PETER AKERLEY, President & CEOPETER AKERLEY, President & CEO

MONGOLIA INVESTMENT SUMMITHONG KONG 2010

MONGOLIA INVESTMENT SUMMITHONG KONG 2010

FORWARD-LOOKING STATEMENTSFORWARD-LOOKING STATEMENTS

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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 thatsuch 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.

PRESENTATION OUTLINEPRESENTATION OUTLINE

Company Overview

Coal Program – Xstrata

Copper-Gold Exploration

Zuun Mod Molybdenum-

Copper Project

Company Overview

Coal Program – Xstrata

Copper-Gold Exploration

Zuun Mod Molybdenum-

Copper Project

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CanadaCanadaMongoliaMongolia

DIVERSE MID-TIER RESOURCE EXPLORATION& DEVELOPMENT COMPANY

DIVERSE MID-TIER RESOURCE EXPLORATION& DEVELOPMENT COMPANY

U.S.U.S.

MolybdenumMolybdenumCoalCoalCoalCoalAggregateAggregate

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ERDENE PROJECT LOCATIONSERDENE PROJECT LOCATIONS

ERDENE’S MONGOLIA JOURNEYERDENE’S MONGOLIA JOURNEY

Executive have combined experience in Mongolia

~30 years

ERD Initial Public Offerring 2004

Acquired Muhammed Al Fayad’s Gallant Minerals in 2005

Partnered with Xstrata on coal in 2006

Employ 14 full time and up to 100 seasonal personnel in Mongolia

>$20M CAD invested

Executive have combined experience in Mongolia

~30 years

ERD Initial Public Offerring 2004

Acquired Muhammed Al Fayad’s Gallant Minerals in 2005

Partnered with Xstrata on coal in 2006

Employ 14 full time and up to 100 seasonal personnel in Mongolia

>$20M CAD invested

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ERDENE MARKET FACTS(as of October 12th, 2010)ERDENE MARKET FACTS(as of October 12th, 2010)

Trading Info: Shares Outstanding: Working Capital: Market Cap:

Cdn ~$10 MCdn ~$10 M89.23 M89.23 MTSX:ERDTSX:ERD Cdn ~$44 MCdn ~$44 M

1 year history compared to TSX/S&P Global Mining Index

2010 Program: $1.6M field program to explore newly acquired 400,000 ha Zarman basin; drilling underway; acquisition due diligence continues

High Quality Thermal & Coking(open pit, <5:1, 200Mt+, >5800 kcal/kg GAR)

XSTRATA TERMS:

•Option to earn up to 75% of any coal opportunity in Mongolia

•Must fund all work through to completion of feasibility study

PRIORITY TARGETS:

MONGOLIA COAL - XSTRATA ALLIANCEMONGOLIA COAL - XSTRATA ALLIANCE

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ERDENE’S 2009-10 COAL ACTIVITY

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Existing Railway

Proposed RailwayJiayuguan

Baotou

Irkutsk

Tianjin

Extent of ERD’09 Regional Mapping

Program

Zarman Basin400,800 hectare Applications (6) & Geophysics Program

Tavan Tolgoi Tender Bid Preparation(data collection &

digitization)

Ceke

South Gobi Energy Resources

Due-Diligence Program

Chita

South Gobi Coal Basin Tenement & Tender Evaluation /

Budget

Ovoot

OlonBulag

Uneet

Project due-

diligence

TavanTolgoi

Ovoot Tolgoi

Target:

World Class Copper-Gold-Molybdenum Porphyry Deposits

Exploration Programs:

Multi-million program in South Gobi exploring for porphyry copper, gold, moly systems over 5 years

Exploration underway on new copper-gold discoveries at Nomin and Altan-Arrow; additional acquisitions planned

2010 Program:

MONGOLIA METALS – 100% ERDMONGOLIA METALS – 100% ERD

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2009-10 Porphyry Exploration Program

New Kazakh Mongol Arc

2009-10 Porphyry Exploration Program

New Kazakh Mongol Arc

METALS EXPLORATION MONGOLIAActive 2009-10 Cu-Au-Mo ProgramMETALS EXPLORATION MONGOLIAActive 2009-10 Cu-Au-Mo Program

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79 billion lbs of copper and 45 million ounces of gold

ZUUN MOD MO DEPOSIT

>400M lbs of Mo and Cu

.

