Source:  China Daye Non-Ferrous Metals Mining Limited                            Date: 12 October, 2011

China Reservoir Mining Limited (CRML) will appeal a decision ordering the firm to return the mining rights of the Aleimuer Mine to Nomin Deposit LLC. CRML received the written arbitral order from the Mongolian National Arbitration Center of the Mongolian National Chamber of Commerce and Industry.The award orders that the mining rights to the Aleinuer Mine must be returned by Reservoir Moly to Nomin, its joint venture partner in the project. CRML holds a 55 percent equity interest in Reservoir Moly.  Nomin holds the remaining 45 percent.When Reservoir Moly was established in 2005, Nomin transferred its mining right to Aleinuer Mine to Reservoir Moly as part of its capital contribution. CRML meanwhile undertook to meet its capital contribution by financing the further development of Aleinuer Mine. Reservoir Moly has since completed its exploration of the mine site.In order to enforce the arbitral award, Nomin is required to submit the award to the Mongolian Arbitration Center. Afterwards, it will request the relevant mining authority to amend the mining license to Aleinuer Mine. Before the license is amended, the right remains with Reservoir Moly.In addition, CRML has the right to appeal to Mongolia's Court of Appeal against the arbitral award. If the court accepts the application, the enforcement of the arbitral award will be suspended until a decision is made.
Reservoir Moly is a firm in Mongolia with the mining rights to molybdenum in Sukhbaatar Aimag. CRML is the subsidiary of China Daye Non-Ferrous Metals Mining Limited.