www.mmc.mn

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Disclaimer

Forward-looking statements

We have included in this presentation forward-looking statements. All statements that are nothistorical facts, including statements about our intentions, beliefs, expectations or predictions for thefuture, are forward-looking statements.

The reliance on any forward-looking statement involves risks and uncertainties, and although webelieve the assumptions on which the forward-looking statements are based are reasonable, any or allof those assumptions could prove to be inaccurate and as a result, the forward-looking statementsbased on those assumptions could also be incorrect.

We undertake no obligation to publicly update or revise any forward-looking statements contained inthis presentation, whether as a result of new information, future events or otherwise, except asrequired by applicable laws, rules and regulations.

In light of these and other risks and uncertainties, the inclusion of forward-looking statements shouldnot be regarded as representations by us that our plans and objectives will be achieved.

2

Agenda

Business Review

Operating Environment

Financial Highlights

Recap and Outlook

1234

3

Coal Reserves & Resources

4

Business Review

1

Potential synergies

Sharing of washing plant, utilities and water

resources (capital savings)

Improving utilization rate of transportation

and logistics infrastructure

Potential for coal blending (optimizes yield)

Leveraging the existing MMC’s marketing

team and network

Potential to market a second coal brand into

China to broader customer base

In June 2011, MMC acquired 100% interests in BN

mine located in the strategic proximity to the

existing UHG mine (only around 30 km distance),

with total licensed area covering approximately

4,486 hectares

5

Locations of UHG and BN Mines

Group’s Coking Coal Deposits

UHG deposit (in Mt)

Notes:

(1) Based on data derived from Norwest JORC-compliant Update of Stated Resources and Reserves for the Ukhaa Khudag Coal Project, April 2011

Resources by Category Resources above -300 m Resources below - 300 m Total ResourcesCoking Coal Thermal Coal Total Coal Coking Coal Thermal Coal Total Coal Coking Coal Thermal Coal Total Coal

Measured 82.9 120.2 203.2 - 82.9 120.2 203.1

Indicated 153.4 51.9 205.3 50.7 37.9 88.6 204.1 89.8 293.9

Inferred 11.7 11.7 42.2 27.1 69.3 42.2 38.8 81.0

Total 236.3 183.8 420.2 92.9 65.0 157.9 329.3 248.8 578.0 Total Measured and Indicated 236.3 172.1 408.5 50.7 37.9 88.6 287.0 210.0 497.0

Reserves by Category

Proven 188.2 Probable 95.0 Total 283.2

6

UHG Coal Resources & Reserves

Resources by Category Resources above -300 m Resources below - 300 m Total ResourcesCoking Coal Thermal Coal Total Coal Coking Coal Thermal Coal Total Coal Coking Coal Thermal Coal Total Coal

Measured 97.1 71.8 168.9 21.0 19.2 40.2 118.1 91.0 209.1

Indicated 18.6 24.4 43.0 16.2 13.4 29.6 34.8 37.8 72.6

Inferred - 0.5 0.5 - 0.5 0.5

Total 115.7 96.2 211.9 97.2 33.1 70.3 152.9 129.3 282.2

Total Measured and Indicated 115.7 96.2 211.9 37.2 32.6 69.8 152.9 128.8 281.7

Reserves by Category

Proven 148.0 Probable 37.3 Total 185.3

BN deposit (in Mt)

Notes:

(1) Based on data derived from MBGS JORC-compliant Statement of Coal Resources Baruun Naran Coal Project, February 2010(2) Based on data derived from SRK JORC-compliant Reserve Report Baruun Naran Coal Project, March 2011(3) MMC anticipates these estimates may change as it begins to conduct its own studies and analyses for the future development of BN deposit

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BN Coal Resources & Reserves

Coal Production & Sales

8

Business Review

2

-

0.50

1.00

1.50

2.00

2.50

3.00

H1A H2A H1A H2A H1A

2009A 2010A 2011E

9

UHG Mine – ROM Coal Output

UHG Semi-Annual ROM Production (in Mt)

0.38

1.46 1.49

2.442.50

Trial run of the first phase of CHPP with estimated 5 million tonne per annum coal processing

capacity commenced on 12 May 2011

The commissioning by governmental authorities, followed by start-up of commercial operations on

11 June 2011

Processed in total approximately 170,000 tonnes of ROM coal in June 2011

Sedgman provides experienced on-ground management under provisions of Operation Management

Contract to support UHG CHPP operations, continuous process optimization and training up the

personnel

10

CHPP – 5Mtpa Operation Commencement

As of 30 June 2011, the 2nd Phase CHPP construction work was 62% completed and operational

commissioning is expected to start in November 2011

The 3rd Phase of CHPP construction work will begin in H2 2011 and the completion is expected by

the end of 2012

11

CHPP – 10Mtpa Capacity Expansion

The temporary suspension of all coal hauling on the road from the Tavan Tolgoi area to TKH for 23 days in

April-May 2011 and also fuel supply shortages affected the performance of some transportation contractors

in May-June 2011. As the Group maintained its mining operations as scheduled, this resulted in the

increased inventory at UHG mine in addition to the Group’s intention to build up approximately four weeks

ROM coal production tonnage as in-feed coal stockpile to support continuity of our CHPP operations.

