14.10.2010 Creating a world class energy and mineral resources company in Mongolia, James Schaeffer

ENERGY RESOURCES DEVELOPER

Mongolia Energy Corporation(Stock code: 276)

Corporate Presentation

October 2010

October 2010 2

DisclaimerThis presentation contains forward-looking statements that involve risks and uncertainties and intended to be

covered by applicable safe harbor principles under applicable national and federal securities legislations.

These statements are generally indicated by the use of forward-looking terminology such as believe, expect,

anticipate, estimate, plan, project, target, may, will or other similar words that express an indication of actions

or results of actions that may or are expected to occur in the future. You should not place undue reliance on

these forward-looking statements, which apply only as of the date of this presentation. These forward-looking

statements are based on our own information and on information from other sources we believe to be reliable.

Our actual results may be materially less favorable than those expressed or implied by these forward-looking

statements which could affect the market price of our shares. You should also read the risk factors set out

under our circulars and announcements for each of the transactions, which are deemed incorporated and form

part of this presentation and as qualification to the statements relating to the relevant subject matters. All

figures in this presentation are approximation. This presentation does not constitute any invitation to acquire

securities and is intended for reference only.

Disclaimer

October 2010

FOCUSED.

PROFESSIONAL.

REALISTS.

About MEC

MEC’s business model is to acquire concessions and to put in place a strong in-house team, including industry veterans in the geological, mining and legal areas to lead exploration, development and compliance aspects relating to the concessions. In this sense it is “an energy and resources developer”. MEC’sbusiness model is a focused, professional and realistic one.

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October 2010

With a strong team of driven and experienced professionals at the leadership, MEC will continue to

expand our global team and network of co-operations. We will not be content until we have become an

outstanding energy and resources player with a global brand recognition.

Our Mission

Our Vision

Mission and Vision

MEC’s mission is to acquire, explore and develop energy and mineral resources with related projects in a professional, sustainable and responsible manner.

We aim to achieve global recognition as an energy and resources company while maximizing returns to

stakeholders.

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October 2010

Executive Board and Management

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Simon Lo: Chairman Over 20 years of experience in the financial, securities and futures industries, including many trans-

border transactions

Served on the Board of Directors of a number of listed companies

Identified and secured the resources projects for the company actively for a substantial period of time

Liu Zhuo Wei: Executive Director Holds a bachelor degree from Harbin University of Science and Technology

Joined the People's Liberation Army in 1969. As from 1983, he was with the People's Liberation Army General Staff Department and General Armaments Department involving in the development of military equipment and construction program

Expert in rocket propulsion design and construction

In 2007, he joined All-China Federation of Industry & Commerce and is currently its deputy secretary

Yvette Ong: Executive Director Holds an MBA and a bachelor degree from the University of San Francisco

Wealth in management experience

Formerly Managing Director of AT&T EasyLink Services Asia Pacific Limited, focused on the sales and marketing of data communications services. She was also a key member of the Asia-Pacific senior management team responsible for the expansion of AT&T’s business network in the region

October 2010 6

Mohan Datwani: General Counsel & Chairman’s Assistant Formerly global partner of Paul, Hastings, Janofsky & Walker, specializes in structured transactions for

leading global financial and corporate institutions, including acquisition and structuring of acquisition of energy and resources projects in various jurisdictions, including the PRC and Mongolia.

