1. 01 February 2019
Erdenes Mongol Group
CEO Gankhuu Purevjav

2. 72% of Foreign Investment
Mongolia Economic and Mining Industry Overview 2018
Economic Growth
6.4%
Inflation Rate
8.1%
Credit Rating B
Unemployment
6.9%
Mining Industry
22% of GDP
72% of Foreign Investment
74% of Industrial Sector
90% of Export
Foreign Trade
US$ M
Turnover
US$12,866.8
Export
US$7,011.8
Import
US$5,875.0
Balance of Trade
US$1,136.8

3. Strategic Mineral Assets
Asgat
Silver Ore * 6.4 Mt
Buren Khaan
Phosphate Ore * 192 Mt
Erdenet
Copper * 4.1 Mt
Mo * 0.012%
Boroo
Gold * 43 t
Gatsuurt
Gold * 35 t
Tumurtei
Iron Ore * 228 Mt Ag
Gurvanbulag
Uranium * 8,580.3 t P Fe U
Mardai
Uranium * 1,948.1 t
Cu/Mo Au U U
Baganuur
Lignite * 812 Mt
Dornod
Uranium * 28,868 t
Ulaanbaatar C
Shivee Ovoo
Lignite * 617 Mt
Tumurtein Ovoo
Zinc Ore * 0.9 Mt Zn C
Tavan Tolgoi
Coking Coal * 7.4 Bt
Oyu Tolgoi
Copper * 44.4 M t
Gold * 1,903 t
Tsagaan Suvarga
Copper/Mo
Copper Ore * 10.6 Mt C
Cu/Mo
Nariin Sukhait
Coking Coal
125.5 Mt C
Cu/Au
Erdenes Mongol will hold licenses and state shareholding in strategic mineral assets

4. 13.3 24.6 IPO (billion tugrik) (billion tugrik)
Mining and Heavy Industry Sector
“Mongol Refinery” state-owned LLC
Strategic deposit boundaries
The Nariinsukhait, Tavantolgoi, Shivee-Ovoo, Baganuur, Tsagaansuvarga, Burenkhaan and Erdenetiin-Ovoo copper-molybdenum deposit boundaries have been specified.
The “Mongol Refinery” was established in accordance to the Government of Mongolia's Resolution No. 92 in 2017.
Strategic Deposit
Exploration geology
“Erdenes-Tavantolgoi” JSC
13.3
2018
“Erdenes-Tavantolgoi” JSC has started its preparations for IPO on foreign and domestic stock exchanges.
(billion tugrik)
IPO
24.6
(billion tugrik)
43 projects
2019

5. Foreign currency reserve
Mining and Heavy Industry Sector
Amount of gold submitted to the Central Bank of Mongolia
22 tons
The type 92 fuel price has decreased by MNT 100 per liter and in cities and provinces except Bayan-Ölgii, Govi-Altai, Bayankhongor it has decreased by MNT 50 respectively. +
$897m
Foreign currency reserve
Meeting and agreement
Oil refinery plant
$20-40
per ton
The Development Bank has provided MNT 53.1 billion for industrial infrastructure projects.
Altanshiree
ROSNEFT
DORNOGOVI
$30m

6. Mining and Heavy Industry Sector – 2019 Policy And Strategy
Geological sector
Mining sector
Ensure transparency and openness of information in extractive industries, simplify the process for granting exploration licenses and increase funding for geological research in the state budget.
Terminate illegal mining operations, improve the governance of state-owned mining enterprises and develop public-private partnerships in mining infrastructure.
Oil sector
Heavy industry sector
Accelerate oil exploration and increase reserves, tighten control over production sharing agreement, improve the supply of oil products and quality control system.
Stabilize the heavy industry operations, ensure the implantation of large scale projects and supply domestically manufactured steel products.

