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ERD ENE RESOURCE DEVELOPMENT CORPORATION Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2017, and 2016 (Canadian dollars) (Unaudited) Prepared by management

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Start by reviewing the financial statements and performance of the company.

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Discuss the market outlook and industry trends that may impact the company's performance.

04

Provide a detailed analysis of the company's financial condition, liquidity, and capital resources.

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What is managements discussion and analysis?

Management's Discussion and Analysis (MD&A) is a section of a company's annual report or quarterly filing that provides an overview of the company's financial performance, operational results, and future prospects. It includes management's insights and interpretations of the financial results.

Who is required to file managements discussion and analysis?

Publicly traded companies are required to file MD&A as part of their periodic reports, such as 10-K and 10-Q filings with the Securities and Exchange Commission (SEC).

How to fill out managements discussion and analysis?

To fill out MD&A, companies should provide a narrative explanation of their financial statements, discuss significant changes in financial condition and results of operations, highlight trends, risks, and uncertainties, and include commentary on operational strategies and future outlook.

What is the purpose of managements discussion and analysis?

The purpose of MD&A is to provide investors with a context for understanding the company's financial results, the factors affecting performance, and insights into future operations and strategies. It aims to enhance transparency and allow for informed investment decisions.

What information must be reported on managements discussion and analysis?

MD&A must report on various aspects including the results of operations, liquidity, capital resources, risk factors, significant trends, and any material events that could affect future performance.

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