq 10m @ 1.8 g/t Au Eq 12m @ 1.9 g/t Au Eq Resource Definition Drillhole 16m @ 2.2 g/t Au Eq 25m @ 4.2 g/t Au Eq Potential Open Pit Boundary 37m @ 1.5 g/t Au Eq 6m @ 5.6 g/t Au Eq 21 Q4 2014 thru Q1 2015 Expenditures Erdene Expenditures Q4 2014 thru Q1 2015 Items Technical Program - Drilling All in Costs (cdn) Discovery Zone $ 289,300 Union North $ 264,000 Expansion Targets $ 335,500 Subtotal $ 888,800 Analytical $ 82,500 Independent Studies $ 185,000 Property Renewals, Overhead, G&A $ 220,000 Sub-total $ 1,376,300 Contingency/Financing costs (15%) $ 206,445 Total $ 1,582,745 22 Timeline and Milestones Close of private placement; $1.6 M at $0.14 / share; half warrant at $0.21 Oct Commencement of resource and exploration drilling at Altan Nar Press Release: Discovery Zone drill results Nov Dec Press Release: Union North drill results Press Release: Exploration Target drill results Jan Press Release: Summary of resource drilling program with 2015 project plans Press Release: Initial resource estimate at Discovery Zone & Union North Feb Teck Resources Strategic Alliance renewal date; equity placement Mar Apr Completion of metallurgical studies and high-level internal scoping study Commencement of field programs at Altan Nar & Khuvyn Khar copper project 23 Erdene Valuation Factors 1 Year Insider Buying; Management & Directors Hold ~12% Altan Nar Gold Project Exploration Discovery Feas Const Product 1 Year Share Performance; Mongolia Metals Exploration Peers $958 $600 $0.25 Market Cap ($USD) Erdene +85% $0.20 $0.15 $0.10 $0.05 $0.0003/10/2013 Oct Market Cap Peer Comp; Precious Metals Summit Comp. HK 03/12/2013 Jan 03/02/2014 Mar 03/04/2014 May 03/06/2014 Jul 03/08/2014 Sep $500 $400 $300 $200 $100 Erdene Value / ~Market Cap Development Stage of a Successful Mining Company $0 Early Stage ------- Resource Defined ------- Production 24 Erdene Financing Announced – October 6th Current Shares Outstanding – 76.7 mln Current Market Cap - $11 mln Issue Size – 11.5 mln shares Issue Price – $0.14 Warrant – ½ share at $0.21 for 24 month period Post Issue Shares Outstanding – 88.2 mln Market Cap Post Issue - $13 mln 25 Major Acquisitions in Gold Mining Sector $3,500,000,000 $3,400,000,000 $2,400,000,000 $1,840,000,000 $1,600,000,000 $1,200,000,000 $608,000,000 $250,000,000 2007-Kinross 2007 Buys Bema (Russia) Kinross Buys Bema (Russia) 2008-Newgold 2009-Kinross 2008 2009 Acquires Buys Aurelian Metallica and (Ecquador) Newgold Kinross Peak (America's) Acquires Metallica and Peak (America's) Buys Aurelian (Ecuador) 2009-Eldorado 2009 Buys Sino (China) Eldorado 2010-Goldcorp 2010 Buys Andean (Argentina) Goldcorp Buys Sino (China) Buys Andean (Argentina) 2011-Eldorado 2012-Iamgold 2014-Agnico 2011 2012 2014 Buys European Buys Trelawney Bids for Cayden Goldfields (Canada) (Mexico) Eldorado Iamgold Agnico Bids (Mediteranean) Buys European Goldfields (Europe) Buys Trelawney (Canada) for Cayden (Mexico) 26 Altan Nar Gold Project The Next Giant Gold Deposit of the Tian Shan? Early-In Opportunity A new gold district discovery Early in exploration cycle Period of low valuations in sector Ownership 100% interest in licence High-Grade & Near Surface Evidence of bonanza grades that have potential to improve pit economics Very Large System 5.5 km x 1.5 km target area Potential for > 1.5 Moz Significant Upside Potential Location & Infrastructure Limited drilling to date with all targets open for expansion Region receiving rapid rail & road upgrades Next door to world’s largest gold production & consumption region 27 Erdene Resource Development Peter C. Akerley President & CEO, Director Website www.erdene.com Email info@erdene.com Twitter @ErdeneRes TSX: ERD
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