JANUARY 2017

Erdene Resource Development

TSX:ERD DEVELOPING A

NEW GOLD DISTRICT IN SOUTHWEST MONGOLIA

CORPORATE UPDATE

Forward Looking Statements

2

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.

All Mineral Resources for Altan Nar reported in this presentation represent estimates as at 19th February, 2015. RungePincockMinarco (“RPM”) have considered the costs, recoveries and dilutions expected by comparing with other similar deposits in the region and adjusted these by considering the location of the Project and the deposit characteristics. Mineral Resource grades are reported in accordance with the CIM Standards.

Mineral Resource Estimates for Altan Nar are reported on a dry in-situ basis. Gold equivalent (“AuEq”) values are used in an effort to express the combined value of gold, silver, lead and zinc as a percentage of gold, and are provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $1,200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.

The Mineral Resource estimates for Altan Nar have been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure.

Please refer to the NI 43-101 compliant mineral resource report for Altan Nar, dated March 24, 2015, entitled “Altan Nar Gold Project, National Instrument 43-101 Mineral Resource Technical Report”, available on the Company’s profile at www.sedar.com, as well as the Company’s news release dated March 31, 2015, for further details on the Altan Nar mineral resource estimate.

Reported drill hole intervals at Altan Nar represent drill intersection widths with most holes drilled at a 45 degree angle. For the Discovery Zone, the orientation of the mineralization is near vertical and therefore true width is interpreted to be approximately 70% of the reported intervals. For Union North the mineralized zone has an interpreted dip of 45 degrees therefore true width is close to reported drill hole intervals. All holes in Union North were drilled perpendicular to

the trend of mineralization.

Reported drill hole intervals at Bayan Khundii represent drill intersection widths from holes drilled at a 45 to 60 degree angle. The Bayan Khundii mineralization is moderately dipping (approximately 40 to 50 degrees) perpendicular to the drill hole angle.

Results for the metallurgical test programs summarized in this release were reviewed and approved by Andrew Kelly, P.Eng., of Blue Coast Research Ltd., a Qualified Person for the purpose of National Instrument 43-101. All other technical/geologic information contained herein has been reviewed and approved by Michael MacDonald, P.Geo. (Nova Scotia), Director of Exploration for Erdene, who is the Qualified Person as that term is defined in National

Instrument 43-101. All drill result samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards and blanks. All metallurgical testing and analysis was carried out by Blue Coast Research Ltd. at their facility in Parksville, British Columbia.

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$.

Company Highlights

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Experienced Management Team and Board in Mongolia Since 1996

High-Grade Gold Discovery at Bayan Khundii Project (100% Owned)

Advancing the High-Grade Altan Nar Gold-Polymetallic Project (100% Owned)

Alliance with Teck Resources to Fund Regional Copper Exploration

Developing a New Gold District in the Tian Shan Mineral Belt

Experienced Board and Executive

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Board of Directors

David Mosher Geologist/mining executive with 35 years international experience; President/CEO of High River Gold Mines; developed gold mines in Burkina Faso and Russia.

Board of Directors

Layton Croft Corporate executive with 12+ years in senior roles with several Mongolia focused companies, including Oyu Tolgoi as Executive VP Corporate Affairs and Social Responsibility.

Chris Cowan, Chairman Mining executive/engineer with 40+ years in senior industry positions, including 28 years with Falconbridge Ltd.

William Burton Mining industry executive with 30+ years in the industry. Former President & CEO of MagIndustries Corp (1997-2010). Previously VP Exploration for International Pursuit, evaluating gold properties in Asia (incl. Mongolia).

John Byrne Finance industry professional with 30+ years experience in the Canadian banking industry. President of Petroleum Corporation of Canada Exploration Ltd (Petrex) since 1997.

Phillip Webster President of Imperial Windsor Group, private investment holding company, since 1998. Trustee of the R. Howard Webster Foundation, the Zeller’s Family Foundation and the Constance Lethbridge Foundation.

Dr. Anna Biolik One of the foremost Canadian experts on Central Asian business and diplomacy. Former Canadian Ambassador to Mongolia, Kazakhstan, Kyrgyzstan and Tajikistan.

