SEPTEMBER 2016

Erdene Resource Development

TSX:ERD

DEVELOPING A NEW GOLD DISTRICT IN

SOUTHWEST MONGOLIA

CORPORATE UPDATE

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$.

Forward Looking Statements

2

Overview

3

Gold Industry in Mongolia

Erdene in Mongolia

Erdene’s Gold Projects

Regional Gold Industry

4

Giant Porphyry-Epithermal Gold Terranes & Deposits Includes some of the largest economic gold accumulations in the world

Second only to Witwatersrand in South Africa for known gold resources

Prolific Tian Shan Gold Belt

Regional Gold Industry

5

§  During 2Q-2016, Russia (+38.4t), China (+25.9t) and Kazakhstan (+9.8t) were the top three driving forces behind central bank purchases

§  China remains the world’s #1 gold producer (490t; 17 Moz), with Russia at #3 (242t; 8.5 Moz), and Uzbekistan at #9 (103t; 3.6 Moz)

§  To feed rising local demand, international M&A activity from Chinese gold companies is rising, quadrupling to $483 M in 2015

§  China recently established the $16-Billion Silk Road Gold Fund to facilitate increasing its gold holdings

§  China’s top gold producer, China National Gold Group Corp., recently signed an agreement with Russia’s top gold producer, Polyus Gold, to strengthen ties in regional gold exploration

6

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

Erdene

Regional Gold Production/Development TSX Companies Producing 2.3 Million Ounces Per Year

Centerra Gold’s Kumtor produces 520 Koz in 2015

7

Development of Mongolia’s Gold Industry 1995 to 1999

§  Pre 1990 - Limited commercial gold operations

§  1995 - Gold production hits 125,000 ounces, 100% increase from 1994; sourced from 75, state/privately-owned placer mines in North-Central and SW Mongolia, equating to approximately US$25 M in gold exports

§  1998 - Despite low gold prices ($290/oz), gold production spikes 150% from 1995 levels, hitting 314,000 ounces, with a growing number of low-cost placer gold mines

§  9-Sept, 1998 - Headline in Mongolian National News Agency: Gold extraction up 10 times in the last 6 years, Mongolia expected to extract 20-25 tons of gold in 2003

§  Nov 1998 - Government, backed by IMF, imposes 10% VAT on sales/export of gold, despite strong opposition from industry

§  1999 - Some foreign gold mining companies exit, and local placer miners remain, selling output to Mongolian Central Bank (production holds steady at 320,000 oz). Two foreign companies remain; Cascadia Mining Inc. and Java Gold Corp.

8

Mongolia Gold Production; 2006 - 2015

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ounces

Gold Production, Oyu Tolgoi

Gold Production, Boroo

Gold Production, other

Gold Purchased by Mongol Bank

9

Mongolia Gold Mines & Deposits

61Moz gold resource, open pit / ug. Produced

653koz in 2015�

OYU TOLGOI�Turquoise Hill�

1Moz open pit, heap leach. Production

started in Q2-2014�

BAYAN AIRAG�Bayan Airag Expl. LLC�

1.6Moz reserve, open pit development. Permitting

stage.�

GATSUURT�Centerra�

Reclaimed. Produced 1.5 Moz @ approx. $500/oz cash cost.�

BOROO�Centerra�

Emerging gold district. High-grade, early stage.�

BAYAN KHUNDII & ALTAN NAR�

Erdene�

0.7Moz Au (+5Moz Ag), @ 1.3 g/t Au. Advanced

stage. �

ATO�Centerra�

Alluvial mining activity�

BAYANKHONGOR�Artisinal mining�

Alluvial mining along 50 km section of Tuul River�

ZAMAAR�Artisinal mining�

Commenced production in early 2016.�

TSAGAAN TSAKHIR�Melbury Capital�

Emerging gold district. High-grade, early stage.�

OYUT ULAAN�Xanadu�

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Corporate Snapshot

10

Stock Symbol ERD (TSX)