Projects included coal, liquefied natural gas, oil, power plants, timber and resources. Formerly named as a leading lawyer by Asia Pacific Legal 500 in asset finance, he is a solicitor in England & Wales and Hong Kong

James J. Schaeffer, Jr: Chief Executive Officer Formerly Executive Director of Asia Pacific of John T. Boyd Company, a leading international mining

and geological consulting firm and the technical adviser to China Shenhua’s IPO

Leading industry expert and highly regarded in the energy and resources sectors

Worked on technical reviews, reserve estimations, fuel supply plans; identified potential coal resources; developed financial regimes and mining regulations for major projects. He has been a seminar instructor and has published technical papers


Samson Tang: Chief Financial Officer Over 20 years' experience in corporate finance, treasury and accounting

Worked in senior finance roles for various Hong Kong listed companies

October 2010 7


Marcus Ho: Director of Corporate Finance Over 20 years’ experience in Hong Kong’s financial industry, including investment banking, financial

management, accounting and auditing

Completed corporate transactions for hundreds of listed companies, including initial public offerings, mergers and acquisitions, takeovers projects and fund raising activities

Gordon Poon: Director of Corporate Development & Investor Relations Over 20 years' experience in investment banking

Worked as senior management in corporate finance and capital markets trading and sales in London, North America, Tokyo and Hong Kong for leading houses, including HSBC, CIBC, Bank of America and UBS, prior to taking on consultancy roles on private equities, direct investment and pre-IPO funding transactions globally for leading institutional clients with an emphasis on the Greater China region

James J. Dolan - Chief Financial Officer - Mongolia Over 20 years experience in financial management in the international mining industry covering Russia,

Kyrgyzstan, Finland, Peru, Spain.

Extensive experience in external audit, tax and fiscal negotiations with governmental and state agencies and well versed with custom and excise agreements.

October 2010 8

Technical Team

Eamon Patrick Doyle: Director of Operations Over 20 years' experience in the mining and mining support industries, with 10 years in Indonesia,

Russia and Mongolia

Previously worked at Freeport’s Grasberg operation and INCO’s (Vale) Soroako mines in Indonesia

Served as a director of product support and marketing at WagnerAsia Mongolia for Caterpillar

Served as a technical director of Wagner Siberia in Russia for Caterpillar

David B. Henderson : Director of Geology 38 years’ experience in field of geology with extensive project experience in Mongolia, Germany,

Indonesia, Venezuela, Turkey, Estonia, Mexico and the United States

Registered professional geologist in Idaho and West Virginia Surface Miner and Surface Foreman Certification with extensive experience in the coal industry with particular expertise in exploration, data collection and review, mineral property evaluations, due diligence review and feasibility studies as well as oil shale mining at an international level

Mark Ahlborn: Manager of Khushuut Field Operations Over 35 years’ mines and projects experience in Europe, North America and Asia

Expert in mine construction and development, particularly in remote, challenging environments

Had involved in significant projects include Sumitomo’s Pogo Mine, Stillwater Mining’s East Boulder Mine, and recently Ivanhoe’s Oyu Tolgoi

October 2010

Listing Information

PublicLo Lin Shing, Simon

Liu Cheng Lin

Shareholding Structure(As of August 31, 2010)

Other directors15.15% #

19.67% ^

0.12%

65.06%*

Share Related Data

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HKEx Stock Code

Board Lot

Number of Issued Shares

276

1,000

6,103,547,828Note: The above information is compiled based on the information on the HKEX’s website with the adjustment of 6,103,547,828 issued shares of MEC.* Including 3.69% interest by Dató Dr. Cheng Yu Tung and his associates and 6.47% interest by Dr. Cheng Kar Shun, Henry and his associates. # According to the information provided by MEC’s Hong Kong branch share registrar.^ This includes the interests held by Mr. Simon Lo individually, his spouse and the company wholly and beneficially owned by Mr. Simon Lo.

