Tavan Tolgoi Project

London

April 17, 2013

Disclaimer

2

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.

Location

Company snapshot - location

– The Tavan Tolgoi

coalfield is located in

the central South Gobi

region of Mongolia

– Approximately 240km

north of the Mongolian-

Chinese border

Tavan Tolgoi is one of the largest developing coking coal deposits in the world

4

Formation of Tavan Tolgoi deposit (Resource

calculation by JORC code)

According to Norwest’s preliminary estimation of TT In-Situ coal resource by JORC code, there are 7.5 billion tons of thermal and

coking coal within 300 m depth range limit

West Tsankhi coal field

East Tsankhi coal field 1.2 Bt* Cocking coal 65 %

1.08 Bt* Cocking coal 78 %

Eastern (Onch Kharaat)

Borteeg

South-Western (Oortsog)

Tavan Tolgoi JSC

Measured

Indicated

Inferred

282.5 Mt

Calculation within *200m depth

1,21 Bt* Cocking coal 63%

765 Mt* Cocking coal 72 %

Calculation by JORC code

Preliminary calculation made by Norwest (within 200 m depth)

60.3 Mt Cocking coal 70%

74,5 Mt Cocking coal 61%

78.8 Mt Cocking coal 82%

298 Mt Cocking coal 53% Bor tolgoi

Ukhaa khudag

Eastern Tsankhi

• Full capacity of the mine to steady state is 20 Mtpa • The project will reach full capacity in 2016-2017 • Estimated mine life is 50 years

Western Tsankhi

Eastern Tsankhi

Bor Teeg coalfield Eastern coalfield

Ukhaa Khudag

Mine of Tavan Tolgoi JSC

5

Mine production

2011: 1 Mtpy 2012: 2.5 Mtpy 2013: 6 Mtpy 2014: 10 Mtpy 2015: 15 Mtpy 2016/2017: 20 Mtpy

6

West Tsankhi mine

Mining operation Pre-stripping and overburden commenced on February 16th, 2013

Coal export may commence in 2nd half of 2013 West Tsankhi mining production

CHPP commence operation in 2015-2016

2013: 1-2 Mtpy 2014: 3-4 Mtpy 2015: 6 Mtpy 2016: 12 Mtpy 2017: 20 Mtpy

Full capacity of the mine – to mine 20 million tons per year

Erdenes TT operation highlights

7

The mining operation and box-cut has commenced in August 27, 2010 Commercial production of coal commenced in July 2011 Coal export began in August 4, 2011 Currently operation has around 400 personnel on site

3.5 million tonnes ROM mined since commencement of operation About 12 million metric cube overburden stripped

Contract Mining

Macmahon Holding (Australia)

Coal production and operation

Off-taker: Chalco (Aluminum Corporation of China)

Off-take agreement

Key development - Plants Coal Handling and Preparation Plant (CHPP)

• Front end engineering study of the plant is on final stage. • Construction work begins in 2013. • Targeting mid 2014 for completion of the first module. • CHPP ramping up to processing 20Mt of ROM coal per year in

2017

Water Supply

• Cabinet approved water use permit minimum 150 liters/sec from Balgasyn Ulaan Nuur ground water in 2011 (~70km from mine site).

• Feasibility study completed and ready to announce bidding for potential contractors.

• Exploration to be commenced for additional water supplies. • Completion of water supply pipeline and structure targeted in

2015.

8

Dalanzadgad

Sainshand

Zuunbayan

Tavan Tolgoi

Oyu tolgoi

Gashuun sukhait

Zamiin-Uud

Khangi

Balgasiin Ulaan Nuur

Projects

9

Infrastructure development

Projects financed by ETT CHPP Water supply Camp

ETT involved projects Railroad Road Power Plant

Erdenes-TT’s main challenges

10

Revision of CHALCO agreement

Marketing consultancy service

Expand sale and marketing

Listing on domestic and international stock exchanges

THANK YOU Jigjidjav 8, 1st khoroo, Chingeltei district

Ulaanbaatar, Mongolia Tel: (976) 7011-8585 Fax: (976) 7011-0725