12

Coal Sales and Marketing

Average selling price (in USD/tonne)

 ‐

 20.0

 40.0

 60.0

 80.0

 100.0

 120.0

 140.0

 160.0

 180.0

2010 H1 2011 H1

UHG Raw coalUHG Washed hard coking coal

95.6

59.9

155.0

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2010 H1 2011 H1

Sales volume (in Mt)

Mine-mouth sales volumeSino-Mongolian border (TKH/GM) sales volume

1.42

1.00

0.46

Supporting Infrastructure

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Business Review

3

Initial stage completed and commenced itsoperation in Q2 2011

Secured supply of water with up to 117 litersper second inflow

The expansion by additional approximately 100liters per second in 2012

3x6MW on-site power plant Construction works are 98% completed and as of

30 June 2011, commissioning of the first andsecond units started

Last unit to be completed and the power plant tobe fully operational by Q4 2011

Power Plant

14

Water Supply Facility

Supporting Infrastructure

15

Logistics & Transportation

Business Review

4

Customs and Border Crossing

Railway

16

Logistics & Transportation

Road and Trucking

Illustrative photo

An inland custom bonded yard at UHG mine is fully staffed and operational

Direct shipments between UHG to GM (PRC) made Expansion of border crossing at GS has commenced

and will be completed in 3rd quarter, 2011 Significant upgrade of our coal handling capacity at

UHG and TKH is underway

Detailed engineering study is underway to refine key data of railway project

Keeps dialogue with the contractor on various options to execute the construction

Gravel road: completed major overhaul of 250 km between UHG and GS

Paved road: 86% of work completed; targets to commission in 3rd quarter of 2011

Trucking: expanded our fleet by adding 200 new trucks, ordered 100 more – all double trailers

17

Operating Environment

2.86.3 7.7

-

5.00

10.00

15.00

20.00

25.00

2009 2010 2011

Mongolian coal export grown to 7.74Mt in 2011 H1 compared to 6.33Mt in 2010 H1, and forecasts to reacharound 20.00Mt in 2011

China imported 19.15Mt of coking coal in 2011 H1 compared to 22.36Mt in 2010 H1 Mongolian share by volume in total Chinese coking coal import increased to approximately 41.2% in 2011 H1

compared to 31.8% in 2010 and 11.6% in 2009, respectively Flooding in Queensland/Australia caused supply shortage, which drove up coal prices in the seaborne market,

thus limiting the “appetite” of Chinese consumers for imported coking coal

Sino-Mongolian Coal Trade Dynamics

Mongolian Coal Exports (Mt)

11.6%

31.8%41.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011H1

Chinese Coking Coal Imports Mix (%)

First half year export volumesFull year export volumes

Source: National Statistical Office of Mongolia

Mongolian shareOthers

Source: China Coal Resource

7.1

16.6

18

The Government of Mongolia (GoM) has implemented a series of policies to further promote the growth of the mining and minerals processing industry in the country aiming to encourage value-added production.

Progressive Royalty

Effective from 1 January 2011, the amendment to the 2006 Minerals Law introduced progressive surtax royaltyrate in addition to the previous flat-rate royalty at 5%. The royalty rate payable under the Minerals Law will beincreased if the market price for the mineral in question reaches certain threshold. Besides the market price,level of the proposed progressive royalty will also depend on the level of processing of the minerals. Forexample, for raw coal, depending on the market price, the additional progressive royalty rate could vary in rangeof 1% to 5%, making the possible highest royalty rate at 10%. For processed coal this range is 1% to 3%,making the highest royalty at 8%.

VAT recoverability

On 21 July 2009, the Parliament of Mongolia has passed an Amendment to the Law on VAT of Mongolia,pursuant to which only exported “processed mineral products” become subject to “0” rate VAT. The actual listof so-called processed mineral products was approved by GoM in November 2010, making effective thedistinction between raw coal and wet processed (washed) coal .