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Our Businesses

Coal

MineralsOil & Gas

October 2010 11

MEC AssetsCoal, Minerals, Oil & Gas

MINERALSCOAL OIL & GAS

Wes

tern

Mon

golia

Sout

hern

Mon

golia

Xinj

iang

PRC

19% of a wholly foreign owned Chinese corporation with scope to invest in coal, copper and iron resources in Xinjiang and elsewhere in China

20% consortium member in 1.18 MM hectares oil and gas project, Ergel XII Petroleum Block, at production contract ratification stage

34,000 hectares of coal concessions in Khushuut and Darvi in western Mongolia

2,986 hectares of ferrous metals concessions in Bayan-Olgiy, western Mongolia

32,000 hectares of coal, ferrous and non-ferrous metals concessions in Gants Mod, western Mongolia

263,008 hectares of coal, ferrous and non-ferrous metals resources concessions in Olon Bulag and Gobi Altai, western Mongolia

October 2010

KHUSHUUT COKING COALMINE PROJECT

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October 2010

Western Mongolia Concessions – Coal, Ferrous & Non-ferrous Metals

Our Projects in Western Mongolia

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October 2010

MEC has been actively working on exploration of resources and planning of the KhushuutCoking Coal Mine in Khovd Province, western Mongolia since 2007

600 hectares of the coal mine areas in Khushuut has been explored so far, out of the 330,000 hectares of concession areas controlled by MEC

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Khushuut Coking Coal Mine Project

October 2010

John T Boyd CompanyIndependent Technical Advisor

Over 60 years of expertise in completing reserves audits and stock listing requirements for coal companies

Conducted more than 2,000 reserves audits, includingaudits for some of the largest coal producers in the US

Technical consultant of China Shenhua’s IPO

All exploration is with the input and advice of the independent technical adviser

The exploration results are analyzed by the independent technical adviser

The mining plans are developed with the independent technical adviser

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Khushuut Coking Coal Mine ProjectProfessional Partners

October 2010

Fenwei Energy GroupMarketing and Coal Quality Consultant

Fenwei Energy Group is one of the premier energy consulting companies with a high degree of expertise and experience in China’s coal industry

The scope of services range from field investigations, evaluations of coal resources, resource planning and mine commencement, feasibility and market studies, pilot plant and commercialization of technology, environmental impact and assessment

The Company’s expertise includes coking coal evaluation, coke and coking plants, coal chemicals, coal bed methane, coal gasification, clean coal technology, energy system integration, power generation, emission reduction, and coal mine redevelopment

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October 2010

China National Administration of Coal Geology - 129 Exploration Team Exploration Company

Team 129 is an experienced exploration team under China National Administration of Coal Geology’s No. 1 Exploration Bureau

It provides drilling and other aspects of the exploration with the advice of John T. Boyd Company

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October 2010

Leighton LLCInternational Contract Miner

Has been operating in Mongolia since 2007

A subsidiary of Leighton Asia (part of the Leighton Group), Leighton Holdings is the world’s largest contract miner, listed in the Australian Stock Exchange (stock code: LEI AU)

Leighton Asia has been operating in Asia since 1975, it is Australia’s largest project development and contracting group with annual revenues exceeding US$16billion. Area of operations include Hong Kong, Macau, China, Mongolia, Taiwan, Philippines, Guam, Thailand, Vietnam, Laos, Cambodia, Indonesia and Kazakhstan.

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October 2010

2007 Exploration drilling by Team 129 included 199 drill holes with a cumulative depth of over 50,000 meters

Resources were estimated at 460 million tonnes according to Chinese standards by Team 129

MEC utilized the services of John T. Boyd Company (BOYD) as independent technical advisor to oversee the exploration program

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Khushuut Coking Coal Mine ProjectResources Exploration

October 2010

BOYD prepared an independent resource estimate in accordance with international JORC Standards for two major seams:

Resources are surface minable

Million Tonnes

C Seam 101.7B Seam 47.5

Total 149.2


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MEC has been actively working on exploration of resources and planning of the Khushuut Coking Coal Mine in Khovd Province, western Mongolia since 2007

Exploration program overseen by independent technical advisor John T. Boyd Co.; drilling carried out by Exploration Team 129 of the China National Administration of Coal Geology