Ancient mining pit workingsHosted within Paleozoicfelsic volcanics and granodioriteAverage Grades:Au 1.7 g/t, Cu 2.2%

Secondary ancient mining pitAverage Grades:Au 1.15g/t, Cu1.6%

Nomin CopperNomin Copper--Gold Project Gold Project

ZUUN MOD MO-CU PROJECT Metals: Molybdenum & CopperZUUN MOD MO-CU PROJECT Metals: Molybdenum & Copper

RESOURCE:

>180,000 tonnes (>400Mlbs) of contained moly at >0.05%, with similar copper content

MARKET:

Asia-Pacific region ~35% of Mo world consumption and fastest growing

• Wholly owned • ~ 200km from China border, • Advanced stage,• Open pit mineable target

PROJECT: Zuun Mod

Zuun Mod Mo-Cu Project LocationZuun Mod Mo-Cu Project LocationRegional Molybdenum Consumption & Steel Production Mining and Processing Sites Regional Molybdenum Consumption & Steel Production Mining and Processing Sites

World’s Largest Steel Producing Region World’s Largest Steel Producing Region

China’s Largest Molybdenum Producing Regions China’s Largest Molybdenum Producing Regions

Gas Pipeline22 Mlbs Mo

Zuun Mod Porphyry ComplexZuun Mod Porphyry Complex

Limit of Alteration and Mineralization

4.5 kilometres

Molybdenum in Rock

South Corridor Deposits

Drill IntersectionsDrill Intersections

373m of 0.063% MoIncl 94m of 0.084% Mo

410m of 0.057% MoIncl 96m of 0.095% Mo

428m of 0.060% MoIncl 172m of

0.091% Mo

399m of 0.055% MoIncl 36m of

0.088% Mo

Mineralization in holes

highlighted begins 22m to

150m from surface

ZUUN MOD MO-CU PROJECT ZUUN MOD MO-CU PROJECT

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0.06% Mo

0.08% Mo

South Racetrack Looking West –

Molybdenum Grade Contour

0.04% Mo

June 2009 NI 43-101 Resource EstimateJune 2009 NI 43-101 Resource Estimate

Mo%Resources

MtResource CategoryCut-off Grade Mo%

Contained Mo Metal Mlbs

Total Measured & IndicatedTotal Measured & Indicated0.04%0.04%

Cu%

180180 0.0640.064 0.0540.054 215 215

Total InferredTotal Inferred0.04%0.04% 185185 0.0660.066 0.0510.051 208 208

ZUUN MOD Mo-Cu PROJECT ZUUN MOD Mo-Cu PROJECT

High Grade ZonesHigh Grade ZonesZUUN MOD Mo-Cu PROJECT ZUUN MOD Mo-Cu PROJECT

Cut-off Grade Mo%

Resource Resources

Mo%

Contained

Cu%

Contained Cu Metal

Mlbs Re ppm

Contained

Category Mt Mo Metal Re Metal

Mlbs lbs (000's)0.06% Measured 11 0.068 17 0.067 17 0.26 6

Indicated 33 0.072 52 0.07 51 0.34 25

M&I 44 0.071 69 0.069 68 0.32 31

Inferred 29 0.069 44 0.067 43 0.36 23

Major Molybdenum Deposits Mo Content and TonnesMajor Molybdenum Deposits Mo Content and Tonnes

Zuun Mod

(Erdene)

Molybdenum grade of Zuun Mod compares favourably with major deposits

ZUUN MOD Mo-Cu PROJECT ZUUN MOD Mo-Cu PROJECT Minarco Preliminary Assessment - ProjectMinarco Preliminary Assessment - Project

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ZUUN MODZUUN MODTimelineTimeline

201120112010 2010 20122012 201420142013 2013 20152015

Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4Q4 Q1 Q1 Q2 Q2

DevelopmentDevelopment

Strategic Partner EvaluationStrategic Partner Evaluation

FeasibilityFeasibility

PrefeasibilityPrefeasibility

Mining License Application

Mining License Application

Start-up - ProductionStart-up - Production

Preliminary Assessment StudyPreliminary Assessment Study

Resource DefinitionResource Definition

Global Molybdenum and Stainless Steel Production Global Molybdenum and Stainless Steel Production

60

110

160

210

260

310

360

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Year

Tho

usan

d M

etri

c T

ons

Mol

ybde

num

0

10

20

30

40

50

60

Thousand Metric Tons Molybdenum Million Metric Tons Stainless

60

110

160

210

260

310

360

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Year

Tho

usan

d M

etri

c T

ons

Mol

ybde

num

0

10

20

30

40

50

60

Thousand Metric Tons Molybdenum Million Metric Tons Stainless

Source USGS 2007 - 1257 using 20 yr historic growth rate

>300M lbs (~140,000 tonnes) of additional molybdenum supply required annually by 2020 the equivalent of 12 of the largest primary Mo mines