Share Price (August 17) $0.36

52-Week Range $0.11 - $0.55

Market Capitalization $43 M

Shares Outstanding 121 M

Shares Fully Diluted 134 M

Cash and Securities $2.9 M

Debt nil

5.9 M Warrants; Avg. $0.19 Price (expiry 2016)

Value: $1.1 M

Shareholder Summary

All Figures in Cad $

Erdene Mgmt & Directors

Teck Resources

Sandstorm Gold

Institutional (Lion Selection Group, Khan Investments, other)

Retail (14% Nova Scotian)

1-Year Share Price Performance

62%

11.3%

4.1%

10.8%

12.3%

Experienced Board and Management Team in Mongolia Since 1996

11

High-Grade Gold Discovery in 2015 at Bayan Khundii Project (100% Owned)

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

Recent Financing and Royalty Transaction with Sandstorm Gold

Recent Financing with Teck Resources to Fund Copper Exploration

Discovering and Developing a New Gold District in the Tian Shan Mineral Belt

Investment Highlights

Erdene Board and Executive

12

Board of Directors

David Mosher Geologist and 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.

13

Major Infrastructure Development With Access to Equipment & Manufacturing

Southern Mongolia Infrastructure Mining Activity & Regional Build-Up

14

Erdene Projects - Emerging Gold District

High Grade Gold: 18 targets along 5.6 km mineralized trend, 2 deposits

High grade copper-gold discovery

Copper discovery

Large alteration zone, including up to 31.4 g/t gold in trenching

Late 2015 high-grade gold discovery; Q2-2016 Drill Highlight - 63 m of 5.3 g/t gold

15

Altan Nar Gold Project - Highlights

Multiple Targets - 18 targets over 5.6 km trend

Ownership - 100% Erdene

Resource - Only 2 of 18 targets included

Shallow - Average drilling depth of 105 metres

High-Grade - 2015 drilling: 19 m of 7.8 g/t AuEq

Expansion - Mineralization open in all directions

Metallurgy - 88% gold recovery (Discovery Zone North)

Discovery Zone (DZ)

Union North (UN)

Extent of Initial 1Q15 Resource

500m

Discovery Zone Intensely Mineralized Gold-Polymetallic Deposit

16

High-Grade, Near-Surface, Steeply Dipping Zones, and Open at Depth

Cross-section

100 m

N 100m @ 1.1 g/t AuEq

16m @ 7.1 g/t AuEq

51m @ 2.5 g/t AuEq

19m @ 7.8 g/t AuEq

NI 43-101 Resource - Near Surface - Discovery Zone 93,000 ounces indicated (2.4 g/t AuEq) & 76,000 ounces inferred (2.2 g/t AuEq)

Plan Map

Union North Multiple Mineralized Structures Open in All Directions

17

Significant Expansion Potential Outside of Initial Resource Area

18

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

Altan Nar Initial Resource Estimate First 2 of 18 Targets

NI 43-101 Resource Estimate (February 19, 2015) 1

Cut-Off Resource Tonnes Au Ag Pb Zn AuEq

AuEq, g/t Category Mln g/t g/t % % g/t oz

0.4 Indicated 4.55 0.80 8.2 0.40 0.51 1.39 203,800

Inferred 4.23 0.65 8.3 0.31 0.45 1.17 158,800

1.0 Indicated 1.85 1.71 11.1 0.54 0.61 2.47 146,800

Inferred 1.50 1.49 10.4 0.39 0.54 2.12 102,100

§  Shallow resource established for initial starter pits on first 2 of 18 priority targets

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

§  Multiple undrilled and scout-drilled prospects along the 5.6 km trend

§  Significant potential for hosting additional gold-polymetallic resources

Discovery Zone (DZ)

Union North (UN)

500m

Extent of Initial 1Q15 Resource

19

Altan Nar Deposit Model Carbonate Base Metal Gold System

Significant Vertical Extent Potential; Only Shallow Drilling Completed at Altan Nar

