DEVELOPING A NEW HIGH- GRADE GOLD DISTRICT CORPORATE UPDATE | MAY 2018
Forwarding Looking Statements Certain information regarding Erdene ("the Company") therefore true width is close to reported drill hole The Mineral Resource estimates for Altan Nar have been contained herein may constitute forward-looking intervals. All holes in Union North were drilled compiled under the supervision of Mr. Jeremy Clark who statements within the meaning of applicable securities perpendicular to the trend of mineralization. is a full-time employee of RPM and a Member of the laws. Forward-looking statements may include estimates, Australian Institute of Geoscientists. Mr. Clark has TECHNICAL REPORTS plans, expectations, opinions, forecasts, projections, sufficient experience that is relevant to the style of guidance or other statements that are not statements of mineralisation and type of deposit under consideration For the Bayan Khundii project, please refer to the fact. Although the Company believes that the and to the activity that he has undertaken to qualify as a Company’s National Instrument 43-101 technical report, expectations reflected in such forward-looking Qualified Person as defined in the CIM Standards of available on the Company’s profile at www.sedar.com. statements are reasonable, it can give no assurance that Disclosure. There is no resource estimate included in the report. such expectations will prove to have been correct. The SAMPLE PROTOCOL Company cautions that actual performance will be For the Altan Nar project, please refer to the NI 43-101 affected by a number of factors, many of which are compliant mineral resource report for Altan Nar, dated All samples have been assayed at SGS Laboratory in beyond the Company's control, and that future events March 24, 2015, entitled “Altan Nar Gold Project, Ulaanbaatar, Mongolia. In addition to internal checks by and results may vary substantially from what the National Instrument 43-101 Mineral Resource Technical SGS Laboratory, the Company incorporates a QA/QC Company currently foresees. Factors that could cause Report”, available on the Company’s profile at sample protocol utilizing prepared standards and blanks. actual results to differ materially from those in forward- www.sedar.com, as well as the Company’s news release Erdene’s sampling protocol for drill core consisted of looking statements include market prices, exploitation dated March 31, 2015, for further details on the Altan Nar collection of samples over 1 metre or 2 metre intervals and exploration results, continued availability of capital mineral resource estimate. All Mineral Resources for (depending on the lithology and style of mineralization) and financing and general economic, market or business Altan Nar reported in this presentation represent over the entire length of the drill hole, excluding minor conditions. estimates as at 19th February, 2015. RungePincock- post-mineral lithologies and un-mineralized granitoids. Minarco (“RPM”) have considered the costs, recoveries The Company's forward-looking statements are Sample intervals were based on meterage, not and dilutions expected by comparing with other similar geological controls or mineralization. All drill core was expressly qualified in their entirety by this cautionary deposits in the region and adjusted these by considering cut in half with a diamond saw, with half of the core statement. The information contained herein is stated as the location of the Project and the deposit of the current date and subject to change after that date. placed in sample bags and the remaining half securely characteristics. Mineral Resource grades are reported in retained in core boxes at Erdene’s Bayan Khundii accordance with the CIM Standards. Unless otherwise indicated, all dollar values herein exploration camp. All samples were organized into are in C$. batches of 20 samples including a commercially Mineral Resource Estimates for Altan Nar are reported on prepared standard and blank. Sample batches were DRILLHOLE INTERVALS a dry in-situ basis. Gold equivalent (“AuEq”) values are periodically shipped directly to SGS in Ulaanbaatar via used in an effort to express the combined value of gold, Erdene’s logistical contractor, Monrud Co. Ltd. Reported intervals in this presentation are not true width. silver, lead and zinc as a percentage of gold, and are At this time, there is insufficient data with respect to the provided for illustrative purposes only. No allowances All metallurgical testing and analysis was carried out by shape of the mineralized system to calculate true have been made for recovery losses that may occur Blue Coast Research Ltd. at their facility in