Erdene Resource Development : Developing the High-Grade Khundii Minerals District, Q4 2023

TSX:ERD | MSE:ERDN | OTC:ERDCF

DEVELOPING THE HIGH-GRADE

KHUNDII MINERALS DISTRICT

Corporate Update Q4 2023

Unlocking treasures - sharing benefits

www.erdene.com

FORWARD LOOKING STATEMENTS

This presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the timing and completion of the three stages of the Strategic Alliance and the future plans and objectives for Erdene Mongol LLC and the Khundii Minerals District under the Strategic Alliance, the Company's expectations in respect of its future financial position, business strategy, future exploration and production, mineral resource potential, exploration drilling, permitting, access to capital, events or developments that the Company expects to take place in the future. All statements, other than statements of historical facts, are forward-looking information and statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will" and similar expressions identify forward-looking information and statements. In addition to the forward-looking information and statements noted above, this presentation includes those that relate to: the expected results of exploration activities; the estimation of mineral resources; the ability to identify new mineral resources and convert mineral resources into mineral reserves; ability to raise additional capital and complete future financings; capital expenditures and costs, including forecasted costs; the ability of the Company to comply with environmental, safety and other regulatory requirements; future prices of precious metals; the ability of the Company to obtain all necessary approvals and permits in connection with the development of the Bayan Khundii Gold Project.

Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies and which may prove to be incorrect. These estimates and assumptions relate to, among other things, the continuance of the Company and its subsidiaries as a going concern, general economic and market conditions, gold prices, the accuracy of mineral resources and mineral reserve statements, and the other estimates and assumptions.

Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those presented in such information and statements. Forward-looking information and statements is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information and statements. Such risks include, but are not limited to, the volatility of the price of gold, uncertainty of mineral resources, exploration potential, mineral grades and mineral recovery estimates, delays in exploration and development plans, insufficient capital to complete development and exploration plans, risks inherent with mineral acquisitions, delays in obtaining government approvals or permits, financing of additional capital requirements, commercial viability of mineral deposits, cost of exploration and development programs, risks associated with competition in the mining industry, risks associated with the ability to retain key executives and personnel,title disputes and other claims, changes in governmental and environmental regulation that results in increased costs, cost of environmental expenditures and potential environmental liabilities, accidents and labour disputes. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information and statements. Please see the Company's Annual Information Form dated March 22, 2023 available on the Company's website at www.erdene.com or on the Company's SEDAR profile at www.sedar.com, for details of other risks facing the Company. The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist for Erdene and a "Qualified Person" under National Instrument 43-101, has reviewed and approved the scientific and technical information in this presentation. All currencies are reported in Canadian dollars unless otherwise specified.

DEVELOPING THE HIGH-GRADE KHUNDII MINERALS DISTRICT

Investment Highlights

First Mover in an Unexplored Portion of One of the World's Great Mineral Belts - Unparalleled Discovery Potential for Large, High Grade, Gold & Copper Deposits

Strategic Alliance - Uniting Mongolia's Pre-Eminent Explorer and

Leading Miner

Bayan Khundii Gold Project - High-GradeGold Development

Moving Rapidly to First Gold

Multi-Million Ounce Potential - High-grade Gold Discoveries Adjacent to the Bayan Khundii Gold Project and Significant Exploration Potential in District

Zuun Mod Molybdenum-Copper Porphyry Complex - A Sleeping

Giant

People - A Growing Team of Mongolian Leaders,

Strong Social license to Operate and Supportive Shareholders

Capital Structure - Q4 2023 (as of Oct 26)

	CAD	USD
Share price
$0.32	$0.23
52-Wk range	$0.25-$0.45	$0.19-$0.34
Market cap	$110.2M	$79.6M
Shares O/S		344M
Options		21M / Proceeds: CAD$7M
Warrants	25M / Proceeds: CAD$11M
DSU		7M
Shares F/D		397M

