November 9 2007

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
Email: Jim@bcmmongolia.org November 9 2007
BCM NewsWire Issue 4 Nov 09 07
NEWS HIGHLIGHTS:
Business: Boroo stability agreement sealed in six year tax plan; Budget travel to reach Mongolia;
SouthGobi plans to ship coal in 2008; Worldstar Energy increases ownership in Mongolian
Corporation; Safety failure grounds private aviation company; New coal deposit in Central
Mongolia;
Economy: Promises to stabilize fuel in tatters; Regional cooperation for energy, trade and transport
projects; Mongolia to feature on North American TV; Erdenet mining company assembles small
tractors
Politics: New PM brings promises of change
BUSINESS
BOROO STABILITY AGREEMENT SEALED IN SIX YEAR TAX PLAN
Centerra Gold, Inc. (TSX:CG) announced the completion of tax agreements with the Mongolian
government for mining at their Boroo site until July 2013.
The Boroo Stability Agreement sets down an agreed upon 25 percent tax Centerra will pay on
corporate income. Centerra has agreed to pay five percent, instead of the previous 2.5 percent, as
royalties on minerals mined at Boroo.
In a written statement Centerra said, “This agreement with the Mongolian government reaffirms
the applicability of the Boroo Stability Agreement and reaffirms the Company's rights to exploit
the Boroo gold deposit under a stable tax and operational regime in Mongolia.”
Read more: http://www.mongolia-web.com/content/view/1465/154/
BUDGET TRAVEL TO REACH MONGOLIA
Tiger Airways, Singapore Airlines’ budget airline unit, announced plans to bring budget air travel
between Ulaanbaatar and other Asian cities. In its first phase of operating, the carrier will sell to
the domestic Korean market and, later, will expand into Asia, Russia and Mongolia.
It will partner with the Incheon, Korea city government, which runs South Korea’s largest airport,
Incheon International Airport serving Seoul.
The new airline will be called Incheon Tiger Airways and will directly complete with Korean Air
Lines.
Tiger's chief executive officer, Tony Davis said, “We are poised to be in a strong position to tap
emerging travel trends in the region.”
Davis said Incheon Tiger Airways has predicted carrying two million passengers in its first year.
Source: http://www.mongolia-web.com/content/view/1465/154/
SOUTHGOBI PLANS TO SHIP COAL IN 2008
SouthGobi Energy Resources Ltd. (CDNX:SGQ.V) hopes to start shipping coal from its Mongolian
Ovoot Tolgoi Project by the third quarter of 2008 with plans for an initial start-up at the site in
January.
Company officials announced November 6 they had, ‘purchased a fleet of coal mining equipment
for the development of an open-pit coal mine at [their] Ovoot Tolgoi Project in Mongolia.’ They
said the site had been winterized for work to continue year-round.
Ovoot Tolgoi is in southern Mongolia, next to the existing Mak/Qinhua coal mine, about 45
kilometres north of the Mongolia/China Border and the Ceke border crossing.
Ceke, in the Peoples Republic of China, will be the main distribution center for Ovoot Tolgoi coal

2. BCM NewsWire Issue 4 Nov 09 07
and is home to a new automated coal-loading terminal and railway infrastructure
Read more: http://www.mongolia-web.com
WORLDSTAR ENERGY INCREASES OWNERSHIP IN MONGOLIAN CORPORATION
As a result of recent acquisitions, Worldstar Energy, Corporation (OTCBB:WSTR), ‘Worldstar,’ has
increased indirect ownership from 50.96% to 70% in 50 mineral licenses in Mongolia, ‘Mongolian
Licences’ directly owned by Bulgan Mongolia.
The Mongolian Licenses cover an aggregate of some 817,000 hectares (8,200 square kilometers) of
lands believed to be prospective for base and precious minerals in Mongolia. The Mongolian
Licenses were described in Worldstar Energy’s news release on February 11, 2007.
Worldstar Energy announced its acquisitions with shareholders of Bulgan Gold Investment Limited,
‘Bulgan GIL’, a Hong Kong corporation, and Bulgan Gold, Hong Kong, Limited – BGHK - a Hong Kong
corporation.
Source: http://www.marketwire.com/mw/
SAFETY FAILURE GROUNDS PRIVATE AVIATION COMPANY
A private civil aviation company has had its operations suspended for breaches of flight safety laws
and regulations. The Mongolian Civil Aviation Authority (MCAA) suspended all domestic and
international flights of Aero Mongolia for an indefinite period on October 31.
An MCAA review between October 1 and 5 of the company’s flight details found 168 instances of
safety failure and will only allow the company to resume operations after it complies with rules
and regulations, in all instances.
The MCAA gave Aero Mongolia time to fix the violations with demands to report back when
compliance had been competed. However, company leaders failed to implement measures to deal
with the infringements.
Aero Mongolia runs domestic flights to Uvs, Zavkhan, Khovd and Khovsgol aimags, and also flies to
Hohhot and Tianjin in China.
Read more: www.ubpost.mongolnews.mn
Source: Zuunii Medee
NEW COAL DEPOSIT IN CENTRAL MONGOLIA
Red Hill Energy Company a subsidiary of Mega Uranium Ltd a Canadian uranium mining and
exploration company has discovered a coal deposit of one billion tones of reserve, in central
Mongolia, 300kms from Ulaanbaatar and company share prices have increased 45 percent after the
announcement of the new deposit. Coal from the deposit in Khentii Aimag (1.8 square kilometers)
at 25 to 60 meters depth will be able to be exported to Russia and China by rail. Red Hill Energy
Company director, Ranjit Sandher said, “We’ll continue our project further to explore for new
deposits”.
The company owns two coal basins in Mongolia and several uranium deposits and is conducting
gold and copper projects.
Source: Zuunii Medee
ECONOMY
PROMISES TO STABILIZE FUEL PRICES IN TATTERS
Promises from peak fuel suppliers not to increase fuel prices are in tatters as fuel prices escalate –
once again. A-92 fuel has increased significantly by 120 Tgs from Tgs 1,020 to Tgs 1,140 for one
liter; A-80 is Tgs 900 per liter and diesel Tgs 1,150 per liter
National fuel importers sought support through an official statement not to increase internal fuel
prices again, to the Ministry of Finance, Ministry of Trade and Industry, Minerals and oil Authority
and the Unfair Competition Regulatory Authority but did not receive a response.
According to the price offer of Russian Rosneft Company, a publicly traded oil company and the
company exporting fuel to Mongolia, the three main fuels would increase by 3.0 to 6.0 percent.
Source: Daily news