600 ha of the 330,000 ha of concession areas explored so far

2007: Drilling of 199 drill holes with a cumulative depth of over

49,676 meters and collection of coal cores for analytical testing

2008: 42 drill holes with a cumulative depth of 7,562 metres Collection of coal cores for analytical tests (39 holes) and

rock and coal samples for geochemical tests (3 holes) 2009:

Drilling of 95 drill holes with a cumulative depth of over 23,675 meters to asses coal quality and bed structure

2010: Drilling of 19 core holes with a cumulative depth of 3,330

meters to asses coal quality of the initial mine area

October 2010

Leighton’s conclusion relative to MEC’sKhushuut coking coal project:

“Leighton Asia is enthusiastic to provide project development engineering and support services to MEC’s Khushuut coal mine project. In view of the extensive scale of the mine site and the exceptional quality of its coking coal products, we believe the Khushuut coal mine project has immense potential and that our services rendered this time around will translate into a full mine management engagement in the near future.” - Leighton Asia Managing Director Mr. Hamish Tyrwhitt

Khushuut Coking Coal Mine ProjectMarket Analysis

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October 2010


MEC commissioned the services of Shanxi Fenwei Energy Consulting Co. Ltd. to complete detailed “Market Study of Khushuut’s Coal Resources”

Results affirm favorable market conditions for the high quality Khushuut Mine coking coal

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October 2010


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MEC has, as an ongoing process, commissioned the services of Shanxi Fenwei Energy Consulting Co. Ltd. to conduct market studies to assess the demand for Khushuut coking coal

Fenwei concludes that the Xinjiang Market had great potentials for MEC that “Khushuut coal still is the scarcest type of coal in Xinjiang”, which complements the local high-volatile coal in Xinjiang

In order to achieve the best economic values, two types of coking coal product, i.e. C Coal and B Coal, are designed according to Khushuut coal seam’s natural forming conditions. Fenwei viewed that both products are premium coking coal and their market prices will escalate further once their advantages are truly understood.

Fenwei’s Conclusions

October 2010

Coal Pricing: Fenwei evaluated market conditions and coal pricing for the Khushuut Coking Coal delivered to customers in Xinjiang Autonomous Region, PRC


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Source: CEO Technical Summary dated Sept 1, 10

Fenwei’s estimated price of Khushuut Coking Coal delivered at Urumqi area(1)

1630153014701390High

C 1540143014101350Base

1460139013701290Low

1460125010901020High

B 135011701020950Base

12101080960880Low

2013E2012E 2011E 2010

Price Projection by Year (RMB/tonne)CaseProduct

Note1. This is an updated research of indicative market prices conducted by Shanxi Fenwei Energy Consulting Co. Ltd., an independent market consultant,

on the Khushuut Coking Coal and its development trend. The projected prices are not representative of actual contract prices of MEC’s coking coal but are intended to be indicative of possible market prices. Actual negotiated prices will be affected by a variety of factors. The information is intended for reference only.

October 2010


Fenwei’s calculation of future market prices (Coking coal delivered to Xinjiang):

Market prices for coking coal expected to escalate for the next 15 years

- Moderate degree of confidence → 4 % annual growth rate (exclusion of inflation) through to 2025

- Based on lower degree of confidence → 6 % annual growth rate (exclusion of inflation) through to 2025

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October 2010

Xinjiang Coking Coal Demand

Demand for coking coal for the major steel producers in Xinjiang is projected to increase from 7.4 million tonnes in 2007 to 15.8 million tonnes by 2010

0

5

10

15

20

2007 2008 Est 2009 Est 2010 EstBayi Steel Other coke plants

4.46

2.94

4.62

5.18

4.92

7.88

8.1

7.7Milli

on M

etric

Ton

nes

Source: Market Study of Khushuut’s Coal Resources By Shanxi Fenwei Energy Consulting Co. Ltd. October 2008


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October 2010

Baosteel Group Xinjiang Bayi Iron & Steel Co., Ltd. (“Bayi Steel”)