Parksville, orientations in space. At the Company’s Bayan Khundii should mining eventually result. Calculations use metal British Columbia. project, reported intervals represent drill intersection prices of US $1,200/oz gold, $18/oz silver, and $0.90/lb widths from holes drilled at a 45 to 60 degree angle for lead and zinc. (occasionally 90 degree angle). The Bayan Khundii QUALIFIED PERSONS mineralization is moderately dipping (approximately 40 to 50 degrees), approximately perpendicular to the drill Michael MacDonald, P.Geo. (Nova Scotia), Vice hole angle. President of Exploration for Erdene, is the Qualified Reported drill hole intervals at the Company’s Altan Nar Person as that term is defined in National Instrument project represent drill intersection widths with most holes 43-101 and has reviewed and approved the technical information contained in this presentation. drilled at a 45 degree angle. For the Discovery Zone, the orientation of the mineralization is near vertical and Results for the metallurgical test programs summarized in this release were reviewed and approved by Andrew therefore true width is interpreted to be approximately Kelly, P.Eng., of Blue Coast Research Ltd., a Qualified 70% of the reported intervals. For Union North the Person for the purpose of National Instrument 43-101. mineralized zone has an interpreted dip of 45 degrees TSX:ERD | www.erdene.com | 2
Erdene at a Glance High-Grade, District-Scale, Experienced Team High-grade, near-surface , 100%-owned gold projects within an expanding mining region. The new Khundii Gold District provides exceptional discovery potential beyond our core projects. We are the longest-standing foreign exploration company in Mongolia with a Mongolia-focused team and a strong social license to operate. TSX:ERD | www.erdene.com | 3
Corporate Snapshot (as of May 7, 2018) Share & Capital Structure (TSX:ERD) Shareholder Summary CAD USD 25% Share Price $0.38 $0.30 55% 52-Wk Range $0.37-$1.40 $0.29-$1.10 11% Market Cap $56 mln $44 mln 9% Shares O/S 146.4 mln - Retail Shares F/D 156.8 mln - Institutional (incl. 10 institutions; largest holding - 8.7%) Cash $2.0 mln $1.6 mln ERD Mgmt/Directors Debt nil - Teck Resources - Assumed CAD/USD FX rate of $0.78 as of May 7, 2018 TSX:ERD | www.erdene.com | 4 - Sandstorm Gold Ltd. has a 2% NSR royalty on Erdene’s gold projects that can be reduced to 1% for cdn$1.2 mln prior to April 2019
Highly Experienced Board of Directors Pioneers in Mongolia’s Post-Socialist Exploration Peter Akerley , President & CEO Layton Croft Mining executive/geologist with 25+ years experience Corporate executive, 23 years Mongolia in mineral exploration, corporate finance, project experience, with 14 years in mining sector, development & management of publicly listed including with Ivanhoe Mines, Rio Tinto, resource companies. SouthGobi Resources, Peabody Energy, Duke Energy and Pancontinental Gold. Chris Cowan , Chairman Cameron McRae Mining executive/engineer with 40+ years in senior industry positions, including 28 years with Mining industry executive, 28 with Rio Tinto, Falconbridge in a variety of senior management and including as President of Oyu Tolgoi LLC board positions. where he led the construction and start-up of the US$6 billion Oyu Tolgoi copper-gold mine Dr. Anna Biolik in southern Mongolia. One of the foremost Canadian experts on Central Asian business and diplomacy. Former Canadian David Mosher Ambassador to Mongolia, Kazakhstan, Kyrgyzstan & Tajikistan. Geologist/mining executive with 35 years international experience. Former President & CEO of High River Gold Mines where he William Burton developed gold mines in Burkina Faso and Mining industry executive, 30 years experience. Russia. Former CEO of MagIndustries Corp (1997-2010) & VP Exploration for International Pursuit, evaluating gold Phillip Webster properties in Asia (including Mongolia). President of Imperial Windsor Group since John Byrne 1998. Trustee of the R. Howard Webster Foundation, the Zeller’s Family Foundation Finance industry professional with 30+ years and the Constance Lethbridge Foundation. experience in Canadian banking industry. President of Petroleum Corp of Canada Exploration since 1997. TSX:ERD | www.erdene.com | 5
Emerging Gold District in Southwest Mongolia New Mining District Near Chinese Border The Khundii Gold District A Decade of Methodical, Regional Exploration in the Multiple Near-Surface Discoveries Edren Terrane for Epithermal Gold/Porphyry Copper in Unexplored Area Since 2010 TSX:ERD | www.erdene.com | 6
Bayan Mongolian word for Rich | Khundii Mongolian word for Valley Looking Northeast Through Striker Zone (2 kilometres)
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