Batmunkh Batkhuu, Chairman, Sharyn Gol JSC

1. Mongolia 2013
Investment
Summit
November 2013
Hong Kong
Sharyn Gol JSC – A NewDawn

2. Sharyn Gol JSC –
A New Dawn
2013.NOV.19

3. Charles Robert Darwin (1809-1882)
scientist & geologist
1859, wrote book “ On the origin of the species,”
introduced “Theory of Evolution by Natural selection “
- … must be to sort out proper structure, & adapt it to
changes"
BANKRUPTCY !!! OR
SURVIVE !!!

4. Important Notice
This presentation may contain forward looking statements that are subject to risk factors associated
with the natural resources sector and the business of coal mining.
Sharyn Gol JSC believes that the expectations reflected in these statements are reasonable
however they may be affected by a range of variables and changes in underlying assumptions
which could cause actual results or trends to differ materially, including but not limited to: price
fluctuations, supply and demand dynamics, currency fluctuations, drilling and production results,
estimates of reserves and resources, loss of market, industry competition, environmental risks,
physical risks, legislative, fiscal and regulatory developments, economic and financial market
conditions in various countries and regions, political risks, project delay or advancement, approvals
and cost estimates.
Sharyn Gol JSC believes that any information contained in this document was accurate as Nov
2013. However, Sharyn Gol JSC does not warrant its accuracy or reliability.
This information is provided expressly on the basis that recipients will carry out their own
independent enquiries into the matters contained here in and make their own independent
decisions about the affairs, financial position, or prospects of Sharyn Gol JSC; who reserves the
right in its absolute discretion, to update or amend and/or supplement any information at anytime.
Sharyn Gol JSC – A NewDawn

5. Discovered 1958
Exploration 1958 – 1960
Mining started 1965
Listed in MSE 1993
Fully privatized 2003
Peak production 2.5 Mtpa (1975-1983)
Current production 0.8 Mtpa
Connected to Trans-Mongolian Railway
Supply coal to TPPs and Industrial users
Sharyn Gol JSC – A NewDawn
Sharyn Gol JSC - Overview

6. Construction commenced
in 1964
Opening Ceremony in 1965
Sharyn Gol Mine History

7. Over-burden removing by
USSR Haul trucks / in 1975/
Sharyn Gol Mine History

8. Run by state, Post-Communist method of mine and
management
Big impact from Political and economical transaction period
Production was dropping down by each year
Lack of management
Old and non-productive mining fleet
Increased overburden removal – high-wall issues
Nearly Bankruptcy
Condition before
privatization
Sharyn Gol JSC – A NewDawn

9. Firebird took controlling package in 2010.
Sharyn Gol JSC – A NewDawn

10. Full scale drilling program – JORC program
(1st phase – 2010; 2nd phase 2012; 3rd phase 2013 – on going)
(168 Mt measured; 73 Mt indicated; 83 Mt inferred – 324 Mt)
Dedicated Railway’s study done independent experts
Coal Resource renewed and approved by MRAM
New Pit development and design has been approved by
relevant authority ( Satellite area)
Pre-feasibility study on Coal handling and preparation
plant made by C Clarkson & Associates Pty Ltd. ( 5mt/a)
Capital Increase : 18.3 Billion MNT on Mongolian Stock
Exchange
Fleet Innovation First Program
Achievements of Sharyn Gol JSC
between 2010-2013
Sharyn Gol JSC – A NewDawn

11. Sharyn Gol JSC – A NewDawn
Introduction of New International Management Team ( Sep 2012 )
Tripled annual production up to 850,000 tons
In 2012, SHG announced 50 MNT dividend. (first dividend since )
New mine design and ten year mine plan of Current pit is near to
be completed
Management anticipates increasing annual production to 1.4
million tons in 2014
Fleet Innovation Second Program
Acquisition of first module of Washing plant from Derek Parnaby
UK.
FS and EIA of the wash plan is on the way and subject to be
approved by MRAM
Successful closure of Naco (NKT :MSE )acquisition – 92,9% of
shares
Achievements of Sharyn Gol JSC
between 2010-2013

12. Sharyn Gol JSC – A NewDawn

13. Fleet Innovation Program
Sharyn Gol JSC – A NewDawn
• Sharyn Gol invested considerable amount in new fleet in 2012 and 2013:
• 8 new 65t Komatsu 65 dumpers for over burden removal
• 6 new Nord Benz coal trucks
• 1 new Sandvik blasting drill
• 3 new Doosan excavators of 35t and 70t size
• New Caterpillar D9 bulldozer
• Refurbishment of existing dragline and rope shovel fleet
• New Locomotive purchased due to production increase

