The document is a presentation by Erdenes Tavan Tolgoi JSC about its coal mining operations. It summarizes that ETT owns licenses over the Tavan Tolgoi coalfield in Mongolia, one of the largest undeveloped coking coal deposits globally. It is currently focused on developing the Tsankhi coalfield, with plans to ramp up production to 20 million tonnes per year by 2017. The presentation provides details on ETT's coal reserves and resources, current production and expansion plans, product quality, marketing and cost competitiveness.

1. ERDENES TAVAN TOLGOI JSC
GRAEME HANCOCK
CHIEF OPERATING OFFICER
22 MAY 2012

2. ERDENES TAVAN TOLGOI JSC // PAGE 1
THIS PRESENTATION INCLUDES CERTAIN “FORWARD-LOOKING STATEMENTS”. ALL STATEMENTS,
OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO THOSE THAT RELATE TO
COAL RESOURCES AND SALEABLE PRODUCT YIELDS, PRODUCTION PLANS, COSTS OF
PRODUCTION, STRIP RATIOS, CAPITAL EXPENDITURES, COAL PRICES AND MARKETS. THERE CAN
BE NO ASSURANCES THAT THESE STATEMENTS WILL PROVE ACCURATE; AND ACTUAL RESULTS
AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH
STATEMENTS. THE INFORMATION CONTAINED HEREIN REPRESENTS THE COMPANY’S JUDGMENT
AS OF THE DATE HEREOF, BASED ON INFORMATION CURRENTLY AVAILABLE, INCLUDING THE
INFORMATION CONTAINED IN A DRAFT INDEPENDENT TECHNICAL REPORT PREPARED AT THE
REQUEST OF THE COMPANY. THE DRAFT TECHNICAL REPORT AND THE COMPANY’S MINE
DEVELOPMENT PLANS ARE SUBJECT TO CHANGE. THE COMPANY DOES NOT ASSUME ANY
OBLIGATION TO UPDATE ANY STATEMENT. NEITHER THE COMPANY NOR ANY OF ITS PERSONNEL
ACCEPTS OR ASSUMES RESPONSIBILITY, OR HAS ANY LIABILITY, TO ANY PERSON IN RESPECT OF
THIS PRESENTATION. THIS PRESENTATION DOES NOT FORM PART OF AND IS NOT MADE IN
CONNECTON WITH ANY OFFERING OF SECURITIES, AND IT SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY CONTACT, INVESTMENT, DECISION OR COMMITMENT WHATSOEVER.
DISCLAIMER

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Location
COMPANY SNAPSHOT - LOCATION
 The Tavan Tolgoi coalfield is
located in the central South
Gobi region of Mongolia
 Approximately 200km north
of the Mongolian-Chinese
border

4. ERDENES TAVAN TOLGOI JSC // PAGE 3
Overview
Current Corporate Structure
 Erdenes Tavan Tolgoi JSC (ETT) is a Mongolian
coal producer and developer
 The Company holds mining licences over the
Tavan Tolgoi coalfield in Mongolia, one of the
largest undeveloped deposits of high-value
coking coal in the world
 The Company holds 7.4Bt of Measured,
Indicated and Inferred coal reserves and
resources and 1.8Bt of Proven and Probable
coal reserves in accordance with JORC
 The Company commenced commercial
production in July 2011
 The Company is in the process of expanding
production with the objective of becoming a
large scale producer and exporter of high
quality washed coking and thermal coal
products to Chinese and North Asian markets
COMPANY SNAPSHOT
Government of Mongolia
Erdenes MGL LLC
Erdenes Tavan Tolgoi JSC
100%
100%
Anticipated Future Corporate Structure
Government of Mongolia
Erdenes MGL LLC
Erdenes Tavan Tolgoi JSC
51% or more
100%
Mongolian Shareholders Publicly Traded Shares
20% Up to 29%
Erdenes Tavan Tolgoi JSC owns licences over a majority of the Tavan Tolgoi coalfield, one
of the largest open pittable coking coal deposits in the world

