“ERDENES TAVAN TOLGOI ” JSC

Investor Presentation

3rd Quarter 2014Largest developing coking coal deposit in the world

Tavantolgoi Mine

o Tavantolgoi mine is located 540 km from the capital city of Ulaanbaatar 170 km from the Mongolian -Chinese border

o The deposit covers 68.5 thousand hectares

o 7.4 billion tons of coal

o Close proximity to main market

Location

3

West Tsankhi coal field

East Tsankhi coal field

1.2 Bt*Coking coal 65 %

1.08 Bt*Coking coal 78 %

Eastern (Onch Kharaat)Borteeg

South-Western(Oortsog)

Tavan Tolgoi JSC

Measured

Indicated

Inferred

282.5 Mt

Calculation within *300m depth

1,21 Bt*Coking coal 63%

765 Mt*Coking coal 72 %

Calculation by JORC code

60.3 MtCocking coal 70%

74,5 MtCocking coal 61%

78.8 MtCocking coal 82%

298 MtCocking coal 53% Bor tolgoi

Ukhaa khudag

Tavantolgoi coal deposit contains 7.4 billion tons of coal reserves and resources of whichover 3 billion tons is coking coal and the rest is thermal coal. The deposit is beingdeveloped by “Erdenes-Tavan tolgoi” JSC

Formation of the Tavantolgoi Coal Deposit

126 452

28333,411

726706

1554

2986

410576

-

986

0

1000

2000

3000

4000

5000

6000

7000

8000

East Tsankhi West Tsankhi Others Total ETT

Measured

Indicated

Inferred

7.4 Billion tons of total coal reserves East and West Tsankhi blocks targeting 15 Mtpa by 2017 Open cut mining operation with competitive cash cost Infrastructure projects in development stages for improved coal sales margins

Tavantolgoi Coal Deposit Reserves

5

East and West Tsankhi Blocks

0.899

2.5

5.3

1

0.281

2.32

3.7

0

1

2

3

4

5

6

2011 2012 2013 2014

Produced

Exported

ETT Production & Exports

Exports increased 50% by 2nd quarter

of 2014

mt

Targeted, 2014, 8

Targeted, 2015, 12

Targeted, 2016, 13

Targeted, 2017, 15

Targeted, 2018, 20

0.32.4

2

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016 2017 2018

Supplied

Targeted

mt

• Market conditions reduced exports in 2013; exports increased 50% by 2nd

quarter of 2014• Coking coal prices are stabilizing and expected to recover by 2015

ETT East & West Tsankhi Export Schedule

China still requires coal import both of coking coal and thermal coal through 2017 to meet domestic needs.

Domestic supply is expected to grow 2.5% per annum and will not be able to keep pace with demand especially high-quality coking coal due to depleting domestic reserves and increasing production costs

Total coking coal imports are forecasted to increase from 75 mt in 2013 to 125 mt by 2020

Source:Wood Mackenzie,

648 650 670 675 678 681 685 700

75 95 100 104 110 107 116 125

2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

CHINESE COKING COAL PRODUCTION AND IMPORT

Coking Coal Production Coking Coal Imports

Source:IEA, EIA, EIU,BP, BREE, Wood Mackenzie, China Coal Resource

China coking coal demand

Source: China Coal ResourceSource: China Coal Resource

China coking coal importsChina coking coal prices

Coking coal market conditions

Strategic partnership and stable coal trade between China and Mongolia Mongolia well positioned to supply China coking coal demand Mongolian coal price competitive with transportation infrastructure improvements Mongolian coking coal quality – high volatiles differentiate it from other exporters

Mongolian share of the Chinese coking coal market

10

ETT market share of the Chinese coking coal imports

2015Completion of water supply

pipeline

2015Commissioning

CHPP’s first module

2016Planned IPO

2016Tavantolgoi mine-Chinese border

railway expected to be completed

2010Company

EstablishedPre-stripping and box cut development

started

2014 2QCross-Border

Railway “GTZ” JVC established

2011Coal export commenced

2013West Tsankhi Block comes

into operation

2011Off-take

agreement with Chalco

2012Extracted 2.5 mt

coking coal

2014MOU with

Shenhua to supply up to

1 bt coal

ETT Progress & Forward Plans

Operating cost- 50%

Transportation to Tsagaan Khad

25-30%

Cross Border Transportati

on14%

Mine Stockpile Stockpile Stockpile

China

B C

Stockpile charge

3%

AMongolia

Stockpile charge

3%

240 km paved road

Operating cost- 50%

Haul truck to Tsagaan Khad

25-30%

Cross Border

Transportation3%

Stockpile charge

3%

Stockpile charge

3%

240 km paved road

Operating cost- 50%

Stockpile charge

3%

Stockpile charge

3%

257 km railway

Mongolia

Mongolia China

China

1

2

3 Transportation cost will reduce

c. 40-50%

Cross Border transportation

will reduce c.25%

1 - Current supply chain2 - Cross Border Railway project is expected to be completed by mid 20153 - Mine to Chinese Border railway is expected to commenced in 2016

A-Mine Mouth Sale B-Tsagaan Khad SaleC-Gants Mod Sale

ETT Supply Chain and the Project

Railroad Project

ETT Coal Transportation

• ETT is currently transporting coking coal through use of trucking contractors(~1000 trucks) on paved roads.