14. Total Investment made in
last 3 years
Sharyn Gol JSC – A NewDawn
Mine Development and Exploration Program – 12.7 Billion MNT
Business Development (Wash Plant and Naco Fuel JSC
Acquisition) – 8.1 Billion MNT
Fleet Innovation Program – 4.3 Billion MNT
TOTAL INVESTMENT
25.1 Billion MNT (equal to 16.0 Mill USD)

15. Corporate snapshot
Share price (Jun’ 30, 2013) ₮8200
Share price (USD Jun’ 30,
2013)
US$5.6
Shares outstanding 10.23 m
Market capitalisation US$ 58.0
m
Cash (at Jun’ 30, 2013) US$ 5.8 m
Debt (at Jun’ 30, 2013) NIL
Subsidiary Company Naco Fuel JSC
70.84% 22.4% 6.76%
Capitalisation Last year’s share price performance
Key shareholders
Local
partners
Small
shareholders or
free float
Sharyn Gol JSC – A NewDawn

16. The Vision
Fulfilling the Local Market
Sharyn Gol JSC – A NewDawn
Local Thermal Coal and Coal based product demand is analysed to reach
15 million tons per annum in 2015.
Government of Mongolia has approached to development program for Darkhan
City Area as heavy industrial zone and power generating expansion point due
the shortage of power grid.
• Darkhan TPP expansion – 68 MW expected
• Darkhan Heavy Industrial Development Zone development – 128 MW
• New Coal Heating Power Plants Project /above 5 GW/
• Pig Iron Plant extension -
• Erdenet TPP expansion – 48 MW
• Erdenet Copper Mine’s Extension on the power generating section
• Smokeless fuel demand to reduce the air pollution in areas of
Ulaanbaatar, Darkhan and Erdenet Cities
• Cement Factory expansion due to rapid increase of construction
demand
Sharyngol’s Target Market expected to reach 3.1 mill/tn per
annum up to 2015

17. Company Action
• First module of Wash Plant /600k
tons capacity/ - will help to meet the
cement factories demand and feed
the Naco plant
• Naco Fuel JSC acquisition will be
perfect match to fit into smokeless
fuel market in Ulaanbaatar, Darkhan
and Erdenet Cities
• New Fleet Program has been
implemented to increase the ROM –
on going
• Railway expansion possibility study
has been finalized. (5.0 million
transportation capacity per annum)
The Vision
Fulfilling the Local Market
Sharyn Gol JSC – A NewDawn
Sharyn Gol’s Strategic Location in local
market
Naco Fuel
JSC

18. The Vision– Access to Major
Thermal Coal Markets
Sharyn Gol JSC – A NewDawn
Recent Railway Development in
Mongolia

19. Government Support on Logistics
• Bilateral agreement on transportation
tariff for coal transportation via Trans-
Siberian Railway System (52%
discount)
• Bilateral agreement between Mongolia
and People’s Republic of China on
transit transportation of coal to sea
ports (Ganqimaodou and Qinhuangdao
port)
The Vision– Access to Major
Thermal Coal Markets
Sharyn Gol JSC – A NewDawn
Significant strategic advantage due to connection to the Trans-Siberian Railway to create
opportunities to work with Russian companies and authorities, enhancing coal exports and
regional prosperity
Sharyn
Gol
Vostochny
Qinhuangdao
Ganqimaodou
Manzhouli
• Concession agreement between Democratic People's Republic of Korea
and Mongolia on Ung-Sang Port for commodity transportation and access
to international market

20. Company Action Plan
• Wash Plant purchased to
meet the international quality
standard (upgrade is
available up to 3.5 Mtpa)
• Trial Shipment to South
Korean Port (SAMMOK Int’
PTY JV of Republic of Korea
and Mongolia) – 1st Quarter
of 2014 (planned)
• Trail Shipment to Western
Europe with a cooperation of
DEUTSCHE BAHN – 1st
Quarter of 2014 (planned)
The Vision– Access to Major
Thermal Coal Markets
Sharyn Gol JSC – A NewDawn
Trans-Siberian Railway

21. Sharyn Gol JSC Investment
Highlights
Coal will remain a fundamental energy source in the world and
and Mongolian domestic thermal coal consumption will be reach
15 mill tn per annum
Sharyn Gol represents a unique operation in the country with its
large, high quality resource base and a dedicated rail spur giving
the company access to international markets...
Sharyn Gol became perfect example of Theory of evolution by
Natural selection in the business field of Mongolia,
driven by new management
Mongolia is at the start of a major development programme to
develop mineral resources for both domestic and export use...
Russian rail infrastructure and port opportunities are the best
options to maximise the value of Mongolian coal and commodity
and offer a unique opportunity to work together for the benefit of
regional prosperity. This includes using Mongolian coal in Russia
to allow increased Russian exports...
Sharyn Gol JSC – A NewDawn

22. Building a Leading Mongolian
Coal Producer and Exporter
Thank You
for your
attention !!!