Peter Akerley, CEO & Director 27 years international mining industry experience. Geologist with extensive experience in foreign jurisdictions, with a focus on Mongolia over the last 20 years.

Executive

Ken MacDonald, VP & CFO 35 year finance professional, CA, >20 years in mining.

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Corporate Snapshot

5 All Figures in Cad $

Stock Symbol ERD (TSX) Share Price (Jan 18) $0.82 52-Week Range $0.13 - $0.90

Market Capitalization $105 M

Shares Outstanding 126.8 M Shares Fully Diluted 134.4 M Cash $1.0 M Debt nil

Shareholder Summary

Erdene Mgmt & Directors

Teck Resources

Sandstorm Gold

Institutional

Retail

54%

20%

4%

10%

12%

1-Year Share Price Performance

Jan 2016 Jan 2017

Mongolia Update - Recent Events

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§  2007 - 2015 - >$7 Billion invested in Mongolia mining sector; approximately $1 Billion in M&A amongst TSX and ASX listed companies

§  Q4 2015 -Export Development Canada provides US$750M to Oyu Tolgoi; National Bank of Canada buys 10.5% stake in one of Mongolia’s top banks;

§  Q1 2016 - Canadian Government-funded mining focussed development projects approved

§  Q2 2016 - Rio Tinto approves $5.3 bln expansion for Oyu Tolgoi mine

§  Q2 2016 - Pro-mining / pro-business MP Party elected to majority government

§  Q1 2017 - Canada and Mongolia establishing Foreign Investment Promotion and Protection Agreement (FIPA)

v  Mining sector; 20% of GDP, >20% of govn’t revenue, and 85% of exports

Oyu Tolgoi (Cu-Au)

Tsagaan Suvarga (Cu-Mo)

Bayan Airag (Au)

Rio Tinto chief development officer on Oyu Tolgoi (Sept 2015) “It's the biggest and best new project we've got, full-stop, across the group.”

Giant Gold Deposits and Prospective Terranes

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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.

Regional Gold Production/Development

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Polymetal buys Bakyrchik Gold

Projects: US$618M

Bayan Airag: First gold production in

Q2-2014

Centerra Gold advances 1.6 Moz

Gatsuurt gold deposit

Polymetal, 130,000 oz Au in concentrate (Mayskoye)

refined in China

China Gold Intnl CSH Mine 2015 production

at 204,000 oz Au

Eldorado sells three China gold mines for

US$900 M

Kinross’s Kupol mine produces 758,000 oz

AuEq in 2015

Turquoise Hill (Rio Tinto), 653,000 oz Au

produced in 2015

Centerra Gold’s Kumtor produces 520 Koz in 2015

Erdene

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Southern Mongolia Infrastructure Located in Area of Mining Activity and Regional Infrastructure Build-Up

ErdeneProjects

25 km Trend of Gold Prospects

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New Discovery - Bayan Khundii Gold Project Looking Northeast Through Striker Zone (~2 kilometres)

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Bayan Khundii Gold Project (100% Erdene) 2015 Discovery - Multi-Ounce Gold Surface Samples

§  2015 surface sampling returned up to 4,380 g/t Au §  December 2015: Initial Striker Zone drill results

include 7m of 27g/t gold

§  Mineralization hosted within altered Devonian volcanics (blue) overlain by younger Cretaceous/Quaternary units (green/brown)

§  1.7 km by 700 m target area

§  11,340 m of diamond drilling completed (96 holes) from Q4-2015 to Q4-2016

§  Focus has been on southwest area (Gold Hill Zone and Striker Zone)

§  Recent success in step-out drilling (Midfield Zone)

§  Geophysics suggests alteration zone extends to the north, northeast, and east

Midfield Zone

Striker Zone

Gold Hill Zone

Northeast Zone

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Bayan Khundii Gold Project – Q3 2016 Plan and Cross-Section

High-Grade Gold Over 500 Metres and Open

NE-SW Cross-Section Through Gold Hill & Striker Zone

Striker

Midfield

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Bayan Khundii Gold Project – Q1 2017 Parallel, Stacked Zones Open in all Directions

Cross-Section: Striker to Midfield (500m), Looking NW�Grade (g/t) x Thickness (m) Map (Striker & Midfield Zones)�

