ERDENES TAVAN TOLGOI POWER PLANT PROJECT Tavan Tolgoi Project ERDENES TAVAN TOLGOI POWER PLANT PROJECT N

Government of Mongolia Erdenes Tavan Tolgoi JSC 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 7.4Bt of Measured, Indicated and Inferred coal resources (inclusive of reserves) and 1.8Bt 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 200km 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 East Tsankhi block Measured Resource estimated by JORC code 1204 M tons* 65 % coking coal East Tsankhi block Bor tolgoi 1078 M tons* 78 % coking coal South-western Coalfield 287А 11977А 11945А Borteeg Coalfield Eastern Coalfield Measured Indicated Inferred Tavan Tolgoi JSC 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 2013: 7 Mtpy 2014: 10 Mtpy 2015: 15 Mtpy 2016/2017: 20 Mtpy Eastern Tsankhi Western Tsankhi Өмнө нь хийгдсэн олон судалгаанд тусгагдсан олборлолт хийх талбайгаас эхлэхээр төлөвлөсөн байгаа Уурхайн төлөвлөлтийг коксжих болон эрчим хүчний нүүрсний зохистой харьцаагаар олборлох мөн дотоод овоолгийг нэн түргэн эхлүүлэх Mine of Tavan Tolgoi JSC Eastern coalfield Bor Teeg coalfield 5

Erdenes TT operation highlights The mining operation and box-cut has commenced in August 27, 2010 Coal export began in August 4, 2011 Coal production and operation 1 million tonnes ROM mined in 2011 About 4.1 million BCM overburden stripping Off-take agreement 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 Өмнө нь хийгдсэн олон судалгаанд тусгагдсан олборлолт хийх талбайгаас эхлэхээр төлөвлөсөн байгаа Уурхайн төлөвлөлтийг коксжих болон эрчим хүчний нүүрсний зохистой харьцаагаар олборлох мөн дотоод овоолгийг нэн түргэн эхлүүлэх Contract Mining 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) BNP Paribas (France) Macquarie (Australia) Global coordinators International audit firm, tax advisor and reporting accountant PriceWaterhouseCoopers (PWC) Technical and resource consultant Norwest Corporation (Canada and USA) Legal Consultant Norton Rose and Hogan Lowells Industry consultant Wood Mackenzie 7

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

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

Key development - Infrastructure 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 (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 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 Dalanzadgad Sainshand Zuunbayan Tavan Tolgoi Oyu tolgoi Gashuun sukhait Zamiin-Uud Khangi Balgasiin Ulaan Nuur 70 km 10

Key developments - Plants In year 2012 Key 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 Government’s 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 MMC’s 18MW 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 85Mw, 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 Total 83.5 MW West Tsankhi 85 MW /est./ 170 MW /est./ 12

ETT - Recent activities Implemented 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. 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 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 Financial close 14

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