Source: Frontier Securities                         Date: 08 September, 2011

Sharyn Gol JSC (SHG) will sell additional shares on the Mongolian Stock Exchange. The company is hoping to raise MNT 17.7 billion to expand operations. The decision to allow SHG's FPOs was approved by the Financial Regulation Committee.

At present, SHG holds reserves of unwashed raw coal. Coal quality and washability tests indicate a strong potential for a high yield with low ash and moderate to low sulfur composition suitable for international markets.

“Very encouraging results indicate the operations strong potential through establishing simple washing process, to produce a premium high quality, low ash, and low-moderate sulfur coal product suitable for export to international markets,” said Frontier Securities Chief Investment Strategist Dale Choi.

The company plans to move forward with major production expansion, and to implement plans to underground mining operations.