5. ERDENES TAVAN TOLGOI JSC // PAGE 4
 Tavan Tolgoi deposit consists of 6 sub-fields: Tsankhi, Ukhaa Khudag, Bortolgoi, Borteeg,
Southwest and Eastern coalfields
 ETT owns licences over 5 of the 6 sub-fields (excluding Ukhaa Khudag)
 Tsankhi is the main and best explored of the coalfields owned by ETT and contains the
highest portion of Measured and Indicated coal resources
 Significant exploration and expansion potential exists at other 4 sub-fields
COALFIELD STRUCTURE
Source: Draft Technical Report
~25km

6. ERDENES TAVAN TOLGOI JSC // PAGE 5
 Tavan Tolgoi deposit consists of 6 sub-fields: Tsankhi, Ukhaa Khudag, Bortolgoi, Borteeg,
Southwest and Eastern coalfields
 ETT owns licences over 5 of the 6 sub-fields (excluding Ukhaa Khudag)
 Tsankhi is the main and best explored of the coalfields owned by ETT and contains the
highest portion of Measured and Indicated coal resources
 Significant exploration and expansion potential exists at other 4 sub-fields
COALFIELD STRUCTURE
Source: Draft Technical Report
~25km
MMC

7. ERDENES TAVAN TOLGOI JSC // PAGE 6
The current focus of the Group is on the Tsankhi coalfield
1Represents marketable coal Reserves (i.e. sold raw or washed and sold as premium coal). Reserves for East Tsankhi exclusive of reserves within mining licences owned by third parties
2In-situ coal Resources at <300m depth limit and estimated under JORC Code. Resources inclusive of reserves. Resources for East Tsankhi exclusive of resources within mining licences owned
by third parties
Source: Draft Technical Report
Eastern coalfieldBorteeg
coalfield
Southwest
coalfield
Tavan Tolgoi JSC
(“Small TT”) (third party)
Daitsuki LLC
(third party)
Bortolgoi coalfield
Measured
Indicated
Inferred
287А
11977А
11945А
West Tsankhi coalfield
Reserves1: 888Mt (~59% coking coal)
Resources2: 1,734Mt (~72% coking coal)
East Tsankhi coalfield
Reserves1: 948Mt (~61% coking coal)
Resources2 1,262Mt (~71% coking coal)
JORC RESERVES AND RESOURCES

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Coal Resources (Mt, inclusive of coal Reserves)
JORC COAL RESERVES AND RESOURCES
Source: Draft Technical Report
Coalfield
Proved
(Mt ROM)
Probable
(Mt ROM)
Total
(Mt ROM)
Marketable
(Mt Product)
East Tsankhi 359 589 948 619
West Tsankhi 482 406 888 610
Total ETT 841 995 1,836 1,229
Coal Reserves (Mt)
Coal Reserves split by coal type (Mt)
Coalfield
Measured
(Mt ROM)
Indicated
(Mt ROM)
Inferred
(Mt ROM)
Total
(Mt ROM)
East Tsankhi 410 726 126 1,262
West Tsankhi 576 706 452 1,734
Others1 - 1,554 2,833 4,387
Total ETT 986 2,986 3,411 7,382
Coal Resources split by coal type (Mt)
1Include Southwest, Borteeg, Eastern and Bortolgoi coalfields

14. ERDENES TAVAN TOLGOI JSC // PAGE 13
Tsankhi coking coal specifications Tsankhi coking coal quality benchmarked
against global coking coal projects
COAL QUALITY
Source: Draft Technical Report

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Overview
EAST TSANKHI – OVERVIEW
 Independent Technical Report completed by Norwest
 JORC Reserves and Resources statement completed
— Total Reserves 948Mt (>70% coking coal)
— Total reserves and resources 1262Mt
 Commenced pre-stripping and box cut development in August 2010
 Production commenced in July 2011 with total production over 2.2Mt as at May 20th
— 1.3Mt year to date
 Currently producing at an annualized rate of 4.5 Mtpa
 Target 3Mt ROM of coking coal in 2012 and gradually increasing capacity to steady
state 20Mtpa ROM by 2017 with potential for further expansion
— Estimated mine life: 50 years
— Production of high quality unwashed coking coals for export in first two years while
Coal Handling and Preparation Plant (“CHPP”) is being constructed
— Highly competitive cost with the estimated LOM average mine operating cost:
US$40.70/t of saleable washed coal
Source: Draft Technical Report

