Altan Nar Gold & Base Metal Discovery (Tsenkher Nomin Property) October 12 th, 2011 1
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. 2
Regional Location N Tsenkher Nomin License Voyager s Cu-Au Cughur Discovery Altan Nar Discovery Shinejinst coal deposit Khuvyn Khar Cu-Ag Discovery ERD License 25 km Zuun Mod Deposit 3
Gold in Soil N Ancient copper-gold pits initial ERD drilling 1,430 ppb (1.4g/t gold) 467 ppb (0.47g/t gold) 2 km 4
Lead in Soil N 25,700 ppb (2.6% lead) 2 km 5
Zinc in Soil N 2 km 6
Molybdenum in Soil N 2 km 7
Gold & Base Metal in Rock Highlights N Rock chip sample Prospect outline 19 g/t Au 12 % Pb 3.2 g/t Au 2.2% Cu 5.2 g/t Au 3.2% Cu 11 g/t Au 2.6% Cu 41 g/t Au 11 % Pb 1% Zn 0.35% Mo 1.7% Cu 14% Cu 2 km 8
Gold in Soil overlain by Gold in Rock - Highlights N IP Gradient Array & Magnetics Boundary 19 g/t Au 9.5 g/t Au 7.5 g/t Au 6.4 g/t Au 1.96 g/t Au 11.2 g/t Au 41.3 g/t Au 5.8 g/t Au 2 g/t Au 1 km Rock chip sample 9
Lead in Soil overlain by Lead in Rock - Highlights N IP Gradient Array & Magnetics Boundary 1.5% Pb 1.3% Pb 0.6% Pb 10.5% Pb 2.5% Pb 1.8% Pb 1 km 1 km Rock chip sample Rock chip sample 10
Zinc in Soil overlain by Zinc in Rock - Highlights N IP Gradient Array & Magnetics Boundary 1.5% Zn 0.7% Zn 3.1% Zn 2.2% Zn 1.6% Zn 1.2% Zn 1 km Rock chip sample 11
RTP Magnetics Altan Nar Drill Plan TND-12 TND-11 Drill collar with drill path TND-10 Rock chip sample (g/t gold) Drill Collar TND-09 100m 500m 12
IP Gradient Array Chargeability Altan Nar Drill Plan TND-12 TND-11 Dipole-Dipole Plane Drill collar with drill path TND-10 TND-09 Rock chip sample (g/t gold) IP Dipole-Dipole Line Drill Collar 100m 500m 13
IP Dipole-Dipole on Gradient Array Dipole-Dipole Line 3 Dipole-Dipole Line 2 Dipole-Dipole Line 1 14
IP Dipole-Dipole with Drill Trace (looking Northeast) Down Hole Au >0.5g/t Targeted Chargeability 15
NW 25m 40m of 0.32g/t Au and 3 g/t Ag; including 4m of 0.96 g/t Au and 12 g/t Ag 55m of 1.02g/t Au, 12g/t Ag, 0.26% Pb & 0.5% Zn; including 23m of 2g/t Au & 23g/t Ag; with 8m of 3.90 g/t Au and 17 g/t Ag 16
25m SW 18m of 0.56g/t Au, 6g/t Ag and 0.50% Zn; including 2m of 1.24g/t Au, 17 g/t Ag & 0.60% Zn 17
25m SW 21m of 1.5% Zn and 0.4% Pb 48m of 0.51g/t Au; including 10.5m of 1.20g/t Au, 16g/t Ag and 0.41% Zn 18
Drilling Assay Highlights - TND-09 to TND-12 Hole # Total From To Width Au Ag Pb Zn Depth m m m m g/t g/t % % TND-09 111 20 75 55 1.02 12 0.26 0.47 incl. 50 73 23 2.07 23 0.26 0.59 incl. 55 63 8 3.90 17 0.15 0.42 TND-10 75 0 40 40 0.32 3 0.40 0.23 incl. 15 19 4 0.96 12 2.17 0.37 TND-11 120 48 66 18 0.56 6 0.26 0.50 incl. 48 51 3 1.21 3 0.65 1.04 incl. 62 64 2 1.24 17 0.39 0.60 TND-12 100 28 76 48 0.51 9 0.24 0.84 incl. 36 46.5 10.5 1.20 16 0.17 0.41 incl. 50 71 21 0.21 4 0.39 1.50 19
TND-09 Altan Nar Looking NW to TND-10 Quartz Breccia Cutting Andesite Phyllic Alteration of Andesitic Tuff Brecciated-Altered Andesite
Quartz Breccia Cutting Andesite Quartz Breccia Massive Galena and Sphalerite Pyrite & Chalcopyrite in Quartz Breccia
Pyrite & Chalcopyrite in Quartz Breccia 22
Highlights Regional soil survey, following Nomin Tal Cu-Au discovery, revealed large (2 km by 3 km) polymetallic-gold anomaly Prospecting led to new discovery of multiple gold-bearing quartz veins (up to 41.3 g/t Au) Geophysical surveys (magnetic and IP) identified numerous anomalies, several coincident with gold-in-soil and rock-chip occurrences Initial 4-hole shallow drilling program confirmed presence of significant polymetallic-gold mineralization over 100m strike Assays from drilling include 55m @ 1.02 g/t Au & 12 g/t Ag, including 8m @ 3.9 g/t Au & 17 g/t Ag Mineralized zone drill-tested to date remains open at depth and along strike Numerous geophysical and geochemical anomalies, within the 3km by 2km regional soil anomaly, remain untested by drilling Additional drilling is expected to commence on completion of on-going geophysical and geochemical work