■ Strategically located in south-ern Mongolia, proximal to China
■ Extensive exploration at ZuunMod has resulted in delineationof multiple targets over a 3kmlong zone
■ Multiple drill intersections ofgreater than 200m averaging0.05% to 0.06% Mo with highergrade zones of 20 to 30m aver-aging greater than 0.10% Mo
■ Entering resource delineationstage under guidance fromMinarco Asia Pacific PtyLimited, a prominent mining and
The ZUUN MOD project islocated in southern Mongolia,an area with major resourcedevelopment projects includ-ing the Nariin Sukhait coalproject and the Oyu Tolgoigold-copper project. China isbuilding up its infrastructureto access Mongolia’s emerg-ing mineral resources.
YE
LL
OW
RIV
ER
Trans China Railway
Trans Mongolian Railway
Railway under Construction
Proposed Railway
Proposed Railway
Jiayuguan(Steel MakingIndustrial Centre)
Dalandzadgad
Khovd
Altai
Uliastai
Arvaiheer
Tsetserleg
Bayankhongor
Bulgan
Dzuunmod
Sainshand
Underkhaan
Mandalgovi
ChoibalsanULAANBAATAR
Datong
Xi'an
Huhot
Baotou(Steel Making
Industrial Centre)
Xining
Lanzhou
Yinchuan
BayanObo
Baganuur
Erjin Qi
Boroo
Bus Ovoo
Tavan Tolgoi(Coal)
TsagaanSavarga (Cu)
Oyu Tolgoi(Cu, Au)
Erdenet
Nariin Sukhait (Coal)
Wild MountainBlue Springs
Turquoise
VirginWhite Hills
Galshar Coal
Tsenkher Gol
Biger
ZUUN MOD
ErdenetIkh Tal
BayanKharaat
Yargait
Khar
Galshar UulM O N G O L I A
C H I N A
M O N G L O I AMine/major deposit
Capital city
Industrial centre
int©l, regional
Main railway
Erdene PropertiesM O N G O L I A
500
0 100 200 300
KilometresEnlarged
Area
energy industry advisor in theAsia Pacific region
■ The price of Molybdenum Oxideis expected to remain strong, inthe US$15 to 25/lb. range,throughout 2007
■ Strong demand outlook is led bythe construction industry inChina as a result of urbaniza-tion, as well as the global oiland gas sector
PROJECT HIGHLIGHTS
TSX: ERDTSX: ERD
MolybdenumZUUN MOD PROJECT
Molybdenum is a key ingre-dient in stainless steel, aproduct in high demand byChina’s rapidly growingeconomy. Molybdenumprices are strong andexpected to remain wellabove historic levels.
KKMD-08
ZMD-12
ZMD-11
ZMD-13
South Corridor
3 Kilometres
Racetrack Zone Section
600 metres (approx.)
Racetrack Zone
Erdene’s Zuun Mod molybdenumprospect is strategically located lessthan 200 kilometres from China
where rail and a power grid have recentlybeen constructed to the border to supplyraw materials to the giant Gansu Jiu steelcomplex in the industrial city ofJiayuguan. Zuun Mod has the potential tohost a large resource amenable to open
RACETRACK ZONE - SOUTH CORRIDOR
pit mining. The current focus is on athree-kilometre long portion of the sys-tem where 12 of 15 holes have intersectedthick intervals of significant mineraliza-tion. Recently intersected higher gradesnear surface, significant thickness of min-eralized zones open at depth, and largeuntested areas remaining, all attest to thepotential of the Zuun Mod project.
Zuun Mod camp Alteration mapping Molybdenite in drill core
ZUUN MOD MOLYBDENUM PROJECT
KKMD-08
2007 Exploration Plan
Erdene announced in February 2007 thatMinarco Asia Pacific Pty Limited
(Minarco) has been appointed to evaluatestrategic options and advise on project plan-ning and design for the Zuun Mod molybde-num project. Minarco is a leading miningand energy consulting company providingexpert advice and technical services toclients in the Asia Pacific region.
Minarco’s extensive knowledge of molybde-num, particularly as it relates to the Chinaregion, their familiarity with the key molyb-denum producers, traders and customers inthe region and their project managementand engineering experience will be utilizedto assist Erdene in moving the Zuun Modproject to the pre-feasibility level in thenear-term.
