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Mogul Ventures Corp. Q1, 2012

Mogul presentation feb.22.12

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Page 1: Mogul presentation feb.22.12

Mogul Ventures Corp. Q1, 2012

Page 2: Mogul presentation feb.22.12

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THE FOLLOWING INFORMATION may contain forward–looking statements. Forward

looking statements address future events and conditions and therefore involve

inherent risks and uncertainties. Actual results may differ materially from those

currently anticipated in such statement. Forward-looking information is subject to

known and unknown risks, uncertainties and other factors that may cause Mogul

Venture Corp’s actual results, level of activity, performance or achievements to be

materially from those expressed or implied by such forward-looking information.

Such factors include, but are not limited to: uncertainties related to the historical

resource estimates, the work expenditure commitments; the ability to raise

sufficient capital to fund future exploration or development programs; changes in

economic condition or financial markets, regulatory, political and competitive

developments; technological or operational difficulties or an inability to obtain

permits required in connection with maintaining, or advancing projects; and labour

relation matters *All historical resource estimates quoted herein date from the 1960s and 1970s and are based on prior

data and reports obtained and prepared by previous operators and information provided by the State, using

a Russian classification system not compatible with 43-101. Insufficient data exists to compare Russian

categories to current C.I.M. categories. A qualified person has not completed sufficient work to verify the

classification of the historic mineral resources and as such they should not be considered as current

resources and they should not be relied upon. Mogul Ventures believes these historical results provide an

indication of the potential of the property and are relevant to ongoing exploration. It should also be noted

that mineral resources which are not mineral reserves do not have demonstrated economic viability as

defined by NI 43-101 guidelines.

www.mogulvc.com

Page 3: Mogul presentation feb.22.12

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COMPANY OVERVIEW

• The company plans to monetize its coal assets

through conventional open-pit mining as well as

exploring the application of new technologies for

underground coal gasification

• The company leverages world-class management,

technical expertise and in-depth local knowledge

to acquire, explore and develop coal projects in

Mongolia

www.mogulvc.com

*Ovdog Hudag Coal Deposit, Mogul Ventures Corp. – Draft 43-101 Report by SRK Consulting (China) Ltd., December 31, 2011

Capital Structure

Shares Outstanding (Aug.31.11)

111,391,517

Pre-IPO Financing (Apr. 2011)

$7,604,363 @

$0.25/share

• Mogul Ventures Corp. focuses on

exploration, development and

production of thermal and coking coal

in Mongolia

• NI 43-101 compliant Inferred

Resources of 89.6 million tons of

coal established in Ovdog Khudag

Thermal Coal Deposit based on 14-drill

hole, 2,369 meters drilling program*

Page 4: Mogul presentation feb.22.12

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MOGUL VENTURES TEAM

STEVEN KHAN, MBA, CFA Executive Chairman & Director

• 20 years experience in all aspects of the

investment industry including executive positions

with regional and national full-service Canadian

investment brokerage houses

• Focused on strategic corporate and business

development as well as resource and venture

capital financing during the last seven years

• Holds Director and Executive Officer roles in a

number of public and private resource

companies

• Successfully completed major corporate

development initiatives both domestically and

internationally including in Japan, Korea and

China

JOHN CARLESSO CEO & Director

• The founder of Cervello Capital Inc., a private

merchant bank based in Toronto; over 16

years of international business experience

• Chairman of Oremex Silver Inc., an

exploration and development company

focused on silver assets in Mexico including

the 50 million oz open pit Tejamen deposit

• Co-founder of Explorator Resources Inc., a

mining exploration company developing the El

Espino-Venus copper-gold project in Illapel,

Chile

• Has extensive experience in the junior mining

sector – held the position of Vice President,

Corporate Development at Desert Sun

Mining Corp, a company acquired by Yamana

Gold Inc.

www.mogulvc.com

Page 5: Mogul presentation feb.22.12

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MOGUL VENTURES TEAM

JAMUL JADAMBA President & Director

• Natural resource and mining-focused

investment banker with an extensive capital

raising background, servicing worldwide

companies, especially in Mongolia

• Former Director and co-founder of the

Metals & Mining Group at Rodman &

Renshaw LLC.

• Native Mongolian with well-established

relationships with influential business and

government leaders in Mongolia

• Extensively writes and speaks on topics of

Mongolian economy, development and politics

for organizations such as Oxford Analytica,

Institutional Investor and Business New

Europe

DAVID A. TERRY, Ph.D., P.Geo. Senior Technical Advisor

• Over 20 years of business experience in the

natural resource sector, focused primarily on

exploration of precious and base metal deposits

in North and South America.

