The document summarizes plans for the Mandakh Nuur Coal Project in Mongolia. It describes exploration work that has identified a potential 100 million ton coal resource near the Chinese border. Plans are outlined to develop an open cut coal mine, build infrastructure like roads and a border crossing, and export coal starting in 2012. The project aims to exploit a strategic location near key Chinese steel markets to access a huge demand for its high quality coking coal.

1. IKH GOBI
ENERGY
MANDAKH NUUR COAL PROJECT

2. Contents
1. Exploration program
2. Open cut coal mine
3. Infrastructure
4. Market and marketing
5. Project implementation plan

3. ИХ
ГОВ
Ь
ЭНЕ
РЖИ
MANDAKH NUUR
“IKH GOBI ENERGY” LLC
Mandakh nuur project was
granted the license for
exploration area in accordance
with decision # 264,of the
Head of the Geology, Mining
and Cadastre Department. The
company has conducted
geology exploration activities
since September 2011.

4. The project is located 580 km from Ulaanbaatar, 117 km from Dorno-
gobi province’s Mandakh soum, 210 km from the Dorno-gobi
province’s Sainshand city and 165km to Khangi - Mandal border port.
PROJECT LOCATION
MANDAKH NUUR
KHANGI
MANDAL port
165 KM
UNDURSHIL
580 кмкмкмкм
CHOIR
MANDAKH

5. INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS
LARGE
RESOURCE
LARGE
RESOURCE
According to the result from initial drilling holes and a geophysical survey,
the deposit is believed to have potential reserve for 100 million tons. The
project license area covers 10,767 hectares which is four times larger than
Ukhaa Khudag coal field of Mongolia Mining Corporation (0975.HK).
“Mandakh Nuur”deposit is located 165km from Mongolia-China border port,
which is 250km from Baogang Group, the largest steel producer in Inner
Mongolia, China, and possessing relatively good advantages to access into
Hebei province, largely concentrated area of steel mills.
As the largest steel producing nation in the world, China requires a
significant amount of coking coal for its steel industry. The GDP growth
2011 of Inner Mongolia, the main market for Mongolia’s coal, was 15%
which is 5.8% higher than China national economic growth average in 2011.
The quality of coal is in-line with world-class hard coking coal brands, and is
highly marketable in China. Initial test results indicate that the quality of
Mandakh Nuur coal is higher than MMC’s and other deposits in South Gobi.
STRATEGIC
LOCATION
STRATEGIC
LOCATION
HUGE
MARKET
DEMAND
HUGE
MARKET
DEMAND
HIGH QUALITY
COKING COAL
HIGH QUALITY
COKING COAL

6. Exploration license
Field mapping
Aerial map
Sampling
Trenching
Geo-chemical
sampling
Laboratory work
Geophysical
exploration
Coal quality
assessment
Exploration work
Pre-feasibility study
(2012.12.30)
JORC Resource Report
(2012.12.30)
Mining License
CAPEX Funding
Open pit mine
construction
Mine Infrastructure
development
Purchase Agreement
Production
Export
CURRENT DEVELOPMENT OF THE PROJECTCURRENT DEVELOPMENT OF THE PROJECT

7. LICENSED AREA
• Total area of 10,767 hectares.
• Potential coal resource up to 100
million ton (comparing to identical
projects like BN)
• Coal seams total thickness is between
120m-150m
• Total thickness of soil is 20-30 m
• Single seam thickness up to 41.8
meters and above
• Accumulated coal thickness: 91m

8. Д/
д
Type of work Volume
1 Total number of drill holes 150 holes
2 Total drilled linear meter 20,500 linear meter
3 Core - drilling (core) 13,228 linear meter
4 RC - drilling (reverse circulation) 7,272 linear meter
5 Core samples 1365 samples
6 Hydrogeology 3 wells
7 Geophysical work: spectrometer 3400 ha
8 Drill hole logging 10600.9 linear meter
9 Topographic work: topography mapping 500 ha area
10 Hole conjunction 66 holes
OVERVIEW OF EXPLORATION PROGRAM SINCE SEPTEMBER 2011

9. Coal bearing sediment continues 1.8 km wide, 17 km long area and is overlaid by
young sediment (N-P).
Geological map of Project area (scale 1:60 000)
COAL BEARING STRATA

10. EXPORT PLAN /2012EXPORT PLAN /2012EXPORT PLAN /2012EXPORT PLAN /2012 –––– 2015 /2015 /2015 /2015 /

11. PREMIUM QUALITY COALPREMIUM QUALITY COALPREMIUM QUALITY COALPREMIUM QUALITY COAL

12. MANDAKH NUUR COAL DEPOSIT - 2012
• The top and sub soil stripping will begin in March 2012.
• The extraction of coal will begin in July 2012 after 7 million cubic meter of
overburden material stripping.

13. INFRASTRUCTURE
Routes
Mandakh
Nuur

14. Road construction
2012 – improved dirt
road
2013 – to build
bridge and channel
2014 – Paved road
Infrastructure

15. Infrastructure
• Ger camp
• Gas station
• Office and dining hall
• The boiler house
• Checkpoint
• Parking
• Repair shop

16. Khangi-Mandal border point
• 310 km from provincial center of Dorno-Gobi
• 100km from Khatanbulag soum og Dorno-
Gobi
• 275km from Zamiin-Uud boarder
• 60km from Sulinkheer border military base
• This border point operates 365 days to support mining, mineral
transportation and border point infrastructure development.
• Load turnover is relatively low and currently, the iron ore is exported by
Mon-Laa LLC as well as Hurd International LLC exports coals as trial
through the border point.

17. • “Mandakh Nuur” coal
deposit is strategically
located, 165km from
Mongolia – China
border, having
relatively good
accessibility to Inner
Mongolia and Hebei
market, where the
most of the large steel
mills are concentrated.
HUGE MARKET DEMAND

18. • Completion of exploration work at areas not surveyed yet
while conducting detailed exploration and drilling in 2012 :
50,000 – 70,000 linear meter
• Forth quarter of 2012 – Completion of JORC resource report
and Pre-Feasibility study:
• IPO at International stock exchange /2013 - 2014/
PROJECT FURTHER PLAN

19. FOR MORE INFORMATION, PLEASE
CONTACT:
IKH GOBI ENERGY LLC
SKY PLAZA BUSINESS CENTER
SECTION D, OLYMPIC STREET 12
1ST KHOROO, SUKHBAATAR DISTRICT
ULAANBAATAR, MONGOLIA
EMAIL: INFO@IKHGOBIENERGY.MN
TEL: 976-11-324930
FAX: 976-11-327991
MOBILE: 976-99995082