Source:  Silk Road Management                         Date: 13 April, 2011

Providing its first quarter 2011 update for Silk Road indices, Silk Road Management has said Silk Road Mongolia Index now has 31 members and exceeds USD38 billion in total market capitalization (as of March 31, 2011) after strong performance of Mongolia-related companies. Two new companies have been added to the index: Aduunchuluun JSC (ADL:MO) and BDSec JSC (BDS:MO), both listed on the Mongolia Stock Exchange (MSE). The number of MSE-listed companies has reached 9, representing 29% of total number of the index members.

Silk Road Mongolia Index gained 9.3% in 1Q2011 mainly thanks to robust performance of locally-listed companies and internationally listed large- and mid-caps: Ivanhoe Mines (+19.8%), SouthGobi Resources (+17.3%), Aspire Mining (+108%), and triple digit gains in Mongolia listed companies: Sharyn Gol (+117.1%), Baganuur (+126%) and Shivee Ovoo (+146%).

In 1Q2011, the share of locally-listed companies increased to 4.6% (USD1.75 billion) in total market capitalization of the index members from the 2.7% (USD836 million) at the end of last year. The management believes the weight of the Mongolia-listed companies in this index will further increase thanks to a series of expected domestic share offerings, in particular the Mongolian state-owned enterprises (SOEs), especially highly anticipated IPO of Erdenes Tavan Tolgoi.

Silk Road Composite Index, Silk Road Central Asia Index and Silk Road Hong Kong Index have been rebalanced as Bestway International Holdings (718:HK) and Oxus Gold (OXS:LN) have been excluded from these indices since they do not meet the index requirements anymore.