Erdene Resource Development : Developing the High-Grade Khundii Minerals District, Q2 2025
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DEVELOPING THE HIGH-GRADE KHUNDII MINERALS DISTRICT
Unlocking Treasures - Sharing Benefits
Q2 2025
www.erdene.com
DEVELOPING THE HIGH-GRADE KHUNDII MINERALS DISTRICT
Investment Thesis
First mover in an unexplored portion of a World Class Mineral Belt
• Unparalleled discovery potential for large, high-grade gold and copper deposits
High-grade gold development
• Bayan Khundii Gold Project moving to production in mid-2025
Multimillion ounce potential
• Multiple high-grade gold discoveries adjacent to the Bayan Khundii Gold Project and significant exploration upside in district
Powerful Alliance
• Uniting Erdene and Mongolia's leading miner backed by one of the Country's largest conglomerates
A sleeping giant
• Zuun Mod Molybdenum-Copper Porphyry Complex is one of Asia's largest undeveloped projects
A WINDOW OF OPPORTUNITY - LIMITED EXPLORATION IN A HIGHLY PROSPECTIVE BELT
Global distribution of giant arc related gold and copper deposits
HIGHEST POTENTIAL REGION FOR COPPER-GOLD DISCOVERIES
2010 Central Asian Orogenic Belt and Eastern Tethysides USGS
"Remoteness, harsh terrain, and lack of infrastructure impeded exploration in many areas, with the western end of the tract having not received much attention"*
Khundii
Minerals District
Locations of giant ore deposits discussed in this paper and significant arc-related metallogenic belts (purple lines).
Base map modified from World of Maps (© Bruce Jones Design, 2010).
EXPANDING INFRASTRUCTURE IN A GROWING MINING JURISDICTION
Less than 200km from the Chinese border, multiple mines in vicinity
Mongolian and Chinese governments are aggressively building infrastructure: three railway lines now connect to China and intra-Mongolian road and rail networks have been recently expanded
MONGOLIA
Legend
ERDENE Projects
Mines & Major Projects
Major Paved Road
Unpaved Road
Existing Railway
Planned Railway
International Airport
C ity
Regional Airport
Taiyuan
MAKINGS OF A MULTI-MINE, MULTI-COMMODITY DISTRICT
Multiple deposits in close proximity to be developed in sequence - more than 20 additional prospects in district
N
40 km
ERDENE PROPERTY
OTHER OWNER
Mineral Deposits
Proposed State Rail
Proposed Zuun Mod Rail Spur
Existing Roads
Proposed Mine Access Roads
Provincial Boundary
Towns/ Soum Centres
UNITING MONGOLIA'S LEADING EXPLORER AND MINER WHILE MAINTAINING LONG TERM UPSIDE
Strategic partner with capital and operational experience
TSX : ERD
|
MSE : ERDN
Eric Sprott (19%)
7,000 Mongolian
EBRD (8%)
shareholders
50:50 JV with Mongolian Mining
Corporation
District Scale (700 sq km AOI) Upside
ERD 5% NSR*
100% Equity Interest
Large scale copper-molybdenum project
Bayan Khundii
Dark Horse
Altan Nar
Ulaan
Zuun Mod
Khuvyn Khar
Gold Project
Gold Project
Gold-Polymetallic Project
Gold Project
Copper-Moly Project
Copper Project
Khundii
Altan Nar
Ulaan
Mining Licence
Exploration Licence
Khuvyn Khar Mining Licence
Mining Licence
*After initial 400,000oz Au production; includes properties acquired within 5km of the licenses
FINANCIAL PARTNERS
Backing of leading international and domestic institutions
Mongolian Mining Corporation - Equity
▪ US$40M equity investment in Erdene's subsidiary
▪ Forecast ~US$500M EBITDA annually1
Mongolian Mining Corporation - Loan
▪ US$80 million, 5-year shareholder loan repayable in full upon maturity
▪ Interest rate of 13.8%, with option to capitalize the first four interest payments
▪ Erdene has the right to purchase 50% of the loan and participate on the same terms as MMC
Trade & Development Bank of Mongolia
▪ US$50 million, twenty-four month, working capital facility, repayable in six equal payments during the last six months
▪ Interest rate of 13.3%
European Bank for Reconstruction and Development
▪ Major shareholder (8%) following loan conversion in Q4 2020
▪ Largest foreign direct investor in Mongolia with €2.4 invested, including senior lender to Oyu Tolgoi
Eric Sprott
Eric Sprott
▪ Erdene's largest shareholder (19%)
Mongolian Stock Exchange
▪ Sharing benefits with more than 7,000 Mongolian shareholders
▪ Erdene is first company cross-listed on both Mongolian and Toronto Stock Exchanges
1.
Per Fitch Ratings report
THE BAYAN KHUNDII (RICH VALLEY) GOLD MINE BAYAN KHUNDII DEPOSIT - RESOURCE AND RESERVES
Utilizing US$1800 gold price for reserve cut-off grades and US$2000 gold price for Whittle Pit resource shells
2000 m
10
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
Disclaimer
Erdene Resource Development Corporation published this content on April 02, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 02, 2025 at 05:04 UTC.