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

2. 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

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

4. 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

5. 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
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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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
Selected power plant construction site and commenced geodesy research.
Commenced Engineering and geology research and environment impact evaluation study. 13

14. 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

15. THANK YOU Jigjidjav 6, 1st khoroo, Chingeltei district
Ulaanbaatar, Mongolia
Tel: (976)
Fax: (976) 15