• Transportation related expense accounts for more than 40% of the total cost perton at current prices.

• ETT, MMC, Tavantolgoi & Shenhua Corporation of China established a “GTZ” JVCfor development of 18 km port railway

• State owned “MTZ” planning to construct Tavan Tolgoi mine to Gashuun Sukhait225 km railroad in 2016

• “MTZ” railroad will link with GTZ JVC port railway which connects with Shenhuarailway at the Chinese border

• Total tranportation cost is expected to decrease up to 80% further increasing ETTcompetitiveness in the coal market.

• ETT, MMC, Tavantolgoi and Shenhua Group of China have established a joint venture“GTZ” Company to construct and build the 18 km port railway from Gashuun Sukhaitto Gants Mod port of China

• The port railroad will provide direct linkage to Shenhua railroad on the Chinese side, itwill also reduce transporation costs and increase port capacity by 30 million tons peryear

• Upon completion of the Tavan Tolgoi Mine to Gashuun Sukhait 225 km railroad by2017, Erdenes Tavan Tolgoi coal transportation expenses is expected to reduce by 70%.Total transporation costs is expected to reach $8 per ton and thus increasing coal salesmargins for the company.

Port Railway

TT mine to Gashuun Sukhait Railway

Railway Projects

• “GTZ” JVC will construct Gashuun-Sukhait to Chinese port of Gants Mod railway by 2015• Exprected to increase Mongolia-China port capacity by an additional 30 mtpa• ETT total transporation costs to reduce by up to $3-4 per ton• Mongolia-China border clearance time will reduce from 3 days to 3 hours per ton of coal

“GTZ” Port railway Project & Benefits

20 mtpa capacity CHPP• Feasibility study completed and approved-$505 Million project• First module of the CHPP with 5 mtpa capacity planned for 2016 with full capacity expected

by 2018• Currently in process of reviewing and selecting EPC project partner

Dry coal washing technology• Erdenes Tavan Tolgoi JSC with cooperation from Japan’s JCoal agency and Nagata

Engineering have signed a MOU in August of 2013 to test coal processing technology usingsand.

• 2000 kg of ETT coal has been sent to Nagata Engineering for testing and based on resultsare currently on talks to potential cooperation.

CHPP Project

• In the initial years, ETT is planning on extracting deep ground water from the “Balgasin”lake basin located 70 km from the coal mine.

• The water is planned for use in mainly in the CHPP and projects will be concurrent

• Our geologists are currently in the process of locating other water supply sources in thedeposit area

• The Water Project feasibility study has been completed and is expected to require aninvestment of $90 Million.

Water Supply Project

18

$505

$90

$50

$700

$250

Coal Wash Plant

Water Supply

Power Supply

Mine Equipment

Other infrastructure

Total Investment of $1.6 Billion

ETT Infrastructure Projects & CAPEX (Stage 1)

Millions of dollars

Investment and Development years 2014 - 2017

19

ETT Infrastructure Projects & CAPEX (Stages 2 & 3)

Coal Processing

Coking

Plant

CTL

Coal Gasificatio

n

Power Generation

Downstream Projects $2.5 BillionTavantolgoi mine to Sainshand Industrial Complex $1.5 Billion

Investment and development years 2017 - 2019

Investment and development years 2019 & beyond

• Initial Development phase consists of increasing operational efficiencies and implementing projects to increase revenues, reduce costs and export value added products

• Future Expansion phase to include downstream projects: coking plant, coke deep processing, coal gassification and CTL

• Energy Production phase to include: regional energy supplier and net exporter

Initial Development

Future Expansion

Energy Production

ETT Expansion phases

21

20142015

2016Planned IPO Develop world class coal deposit capabilities

Competitive cash cost structure Strategically located to primary target with

supporting transportation infrastructure Long term coal supply agreements with major

companies for predictable future cash flowsand earnings

Production growth rate to 15 Mtpa by 2017for East & West Tsankhi blocks

Strong management team and cooperationwith internationally recognized and strategicpartners

Mongolian Government support for thedevelopment of the Tavan Tolgoi mine as astrategic national priority

ETT Initial Public Offering

Ulaanbaatar

Hong Kong

London

22

West Tsankhi block comes into production and exports have begun1

Exports increased by 50% and expected to more than double this year2

Feasibility studies completed and approved for CHPP and Water Projects3

Joint railway company “GTZ” established, transportation costs to fall4

5

Tavan Tolgoi mine is of strategic importance to the Government of Mongolia6

ETT Highlights

Ownership stake and management of “Goviin Zam” paved coal road

Thank You

For Your Attention

23