Supportive Shareholder Base

Cornerstone Investor - Eric Sprott

Retail	33%
Institutional & Family Office
Aegis Financial Corp
Konwave AG	30%
Lion Select Group
Donald Smith
Eric Sprott	18%
European Bank for Reconstruction and Development	8%
Management & Directors	7%
Mongolian Shareholders	4%

First company to cross list on Mongolian Stock Exchange with ~6,000 Mongolian shareholders

1. Erdene was the subject of a University of British Columbia research project that investigated how exploration companies could maximize the benefits of resource	3
development for host nations and affected communities

FOCUSED ON A WORLD CLASS GOLD-COPPER BELT

The Underexplored Trans Altai Terrane in Southwestern Mongolia

MAJOR GOLD-COPPER DEPOSITS OF THE EASTERN CENTRAL ASIAN OROGENIC BELT

USGS Study Identifies Trans

Altai as Highest Potential for

Porphyry/Epithermal Copper-

Gold Discovery in CAOB

Notes:

1. Copper = 17.8B lbs in M&I and 48.6B in Inferred, Gold = 8.5M oz in M&I and 34.4M oz in Inferred
2. Source: TRQ 2021 Annual Information Forum

A WINDOW OF OPPORTUNITY - MAJOR STRUCTURES AND HOST TERRANES Paleozoic Island Arcs of Southern Mongolia

OYU TOLGOI

KHUNDII MINERALS DISTRICT

MONGOLIA • Projected to be the fourth-largest copper mine globally by 2030

• Resources of 66.4Blbs copper and 43Moz gold1,2

Khundii Minerals

District

4

IMPROVED INFRASTRUCTURE IN A GROWING MINING JURISDICTION

Less than 200km from China

Trans Altai

Terrane

Khan Altai

Xinjiang Hami Naomaohu (Tianrun) wind farm

Beishan

Underground

Research

Laboratory

0250

kilometre

Bayankhongor

Shinejinst

KHUNDII

MINERALS

DISTRICT

Dongfeng

Space City

CHINA

Jiayuguan Steel making industrial centre

MONGOLIA

Ulaanbaatar

	Tavan
	Tolgoi
	Oyu
Tsagaan	Tolgoi
Tolgoi		Legend
	Jinquan	ERDENE Projects
	Mines & Major Projects
	Industrial centre
		Major Paved Road
		Unpaved Road
	Baotou	Existing Railway
	Steel making
	industrial centre	Planned Railway
		International Airport
		Regional Airport
	Yinchuan	City	Shijiazhuang

Taiyuan

5

KHUNDII MINERALS DISTRICT

Planned Mine and Infrastructure Development

Bayan-Undur

N

Shinejinst Coal

Shinejinst

Bayangovi

Universal Copper

ERD: Altan Nar
Gold-Silver-Lead-Zinc Deposit
	ERD: Zuun Mod
	Moly-Copper Deposit
Khul Morit	ERD: Bayan Khundii
Copper Silver
Gold Deposit
40 km

Mineral Deposits

Proposed State Rail

Proposed Zuun Mod Rail Spur

Existing Roads

Proposed Mine Access Roads

Provincial Boundary

Towns/ Soum Centres

STRATEGIC ALLIANCE WITH MONGOLIAN MINING CORPORATION

Mongolia's Largest Independent Miner

• MMC is Mongolia's largest publicly traded miner

Listed on the Hong Kong Stock Exchange main board (HKEX: 0975)

MCS Group, a Mongolian conglomerate with operations in Engineering, Construction, Utilities and Real Estate is MMC's largest shareholder

• MMC's vision is to build a diversified mining company

Owns and operates the Ukhaa Khudag (UHG) and Baruun Naran (BN) high-quality coking coal mines in Umnugovi province

Investment in Erdene expands operations to precious and base metals

• Key Operating Statistics 14-yearoperating history Approximately 2,000 employees

Strong safety culture - 3 LTI from 6.9 million man-hours in 2022 Property, plant and equipment investments of US$1.5 billion

Major contributor to the local economy procuring US$4.6 million from provincial suppliers and almost 40% of employees hired locally

7

EXPOSURE TO MONGOLIAN PRECIOUS AND BASE METALS

Khundii Minerals District holds Gold, Copper and Molybdenum Resources

TSX : ERD	| MSE : ERDN
CAD$5M Cash	6,000 Mongolian
Eric Sprott (18%)	shareholders
EBRD (8%)

Erdene Mongol LLC	Trans Altai Terrane
Gold Focused	World Class Au-Cu Belt
50% Interest (ERD/MMC)CAD $50M Cash*	District Scale Upside
Advancing towards production	ERD 5% NSR** over 700 km2 area

Bayan Khundii	Dark Horse	Altan Nar	Ulaan
Gold Project	Gold Project	Gold-Polymetallic Project	Gold Project
	Khundii	Altan Nar	Ulaan
Mining Licence	Mining Licence	Exploration Licence

Note: Upon completion of Strategic Alliance, Mongolian Mining Corporation will own 50% equity interest in Erdene Mongol LLC * Cash

Anian Resources LLC

Cu-Mo Focused

100% Equity Interest

Large scale copper-molybdenum project

Zuun Mod	Khuvyn Khar
Copper-Moly	Copper Project

Project

Khuvyn Khar

Mining Licence

8

** (after initial 400,000oz Au production)

BAYAN KHUNDII DEPOSIT - LARGE, HIGH-GRADE, EPITHERMAL GOLD SYSTEM

Multiple High-Grade Gold Targets - Over 10km of Mineralized Structures with Limited Exploration Below 150m

DARK HORSE DEPOSIT

Top Gold Intersections

Drill Hole	From	To	M	Au g/t	G*M
AAD-58	10	55	45	6.0	268
AAD-137	1.5	26	24.5	9.4	230
AAD-146	15	32	17	16.6	283
AAD-177	1	24	23	11.4	262
AAD-178	11	26	15	42.8	643

BK DEPOSIT

Top Gold Intersections

Drill Hole	From	To	M	Au g/t	G*M
BKD-292	0.9	23	22.1	20.0	442
BKD-98	39	170.5	131.5	3.9	508
BKD-261	13	125	112	5.9	661
BKD-288	11.5	17	5.5	125.9	692
BKD-231	193	207	14	158.3	2216

ULAAN Deposit

Top Gold Intersections

Drill Hole	From	To	M	Au g/t	G*M
UDH-10 (D)	99	139	40	3.8	151
UDH-14	192	226	34	5.4	185
UDH 22	85	150	65	3.1	202
UDH-21	115	192	77	3.2	246
UDH-35	187	228	41	8.1	332

2000 m

N

Gold ≥ 0.1 g/t*

Anomalous Indicator*

(±Sb, As, Qtz Veining, Alteration)

Primary Target Structure

Secondary Structure or Splay

*Based on drill result interpolation only

BAYAN KHUNDII GOLD PROJECT - RESOURCES IN FEASIBILITY STUDY UPDATE

Bayan Khundii & Dark Horse Mane South ~ 650,000oz Averaging over 2 g/t Au Measured and Indicated

N

Greater Dark Horse Area Including DH North and

Altan Arrow; Exploration Underway

Bayan Khundii Economic Pit	Dark Horse Mane South Pit
CIP Plant	Near Surface, High-Grade Oxide Gold
Bayan Khundii
Pit	300 m

	Targeting year 0-7 development of	Targeting year 3 development of
Bayan Khundii West Resources:	>3,800,000 tonnes @ >3.5 g/t Au	>200,000 tonnes @ >6 g/t Au in
Striker West & Ulaan	open pit to <150 metres depth	shallow near surface open pit

Gold ≥ 0.1g/t*

Anomalous Indicator*

(±Sb, As, Qtz Veining, Alteration)

Altan Arrow

N

Dark Horse	Economic Pit
Mane

Bayan Khundii

Mine

*Based on drill result interpolation only

Ulaan

Economic Pit