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Legal Framework

20

Financial Highlights

-

1.00

2.00

3.00

4.00

5.00

2010 H1 2011 H1

-

20.0

40.0

60.0

80.0

100.0

120.0

2010 H1 2011 H1

Average selling price (in USD/tonne)

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Operational Highlights

ROM coal production (in Mt) Coal sales volume (in Mt)

-

0.50

1.00

1.50

2.00

2.50

3.00

2010 H1 2011 H1 -

0.50

1.00

1.50

2.00

2010 H1 2011 H1

1.421.46

1.49

2.50

95.6

59.9

Mining cost per total material movement (USD/BCM)

4.36 4.54

-

5.00

10.00

15.00

20.00

25.00

30.00

2010 H1 2011 H1 -

5.00

10.00

15.00

20.00

25.00

30.00

2010 H1 2011 H1

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2010 H1 2011 H1 -

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2010 H1 2011 H1

Stripping ratio (BCM/tonne)

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Mining and Transportation Costs

Mining cost associated with coal sold (USD/tonne) Transportation cost associated with coal sold (USD/tonne)

25.1

6.80

21.9424.90

6.27

5.26

Mine gate and border sales split (Mt)

1.00

0.46

1.42

Mine-mouth sales volumeSino-Mongolian border (TKH/GM) sales volume

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Key Financial Figures

Revenue (in million USD)

0

20

40

60

80

100

120

140

160

2010 H1 2011 H1

136.2

87.7

Net profit (in million USD)

-

5

10

15

20

25

30

35

40

2010 H1 2011 H1

20.7 19.8

14.4

34.2

Note:

The calculation basis for pro-forma impact of one-off expenses related to Baruun Naran acquisition and Royalty & VAT relatedregulatory provisions changes was as follows:

VAT related to mining expenses 4.4M USDVAT related to transportation expenses 1.7M USDAdditional progressive royalty expenses 6.7M USDPro-forma income tax at 25% (3.2M USD)Pro-forma Royalty & VAT 12.8M USD

One-off expenses related to Baruun Naran acquisition 4.7M USD

Pro-forma total impact assessment 14.4M USD

- 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0

1,000.0

Dec 31, 2010 June 30, 2011

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Dec 31, 2010 June 30, 2011

-

150.0

300.0

450.0

600.0

750.0

900.0

Dec 31, 2010 June 30, 2011 -

200.0 400.0 600.0 800.0

1,000.0 1,200.0 1,400.0 1,600.0 1,800.0

Dec 31, 2010 June 30, 2011

Cash available (in million USD)

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Balance Sheet

Total assets (in million USD) Total book value of equity (in million USD)

744.7727.3

1,053.3

1,638.8

398.2

674.9

Total liability (in million USD)

326.0

894.1

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 H1 2011 H1 -

1.0

2.0

3.0

4.0

5.0

6.0

Dec 31, 2010 June 30, 2011

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Dec 31, 2010 June 30, 20110.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Dec 31, 2010 June 30, 2011

Debt/equity ratio (%)

25

Financial Ratios

Current ratio (current assets/current liabilities) Interest coverage ratio (EBIT/interest expenses)

7.1x

14.3x5.4x

1.0x

76.7%

34.5%

Gearing ratio (% total debt/total assets)

34.9%

23.8%

Project Total estimated cost(2010-2014)

CIP balanceas of 30 June 2011

CHPP(3x5Mtpa)

USD343.8 million USD168.4 million

Power Plant(3x6MW)

USD57.0 million USD52.6 million

Water Supply Facility USD48.7 million USD41.4 million

Paved Road(UHG-GS 245 km)

USD147.0 million USD66.4 million

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Capital Expenditures

27

Recap and Outlook

28

Major Accomplishments in H1 2011

In June 2011, we successfully accomplished acquisition of entire issued share capital of QGX Coal Limited

(renamed to Baruun Naran Ltd), which was holding the mining license for BN coking coal deposit through its

wholly-owned subsidiary

UHG Mine ROM coal production reached 2.5Mt as scheduled

CHPP module I construction completed, commissioned by relevant authorities and started commercial

operations in June 2011

First batches of washed hard coking coal product delivered to customers in PRC, achieving pricing at GM

1,000 RMB/tonne (approximately 155 USD/tonne)

Milestones

29

Operational Objectives in H2 2011

Execute 7.0Mt ROM coal production annual target for UHG mine

Complete UHG – GS paved road construction and commissioning work in September 2011 together with

border-crossing capacity expansion by adding eight passing lines

Continue with processing capacity expansion and by completion of CHPP module II in Q4 2011, the Group’s

processing capacity projected to reach 10Mtpa

Increase the proportion of washed hard coking coal sales volume, aiming to sell only processed coal starting

from 2012. This will enable the Group to fully enjoy benefits of favorable royalty and VAT related regulations

set by the Mongolian government

Commissioning of BN mine by relevant authorities in Q4 2011

Strengthen strategic long-term relations with end-user customer base in PRC and at the same time continue to

explore for seaborne market access opportunities

Objectives

Q&A

30