650Metres

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Bayan Khundii Gold Project – Striker/Midfield Pervasively Mineralized and High-Grade

Grade (g/t) x Thickness (m) Map (Striker & Midfield Zones)�

Striker

Midfield

§  90 holes (9,804 metres) in main mineralized area (600 metres by 400 metres)

§  Broad mineralized zones including 149 metres of 2.1 g/t gold

§  23% of holes have one or more metre samples of > 1 ounce gold per tonne, up to 9.9 ounces of gold (307g/t)

§  37% of all samples are highly anomalous; > 0.15 g/t gold

§  30% of holes ended in mineralization

§  Average vertical depth of holes - 91 metres

Striker

Midfield

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Grade (g/t) x Thickness (m) Map (Striker & Midfield Zones)� Cross-Section: Midfield Zone, Looking NE�

Bayan Khundii Gold Project Parallel, Stacked Zones Open in all Directions

Striker

Midfield

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Grade (g/t) x Thickness (m) Map (Striker & Midfield Zones)� Cross-Section: Midfield Zone, Looking NE�

Bayan Khundii Gold Project Parallel, Stacked Zones Open in all Directions

Striker

Midfield

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Grade (g/t) x Thickness (m) Map (Striker & Midfield Zones)� Cross-Section: Striker Zone Heading Northwest Under Cover�

Bayan Khundii Gold Project Parallel, Stacked Zones Open in all Directions

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Bayan Khundii Gold Project Low Sulphidation Epithermal Model

Stockwork Zone

Striker Zone Gold

Hill

Silica Cap (silicification) Silica Cap

(silicification)

500m

Source: Adapted from Buchanan (1990); Hollister (1995); Beger & Eimson (1990)

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Bayan Khundii Gold Project Significant Depth Potential

Average Vertical Depth of Drilling at Bayan Khundii

(91 metres)

* Hole BKD-59 located 350m west of Striker intersected 2 m of 7.4 g/t Au at 216m depth

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Bayan Khundii Gold Project Excellent Initial Metallurgy

§  Gold is free milling and amenable to conventional processing techniques

§  Gravity concentration and cyanidation of the gravity tails yielded:

-  99% recovery from high-grade composite (24.9 g/t Au); 70% gravity; and

-  92% from low-grade composite (0.7 g/t Au)

§  81% of the gravity recoverable gold is present in the finer size fractions indicating Bayan Khundii is not dominated or dependent on coarse gold

§  Metallurgical testing not yet optimized

Drill core sample

Petrographic sample

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Bayan Khundii Gold Project Significant Expansion Potential Along 1.7 Kilometre Trend

Midfield Zone

Striker Zone

Gold Hill Zone

Northeast Zone §  Majority of target area covered by younger sediments and volcanics, averaging ~40 metres thick

§  Geophysics (resistivity) suggests silicified/altered volcanics (blue units) under younger cover rocks (green units)

§  Multiple geochemical and geophysical anomalies throughout target area

§  Up to 6.9 g/t gold in surface sample at northeast extent of target area

§  Shallow drilling in Northeast Zone returned wide zones of strongly altered volcanics and up to 2.3 g/t gold (2m)

§  2 metres of 15.3 g/t gold and 115 metres of 0.4 g/t gold in western holes under younger cover

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Khuvyn Khar (Cu-Ag)

Bayan Khundii (Au)

Altan Nar (Au-Ag-Pb-Zn) Khul Morit (Cu-Ag) (Voyager Resources)

Looking Northwest 8x vertical exaggeration 30m spatial resolution

Zuun Mod (Mo-Cu)

20 km

Altan Arrow (Au-Ag)

Regional Exploration Emerging Metal District in Southwest Mongolia

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Altan Arrow Gold-Silver Prospect Similar Mineralization Style as Bayan Khundii

§  Multiple gold geochemical anomalies identified north of Bayan Khundii

§  Including at Altan Arrow, an early-stage epithermal gold-silver target 3.5 km north of Bayan Khundii

§  5 km x 4 km tested area

§  Maiden drill program in Q4-2016 (7 holes; avg. vertical depth 58 m)

