■ Erdene has six significant porphyryrelated copper-gold-molybdenummineralization projects acrossMongolia’s major metallogenic ter-ranes, areas highly prospective forthe discovery of new mineral deposits

■ The Erdenet property is located in theshadow of the Erdenet mine, thelargest producing copper mine in theChina-Mongolia region and the sec-ond largest porphyry copper depositin Central Asia

■ The Mogoit and Tsagaan Ovoo proj-ects were recently acquired fromXstrata/ Falconbridge who identifiedsix high priority drill targets

Railway under Construction

UvsNuur

HovsgolNuur

Lake

Bai

kal

RIVER

YE

LL

OW

Trans China Railway

TransM

ongolianRailway

Erjin Qi

Port of Tianjin(international exports)

Dalandzadgad

Khovd

Olgiy

Ulaangom

Moron

Altai

Uliastai

Arvaiheer

Tsetserleg

Bayankhongor

Bulgan

Dzuunmod

Sainshand

Underkhaan

Mandalgovi

Baruun Urt

ChoibalsanULAANBAATAR

Chita

Darkhan

Irkutsk

Chatanga

Ulaan Ude

Aginskoye

Sukhbaatar

Ust' Ordynskiy

Barnaul Novokuznetsk

Semipalatinsk

Gorno-Altaisk

Ust'-Kamenogorsk Kyzyl

LuoyangZhengzhou

Jinan

Taiyuan

BEIJING

Shijiazhuang

Datong

Xi'an

Huhot

Xining

Lanzhou

Yinchuan

Bayan Obo

Jining

Baganuur

Jiayuguan(Steel MakingIndustrial Centre)

Baotou(Steel Making

Industrial Centre)

Boroo

Wunugetushan

TsagaanSavarga

OyuTolgoi

Erdenet

Baley

CopperSmelter

Wild Mountain

VirginTsagaan Ovoo

Tsenkher Gol

Biger

Zuun Mod

ErdenetIkh Tal

BayanKharaat

Mogoit

M O N G O L I A

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Erdene Properties

Gold

Copper

Molybdenum

Main railway

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Gold

Copper

Porphyry showing

Island Arc terraine

Accentionary wedge

ERDENE PROPERTIES

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Kilometres

■ Exploration is continuing at Biger tofollowing up on copper, gold and plat-inum-group-element (PGE) anomaliesfrom surface rocks and drill core

■ Bayan Kharaat is a promising new proj-ect within the Erdenet porphyry beltwhere drill targets have been identified

■ Virgin is a large, highly prospectiveproperty in the same porphyry belt asthe RTZ/Ivanhoe Oyu Tolgoi project;drilling on the Temuujin prospect identi-fied mineralization & alteration typicalof the distal part of a porphyry system

PROJECT HIGHLIGHTS

TSX: ERDTSX: ERD

Copper & GoldMONGOLIA PROJECTS

China’s infrastructuredevelopment, includingelectricity generation andtransmission capacity,electrified railways andtelephone networks, andits growing output ofmanufactured goods iscreating massive newdemand for copper.

Mongolia is highly prospec-tive for the discovery of

world-class mineral deposits.Major mineral deposits can befound in and around Mongolia.These deposits occur in tecton-ic terranes that typically hostnumerous large deposits, how-ever, Mongolia remains largelyunder explored. Erdene’s prop-erties are well situated withinthese known terranes andinclude multiple areas wheresignificant mineralization hasbeen intersected duringErdene’s drilling programs.

■ Large 85.4 km2 propertyimmediately surround-ing the Erdenet MiningCorporation (EMC) openpit copper-molybdenummining operation

■ The EMC deposit is thelargest producing copper mine in the China-Mongolia region and the second largestporphyry copper deposit in Central Asia

■ Erdene drilling results include a five metre sec-tion of 0.71% copper within a 35 metre intervalwith copper oxide mineralization that averaged0.21% copper from 24 to 59 metres from thenorthwest flank of the EMC deposit

■ At Tsagaan Chuluut, an area 4 km northwestof the EMC open pit, exploration has outlinedan area of silicification and alunite alterationcoincident with a large magnetic low, highchargeability and low resistivity