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EAST TSANKHI – OVERVIEW
 Upon completion of first CHPP module, plan is to start producing a range of premium
washed products including hard coking coal, semi-soft coking coal and high quality
thermal coal for export
— The current plan envisages the first module coming on line around mid 2014
 Current mine workforce of 300 expanding to approximately 1,000 as capacity increases
— Mining camp and onsite mine facilities under development
Offtake agreement
 5 Year offtake agreement signed with Chalco
 Exports to China under the agreement commenced in October 2011
 To date exported 1.1Mt to China
Source: Draft Technical Report
Continued…

17. ERDENES TAVAN TOLGOI JSC // PAGE 16
Contract mining agreement
EAST TSANKHI – OVERVIEW
 Contract mining agreement commenced with Macmahon/Operta Joint Venture in January
2012
 Structured as an Alliance Contract, with a Base + KPI risk based compensation scheme
 An initial 5 year term with option to extend for an additional 2 years on meeting KPIs
 Contractor to raise financing for and procure all necessary mining equipment – ETT to
purchase all mining equipment at the end of the contract term at book value
 Production targets are as follows:
 2012 – 3 Mt
 2013 – 6 Mt
 2014 – 10 Mt
 2015 – 15 Mt
 Operations going very well with monthly production tonnages increasing month on month
 Occupational health and safety standards are being raised and working conditions of
operators improved
 New large mining equipment entered into service in late April 2012 and additional equipment
on order for delivery late 2012 to ensure 6 Mtpa target is achieved in 2013
Source: Draft Technical Report

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EAST TSANKHI PRODUCTION - 2012
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
January February March April May June July August September October November December
YTD
Monthly Production
Cumulative Production YTD
Annual Budget Target

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Open-pit surface mining with a life of ~50 years Total LOM saleable product of 619Mt
EAST TSANKHI – OPERATIONS
 Targeted steady state annual ROM production of ~ 20Mtpa (after ramp-up)
 Estimated LOM average strip ratio at ~ 2.74
 Targeted annual saleable production of ~ 13-15 Mtpa (after ramp-up)
 Estimated LOM average washing yield at ~64%
Source: Draft Technical Report and related mine development plan

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Chinese Demand for Coking Coal
ETT Cost ranking (CFR Bohai Sea)
EAST TSANKHI – MARKET AND ECONOMICS
Source: Draft Technical Report and related mine development plan
0
20
40
60
80
100
120
140
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Mt
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Landborne
imports
(Clean)
Seaborne
imports
% Mongolian
Supply
0
50
100
150
200
250
300
0 100 200 300 400
Mt
FOBUS$/t
Erdenes TT
Australia
Canada
China
Mozambique
Indonesia
Russia
South Africa
USA
Venezuela
Vietnam
New Zealand
ETT Cost ranking (FOR Mine Gate)
0
20
40
60
80
100
120
0 100 200 300
Mt
FOBUS$/t
Erdenes TT
Australia
Canada
China
Mozambique
Indonesia
Russia
South Africa
USA
Venezuela
Vietnam
New Zealand

21. ERDENES TAVAN TOLGOI JSC // PAGE 20
Overview Recent development
WEST TSANKHI – OVERVIEW
 Covering land area of 3,004 hectares
 Independent Technical Report completed
by Norwest Corporation
 JORC Reserves and Resources
statement completed
— Total Reserves 888Mt
— Total reserves and resources 1734Mt
 Pre-feasibility study completed
— Supports a steady state 20Mtpa ROM
production rate over a five year ramp-
up period
— Estimated mine life of ~48 years
 Currently in negotiations with leading
foreign SOEs and private interests to
develop the West Tsankhi Coalfield as a
consortium
— Interested parties from the US, China,
Russia, Japan and Korea
 Erdenes TT will retain title to the West
Tsankhi mining licences and the
consortium will operate under a Contract
arrangement similar to an Indonesian
style Coal Contract of Works
 Erdenes TT now completing Feasibility
Study for the commencement of Mining
on West Tsankhi

22. ERDENES TAVAN TOLGOI JSC // PAGE 21
Open-pit surface mining with a life of ~48 years Total LOM saleable product of 610Mt
WEST TSANKHI – OPERATIONS
 Targeted steady annual ROM production of ~20Mtpa
 Estimated LOM average strip ratio at ~ 2.8
 Targeted annual saleable production of ~14Mtpa
 Estimated LOM average washing yield at ~67%
Source: Draft Technical Report and related mine development plan
-
5.00
10.00
15.00
20.00
25.00
Yr 01 Yr 07 Yr 13 Yr 19 Yr 25 Yr 31 Yr 37 Yr 43
Production(Mt)
ROM coal Saleable coal
Yr 48