• Director of and advisor to several publicly-listed

mineral exploration companies

• Specializes in public company management,

strategic planning, finance, advanced project

evaluation, identification and acquisition of

opportunities, design and implementation of

effective and cost-efficient exploration programs

• Held positions with a number of senior mining

companies including Boliden Limited, Westmin

Resources Limited, Hemlo Gold Mines Inc.,

Cominco Limited and Gold Fields Mining

Corporation

www.mogulvc.com

Page 6: Mogul presentation feb.22.12

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MONGOLIA OVERVIEW

• Recognized as the home of some of the world’s largest natural resource deposits

including coal, gold and copper

• Strategic location

• Next door to the biggest consumer of commodities in the world – China

• Mining is the most important sector:

• “Contributes 30% of GDP and 70% of exports”(1)

• Favorable political environment:

• Mongolian Government focused on the long-term development of resource-related

sectors and favorable policies towards business and foreign investments

• Stable business-friendly democracy:

• 20-year, uninterrupted history of peaceful and democratic government

• Homogenous country with minimal risk of ethnic or religious conflict

www.mogulvc.com

Source: (1) the Ministry of Mineral Resources & Energy of Mongolia

Page 7: Mogul presentation feb.22.12

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MONGOLIA: MINING INDUSTRY OVERVIEW

• Mining industry size: 30% of GDP(2)

• Market Cap of publicly traded

companies with assets in Mongolia,

including non-Mongolian junior mining

companies: $30B+(3)

• Investment Capacity of Mongolia’s

mining industry (5 years): $25 - $30B(4)

• 6,000 known mineral occurrences(5)

• 80+mineral deposits found recognized

as economic by the Mineral Resources

Authority of Mongolia(6)

• 2011 coal production: 30 Mt(7)

Mongolia is poised to become one of the fastest growing

economies in the world in the next two decades

Sources:

(2) the Ministry of Mineral Resources & Energy of Mongolia

(3) Bloomberg

(4) How much capex the country can absorb given known development projects. Statement made by the former Prime Minister Bayar

(5), (6) The World Bank report on “Mongolian Mining Sector: Managing the Future”

(7) National Statistics Bureau

www.mogulvc.com

Page 8: Mogul presentation feb.22.12

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MONGOLIA COAL OVERVIEW

• Viewed as Saudi Arabia of

coal

• Total Minable

resources estimate

~162 billion tons (7)

• Rapid growth potential

• Current production

~16 million tons per

year (mostly exported

to China)

• Production expected

to reach 60 - 70

million tons by 2015(8)

Source: (7), (8) Renaissance Capital’s June 15, 2011 report on “Moncoalia”

www.mogulvc.com

Page 9: Mogul presentation feb.22.12

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MONGOLIA COAL OVERVIEW

• High quality and highly accessible:

• Generally near surface, ideal for low cost open pit mining, dominated by high-

quality low ash, low sulfur and low phosphorous coals

• Known geology:

• 12 coal basins, 3 regions with over 200 deposits of thermal and metallurgical grade

coal

• Main coal formation ages: Carboniferous-Permian, Jurassic, Cretaceous and Tertiary

• Thick coal seams formed in all ages

www.mogulvc.com

Page 10: Mogul presentation feb.22.12

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REGIONAL COAL DEMAND

• China, Mongolia’s southern neighbor, is the world’s leading consumer of coal with

annual demand of 2 billion tons

• China’s coal demand is expected to increase - planned power plant construction in

China is heavily concentrated in the northeast

• Domestic coal demand will increase significantly as Mongolia plans to exponentially

increase its own power infrastructure

• Coals of Northern China tend to be of a lower calorific value as compared to those

from the South and middle Gobi basins of Mongolia. China has a shortage of coking

coal

• The Chinese Government is focusing on fixed asset investments inland into Central

and Western provinces where Australian and Indonesian coals are not competitive

www.mogulvc.com

Page 11: Mogul presentation feb.22.12

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BLACK HILLS PROJECT LOCATION

Source: Mongolian railroad Policy, Eurasia Capital

www.mogulvc.com

• 34,267 hectare mineral concession

• Comprises of the Ovdog Hudag and Ikh Ulaan-Nuur coal deposits

• 100 km southwest from Choir railway station

• 35 Kwatt power line on the property

• Easily accessible all year around

Planned Railways in Mongolia

Page 12: Mogul presentation feb.22.12

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OVDOG HUDAG COAL DEPOSIT

• In 2011 a 14 hole, ~2,370 m core drilling program on 1,000

m centers confirmed the historical work on the deposit,

forming the basis for a NI 43-101 Resource Estimate by SRK

Consulting

• NI 41-101 Report summary results:

• Estimated Inferred Resources of 89.6 Mt*

• 8 coal seams recognized – 4 fully mineable, 2 partially

mineable

• Classed as High Vol Bituminous A Thermal Coal

• Average Gross Calorific value – 3,776 to 4,952 Mj/kg

• Average Volatile Matter – 29.9 to 37.9%

• Average Fixed Carbon – 32.3 to 39.5%

• Average Ash – 22 to 33% - washing will reduce

• Average Sulphur - 4.94%; removal of abundant visible

pyrite by washing expected to reduce S levels

significantly

*Ovdog Hudag Coal Deposit – Draft 43-101 Report by SRK Consulting, December 31, 2011

• SRK recommended program: infill and expansion drilling program, process test work,

mine design and Preliminary Economic Assessment

Page 13: Mogul presentation feb.22.12

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OVDOG HUDAG & IKH ULAAN-NUUR DEPOSITS

• Ovdog Hudag coal deposit historical resources, based on Russian drilling from the ‘60s and ‘70s, using a Russian Classification system and based on >85 drill holes:

