Source: CPS International                          Date: 10 February, 2011

Mongolian Mining has indicated that it expects 7Mt of raw coal production in 2011. The first phase of washing plant (5Mtpa) will complete construction by the end of 1Q11 and will officially commence operation in April 2011. The second phase of washing plant (5Mtpa) will commence in September. While December 2010 and January 2011 production is low, the company is confident of keeping production at normal level from February.

Apart from existing customers such as Baotou Iron and Steel Group and Qinghua, the company has signed off-take volume contracts with Shagang, the largest privately-owned Chinese steelmaker in China, the coke unit of China Gas, and coke producer Risun. Mongolian Mining will deliver 0.5Mtpa to 2Mtpa washed coking coal for each of the above key customers to the Sino-Mongolian border.