§  High-grade veins intersected, including 23.5 g/t gold over 2 m at 76 m depth, and up to 171 g/t silver

§  Results also indicate a wide gold-silver mineralized alteration zone associated with the main northeast- trending mineralized structure

§  Two south-western holes, spaced 300 m apart along main mineralized structure returned 28 m of 0.45 g/t AuEq and 17 m of 0.43 g/t AuEq

High-Grade Gold-Silver Prospect�

Altan Nar Gold Project – Highlights

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Discovery Zone (DZ)

Union North (UN)

Extent of Initial Q1-2015 Resource

500m

§  Average vertical drilling depth - 105 m

§  Initial shallow 43-101 resource established on first 2 of 18 targets -  147k oz Indicated @ 2.47 g/t AuEq and 102k oz

Inferred @ 2.12 g/t AuEq (1.0 g/t AuEq cut-off)

-  90% of mineral resource is <150 m of surface; all zones open along strike and at depth

§  Significant potential for hosting additional gold-polymetallic resources along 5.6 km trend

§  Initial metallurgy yields 88% gold recovery (Discovery Zone North)

1. See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates

25

Intensely Mineralized Gold-Polymetallic Deposit Q4-2016 drilling - 110 m of 10.5 g/t AuEq

100 m

N

Discovery Zone Plan Map� Discovery Zone Long-Section�

110 m of 10.5 g/t AuEq

Gold Equiv. (g/t) x Thickness (m)

0-1 1-3

35-50 50-100

100-1150

5-15 3-5

15-35

27 m of 5.6 g/t AuEq

94 m of 1.0 g/t AuEq

24 m of 6.4 g/t AuEq

51 m of 2.5 g/t AuEq

43 m of 2.4 g/t AuEq

100m

Discovery Zone - Grade (g/t AuEq) x Thickness (m) Contour

26

Bayan Khundii and Altan Nar Projects Advancing through Exploration, Permitting, Feasibility

Q3-Q4 2016 þ  Completion of multiple, independent expert studies - August/September þ  Q3-Q4 Bayan Khundii drill program þ  Drilling at Altan Nar and Altan Arrow þ  Test new mineralized zone (Midfield) 200 metres northeast of Striker

2017 q  Q1 – Exploration planning/modelling; additional metallurgical testing - Bayan Khundii q  Q2 - Commence drill program at Bayan Khundii; resource and expansion q  Q3 - Commence regional drill program (including Altan Nar) q  Q2-Q4 - Complete the necessary studies required to secure a mining license and necessary

permits for both projects q  H1 - Initiate the various technical studies to support scoping through feasibility

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Bayan Khundii - Resource and Expansion Drilling�

Regional Gold District Exploration, Including Drilling of Structural Targets at Altan Nar�

Khuvyn Khar

Bayan Khundii

Altan Nar

Looking Northwest 8x vertical exaggeration 30m spatial resolution

Zuun Mod

20 km

Bayan Khundii and Altan Nar Projects Focus of 2017 Programs: Resource Definition, Expansion & Regional Drilling

Resource Definition

Expansion Drilling

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FIRST IN: DEVELOPING A NEW GOLD DISTRICT

OWNERSHIP: 100% INTEREST IN PROJECTS

SIZE: SIGNIFICANT LOCAL & REGIONAL GROWTH POTENTIAL

GRADE: VERY HIGH-GRADE

NEAR SURFACE: MINERALIZED ZONES EXPOSED AT SURFACE

EXCELLENT METALLURGY: 92% TO 99% GOLD RECOVERY AT BAYAN KHUNDII

MANAGEMENT: VERY EXPERIENCED; IN MONGOLIA SINCE THE MID-1990’S

LOCATION & INFRASTRUCTURE: REGION RECEIVING RAPID RAIL & ROAD UPGRADES NEXT TO CHINA

Why Invest in ERD?

Visible gold from step-out hole BKD-60 (Bayan Khundii Project)

Erdene Resource Development

TSX:ERD JANUARY 2017

DEVELOPING A NEW GOLD DISTRICT IN

SOUTHWEST MONGOLIA

Peter C. Akerley President & CEO, Director

Tel: 902-423-6419 Email: info@erdene.com

Website: www.erdene.com Twitter: @ErdeneRes