ERDENES TAVAN TOLGOI Tavan Tolgoi Project POWER PLANT

ERDENES TAVAN TOLGOI Tavan Tolgoi Project POWER PLANT PROJECT

Company snapshot Overview Location - Erdenes Tavan Tolgoi JSC (“ETT”) is a Mongolian coal producer and developer - ETT holds mining licenses covering 94% land area of Tavan Tolgoi coalfield - The deposit has 7. 4 Bt of Measured, Indicated and Inferred coal resources (inclusive of reserves) and 1. 8 Bt of Proven and Probable coal reserves in accordance with JORC - ETT commenced commercial production in July 2011 - Has 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 markets - 200 km north of the Mongolian-Chinese border Corporate structure Government of Mongolia 100% Erdenes MGL LLC 100% Erdenes Tavan Tolgoi JSC Erdenes Oyu Tolgoi LLC 2

Tavan Tolgoi coking coal deposit Tavan Tolgoi is one of the largest developing coking coal deposits in the world 3

Deposit reserves West Tsankhi Block 1204 M tons* 65 % coking coal Resource estimated by JORC code East Tsankhi block 1078 M tons* 78 % coking coal South-western Coalfield Bor tolgoi 287 А 11977 А 11945 А Borteeg Coalfield Tavan Tolgoi JSC Eastern Coalfield Measured Indicated Inferred Daitsuki LLC Coking coal accounts for 73% (5, 407 Mt) of total resources, and thermal coal for 27% (1, 975 Mt). 4

Mine planning - East Tsankhi • • • Full capacity of the mine – to mine 20 million tons per year To mine it for no less than 50 years The project will reach full capacity in 2016 -2017 Mine production plan Ukhaa Khudag 2011: 1 Mtpy 2012: 3 -4 Mtpy Eastern Tsankhi 2013: Western Tsankhi 7 Mtpy 2014: 10 Mtpy 2015: Mine of Tavan Tolgoi JSC Bor Teeg coalfield Eastern coalfield 15 Mtpy 2016/2017: 20 Mtpy 5

Erdenes TT operation highlights ü The mining operation and box-cut has commenced in August 27, 2010 ü Coal export began in August 4, 2011 Coal production and operation v 1 million tonnes ROM mined in 2011 v About 4. 1 million BCM overburden stripping Off-take agreement v Erdenes TT has signed on July 26, 2011 Coal supply and purchase agreement with Aluminum Corporation of China v Companion Mo. Us with Jinan Iron and Steel, Itochu, Mitsui and KORES to take washed coking coal from Chalco Contract Mining v Macmahon Holding (Australia) and BBM Operta (German) JV engaged 6

IPO on International Stock Exchange Consultants on IPO of part of Erdenes Tavan Tolgoi JSC shares • International investment banks: Goldman Sachs (USA) Deutsche Bank (Germany) Global coordinators BNP Paribas (France) Macquarie (Australia) • International audit firm, tax advisor and reporting accountant • Price. Waterhouse. Coopers (PWC) • Technical and resource consultant • Norwest Corporation (Canada and USA) • Legal Consultant • Norton Rose and Hogan Lowells • Industry consultant • Wood Mackenzie 7

COMPANY HIGHLIGHTS 1 World class coking coal deposits capable of supporting large scale, long life mining operations 2 Favourable geological conditions and open-cut mining result in competitive cash cost position 3 Capacity to produce premium quality hard coking coal products 4 Secured coal off-take agreement with major international company 5 Strong growth profile, targeting 20 Mtpa ROM production from East Tsankhi by 2017 6 Located in proximity to key target markets in China and potential markets in North Asia 7 Experienced management team 8 Development of Tavan Tolgoi is a strategic national priority of the Mongolian Government 8

2012 Development Projects Initial Public Offering Power Plant Water supply 70 km pipeline 300 MW Railway Coal Handling & Preparation Plant Northeast & South Road TT-Gashuun sukhait 9

In year 2012 Key development - Infrastructure Road from East Tsankhi to Gashuun Sukhait • Cabinet has approved construction of a paved road, parallel • to the MMC road. Commencement of construction in May 2012, and commissioning 2014. Water Supply • Cabinet approved water use permit for Balgasyn Ulaan Nuur • Dalanzadga d Tavan Tolgoi km • Zuunbayan Oyu tolgoi 70 • (BUN) ground water resource (~70 km from the mine site). Commencement of the water supply project construction in April 2012. Plan completion of bore field and water supply pipeline by 2 Q 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 Sainshand Balgasiin Ulaan Nuur Zamiin-Uud Khangi Gashuun sukhait Railway • Rail development issues remain with Government/MTZ • Proposals to link Tavan Tolgoi to both the Northeast and South • Company position is to support both options, increasing flexibility 10

Key developments - Plants In year 2012 Coal Handling and Process Plant (CHPP) • • • CHPP complex to be constructed as 2 x 10 Mtpa 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 20 Mt of ROM coal per year in 2017 Power Supply • ETT has received Government’s approval to build and operate the 300 MW coal fired power plant at Tavan Tolgoi. • Currently using diesel generator at mine site with plan to connect to the MMC’s 18 MW power plant that provides sufficient supply for the ETT’s 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. 11

POWER DEMAND - Tavan tolgoi Eastern side of Tsankh of Tavan Tolgoi deposit need power supply of 85 Mw, as well as western side of Tsankh of Tavan tolgoi deposit. № Content Power measurement 1. Mining 55. 0 MW 2. Concentrator 25. 3 MW 3. Water supply 0. 8 MW 4. Mining and Production facility 1. 4 MW 5. Social facility 1. 0 MW 6. Inefficiency 0. 8 MW Total West Tsankhi Total 83. 5 MW 85 MW /est. / 170 MW /est. / 12

ETT - Recent activities § Implemented preliminary report of Feasibility study of 300 MW 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. 13

Indicative Financing TIMETABLE Date Event May § Project kick off, Appoint commercial, technical and legal advisers for due diligence and project development May 2012 § Agree commercial, legal, off take and potential financing structures and terms with stakeholders § Confirm ECA strategy and conduct initial market testing for financing § Project technical specifications agreed May 2012 § Financing structure developed § Commence ECA process § Develop and finalize due diligence and process information (e. g. Information Memorandum, financial model) June 2012 § Preferred financing structure finalized § Financing bid materials finalized § Commence financing process Jul 2012 § Financing indicative bids received and shortlists prepared Aug 2012 § ECA negotiations § Financing final bids launched Sep 2012 § Financing bids received and preferred financiers (debt and equity) selected § Documentation and negotiations of financing documents Sep 2012 § Financial close 14

THANK YOU Jigjidjav 6, 1 st khoroo, Chingeltei district Ulaanbaatar, Mongolia Tel: (976) 7011 -8585 Fax: (976) 7011 -0725 15