PROJECT SUMMARY
■ Molybdenum (Mo) mineralization has been traced over a zone greaterthan 3km long referred to as the South Corridor. Within this zone thereare multiple drill intersections of greater than 200m of 0.05% to 0.06%Mo and multiple zones ranging from 10m to 100m of 0.06% to 0.12% Mo.
■ The most recent drilling results, announced in January 2006, reported thehighest grade, near-surface zones, intersected to date, with 20m of 0.11%Mo starting at 72m from surface. In addition, the entire section from 72m tothe end of the hole at 349m was mineralized and averaged 0.05% Mo.
■ Rail has been constructed from the Chinese industrial city of Jiayuguan,Gansu Province, to the Mongolian border near the Nariin Sukhait CoalMine, 200km southeast of Zuun Mod.
■ Greater than $4 million has been spent on exploration at Zuun Mod sincediscovery with 30 diamond drill holes totaling 9,313m.
■ Erdene Gold is the 100% owner of the Zuun Mod Project subject to a1.5% net smelter royalty in favor of Gallant Minerals Limited.
■ Zuun Mod is a property of merit as defined by the company’s TSXIndependent Qualifying Technical Report which determined the projectto be at an advanced-exploration stage requiring the commencement ofresource delineation within two target areas, the Racetrack andStockwork Zones within the South Corridor.
■ The Gobi region of Mongolia is expected to enter a period of exceptionalgrowth with the pending development of the Ivanhoe/RTZ Oyu Tolgoicopper gold deposit and the Tavan Tolgoi coal mine.
RACETRACK ZONE SECTIONLINE 51700E – LOOKING WEST
DRILL HIGHLIGHTSDrill Hole From (m) To (m) Interval (m) Mo (avg%)KKMD-03 90 326 236 0.06
including 219 247 28 0.12ZMD-11 76 416 340 0.05
including 86 138 52 0.08ZMD-12 84 300 216 0.05
including 186 216 30 0.10ZMD-13 72 349 277 0.05
including 72 92 20 0.11KKMD-08 119 279 160 0.06
including 169 199 30 0.08including 215 247 32 0.08
All holes listed ended in mineralization.
www.erdene.com
WORLD CONSUMPTION OF MOLYBDENUMChina USA Europe Japan Other
1995
1996
160
120
80
40
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
Demand for MolybdenumMolybdenum is a metal used principallyas an alloying agent in steels to enhancestrength, hardness, weldability and corro-sion resistance. The U.S., Japan, Germanyand China are the largest molybdenummarkets, together accounting for about50% of world demand. With the construc-tion boom underway in China andincreased energy demands, steel alloys,primarily stainless steel are in strongdemand for buildings and pipelines. As aresult, consumption of molybdenum inChina doubled between 2001 and 2005.
Alloy Steel(38%)
Stainless Steel(28%)
Chemicals& Lubricants
(28%)
Tool Steel(10%)
Molymetal(7%)
Cast Iron (3%)
Misc. (2%)
USES OF MOLYBDENUM
What is Driving the Demand?
■ The oil and gas sector is projected to remainstrong, as will sectors providing environmentalcontrols for Kyoto protocol
■ China has been strong on infrastructure buildingand manufacturing plant construction
■ The mining & shipping sector remains strong
What is the typical grade of primary openpit mineable molybdenum deposits?Deposit Name Tonnes
(1)Grade Location Dev. Stage
Endako(2) 126,000,000 0.066 Canada OperatingThompson Creek(2) 243,000,000 0.100 USA OperatingRuby Creek 286,000,000 0.063 Canada Start up 2008Spinifex Ridge 469,000,000 0.060 Australia Start up 2008Malmbjerg 212,000,000 0.120 Greenland Pre-Feasibility(1) Tonnage is for measured and indicated categories(2) Includes both resource and reserve estimates
Erdene Gold Inc.Metropolitan Place, Suite 1480, 99 Wyse Rd.Dartmouth, Nova Scotia, Canada B3A 4S5tel: 902.423.6419 fax: 902.423.6432toll free: 800.261.1422www.erdene.com
MOLYBDENUMMARKET OVERVIEW
Erdene Market Facts (December 31, 2006) Common shares issued & outstanding 53.1 millionShares Fully Diluted 62.8 millionWorking Capital $7.6 millionTSX Symbol ERD
TSX: ERDTSX: ERD
Shanghai, China