ERDENET IKH-TALCopper-Molybdenum Porphyry Project

■ Properties optioned from Xstrata/Falconbridgein early 2007 for back-in right considerations

■ The two optioned properties lie 30 kilometresapart in south central Mongolia within a groupof contiguous exploration licenses coveringapproximately 990 km2

■ Falconbridge’s work identified porphyry-stylecopper-gold system target areas characterizedby coincident geophysical (IP and magnetic)and geochemical (rock and soil) anomalies inareas of historic shallow pits and trenching

■ Six high priority drill targets on the twoproperties identified by Flaconbridge

MOGOIT AND TSAGAAN OVOOCopper-Gold Porphyry Properties

Erdenet copper-molybdenum mine

East of the mine a copper oxide blanket34m thick and averaging 0.24% copperhas been traced over 200m and remainsopen in all direction

Rock samples from theseareas have returned significantvalues for copper (up to 14%)and gold (up to 11 g/t)

Central Mogoit Compilation Map

Copper oxide, Tsagaan Ovoo

MONGOLIA COPPER & GOLD PROJECTS

■ The Biger project is an alkalic porphyry systemwith potential to host significant copper-gold-platinum mineralization located in southwesternMongolia

■ Rock samples returned copper values up to2.8%, accompanied by elevated palladium(1.37 g/t), gold (0.5 g/t), and platinum (0.29 g/t)

■ Geophysical modeling (3D) of the groundmagnetic data identified several large featuresbeneath the extensive pediment cover thatremain highly prospective for porphyry stylecopper-gold-PGE mineralization

■ Subsequent geophysical (gradient anddipole-dipole IP) and geochemcial (mobilemetal ion) surveys have further defined tar-gets for 2007 drilling

■ Located within the Erdenet Copper Porphyry Belt

■ Extensive geophysical surveys (magnetic andIP) with follow-up geochemical and geologicalmapping surveys identified new copper-molyb-denum porphyry targets in 2006

■ Rock grab samples from these areas havereturned values up to 0.22% copper

VIRGIN/TEMUUJINCopper-Gold Porphyry Project

■ The Virgin property and Temuujin prospect aresituated within the South Gobi porphyry beltwhich hosts significant copper-gold porphyrymineral deposits, including the world-classHugo deposit at Oyu Tolgoi

■ Drilling has confirmed porphyry-relatedmineralization and alteration within theTemuujin area typical ofthe distal part of a zonedporphyry system

■ Large portion of the62,000 hectare Virginproperty remaininguntested

BAYAN KHARAATCopper Porphyry Project

BIGERCopper-Gold-PGE Project

A drill hole testing an outlier protrudingthrough a large area of pediment coverintersected a 24 metre section thatassayed 0.5% copper with elevated gold(0.1g/t) and palladium (0.1g/t) values

Reviewing Biger data Virgin – Temuujn drill core

www.erdene.com

Demand for CopperCopper is widely used in construction,electronic products, transportation equip-ment, industrial machinery and a widevariety of consumer products. China’sgrowing infrastructure, expanding exportsand burgeoning middle class all con-tributed to a huge demand for copper thathas helped push the metal to record highprices. Copper has very strong fundamen-tals, driven in particular by the increasingmodernization and construction in China.Other Asian countries, such as Taiwan,Korea and Japan, also have high demandsfor copper and other metals as theyincrease manufacturing to supply China.

■ China continues to lead the world in economicgrowth fueled by an ever expanding middleclass demanding consumer goods as well asrapid urbanization resulting in an unprecedentednew construction boom

■ In the past few years, world demand for metalsand other raw material, lead by China, has result-ed in a supply shortage and record high pricesfor many commodities, including copper

■ A number of Erdene’s copper-gold projects arelocated in southern Mongolia, an area with majornew resource development projects including theNariin Sukhait coal project and the Oyu Tolgoigold-copper project, and China is building up itsinfrastructure to access Mongolia’s emergingmineral resources

■ Erdene’s projects located in northern Mongolia arein areas where infrastructure and rail is alreadyestablished to ship concentrate from the countrieslargest copper mine at Erdenet, to markets in China

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

THE CHINA FACTOR

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

SX-EW production at Erdenet

COPPER IN CHINA