Erdene Resource Development Corp. TSX: ERD Driving Mongolia Metals Exploration Corporate Update Feb 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 (21-01-2014) Trading Info TSX: ERD Share Price $0.14 52 Wk Range $0.06-0.21 Shares O/S 68.6 M Shares F/D 80.2 M Market Cap $10 M MAJOR SHAREHOLDERS (29%) Teck Resources 10.4% Asian Lion 5.6% Mongolian Private Investors 3.9% Glencore-Xstrata 3.6% Khan Investments 2.1% AGF 1.8% Gallant Minerals 1.3% MANAGEMENT Peter C. Akerley, President & CEO, Director Chris Cowan, VP Asia, Director Ken MacDonald, VP Bus.Dvpmt, CFO Mike MacDonald, Director Exploration Mike Gillis, Director Operations BOARD OF DIRECTORS William Burton, Former President & CEO of MagIndustries Corp. John Byrne, President of Petroleum Corp. of Canada Exploration Ltd. Phillip Webster, President of Imperial Windsor Group Inc. 3
COMPANY HIGHLIGHTS Advancing 100% Owned High-Grade Altan Nar Gold Discovery - Potential to develop into a low cost open pit operation Partnered in 2013 with Teck Resources - Establishing priority drill targets on copper porphyry discovery Large 100% Owned Porphyry Molybdenum-Copper Resource - One of Asia s largest molybdenum deposits Leading Mongolia Metals Exploration Company - Principles active in country since mid 1990 s Early Stage Project Pipeline on Significant Land Holding - Multiple acquisition targets in emerging mining district 4
REGIONAL UPDATE Mongolia Parliament (83%) passed new Foreign Investment Law in Oct 13 easing restrictions on foreign investors and offering tax stabilization contracts for up to 27 yrs Approval for Rio Tinto s Oyu Tolgoi copper-gold project Phase Two funding anticipated in 1H-2014 EBRD commits $10M in junior resource sector Planned opening of new mineral exploration licence system China Overtook India in 2013 as world s top gold consumer GDP growth stabilizing at 7.5% - 7.7% IMF predicts avg GDP of 6% per year until 2030 Committed $100B to high-speed rail development for 2014 5
PROSPECTIVE MINERAL TERRANE 6
PROJECT PIPELINE Erdene Land Package Approximately 80,000 hectares Location SW Mongolia Copper-Gold Belt 165 km to the China border Highlights Multiple early-stage metal prospects with drill ready targets Teck to fund exploration on ERD s copper porphyry discovery (Khuvyn Khar) & other projects in pipeline ERD s Altan Nar & Zuun Mod projects excluded from Teck Alliance 7
KHUVYN KHAR PORPHYRY COMPLEX LARGE COPPER PORPHYRY POTENTIAL Ownership Zuun Mod: 100% Erdene Khuvyn Khar: Teck Alliance Location Southwest Mongolia 200 km from China Porphyry Complex 12 km annular feature Zuun Mod 43-101 Resource Estimate CutOff Tonne Grade Contained Metal % Mt % Mo % Cu M lb Mo M lb Cu M&I 0.04 218 0.057 0.069 273 331 Inf 0.04 168 0.052 0.065 192 240 Located on ERD mining license Multiple mineralized zones; - Zuun Mod Mo-Cu resource - Khuvyn Khar Cu-Ag prospect 8
THE ALTAN NAR GOLD POLYMETALLIC PROJECT PROLIFIC TIAN SHAN GOLD BELT ALTAN NAR 9
ALTAN NAR GOLD PROJECT HIGHLIGHTS Extensive vein and breccia gold-polymetallic system High grade gold, silver, lead and zinc zones over 5.5 km mineralized corridor 2013 trenching program identifies high-grade mineralized shoots and confirms near-surface, bulk tonnage open pit potential Low discovery costs Initial metallurgical results for priority target areas indicate gold recoveries >80% Significant additional exploration potential 10
ALTAN NAR GOLD PROJECT MULTIPLE UNTESTED TARGETS TOTAL OF 8,200M SHALLOW DRILLING & 1,300M TRENCHING 11
ALTAN NAR GOLD PROJECT MULTIPLE UNTESTED TARGETS HIGH-GRADE MINERALIZATION OVER 5.5 KM CORRIDOR 12
ALTAN NAR GOLD PROJECT DISCOVERY ZONE INTENSELY MINERALIZED, NEAR SURFACE, OPEN TO THE NORTH & AT DEPTH 13
ALTAN NAR GOLD PROJECT DISCOVERY ZONE NORTH HIGH GRADE POLYMETALLIC VEINS >75M DEPTH IN VICINITY OF DZ NORTH STARTER PIT 14
ALTAN NAR GOLD PROJECT DISCOVERY ZONE NORTH HIGH PRIORITY HIGH CONFIDENCE TARGET Open Pit Target to 75m Average Cumulative True Width m Gold g/t Silver g/t Lead % Zinc % Strike Length m Discovery Zone North 20 1.7 12 0.7 0.6 >120 Average width and grade of main vein/breccia zones within confines of pit outline projected vertically to 250m depth # Inter. Avg Width Au g/t Ag g/t Pb (%) Zn (%) C ZONE Zone A 3 1.7 5.8 12 0.9 0.5 B ZONE A ZONE Zone B 9 2.5 5.9 27 1.1 1.3 Zone C 4 1.9 5.6 61 1.2 1.2 Total 6.1 5.8 33.4 1.1 1.1 15
ALTAN NAR GOLD PROJECT SIGNIFICANT POTENTIAL AT DEPTH 16
ALTAN NAR GOLD PROJECT UNION NORTH PROSPECT PLAN MAP 7 METRES OF 20 G/T GOLD, 138 G/T SILVER, 17% LEAD AND 5% ZINC 17
ALTAN NAR GOLD PROJECT UNION NORTH PROSPECT CROSS-SECTION HIGH GRADE, STEEPLY DIPPING VEINS, OPEN AT DEPTH AND ALONG STRIKE 18
ALTAN NAR GOLD PROJECT MOVING FORWARD INITIAL TARGETS REPRESENT <5% OF TOTAL TARGET AREA IDENTIFIED TO DATE Complete drilling and initial resource estimate Targets have not been tested below 250 m vertical depth Multiple holes have ended in zones of >1 g/t gold Focused on initially developing open pit deposits Develop conventional, low cost operation gold-polymetallic mine and plant in 2015-2016 19
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 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. 20
INVESTMENT HIGHLIGHTS Advancing 100% owned Altan Nar gold-polymetallic project with a focus on early development of near surface deposits Partnered with Teck Resources on mineral exploration in emerging metal belt and new copper porphyry discovery Experienced team with principles active in Mongolia since mid 1990 s Early-stage project pipeline on significant land holding Improving investment environment in Mongolia Junior mining sector valuations at historic lows 21
Erdene Resource Development Peter C. Akerley President & CEO, Director Website www.erdene.com Email Twitter info@erdene.com @ErdeneRes TSX: ERD