Two new coking plants increase coking coal demand by 4.76 million tonnes per annum (from 2.94 million tonnes per annum (2007) to 7.7 million tonnes per annum (2010))

In 2006 and 2007 imported approximately 1.0 million tonnes per annum from Dawukou mines in Ningxia

Balance was sourced from internal supply

It is expected that the additional 4.76 million tonnes per annum will be imported from external mines


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October 2010


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Xinjiang Hongji Coke Corporation Ltd. (“Hongji”)

Two additional tamping coke ovens to come on line resulting in increased coking coal requirements by 2010

New plants will more than double current capacity resulting in a total 3.6 million tonnes per annum of coking coal requirements

Current sources include 300,000 from their own mines which must be blended with higher quality coal from Dawukou mines in Ningxia

Import coal requirements are expected to reach 3.3 million tonnes per annum by 2010

October 2010


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Xinjiang International Coal and Coking Corporation Ltd. (“XICC”)

Current coke production capacity is 1 million tonne per annum

Actual operating capacity (2007) was 370,000 tonnes coke due to poor quality coking coal and lack of premium quality coking coal for blending purposes

Through increased coking coal supply and improved quality, production in 2010 is expected to reach the 1 million tonne per annum design capacity resulting in a need for 1.9 million tonnes per annum coking coal

October 2010

Khushuut Coking Coal Mine ProjectTransportation

Khushuut’s coal will cross into Xinjiang at the Yarant Border Crossing

MEC started construction of the Khushuut Road in 2008

As of Sep 2009, road foundation work for the Khushuut Road has been substantially completed. The Khushuut Road is now undergoing asphalt pavement.

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October 2010

Khushuut exploration work continues: Independent Technical Review was completed by John T. Boyd Company on 16 Oct ’09 and was

published by MEC on 18 Oct ’09 Coal quality and drilling (lithologic/structure) findings from the 2008 drilling program have been

reviewed by John T. Boyd 2009 Summer drilling programme results focusing on additional areas within the concession and in-fill

drilling have been reviewed 2010 pre-production drilling program results focusing on quality of initial mining area is being

evaluated

Mine development: MEC has contracted with Leighton LLC, an internationally experienced contract miner, for

management and operations of the Khushuut Project’s mining requirements. Mine operations commenced in July 2010 and initial coal production is expected by the end of 2010 Road construction and surface pavement; expected completion in 2010 Mine infrastructure and expanded infrastructure are under construction Further environmental and hydrological studies in progress

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Khushuut Project MilestonesExploration and Mine Development

October 2010

Business development: In Oct 2009, a 200 tonne bulk sample of high-quality coking coal was delivered to a

prospective customer, Baosteel Group Xinjiang Bayi Iron & Steel Co. Ltd. (“Baosteel Bayi”), in Xinjiang Province for full scale testing

In Jan 2010, MoEnCo, MEC’s indirectly wholly-owned subsidiary, entered into a long term coal supply agreement with Baosteel Bayi relating to years 2010 to 2020

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Khushuut Project Milestones (cont’d)Business Development

October 2010

Mongolia is a democratic country that celebrates more than 800 years of history.

It has an area of around 1.6 million sq km, abundant in natural resources, and a

population of around 2.8 million that attains a 98% literacy. Other than Mongolian,

English, Russian, Korean and Chinese are also commonly spoken. Mongolian

people are warm and friendly. According to a 2010 World Bank report, Mongolia

is ranked 60th out of 183 economies in terms of ease of doing business, and is

ranked 27th out of 183 economies in terms of protecting investors.

About Mongolia

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THANK YOU

Investor Relations Contact:Ms. Jasmine LauInvestor Relations Manager

40th Floor, New World Tower 1, 16-18 Queen's Road, Central, Hong Kong Tel: (852) 2138-8000Fax: (852) 2138-8111Email: [email protected]: www.mongolia-energy.com

14.10.2010 Creating a world class energy and mineral resources company in Mongolia, James Schaeffer

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