1. Mr. Ochirsukh B, Director of Mongolian Nature and Environment Consortium 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

2. Contents  Background  Purpose of Study  CMM Resource Assessment  CMM Resource Calculation Methodology  Result  Conclusion 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

3.  Mongolia’s proven coal reserves are 12.2 billion metric tons.  It is important to investigate the distribution of methane resources associated with recoverable coal resources.  MNEC is prescribed by the Intergovernmental Panel on Climate Change (IPCC)1.  A basin-specific Tier 2 approach is recommended in Mongolia to reduce uncertainty as mine-specific  Tier 3 data are not feasible to obtain for surface mines at this time, which dominate Mongolia’s coal production.  With widespread coal deposits of varying rank, it is important to develop basin-specific emission factors.. Background 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

4. Purpose of Study  The purpose of the study is to estimate of CMM resources of coal basins and some coal mine site of Mongolia 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

5. CMM Resources Assessment  Prior investigation  Field investigation 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

6. Prior investigation Tentative Reserves of Coal Bed Methane Gas in Mongolia, Bazardorj Bayarsaikhan (2012); Mongolian Surface Mines Assessment, Dr. B. Namkhainyam (2013); and The International Coal Seam Gas Report, Steve Schwochow (1997) editor. Coal Resources in Mongolia and Some Probable Potential Areas for Coalbed Methane, Ayurzana Chimiddorj (1995). Geologic settings, coal characteristics, distribution, and resources, Bat-Orshikh Erdenetsogt etc., (2009) Geographic Atlas of Mongolia (2004), D. Dorjgotov 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

7. Field survey In June 2012 Baganuur deposit Tavan Tolgoi deposit Nariin Sukhait deposit 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

8. Sampling and Testing Activity summary 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

9. CMM resource calculation methodology  Desorption testing  Gas chromatography analysis  Adsorption isotherm testing  Hydrogeology mapping 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

10. 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

11. Desorption testing 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

12. Gas Chromatography Analysis Chemistry and Chemical Engineering of the National University of Mongolia. Gas chromatography is commonly used in laboratory and field settings to separate constituent chemical compounds in a complexly mixed gas sample. 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

13. Adsorption Isotherm Testing Adsorption isotherm testing was coordinated with the Xian Research institute of the China Coal Technology and Engineering Group Corp. Coal samples were shipped by mail to Xian and results were delivered to MNEC and RRR by email. 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

14. Adsorption Isotherm Testing V = VL * P / (PL + P); where: V = gas content (m3/t) VL = Langmuir volume constant (m3/t) P = reservoir pressure (MPa) PL = Langmuir pressure constant (MPa) The Langmuir equation below was used to generate the rank type curves and calculate the gas content of coal at a given depth. 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

15. Adsorption Isotherm Result in Nariin Sulhait and Tavan Tolgoi 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

16. Adsorption Isotherm Results in Baganuur and Khotgor 2016 16 th International Symposium on CBM/CMM and Shale Gas in China Shanxi, China September 12-13, 2016

17. HYDROGELOGY AND ANNUAL PRECIPTATION OF MONGOLIAN GOAL BASINS

18. RESULT ESTIMATED CMM RESOURCES BY COAL BASIN AND DEPTH p50 The top three with the largest estimated CMM resources in descending order are the:  Mongol-Altai,  South Gobi  Tamsag basins. Each of these basins is estimated to contain greater than 50 billion cubic meters of CMM resources. Coal Basin p50 CMM Resources 0 – 300 m (billion m 3 ) p50 CMM Resources 300 – 600 m (billion m 3 ) p50 CMM Resources 600 – 900 m (billion m 3 ) p50 CMM Resources 900 – 1200 m (billion m 3 ) Central Gobi 12.231.941.146.8 Choibalsan 11.826.935.541.0 Choir-Nyalga 14.136.748.455.8 East Gobi 15.742.556.064.6 Ikh Bogd 0.71.72.12.3 Kharkhiraa 30.863.777.885.8 Mongol-Altai 64.3132.8162.2178.8 Ongi River 5.212.615.517.2 Orkhon-Selenge (North) 34.069.985.193.7 Orkhon-Selenge (South) 4.29.211.613.0 Southern Khangai 7.615.919.521.5 South Gobi 61.8148.6181.8200.7 Sukhbaatar 2.97.810.211.8 Tamsag 52.5113.8143.3160.8 Trans-Altai 20.950.561.668.0 TOTAL 338.7764.5951.81,061.9

19. P 50 CMM RESOURCE BY COAL RANK IN MONGOLIA

20. 2014, p50 – 50% probability CMM RESOURCE BY COAL BASIN

21. Depth interval, -150m -250m -350m and -450m. The total estimated gas in place is 728.98 million cubic meters. CMM RESOURCES IN NARYN SUKHAIT

22. WHAT WE NEED TO DO IN FURTHER Continued activities for detailed estimation of methane resource of coal basins and mining sites in Mongolia Improving and creating basic legal frameworks, that ensures flexible economic develop CMM development and attract foreign direct investment in the related field Capacity building and international cooperation, focusing on personal training, resources evaluation and investigation facilities Collect geological data from each basin. Geological information relates to coal rank, quality and deep of occurrence and thickness will be collated and used as a basic for resources Improve CMM emissions inventory assessment for each mining region

23. CONCLUTION Mongolia has CMB/CMM potential resource. Need to further detailed investigations of CMM resource assessment for coal basins as well as coal mining sites Total estimated CMM resources of coal basins are 3,117 trillion cubic meters Total estimated CMM resources for Nariin Sukhait mine is 792.98 million cubic meters, for Baganuur mine is 120 million cubic meters respectively P 50 CMM resource by coal rank; Bituminous coal (63.9%) subbitinous (24.4%) Lignite (10.6%) and anthracite 1.0% Power generation cheapest and easiest option to use CBM/CMM in coal mine instead of the diesel fuel. Possible to replace up to 50% of liquid fuel import from Russia. Financial and technical support from USA EPA, Asian Development Bank & World Bank

24. ACKNOWLEDGEMENTS Mongolian government wishes to thank to USEPA for support of CBM/CMM development in Mongolia Raven Ridge Resources Co., Ltd, USA for their support in method development as well CMM analysis obtained data

25. Email: mnec8@yahoo.com ochirsukhmb@yahoo.co.uk,mnec8@yahoo.com ochirsukhmb@yahoo.co.uk