1. KHOTGOR Rare Earth Elements project South Gobi, Mongolia
June 2010

2. 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

3. 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

4. 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

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

6. 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

7. IV. Infrastructure
Local Infrastructures and Access to the Market

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

9. V. Exploration Drilling
Drill hole locations & Geologic description
In 2007 diamond drilling program KH01 to KH03
In 2008 KH04 (depth at meters), KH05 and KH06
Late 2008 – Feb 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.

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

11. 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 %

12. 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