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14.10.2010 Company showcase Bulgan Alt Group, Erdenebilguun Gan-Och

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Mongolia Investment Summit 2010

� Altain Khuder is a Mongolian registered mining and mineral exploration company established in November 2006

� Export iron ore products to steel mills in China

� Owns the iron ore project: TAYAN NUUR

� Located in the Gobi Altai province of Mongolia

Preparation of mine operation commenced

15 year long term agreement with Baosteel signed

Trial export of iron ore lumps to Baosteel commenced

JORC Compliant Resource Statement by Micromine

Construction of 2nd and 3rd processing line initiated

15 year long term agreement with JISCO

2-4Mtpa collective iron ore off-take agreement with customers in 2011

July 2008

August 2008

April 2009

September 2009

July 2010

August 2010

September 2010

Urumqi

Mongolia Investment Summit 2010

Initial development�1Mtpa crushing, 500,000 tonnes 61-63% Fe fine iron ore�Dry magnetic separation technology

Current development (2010-2011):�4-8mtpa crushing

�2-4mtpa iron ore fine production

Future (2012 onward):�8mtpa fine production (dry separation)

�2mtpa fine production (wet beneficiation)

�2mtpa pellet production facility

Beneficiation engineer O.TuvshintugsBeneficiation engineer O.TuvshintugsBeneficiation engineer O.TuvshintugsBeneficiation engineer O.Tuvshintugs

Terex line Terex line Terex line Terex line

New beneficiation line under New beneficiation line under New beneficiation line under New beneficiation line under

constructionconstructionconstructionconstruction

New beneficiation line under New beneficiation line under New beneficiation line under New beneficiation line under

constructionconstructionconstructionconstruction

Mongolia Investment Summit 2010

Current state:� 88 hauling trucks additional 50

trucks� Transportation is the largest portion

of our production cost but we can reduce it with infrastructural development

Future development:� Transportation for up to 8mtpa iron

ore fine� Obtain trucks with over 60 ton

capacity� Railway construction under review

(feasibility study completed)

Trucks loaded with iron ore fineTrucks loaded with iron ore fineTrucks loaded with iron ore fineTrucks loaded with iron ore fine

Trucks delivering the product to the borderTrucks delivering the product to the borderTrucks delivering the product to the borderTrucks delivering the product to the border

Mongolia Investment Summit 2010

Current state:� Road construction company

� 170km gravel road suitable for over 85 ton load transportation – 2009-2010

Future development:� Cover 50-70% of the road with

asphalt - 2011

� Complete the asphalt road – 2012

-----------------------------------------------� 50mW power plant based on

Khuren Gol deposit – 2012(onward)� Airport at the mine site – 2011

Mongolia Investment Summit 2010

Works completed:� Relocated and rebuild the

Burgastai customs office closer to the Mongolian-Chinese border

� Construction of a storage field for iron ore fine: 250,000 tonnes

� Complete security solution

Prospective :� Camp for company employees,

customs officials

� Maintenance shop� Fuel station

� LandscapingStorage field at the boarder point

Past development:�Residence hall for 500 residents with full facilities

�Wireless and wired internet connection, cellular network

�All employees use card registration system (in progress)

Current development:�Office building – 1500m2

�Maintenance workshop – 3940m2�Complete security solution

New office buildingNew office buildingNew office buildingNew office building

New maintenance workshopNew maintenance workshopNew maintenance workshopNew maintenance workshop WorkshopWorkshopWorkshopWorkshop

Mongolia Investment Summit 2010

� Altain Khuder values the importance of having a strong executive and operations management team with extensive global experience in the mining industry.

� The Company hired qualified candidates from the U.S., Canada, Australia, Brazil and the Philippines to fill the positions of Director of HR, CFO, COO, Chief Safety Engineer, Chief Maintenance Engineer, Mine Engineers, Exporting Manager and Camp Manager.

Mongolia Investment Summit 2010

Regional DevelopmentRegional DevelopmentRegional DevelopmentRegional Development Employment Employment Employment Employment HSEHSEHSEHSE

MNT97.5 millionMNT97.5 millionMNT97.5 millionMNT97.5 million worth

of education, culture

and health contribution

to Gobi Altai province

and Tseel soum

Over 19%19%19%19% of our

employees are local to

the region of the mine

Company employs

almost 780780780780 Mongolians

• Quality HSE policy

• In depth

environmental

assessment studies

Mongolia Investment Summit 2010

� One of few iron ore mines in Mongolia � The only one in western Mongolia

� Strategic location� Located closer to Mongolian-Chinese border than any other iron ore mine in

Mongolia� Low cost iron ore producer

� Close proximity, high quality deposit and open cast mining

� Long mine life� Potentially 20 years of mine life based on JORC resource estimate of 158

million tonnes� Strong customer base

� Long term off-take agreement with major steel mills in China

� Experienced management team� The company employs experienced senior expat professionals in many of its

management posts

Mongolia Investment Summit 2010

FieldFieldFieldField Amount /US$ Amount /US$ Amount /US$ Amount /US$

million/million/million/million/

1 Asphalt road construction 70707070

2 Power Plant 82828282

3 Open cast mining equipments 78

4 Beneficiation plant expansion 75

5 Additional trucks for transportation 29

6 Border/Customs development 6.5

7 Mine camp expansion 7.3

8 Airport 4.7

9 Wet based beneficiation plant 55

10 Pellet plant 67

Total 474.5

Recent highlights�Seeking to raise US$100 million financing through a private bond issuance to ramp up production level up to 2Mtpa

�Preparing for a listing on Hong Kong Stock Exchange within 2011

Mongolia Investment Summit 2010

Erdenebilguun [email protected]

www.tayan-nuur.com