7. Erdenes Mongol Group Structure
Erdenes OT LLC
Baganuur
JSC
Largest lignite mine in Mongolia
Meets 60% of coal consumption in Mongolia including supply of 70% in the central region
Plans to do mine expansion and technical renovation and looks at financing opportunity
Shivee Ovoo JSC
Second largest lignite mine
Meets 20% of steam coal demand for power plants in the central region
Mon Atom LLC S
Licensee of the largest uranium asset in Mongolia
Close proximity to world largest nuclear energy producers
Ready to put a pilot processing plant into operation
Erdenes Asset Management
Make and conduct financial estimates and analysis
Invest into projects which meet an appropriate rate of return
Plans to obtain a license to operate an investment fund from the Financial Regulatory Commission, Mongolia
Erdenes Methane LLC
Become a major ecology-oriented energy producer in the region
Mine and develop coal-bed methane (CBM) in coal basins in Mongolia
Seeks financing for CBM prospecting and exploration
Erdenes Shivee Energy
Construct an environment-friendly and cost-effective power plant
Construct a 5280 MW power plant with State Grid Corporation, PRC
Obtain approval for FS from the Minerals Council, Mongolia
Erdenes Ashid LLC
Run mineral prospecting and exploration (PE) with MAK, Mongolia
Erdenes Steel LLC
Construct a metallurgical industrial complex with Beren Group, Mongolia
Obtain approval for FS from the Minerals Council, Mongolia, in Q1 2019
Erdenes Alt Resource LLC
Run gold and silver prospecting and exploration (PE)
Mine gold and silver
Plans to construct a gold and silver refinery
Research Sub-Center
Created at the Ministry of Foreign Affairs, Mongolia
Assist in implementing the Mongolia-Russia-China Economic Corridor Program s
World-class copper mine
Government and Rio Tinto partnership
Access to China’s market by road and railroad
Underground mine be put into operation in 2021
100%
100% state-owned enterprise (SOE)
Incorporated in 2007
Government mandat to exercise rights in relation to state-owned shareholding in strategic mineral assets and manage the assets as per Parliament and Government resolutions
100%
75%
90%
100%
100%
100%
50%
34%
100%
100%
34%
34%
Oyu Tolgoi LLC
Badrakh Energy
Badrakh
Energy LLC
Erdenes Tavan Tolgoi JSC
Parliament Resolution 73
Government Resolution 245
Erdenes Mongol is a whole owner of the Tavan Tolgoi-Gashuun Sukhait heavy-duty road
Copper Cu
Lignite
Uranium U
Asset
CBM
Energy PE
Coke Steel
Gold Au
Research

8. Financing and Investment
Core Business Lines and Financial Summary 2017
Mineral Development
Asset Management
Financing and Investment
Trade and Sales
Consulting
Government Mandate
Total Production
Copper Concentrate 1.4 Mt
Coal 16 Mt
Total Assets
US$5.6 B
Revenue
US$2.5 B * 48% of
Total Export Revenue

9. Strategic Goals Strategy Strategic Goals
Hold licenses and state shareholding in strategic mineral assets
Implement energy, infrastructure, logistics, and processing industry projects
Pursue appropriate asset management, raise and use funds for project finance
Implement good corporate governance and promote sustainable development
Strategy
Become a regionally competitive investment
and management company capable of developing minerals efficiently, making optimal long-term investment into mining, energy, and infrastructure industries, and promoting sustainable economic growth
Strategic Goals

10. Financial Plan 2019 Revenue Cost Operating Cost
239-km heavy duty road tolls, subsidiary management fees, and Shivee Ovoo coal license lease make up Erdenes Mongol revenue.
Total revenue is expected to account for US$42 million in 2019.
The volume of coal to go through the road is expected to reach 23 million tons in 2019 as opposed to 19.2 million tons in 2018.
Cost
Total cost is expected to account for US$18.8 million in 2019.
Total road repair and maintenance cost has grown and is expected to account for US$21.6 million in 2019.
Operating Cost
Operating cost is expected to reach US$3.31 million in 2019.

11. Financial Outlook Items 2018 2019 2020 2021 2022 2023 Total
Total Production Mt
6.2
7.0
8.7
10.0
11.6
12.0
55.5
Road
Construct a 303-km Tavan Tolgoi-Khangi-Mandal paved road
Growth in Group Revenue
Construct a 416-km Tavan Tolgoi-Choir road
Total Revenue
272.8
405.0
884.1
1,448.9
1,670.9
1,804.2
6,486.0
Total Cost
250.3
272.7
627.3
1,035.5
978.3
992.7
4,156.7
Тaxes
6.4
18.6
41.7
66.2
125.1
149.1
407.1
Gross Profit
15.7
120.3
219.8
359.0
576.7
671.7
1,963.1
Investment
21.0
436.5
545.9
123.9
102.8
84.8
1,315.4