3. BCM NewsWire Issue 4 Nov 09 07
REGIONAL COOPERATION FOR ENERGY, TRADE AND TRANSPORT PROJECTS
Mongolian delegates met with Asian countries representatives, including Chinese Premier Wen
Jiabao, on November 2 in Tashkent to discuss mutual development of energy, trade and
transport. They met with counterparts from China, Russia, India, Iran, Pakistan Afghanistan, and
Uzbekistan to discuss regional cooperation.
The regional security bloc, the Shanghai Cooperation Organization (SCO) sponsored the meeting.
Read more: www.mongolia-web.com
MONGOLIA TO FEATURE ON NORTH AMERICAN TV
A half hour North American weekly business programme production team from ‘BTV Business
Television’ is coming to Mongolia for an upcoming news segment.
BTV will interview executives of Khan Resources Inc. (TSX:KRI) to discuss their development of
gold and uranium sites in Mongolia as part of a report on mining in Mongolia and Russia,
Read more: www.mongolia-web.com
ERDENET MINING ASSEMBLES SMALL TRACTORS
Erdenet Mining Company has assembled 24 small tractors in its repair and mechanical factory with
spare parts brought from Ukraine. A representative of Mon-Zim international Company, the legal
Mongolian representative said they would assemble more tractors if business was profitable. The
29 horse-power diesel-fuelled tractor is much more powerful than the Chinese counterpart and
with all appliances, costs USD14,000.
Source: Montsame News
POLITICS
NEW PM BRINGS PROMISES OF CHANGE
A change in the ruling party will be watched with interest by the business sector in Mongolia. A
new Chairperson and Prime Minister has been elected, just 10 months short of the 2008 national
elections.
Mongolia’s ruling Mongolian People’s Revolutionary Party (MPRP) held elections at its 25th
congress last week and resolved the Party Chairman and the same person would from now on hold
the position of Prime Minister.
Sanjaa Bayar, Chief, Cabinet Secretariat and the party’s Secretary General won the position with
support from 377 of the 666 delegates or 56.6 percent of the vote, on November 26. Present
chairman and Prime Minister and only other candidate, Miegombyn Enkhbold, got 289 votes and
has been downgraded to a secretary of the party. He will remain a Member of Parliament. He
submitted his resignation letter to the State Great Hural of Mongolia after claiming he had lost the
support of his own party and could no longer fulfill his responsibilities as Prime Minister.
Bayar is expected to announce his government this week and Parliament will have to approve it.
He has indicated he will negotiate with all parties on the formation of government but speculation
is he will look wider then the MPRP. Bayar wants Enkhbold to continue in government as a minister
to maintain the concept of a government of ‘national unity’.
Daily News reported it was clear that the new government would not consist of only MPRP
members. National New Party leader, M. Enkhsaikhan announced that he would not join the new
government structure but his party’s previous ministers, G. Narantsatsralt and M. Sonompil would
be available to join the new government.
Read more: http://news.xinhuanet.com/english/2007,
http://ubpost.mongolnews
Daily News

4. BCM NewsWire Issue 4 Nov 09 07
MONGOLIA STOCK EXCHANGE WEEKLY REVIEW
No review available this week.
ECONOMIC INDICATORS
Currency rates – November 8 2007
Currency name Currency Rate
US dollar USD 1175.35
Euro EUR 1721.77
Japanese yen JPY 10.32
British pound GBP 2464.06
Hong kong dollar HKD 151.29
Chinese yuan CNY 157.92
South Korean won KRW 1.30
North Korean won KPW 8.22
Canadian dollar CAD 1289.96
Australian dollar AUD 1102.18
Taiwan dollar TWD 36.31
Indonesian rupiah IDR 0.13
Malaysian ringgit MYR 352.80
Singapore dollar SGD 814.80
Inflation
8 November 2007
October 1.5%
YTD 12.2%
12 months 13.2%