20

Altan Nar Gold Project Ulaanbaatar Size Comparison

Outline of the Altan Nar Mineralized Trend

21

Bayan Khundii Gold Project Q3 2015 - Multi-Ounce Gold Surface Samples

Initial Surface Sampling - up to 4,380 g/t Gold�

Westridge

Striker

Gold Hill

22

Bayan Khundii Gold Project Looking Northeast from Westridge

23

Bayan Khundii Gold Project Drill-Trench Plan Map

500 m

STRIKER

GOLD HILL

WESTRIDGE

Line 4

24

Bayan Khundii Gold Project Cross-Sections Through the Striker Zone

Line 1 Line 2

Line 3 Line 4

25

Significant Depth Potential; Average Drilling Depth of 75 Metres

Bayan Khundii Gold Project Low Sulphidation Epithermal Model

26

Bayan Khundii Gold Project Low Sulphidation Epithermal Model

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

Stockwork Zone

Striker Zone

Gold Hill

Silica Cap (silicification)

Silica Cap (silicification)

500m

27

Bayan Khundii Gold Project Multiple Gold Targets Over 4 km Trend

High-Grade Gold Discovered 3.5 km Outside of Main Mineralized Zone High-Grade Gold 750 m and 1.2 km From Main Mineralized Zone

Anomalous Gold Sample

Drill Hole

4.1 g/t Au

3.5 g/t Au

1.3 g/t Au

6.9 g/t Au

500 metres

Northeast Bayan Khundii

Main Zone

28

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)

and

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

29

Regional Infrastructure

Shinejinst Soum §  Road

-  175 km to rail head / mining center (Ceke Port of Entry on China border)

§  Water

-  Hydrogeological study completed in Tsahildag Khudag Basin (cost $460,000); 40 km northeast of Altan Nar and Bayan Khundii

-  Study included 104 line km of geophysics and 2,944 m of drilling

-  Large aquifer identified, with estimated water resource at 116 L/sec

§  Power

-  35 kV electrical grid located 70 km north-northeast at Shinejinst Soum

Altan Nar

Bayan Khundii

Geophysical Survey & Drill Holes

25 km

Tsahildag Khudag Basin

Bayan Khundii and Altan Nar Projects 3Q / 4Q Drill Programs

§  Completion of multiple, independent expert studies in Q3

§  Drilling to resume at Bayan Khundii in early September

§  Drilling at Altan Nar will follow Bayan Khundii drill program

§  Objectives of drill programs:

-  Establish limits and size potential of gold mineralization at Bayan Khundii

-  Grow the resource base at Bayan Khundii and Altan Nar

-  Complete the necessary studies required to secure a mining license and necessary permits for both projects

-  Complete the various technical studies to support scoping through feasibility required to make development decision

30

Why Invest in ERD?

31

Early-In Opportunity ‒  Developing a new gold district through greenfield discovery ‒  Early in exploration to development value curve ‒  Low point in commodity cycle = low valuations

Ownership ‒  100% interest in Projects

Growth Potential ‒  Limited drilling to date ‒  All targets open for expansion over large areas; 1.7km at Bayan

Khundii and 5.6 km at Altan Nar

High-Grade & Near Surface ‒  Very high grades ‒  Mineralized zones steeply dipping, exposed at surface

Excellent Metallurgy ‒  99% gold recovery for high-grade Bayan Khundii ‒  88 to 92% for Low Grade Bayan Khundii & Altan Nar (DZN)

Experience ‒  Very experienced management team; in Mongolia since the

mid-1990’s

Location & Infrastructure ‒  Region receiving rapid rail & road upgrades ‒  Next door to world’s second largest gold consumption region and

largest gold producer

Value/~

MarketC

ap

Explora=on Discovery Const-ruc=on

Feas-ibility

Bayan Khundii / Altan Nar

Prod-uc=on

Development Stage of a Successful Mining Company

Erdene Resource Development Corp.

July 2016

TSX: ERD

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