Investment Banking Division 2014.02.26

INVESTMENT BANKING DIVISION 2014.02.26

WORLD INDICES News Highlights: Performance Index Country Last Trade Change % YTD change Record December Gives Way to 30% China Coking Coal Import Drop (Day) (%) Chinese coking coal imports fell almost 30% sequentially in January after MSE - TOP 20 MN 16,950.44 -0.77 3.98 rising to a record high in December. The import decline of about 2.3 Dow Jones US 16,179.66 -0.17 -2.39 S&P 500 US 1,845.12 -0.13 -0.18 million tons vs. December was driven primarily by falling Mongolian Nasdaq US 4,287.59 -0.13 2.66 volumes coupled with smaller decreases in Australia, the U.S. and Canada. S&P/TSX CN 70.50 -0.27 4.17 The import weakness was not entirely surprising given the declines FTSE 100 UK 6,830.50 -0.52 1.21 S&P/ ASX 200 AUS 5,438.10 0.08 1.60 observed in spot markets during the past two months. Nikkei 225 JP 14,979.36 -0.48 -8.05 Hang Seng HK 22,317.20 -0.32 -4.24 ABMEC Mission to Mongolia

COMMODITY PRICES The Association of British Mining Equipment Companies (ABMEC) is to Performance lead a high-profile mission to the 4th Mongolia Mining Exhibition. Last Commodity (USD) Change % YTD change (Day) (%) According to news published in abmec.org.uk, four ABMEC companies Coking Coal/China 121.45 -2.45 -9.03 will exhibit at Mongolia Mining; they are Friction Marketing Company, Joy Copper/LME 7064.5 -0.18 -4.01 Iron Ore 62% /Tianjin 119.1 -0.67 -11.25 Global, MMD Sizers and Reilloc Chain. Their expertise lies in surface and Gold Spot/LME 1340.38 -0.02 11.17 underground mining systems, processing equipment, chains and supplies Silver Spot/LME 21.87 0.06 12.34 for original equipment manufacturers. Oil /WTI 102.08 0.25 3.72

Quarantine extended to Ulaanbaatar-Sainshand and Zamyn-Uud routes MONGOLIAN MACRO ECONOMIC INDICATORS The epidemic of foot and mouth in livestock in Sukhbaatar aimag, Khenti YoY Indicators Date Last aimag and Dornogovi aimag continues with a total of 2803 cattle being so Change % far destroyed. A further 2,173,792 livestock have been vaccinated to Real GDP /bln. MNT/ 31-Dec 6,144 11.7% Nominal GDP /bln. MNT/ 31-Dec 17,550 25.2% prevent against the A list infectious foot-and-mouth disease in the Inflation 31-Jan 12.3% quarantine area since the first outbreak on January 27th in Ongon sum in Trade Balance /mln. USD/ 31-Jan -15.9 7.3% Sukhbaatar aimag. The area has extended to Ongon, Naran, Dariganga, Policy Rate 12-Feb 10.5 Bayandelger, Tuvshinshiree, Asgat sum in Sukhbaatar aimag, Galshar sum Money Supply M2 /bln. MNT/ 31-Jan 10,027 36.6% Loan Outstanding /bln. MNT/ 31-Jan 11,014 54.3% in Khentii aimag, Altanshiree, Delgerekh, Ikhkhet, Sainshand, and Airag sum in Dornogovi aimag. MARKET RATES

Last There are 4 decontamination and disinfection points available 24 hours a LIBOR 6M 0.33 day at the traffic check points near Ulaanbaatar City, established on the US 6M Bond 0.07 US 2YR Bond 0.34 decision of the Ulaanbaatar City Mayor and the National Emergency US 3YR Bond 0.69 Management Agency in the attempt to prevent an outbreak in the City. US 5YR Bond 1.52 US 10YR Bond 2.71 ISDA USD 1YR 0.27 Mongolia Economic Forum to be held in March ISDA USD 2YR 0.45 The Annual Mongolia Economic Forum is scheduled to be held on March ISDA USD 3YR 0.81 24th and 25th at Government House. This year`s main agenda will be on ISDA USD 5YR 1.62 “Smart state policy”, the reform of the business environment, largest re-

construction and challenging issues of development.

The socio-economic trends for Mongolia until 2040 that were issued by the

World Economic Forum will also be discussed at the annual Mongolia Economic Forum.

Last year the Mongolia Economic Forum discussed the issues of the state

budget reform, the environment, green economy, reforms of state registration, reforms of the stock market, competitiveness and reforms of the business environment.

Sources: Bloomberg & Montsame

Amount Issuer Price Yield Coupon Moody's Issue Date Maturity Date (USD mln.) Mongol 2018 500 89.97 7.19 4.13% B1 29-Nov-11 5-Jan-18 Mongol 2022 1000 80.05 8.39 5.13% B1 29-Nov-11 5-Dec-22 DBM 2017 500 93.00 8.37 5.75% B1 21-Mar-12 21-Mar-17 MMC 2017 600 70.50 22.65 8.88% Caa1 29-Mar-12 29-Mar-17 TDBM 2015 300 97.95 9.34 8.50% B1 20-Sep-13 20-Sep-15 DBM 2023 JPY 30bln 100.51 1.46 1.52% NA 25-Dec-13 25-Dec-23 TDBM CNH CNY 700mln 97.971 10.81 10.0% B1 21-Jan-14 21-Jan-17

MONGOLIA RELATED BONDS

MONGOLIAN STOCK EXCHANGE TOP 20

MONGOLIAN TUGRUG (MNT)