12. Enterprise Capacity and Commodity
Mineral Asset: Oyu Tolgoi (Open-Pit Mine)
Commodity: Copper Concentrate
Capacity: Mt
Market: Export
Mineral Assets: Baganuur and Shivee Ovoo
Commodity: Lignite
Capacity: 6-7 Mt
Market: Local power plants
Mineral Asset: Tavan Tolgoi
Commodity: Coking Coal
Capacity: Mt
Market: Export
Mineral Asset: Zuuvch Ovoo and Dulaan Uul
Commodity: Radioactive Minerals (Uranium)
Capacity: 2,000 t
Market: Export
Location: Tavan Tolgoi-Gashuun Sukhait
Commodity: Toll Road Service for commodity transporters
Capacity: 18 Mt

13. Manage assets properly and raise funding and finance
Initial Public Offering (IPO) and Secondary Market Offering (SMO)
Manage assets properly and raise funding and finance
projects
30% (IPO)
24% (SMO)
39% (SMO)
Total Number of
Shares
Government
Shareholding
Number of Shares
IPO/SMO
Expected
Revenue
Erdenes TT
15,000,000,000
12,750,000,000 (85%)
4,500,000,000
US$3-5 B
Baganuur
20,974,360
15,730,770 (75%)
9,870,217
MNT30-35 B
Shivee Ovoo
13,419,101
12,077,190 (90%)
10,261,665
MNT40-45 B

14. Metallurgical Industrial Complex
Projects
Metallurgical Industrial Complex
Develop energy, infrastructure, logistics, and downstream processing industry projects
Project Developer:
Commodity:
Status:
Project Financing:
Capacity:
Erdenes Steel LLC
Coke and Steel
FS has been developed
Up to US$ 320 Million
Coke 500,000 t and Steel 300,000 t
Gold Refinery
Project Developer:
Commodity:
Status:
Erdenes Alt Resource LLC
Refined Gold
Plans to announce an International Competitive Bidding (ICB) for FS development which will follow in 2019
Shivee Energy Complex for Export
Project Developer:
Commodity:
Status:
Project Financing:
Capacity:
Erdenes Shivee Energy LLC
Energy
FS has been developed US$7 B
5280 MW 4

15. Mineral Commodity Exchange
Projects
Develop energy, infrastructure, logistics, and downstream processing industry projects
Mineral Commodity Exchange
Project Developer:
Goal:
Status:
Project Financing:
Erdenes Mongol
Establish a minerals exchange to sell mineral commodities on domestic and foreign markets applying principles of transparency, optimization, efficiency, and market, and set fair prices, develop domestic stock market, and regulate export through integrated policy with a view to implementing the Government Minerals Policy
FS is being developed
US$10 M 4

16. Develop strategic deposits and hold government shareholding
Projects
Develop strategic deposits and hold government shareholding
Asgat Silver Asset Development
Location:
Commodity
Technology:
Status:
Capacity:
Nogoon Nuur soum (sub-province),
Bayan Ulgii aimag (province)
Silver and Copper
Underground mining methods will be
used in light of factors such as
insignificant thickness of the ore body,
steep falls, and deep-seated location
that can have impacts on extraction
FS has been developed but needs updates
Plans to start developing the asset
350, ,000 t (ore)

17. Coal-Bed Methane (CBM)
Projects
Develop energy, infrastructure, logistics, and downstream processing industry projects
Coal-Bed Methane (CBM)
Project Developer:
Commodity:
Status:
Project Financing:
Erdenes Methane LLC
CBM
FS needs developing
US$15 M (prospecting and exploration)
End Users: Housing Units, Power Plants, and Others
Prospecting and Exploration
2019
CBM pipelines
Feasibility
Study and
Product Sharing Agreement
Plant Construction and CBM Extraction
Processing
and
Purification
Transportation of Liquefied
Gas
Opportunity to Export Gas and Liquefied Gas 4

18. Mine Expansion and Technical Renovation
Projects
Develop energy, infrastructure, logistics, and downstream processing industry projects
Mine Expansion and Technical Renovation
Project Developer:
Commodity:
Status:
Project Financing:
Capacity:
Baganuur JSC
Lignite
FS has been developed
US$178.5 M Mt
Mine Expansion and Technical Renovation
Project Developer:
Commodity:
Status:
Project Financing:
Capacity:
Shivee Ovoo JSC
Lignite
FS has been developed
US$120 M
4.5 Mt 4

19. Thank you for your attention
Erdenes Mongol LLC
15 F, Monnis Tower, Chinggis Avenue 15 Khoroo 1, Sukhbaatar District, Ulaanbaatar Mongolia
Tel: (976)
Web page: