NOVEMBER 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

Experienced Management Team in Mongolia Since 1996

3

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

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

Q2 2016 Financing and Royalty Transaction with Sandstorm Gold

Q2 2016 Financing with Teck Resources to Fund Copper Exploration

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

Company Highlights

Experienced Board and Executive

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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.

Corporate Snapshot

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Stock Symbol ERD (TSX)

Share Price (Oct 28) $0.50

52-Week Range $0.11 - $0.55

Market Capitalization $60 M

Shares Outstanding 121 M

Shares Fully Diluted 134 M

Cash $1.6 M

Debt nil

5.9 M Warrants; Avg. $0.19 Price (expiry Nov’16)

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

62%

11.3%

4.1%

10.5%

12.3%

Share Price Since Bayan Khundii Discovery

$0.10

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Sept’15 Oct’16 Apr’16 Jan’16 Aug’16

Mongolia Mining Sector - Foreign Investments

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§  2007 - East Asia Minerals sells uranium asset to Areva - $80M §  2008 - Kerry Holdings buys QGX - $260M §  2009 - CNNC acquires Western Prospector - $25M §  2009 - Rio Tinto invests in Ivanhoe (TRQ) - $380M §  2011 - MCS buys Kerry Holdings coal asset - $465M §  2011 - Hunnu Coal acquired by Bampu - $440M §  2012 - EBRD invests in MAK copper project - $350M §  2013 - Entrée and Sandstorm agree to gold streaming deal - $55M §  2013 - Altan Rio receives equity financing from EBRD - $10M §  2014 - Xanadu Mines announces private placement for Copper Project - $14M §  2015 - Centerra moves focus from Boroo (2 Moz mined 2004-14) to Gatsuurt §  2015 - Kerry Holdings begins commercial production at Bayan Airag gold mine §  2010 - 2015 - Rio Tinto development of Oyu Tolgoi - $5.4B

Over US$7 Billion Invested in Mongolia Mining in Past Decade

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§ Q4 2015 - 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

§ Q1 2016 - Centerra Gold’s Gatsuurt secures parliamentary approvals, continues to seek final approvals for development

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

§ Q2 2016 - Robert Friedland group merges with Mongolia explorer Kincora Copper

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

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.”

Oyu Tolgoi (Cu-Au)

Tsagaan Suvarga (Cu-Mo)

Bayan Airag (Au)

Mongolia Update - Recent Events

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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

Giant Gold Deposits and Prospective Terranes

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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

Erdene

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

Centerra Gold’s Kumtor produces 520 Koz in 2015

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Southern Mongolia Mining and Infrastructure Build-Up

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§  Extensive exploration by Erdene since 2009 -  Gold discoveries 2010 to 2015

-  Created copper exploration alliance with Teck in 2013

o  Excludes gold projects: Altan Nar and Bayan Khundii

§  Alliance with Teck Resources (2013-16) -  Objective: to discover large, near surface metal

deposits on behalf of Alliance

-  Ultimately a 75:25 partnership

-  Area of Focus: Tian Shan Copper-Gold Belt (117,000 km2 area)

-  Teck fully funding exploration through equity placements

-  Teck required to invest a total of $3 mln or acquire 19.9% of Erdene shares before right to earn interest in any project

-  To date, Teck has subscribed to $2.5 mln shares and owns 10.5% of Erdene

Generative Exploration - Teck Alliance Gold & Copper Exploration (2009 to 2016)

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Southwest Gold District - Grassroots Discoveries 100% Erdene

Altan Nar

200 km 20 km Bayan Khundii

Zuun Mod

Altan Nar Discovery - Regional Stream Sediment Survey and Prospecting

Bayan Khundii Discovery - Visible Gold on Surface

Deep Seated Regional Structures 4 Million Hectare Exploration Program

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Erdene’s Emerging Gold District Multiple Discoveries over 20 km Trend; 100% Erdene

Altan Nar Gold-Polymetallic Project –  18 targets along 5.6 km mineralized trend; 2

deposits at Discovery Zone and Union North Bayan Khundii Gold Project

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

Altan Arrow Gold Project

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

Nomin Tal Gold-Copper Project

–  High-grade copper-gold discovery Oyut Khundii Copper Project

–  Early-stage copper discovery

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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

Altan Nar Gold Project - 5.6 Kilometre Trend of Gold Prospects

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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

Intensely Mineralized Gold-Polymetallic Deposit Altan Nar - Discovery Zone Deposit

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Significant Expansion Potential at Union North Deposit

Multiple Gold Zones Open in All Directions Altan Nar - Union North Deposit

17

Altan Nar - Significant Upside Early in the Discovery Process

500m

Rock Sample > 1 g/t Au

§  Significant expansion potential at Discovery Zone and Union North

§  16 remaining targets with limited exploration, including:

-  Largest, most intense geophysical anomaly at Altan Nar, buried under cover and not yet drill tested (Target #6)

-  100m strike length of rock chip samples averaging 2.5 g/t AuEq, not yet drill tested (Target # 16)

-  Untested rock chip anomaly that returned 11.2 g/t Au & 8 g/t Ag (Target #5)

-  Intense alteration/breccia zone over 400m, including 300m2 area of anomalous soil (up to 11.6% Pb) (Target # 4)

-  500m2 target with coincident geophysics; trenching returned 17m of 3.55 g/t Au (Target #3)

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

Altan Nar - Depth Potential Carbonate Base Metal Gold System

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

Altan Nar Initial Shallow 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

20

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

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

21

Bayan Khundii Drilling - Increasing Continuity and Confidence

Project Plan Map and Gold Histogram Map of Striker Zone

22

Bayan Khundii - High-Grade Gold Open in all Directions

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

23

SE-NW Cross-Section Through Striker Zone

Bayan Khundii - High-Grade Gold Open in all Directions

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Bayan Khundii Landscape Looking Northeast Through Striker Zone (~2 km)

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Bayan Khundii - 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)

700m

26

Low Sulphidation Epithermal System; Average Drilling Depth of 75 Metres

Bayan Khundii - Significant Depth Potential

27

Bayan Khundii - 1.7 km x 700 m Target Area

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

§  Shallow drilling in Northeast Zone returned strongly altered volcanics with up to 1.7 g/t gold

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

§  Outcrops of altered volcanics along edges of basin

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

§  Multiple geochemical and geophysical targets throughout target area

28

Bayan Khundii - Testing Buried Targets Cross-Section 1 - Striker Zone Heading Northeast Under Cover

29

Bayan Khundii - Drill Results October 18th 2016 BKD-60 - 170 Metre Step-Out

BKD-60 1m samples

34 to 63 metres (Gold, g/t)

8.43 1.98 2.61 5.56 2.00 0.71 1.00 2.60 7.42 2.91 1.07 1.42 2.83 2.27 7.09 4.62 2.36 3.34 0.25 0.31 0.18 0.57 0.84 2.07 19.00 0.89 3.84 1.87 1.10

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Bayan Khundii - Western Extension Cross-Section 2 - Striker Zone Heading Northwest Under Cover

31

Bayan Khundii - 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)

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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 Regional Infrastructure

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

Q3-Q4 2016

þ  Completion of multiple, independent expert studies - August/September

þ  Commencement of Bayan Khundii drill program - September 5th

q  Drilling at Altan Nar and Altan Arrow to follow Bayan Khundii drill program

q  Results to continue throughout Q4

q  Test limits and establish size potential of gold systems at Bayan Khundii and Altan Nar

2017 q  Grow the resource base at Bayan Khundii and Altan Nar

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

q  Initiate the various technical studies to support scoping through feasibility 33

Why Invest in ERD?

34

Early-In Opportunity ‒  Developing a new gold district through greenfield

discovery

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

Visible gold from Hole BKD-60 (Bayan Khundii Project)

NOVEMBER 2016

Erdene Resource Development

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