MONGOLIA RELATED COMPANIES Stock Closing Change Market Cap 52 week 52 week Name Ticker Currency YTD % Exchange Price % (day) (USD ’000) low high Turquoise Hill Resources TRQ US USD 3.56 -2.73 7.88 7,163,550 2.95 6.03 Centerra Gold CG CN CAD 5.05 -2.32 16.90 1,076,245 2.82 7.20 MMC 975 HK HKD 0.77 1.32 (25.24) 367,601 0.74 3.47 Denison Mines Corp DML CN CAD 1.67 9.15 29.46 711,867 1.01 1.68 Winsway Coking Coal 1733 HK HKD 0.42 0.00 (14.29) 204,198 0.40 1.15 MoEnCo 276 HK HKD 0.23 -2.09 (3.70) 203,720 0.21 0.40 SouthGobi Resources 1878 HK HKD 5.51 -2.13 (19.91) 132,985 5.25 16.88 Central Asia Metals PLC CAML LN GBP 180.00 0.00 27.66 255,548 104.00 190.00 Mongolia Investment 402 HK HKD 0.25 -0.40 (14.14) 185,881 0.17 0.48 Mongolia Growth Group YAK CN CAD 2.04 3.03 - 63,089 1.71 4.25 North Asia Resources 61 HK HKD 0.16 1.25 (10.99) 61,516 0.13 0.36 Guildford Coal Ltd GUF AU AUD 0.10 0.00 19.28 66,266 0.07 0.51 Origo Partners PLC OPP LN GNP 6.88 0.00 (6.78) 40,900 6.13 14.00 Entrée Gold Inc ETG CN CAD 0.41 2.50 32.26 54,238 0.25 0.53 Aspire Mining Ltd AKM AU AUD 0.05 4.65 (19.64) 26,628 0.03 0.13 Prophecy Coal Corp PCY CN CAD 0.09 0.00 12.50 20,354 0.06 0.19 FeOre Ltd FEO AU AUD 0.06 0.00 34.15 26,161 0.03 0.07 Petro Matad Ltd MATD LC GBP 6.75 1.89 80.00 31,447 2.63 11.50

Xanadu Mines Ltd XAM AU AUD 0.06 0.00 24.00 11,440 0.03 0.11 Haranga Resources Ltd HAR AU AUD 0.07 0.00 12.90 15,213 0.05 0.18 Wolf Petroleum WOF AU AUD 0.06 0.00 (14.29) 14,124 0.04 0.10 Manas Petroleum Corp MNAP US USD 0.05 -9.46 (25.99) 8,750 0.04 0.09 Khan Resources Ltd KRI CN CAD 0.35 0.00 22.81 21,496 0.11 0.37 Voyager Resources Ltd VOR AU AUD 0.00 33.33 - 5,570 0.00 0.03 East Asia Minerals Corp EAS CN CAD 0.07 0.00 75.00 6,936 0.03 0.27 Erdene Resource ERD CN CAD 0.21 -4.65 46.43 12,682 0.07 0.22 Modun Resources Ltd MOU AU AUD 0.00 0.00 (25.00) 2,479 0.00 0.01 Kincora Copper Ltd KCC CN CAD 0.05 -10.00 80.00 8,410 0.01 0.09 General Mining Corp Ltd GMM AU AUD 0.02 0.00 17.65 2,415 0.01 0.04 Draig Resources Ltd DRG AU AUD 0.02 0.00 (34.29) 1,372 0.02 0.09 Newera Resources Ltd NRU AU AUD 0.01 0.00 (16.67) 1,175 0.00 0.03 Blina Minerals NL BDI AU AUD 0.01 0.00 - 1,296 0.00 0.01

MONGOLIAN STOCK EXCHANGE TOP 20 Change % Market Cap Name Ticker Closing Price YTD % 52 week low 52 week high (day) (MNT mln) APU APU 4,200 0.00 3.22 312,008 3,230 4,490 Baganuur BAN 4,341 -3.32 (6.65) 91,050 3,700 5,350 Bayangol Hotel BNG 53,550 -9.70 2.98 22,655 38,400 61,000 BD Sec BDS 2,800 0.00 16.67 30,800 1,800 4,140 Gobi GOV 6,410 -2.06 15.91 50,005 3,760 6,695 Jenco Tour JTB 90 0.00 1.12 9,000 79 99 Mogoin Gol BDL 20,300 0.00 28.56 16,841 11,010 20,300 Mongol Shiltgeen MSH 950 0.00 - 9,500 790 1,000 Mongolia Development MDR 661 0.00 (11.63) 9,089 500 936 Mongolian Telecom MCH 1,571 -12.67 4.80 40,642 920 1,849 Remicon RMC 160 -1.84 (4.76) 12,589 140 198 Silikat SIL 200 0.00 0.50 9,267 150 227 Suu SUU 105,000 0.00 17.29 36,120 67,000 105,000 Tavan Tolgoi TTL 5,700 0.00 (5.86) 300,192 1,861 7,400 Talkh Chiher TCK 16,000 -0.06 15.52 16,379 10,800 17,260 Ulaanbaatar Hotel ULN 80,000 0.00 (2.44) #VALUE! 80,000 109,000 Ulsiin Ikh Delguur UID 540 8.00 (1.64) 19,876 370 700 Khukh Gan HGN 121 0.00 (6.92) 12,259 110 186 Sharyn Gol SHG 8,950 -0.50 16.23 91,571 6,500 9,600 Shivee Ovoo SHV 7,330 0.00 (4.81) 98,362 4,500 8,500

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