KHOTGOR Rare Earth Elements project South Gobi, Mongolia June 2010

I. II. III. IV. V. VI. QGX MONGOL LLC Overview Company Background “KHOTGOR” Project Overview IV. Infrastructure V. Project Geology VI. “KHOTGOR” Project Key Highlights

Overview NEW SOURCE OF REE TO THE MARKET Khotgor Project Highlights NEW SOURCE OF REE TO THE MARKET Significantly large resource - approx 200 Mt Inferred classification resource PROXIMITY ADVANTAGE TO THE MARKET 300 km from Chinese-Mongolian Gashuun Sukhait border STRATEGIC LOCATION Adjacent to world class UHG (80km) and Baruun Naran (60km) Easy access to the infrastructure MINING LICENSE Successfully defended Resource Estimation with the State and obtained Mining (A) license

II. Company Background QGX Mongol LLC QGX (former Canadian based company) incorporated in 1994 – first foreign company to obtain mineral license in Mongolia and was listed in TSX Kerry Holding HK and MCS Holding Mongolia acquired QGX in Sep 2008 QGX BVI “QGX “is a holding company of 7 entities that are primarily involved in mining and mineral exploration in Mongolia Among QGX’s subsidiaries, there are number of advanced projects including; Baruun Naran - coking coal property - South Gobi province Bayan Airag - Au, Cu and Ag property - Zavkhan province The group employs over 100 full time staff with local & international geological and mining expertise

III. The Geographic Location Project overview Approximately 530 km from capital city Ulaanbaatar and 300 km from Gashuun Sukhait border

III. The Resource Estimation Project overview Classification of Khotgor Resource by Cutoff Grade Hellman and Schofield (H&S Australia) has completed resource estimates for the Khotgor REE deposit on data from 26 drill holes in June 2009. Individual REE assay were converted to oxides and combined with yttrium and expressed as total rare earth oxides (REOs). The REEs are dominated (96.1%) by the light rare earth elements - cerium, lanthanum, neodymium and praseodymium

IV. Infrastructure Local Infrastructures and Access to the Market

V. Project Geology EXPLORATION WORK CONDUCTED FROM 2002 to 2009 Exploration program EXPLORATION WORK CONDUCTED FROM 2002 to 2009

V. Exploration Drilling Drill hole locations & Geologic description In 2007 diamond drilling program KH01 to KH03 In 2008 KH04 (depth at 574.7 meters), KH05 and KH06 Late 2008 – Feb 2009 20 drill holes The REE at khotgor are largely contained in apatite rich veining and breccia cement in a large magmatic breccia body composed of mafic to ultramafic alkaline igneous rocks. The REE elements are likely largely contained in the apatite, although apatite may also be abundant in the absence of strong REE mineralization, and phosphate may be a potentially economic product. Primary galena, sphalerite and pyrrhotite are also present, and are locally abundant.

V. Project Geophysics Khotgor Inverted Chargeability (225 m depth) & Susceptibility (200 m depth)

V. Grade Model 0 – 0.5 % 0.5 – 1 % 1 – 5.9 % REE oxide grade % 3D grade model with Micromine software REE oxide grade % 0 – 0.5 % 0.5 – 1 % 1 – 5.9 %

VI. Project Key Highlights “Khotgor” Key highlights 1st Resource Estimation approved REE project in Mongolia The largest resource of REE in Mongolia Strategically located to fast developing infrastructure Strong interest in international markets toward REE as it being primary commodities for green technology and high tech A new source of REE outside of mainland China Mining license acquisition permitting/allowing additional exploration work to take it to production When cut-off grade is 1%, the contained metal is over 1 million tonne