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Road from Tavan Tolgoi to Gashuun Sukhait Border Crossing
INFRASTRUCTURE
 The Company has received Cabinet approval to construct a sealed highway
parallel to the Mongolian Mining Corporation (“MMC”) paved road
 Currently planned to commence construction in 2013
 Design, feasibility and EIA studies about to commence
 Combination with MMC paved road will increase capacity and safety
 The CHPP will employ “world-class” technologies and processes and is expected to be one of the
largest and most advanced in Asia
 Phased construction schedule
— 2 x 10Mtpa phases
 Expected commissioning of the first 5Mtpa module by mind 2014 and processing full capacity of
20Mtpa by 2017
 Prequalification of EPC contractors has been completed and tender documents issued.
East Tsankhi CHPP
Railroad from Tavan Tolgoi to Gashuun Sukhait
 Mongolian Mining Corporation (MMC) has a license to build the rail from Tavan Tolgoi to the Gashuun
Sukhait border crossing. ETT anticipates cooperating in this development.
 Design, feasibility and EIA studies completed and construction commenced

24. ERDENES TAVAN TOLGOI JSC // PAGE 23
INFRASTRUCTURE
Water Supply
 Cabinet approved water use permit for Balgasyn Ulaan Nuur (“BUN”) ground water
— Located ~65km west of East Tsankhi coalfield
 Estimated water requirements for a 20Mtpa CHPP are ~200 litres/sec
 Estimated water requirements for a 300MW Power station are ~20 litres/sec
 ETT has been granted permits to use a minimum of 151 litres/sec from BUN
 The Group plans to begin construction of water pipeline from BUN to mine site by 1H2013
and intends for the pipeline to be operational prior to commissioning the first CHPP module
targeted for 2014
 The Group is currently exploring additional water supplies complementary to BUN
Power Supply
 Currently using diesel generator at mine site with plan to connect to the CES Grid to
provide sufficient supply for the Group’s operations until late 2013
 The Group is completing a bankable feasibility study to develop and construct its own
300MW (two 150MW modules) power plant to meet its long-term power requirements
 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 other mines in the region, to the
Mongolian Central Grid and potentially to China via the OT Inner Mongolia grid connection

25. ERDENES TAVAN TOLGOI JSC // PAGE 24
Expand production at the East Tsankhi coalfield1
Develop the West Tsankhi coalfield to significantly increase output2
Maximise sale prices by developing a CHPP to produce value-added products3
Reduce costs by using low cost rail to export the coal products and taking advantage of
economies of scale
4
Cooperate with other South Gobi coal producers to develop regional transport
infrastructure
5
Develop a 300MW thermal power plant to supply the company’s power needs and create
an additional revenue source
6
Expand sales and marketing capabilities to broaden customer base, develop relationships
with end users and maximize price
7
Conduct sustainable operations in accordance with international best practice for
environmental, social and health and safety standards
8
Explore the potential to expand production through development of other ETT coalfields9
FUTURE BUSINESS DEVELOPMENT STRATEGIES

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Mine camp
SELECT PHOTOS

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Mine pit from waste dump
SELECT PHOTOS (CONT’D)

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SELECT PHOTOS (CONT’D)
Seam 4 in Pit wall

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SELECT PHOTOS (CONT’D)
Seam 4 thickness and low stripping ratio
SELECT PHOTOS (CONT’D)

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SELECT PHOTOS (CONT’D)
In pit equipment Stripping operations
SELECT PHOTOS (CONT’D)

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SELECT PHOTOS (CONT’D)
Coal ROM stockpile
SELECT PHOTOS (CONT’D)

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SELECT PHOTOS (CONT’D)
Current waste dump
SELECT PHOTOS (CONT’D)

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SELECT PHOTOS (CONT’D)
Open cut operations
SELECT PHOTOS (CONT’D)

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Jigjidjav 8, 1st khoroo,
Chingeltei District
Ulaanbaatar, Mongolia
Tel: (976) 7011-8585
Fax: (976) 7011-9595
Erdenes Tavan Tolgoi JSC
THANK YOU FOR YOUR ATTENTION