Metal Silver

Tavan Tolgoi Project

ERDENES TAVAN TOLGOI POWER PLANT PROJECT

1N

OverviewLocationCorporate structureErdenes Tavan Tolgoi JSC (ETT) is a Mongolian coal producer and developerETT holds mining licenses covering 94% land area of Tavan Tolgoi coalfieldThe deposit has 7.4Bt of Measured, Indicated and Inferred coal resources (inclusive of reserves) and 1.8Bt of Proven and Probable coal reserves in accordance with JORCETT commenced commercial production in July 2011Has ambitious plan to become a large scale regional producer and exporter of high quality washed coking and thermal coal products to Chinese and North Asian marketsCompany snapshot200km north of the Mongolian-Chinese borderGovernment of MongoliaErdenes MGL LLCErdenes Tavan Tolgoi JSC100%100%

Erdenes Oyu Tolgoi LLC2Tavan Tolgoi coking coal deposit

Tavan Tolgoi is one of the largest developing coking coal deposits in the world

33Deposit reserves

West Tsankhi BlockEast Tsankhi block1204 M tons*65 % coking coal1078 M tons*78 % coking coalEastern Coalfield BorteegCoalfieldSouth-westernCoalfield Tavan Tolgoi JSCDaitsuki LLCResource estimated by JORC code4Bor tolgoiMeasured Indicated Inferred 2871197711945Coking coal accounts for 73% (5,407 Mt) of total resources, and thermal coal for 27% (1,975 Mt).

Mine planning - East TsankhiFull capacity of the mine to mine 20 million tons per yearTo mine it for no less than 50 yearsThe project will reach full capacity in 2016-2017Western TsankhiEastern TsankhiBor Teeg coalfieldEastern coalfieldUkhaa KhudagMine of Tavan Tolgoi JSC5Mine production plan2011: 1 Mtpy2012:3-4 Mtpy2013:7 Mtpy2014:10 Mtpy2015:15 Mtpy2016/2017:20 Mtpy

5Erdenes TT operation highlights6The mining operation and box-cut has commenced in August 27, 2010Coal export began in August 4, 20111 million tonnes ROM mined in 2011About 4.1 million BCM overburden stripping

Contract MiningMacmahon Holding (Australia) and BBM Operta (German) JV engaged Coal production and operation

Erdenes TT has signed on July 26, 2011 Coal supply and purchase agreement with Aluminum Corporation of China Companion MoUs with Jinan Iron and Steel, Itochu, Mitsui and KORES to take washed coking coal from Chalco

Off-take agreement

6IPO on International Stock ExchangeConsultants on IPO of part of Erdenes Tavan Tolgoi JSC shares International investment banks:

Goldman Sachs (USA)Deutsche Bank (Germany)BNP Paribas (France)Macquarie (Australia)

International audit firm, tax advisor and reporting accountantPriceWaterhouseCoopers (PWC) Technical and resource consultantNorwest Corporation (Canada and USA)Legal Consultant Norton Rose and Hogan LowellsIndustry consultant Wood Mackenzie7Global coordinators

COMPANY HIGHLIGHTSWorld class coking coal deposits capable of supporting large scale, long life mining operations1Favourable geological conditions and open-cut mining result in competitive cash cost position2Capacity to produce premium quality hard coking coal products3Secured coal off-take agreement with major international company4Strong growth profile, targeting 20Mtpa ROM production from East Tsankhi by 20175Located in proximity to key target markets in China and potential markets in North Asia6Experienced management team7Development of Tavan Tolgoi is a strategic national priority of the Mongolian Government8882012 Development ProjectsRailway

Northeast & South

Power Plant

300 MWCoal Handling &PreparationPlant Road

TT-Gashuun sukhait

Water supply

70 km pipeline

InitialPublicOffering

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DalanzadgadSainshandZuunbayanTavan TolgoiOyu tolgoiGashuunsukhaitZamiin-UudKhangiBalgasiin Ulaan Nuur70 km

Key development - InfrastructureRoad from East Tsankhi to Gashuun SukhaitCabinet has approved construction of a paved road, parallel to the MMC road.Commencement of construction in May 2012, and commissioning 2014.

Water SupplyCabinet approved water use permit for Balgasyn Ulaan Nuur (BUN) ground water resource (~70km from the mine site).Commencement of the water supply project construction in April 2012.Plan completion of bore field and water supply pipeline by 2Q of 2014.A major water exploration program is planned to verify BUN capacity and productivity and to identify additional resources for possible long term requirements

RailwayRail development issues remain with Government/MTZProposals to link Tavan Tolgoi to both the Northeast and SouthCompany position is to support both options, increasing flexibility

10In year 2012Key developments - Plants

Coal Handling and Process Plant (CHPP)

CHPP complex to be constructed as 2 x 10Mtpa modules, and commencement of construction in July 2012.Commissioning of first 5 mtpa module in June 2014, and second 5 mtpa in November 2014.CHPP ramping up to processing 20Mt of ROM coal per year in 2017

Power Supply

ETT has received Governments approval to build and operate the 300MW coal fired power plant at Tavan Tolgoi.

Currently using diesel generator at mine site with plan to connect to the MMCs 18MW power plant that provides sufficient supply for the ETTs operations until late 2013.

The power plant will be sufficient to supply all of East and West Tsankhi operation at steady state production with excess capacity to be sold to Mongolian grid or China.

Connection to the Central grid at Mandalgovi.

11In year 201211Power demand - Tavan tolgoiEastern side of Tsankh of Tavan Tolgoi deposit need power supply of 85Mw, as well as western side of Tsankh of Tavan tolgoi deposit.

ContentPower measurement1.Mining55.0 MW2.Concentrator 25.3 MW3.Water supply 0.8 MW4.Mining and Production facility 1.4 MW5.Social facility 1.0 MW6.Inefficiency 0.8 MWTotal83.5 MWWest Tsankhi85 MW /est./Total 170 MW /est./12 ETT - Recent activitiesImplemented preliminary report of Feasibility study of 300MW power plant construction project.

Under finalization of Feasibility study and preparation to get approval from Mongolian Science and technology committee within June of 2012 .

Selected power plant construction site and commenced geodesy research.

Commenced Engineering and geology research and environment impact evaluation study.

13Indicative Financing TIMETABLEDateEventMayProject kick off, Appoint commercial, technical and legal advisers for due diligence and project developmentMay 2012 Agree commercial, legal, off take and potential financing structures and terms with stakeholdersConfirm ECA strategy and conduct initial market testing for financingProject technical specifications agreedMay 2012Financing structure developedCommence ECA processDevelop and finalize due diligence and process information (e.g. Information Memorandum, financial model)June 2012Preferred financing structure finalizedFinancing bid materials finalizedCommence financing process Jul 2012Financing indicative bids received and shortlists preparedAug 2012ECA negotiationsFinancing final bids launchedSep 2012Financing bids received and preferred financiers (debt and equity) selectedDocumentation and negotiations of financing documents Sep 2012Financial close14THANK YOU

Jigjidjav 6, 1st khoroo, Chingeltei districtUlaanbaatar, MongoliaTel: (976) 7011-8585Fax: (976) 7011-072515