• 1968: C1+C2 resources totalling 201.2 Mt*1

• 1970: B+C1+C2 resources totalling 168.2 Mt*1

• Ikh Ulaan-Nuur coal deposit is located 7km NNE of Ovdog Hudag and was defined by Russian drilling in the ‘60s and ‘70s

• 1970: A+B+C1+C2 resources totalling 86.4 Mt*1

• Excellent potential for additional coal resources to be delineated in the undrilled area between Ovdog Hudag and Ikh Ulaan-Nuur

• Re-drilling of Ikh Ulaan-Nuur will add to NI 43-101 resources

• Open pit accessible coal resources with expected low strip ratio

*See Page 2 Note 1 SRK Consulting External Technical memo, May 28, 2011; Technical

Report on the Coal Resources of the Ovdog Hudag Coal Deposit Dundgovi

Province, Mongolia” prepared by Flore Tungalag

Photo: Drill Rig, 2011

www.mogulvc.com

Page 14: Mogul presentation feb.22.12

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BLACK HILLS: KEY ADVANTAGES

• Strategic location close to existing rail line (parallel line planned) providing

ready access to Chinese markets

• Open pit accessible thermal coal resources with expected low strip

ratio

• NI 43-101 compliant Inferred Resource of 89.6 Mt from 2,370m of drilling in

14 holes at Ovdog Hudag deposit

• Excellent potential to significantly expand the projects’ coal resources

through:

• Infill and step-out drilling at Ovdog Hudag deposit where substantially larger

historical resources were delineated by Russian work in the 1960s and 1970s

through more detailed drilling

• Ovdog Hudag Coal Deposit remains open to the north

• Drilling of the Ikh Ulaan Nuur deposit 7km NNE of Ovdog Hudag (86.4 Mt*1)

• Testing the undrilled area between the two known deposits

• Property has potential for presence of other commodities (Cu, Fe)

1 SRK Consulting External Technical memo, May 28, 2011; Technical Report on the Coal Resources of the

Ovdog Hudag Coal Deposit Dundgovi Province, Mongolia” prepared by Flore Tungalag

www.mogulvc.com

Page 15: Mogul presentation feb.22.12

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GOALS AND OBJECTIVES

• Additional drilling and surface exploration to maximize

Black Hills’ full potential including:

• Infill and expansion drilling to expand resources and

upgrade resource category

• Step-out drilling between Ovdog Hudag and Ikh Ulaan-

Nuur to delineate additional resources

• Re-drill Ikh Ulaan-Nuur

• Commence detailed development studies including:

environmental baseline, processing, mine design

• Evaluation of potential for other valuable commodities

on the property (Fu, Cu)

• Commence an economic evaluation

• Develop Black Hills towards production

• Seek strategic partners for funding expansion, off-take,

development of a power plant, and application of new

technologies for monetizing deep-in-ground stranded coal

• Acquire additional coal projects focusing on coking coal and

thermal coal in proximity to near-term infrastructure

development

Photo: Core being bagged from Drill 2, 2011

www.mogulvc.com

Page 16: Mogul presentation feb.22.12

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TIMELINE

www.mogulvc.com

H1 2011 H2 2011 Q1 2012 Q2 2012

TRANSACTION

Completed due diligence, property review, Title Opinion, private financing, closed TS LLC purchase, RTO agreement with TSX listed CPC

Complete audit and prepare info Circ. Received approvals and signed an order for issuance of the mining license

Complete public RTO, close Pubco. funding – public listing

EXPLORATION

Complete initial independent historical review of coal occurrences

Complete drill program to confirm coal characteristics and historical work

Complete NI 43-101 report Implement NI 43-101 recommended program

ACQUISITION

Completed acquisition of TS coal project

Review other potential coal acquisitions

DEVELOPMENT

Confirmation drilling of Black Hills

Confirm resource and expand drilling

Page 17: Mogul presentation feb.22.12

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SUMMARY HIGHLIGHTS

• One of the few exploration and mining companies operating in Mongolia that has

significant local ownership. It has extensive local expertise and execution capabilities

• Black Hills (Khar Tolgoi) project is a substantial thermal coal project close to

infrastructure with significant expansion potential

• NI 43-101 Inferred Resources of 89.6 Mt*

• Excellent potential to significantly expand the projects’ coal resources through infill

and step-out drilling at Ovdog Hudag deposit where substantially larger historical

resources were delineated by Russian work in the 1960s and 1970s through more

detailed drilling

• China continues to utilize thermal coal as a viable energy source

• The company has unique access to a proprietary pipeline of acquisitions

• The company and its principals have a broad network of strategic partners,

professional service providers and capital sources to build long-term successful

projects and create significant shareholder value

www.mogulvc.com

*Ovdog Hudag Coal Deposit – Draft 43-101 Report by SRK Consulting, December 31, 2011

Page 18: Mogul presentation feb.22.12

Contact Information +1 416.309.4326 | [email protected]

Bay Adelaide Centre,

Suite 1200 – 333 Bay St.

Toronto, Ontario

M5H 2R2, Canada