Source: Frontier Securities                          Date: 29 September, 2011

Although it policies are unfavorable to investors, the government is eager to develop its uranium sector. Studies of Mongolia's deposits indicate that Mongolia has vast potential for great earnings if it can develop this market.The International Atomic Energy Agency (IAEA) ranked Mongolia 16th amongst the world's greatest uranium reserves with 62,000 tons of uranium, according to 2007 data.    According to IAEA reporting, Mongolia was ranked #16 worldwide with 62,000 tons of uranium proven reserves based on 2007 collected data.Other data suggests that Mongolia harbors 1.39 million tons of untested reserves, which if prove would make up the world's largest reserves. However, another study gives the more conservative total of 500,000 tons.Most of the identified uranium reserves are at the Dornod Uran deposit, holding a possible 20,345 tons, in northeastern Mongolia. The Dulaan Uul deposit in Dornogobi Aimag could hold as much as 9,88 tons, the Gurvanbulag deposit 5,345 tons, Ulaan Nuur with 8,462 tons, the Harihan and Haraat with a combined 10,000 tonsThe Nuclear Energy Law adopted in 2009 includes of up to 51 percent of state participation for free. Mongolia's drive to develop this sector was apparently unaffected by the Japanese nuclear disaster last spring.