China’s Domestic Molybdenum Consumption to 2020China’s Domestic Molybdenum Consumption to 2020

0

20000

40000

60000

80000

100000

120000

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Year

t es

t M

o co

nte

nt

0

20000

40000

60000

80000

100000

120000

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Year

t es

t M

o co

nte

nt

Source IMOA, CMMR 2007

•110M lbs(50,000 tonnes) of new production annually by 2020 at 5 to 6% growth

•If China continues its current growth averaging 7.5% through 2020 an additional 140M lbs (64000 tonnes) of moly annually by 2020 or the equivalent of six world class mines

Need for New ProducersNeed for New Producers

400

575

750

2010 2011 2012 2013 2014 2015

Mlb Mo

2009

Need for new sourcesImproved recoveriesChina expansionsRecyclingExisting minesConsumption

2016 2017 2018

Consumption trend

New supply needed, >300Mlbs;Equivalent of 1-2 additional world class mines each year

Source: CRU Group

Molybdenum supply, by source

Molybdenum PriceMolybdenum Price

Despite significant exports by China the price of molybdenum has increased by 100% from its post crash lows and is holding stable in the $15 to $17 range

Under financing of new projects in 2009 and 2010 will have consequences on supply

JP Morgan analysts forecast the metal rising to around $21 per pound by the end of this year, and possibly rising as high as $24 per pound by the end of 2011.

Roskill, is projecting moly prices to rise above $20 per pound in 2011 on strong demand. The research group also says a supply deficit in the market by 2014 is possible and may drive prices as high as $40 per pound.

Despite significant exports by China the price of molybdenum has increased by 100% from its post crash lows and is holding stable in the $15 to $17 range

Under financing of new projects in 2009 and 2010 will have consequences on supply

JP Morgan analysts forecast the metal rising to around $21 per pound by the end of this year, and possibly rising as high as $24 per pound by the end of 2011.

Roskill, is projecting moly prices to rise above $20 per pound in 2011 on strong demand. The research group also says a supply deficit in the market by 2014 is possible and may drive prices as high as $40 per pound.

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Zuun Mod – Comparison to Hanlong Invested Moly Companies(As of July 21, 2010)

Zuun Mod – Comparison to Hanlong Invested Moly Companies(As of July 21, 2010)

ERD General Moly Moly Mines

PROJECT Zuun Mod Mt. Hope Spinifex Ridge

M+I RESOURCE134 Mlbs Mo @ 0.062%

1,531Mlbs Mo @ 0.07%

562 Mlbs Mo @ 0.060%

INF RESOURCE97 Mlbs Mo @ 0.060%

265.7 Mlbs Mo @ 0.06%

30 Mlbs Mo@ 0.054%

SYMBOL ERD:TSX GMO:TSX MOL:TSX

SHARES OUTSTANDING

89M 76M 364M

Share Price $0.50 $4.10 $0.73

MKT CAP (CDN$) $45M $299M $266M

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ZUUN MOD SUMMARYZUUN MOD SUMMARY

Strong steel demand expected to drive moly demand and price

One of the largest molybdenum deposits in Asia

On the doorstep of the world’s largest steel producing region

Established >400 Mlbs of molybdenum resource

Targeting 2014 Start-up

Strong steel demand expected to drive moly demand and price

One of the largest molybdenum deposits in Asia

On the doorstep of the world’s largest steel producing region

Established >400 Mlbs of molybdenum resource

Targeting 2014 Start-up

ERD SUMMARY-2010ERD SUMMARY-2010Mongolia

Advancing one of the largest molybdenum deposits in Asia located 200km from China, the leading steel producing country and the fastest growing molybdenum consumer

Major regional porphyry exploration program (Cu-Au-Mo)

Advancing coal opportunities in Mongolia with Xstrata

North AmericaGlobal export quality coking coal resource moving tow ards development in close proximity to deep ocean port in Atlantic Region

Interests in established development or producing proje cts in Eastern US; royalty based production projected for 20 10

MongoliaAdvancing one of the largest molybdenum deposits in Asia located 200km from China, the leading steel producing country and the fastest growing molybdenum consumer

Major regional porphyry exploration program (Cu-Au-Mo)

Advancing coal opportunities in Mongolia with Xstrata

North AmericaGlobal export quality coking coal resource moving tow ards development in close proximity to deep ocean port in Atlantic Region

Interests in established development or producing proje cts in Eastern US; royalty based production projected for 20 10

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V A L U E C R E A T I O NV A L U E C R E A T I O N

Sustaining GROWTHSustaining GROWTH

Maintaining STABILITY Maintaining STABILITY

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