Investment Banking Department 2016.06.06

INVESTMENT BANKING DEPARTMENT 2016.06.06

WORLD INDICES News Highlights: Last Performance Index Country Trade Daily YTD Mongolia’s foreign-exchange reserves rise to $1.54b at end-Apr. MSE - TOP 20* MN 11,176.13 0.85% -13.35% (Bloomberg ) MSE – All MN 792.73 0.37% • FX reserves rise 21.85% from yr earlier, according to data posted on Dow Jones US 17,807.06 -0.18% 2.19% Bank of Mongolia website. S&P 500 US 2,099.13 -0.29% 2.70% Nasdaq US 4,942.52 -0.58% -1.30% • Reserves rise 22.05% m/m, 16.7% YTD S&P/TSX CN 23.2500 0.64% 9.35% FTSE 100 UK 6,209.63 0.39% -0.52% In Mongolia, Kerry seeks closer ties with Democracy 'Oasis' (Associated S&P/ ASX 200 AUS 5,318.89 0.76% 0.43% Press) Nikkei 225 JP 16,642.23 0.48% -12.56% • Cultivating closer ties in this land of Genghis Khan lore and traditional Hang Seng HK 20,947.24 0.42% -4.41% yurts, U.S. Secretary of State John Kerry on Sunday tried his hand at archery, sampled curdled cheese and watched ancient wrestling, all *Mongolian Stock Exchange while hailing Mongolia as a modern "oasis of democracy" in its Number of shares traded: 5,869 Trading amount: MNT 10,366,730.0 (~USD 5,209.4) neighborhood. Total market capitalization: MNT 1,331.7 bln (~USD 670.2 mln)) • Kerry, who announced a $2.5-million democracy program targeting Mongolia's young leaders, said the two countries shouldn't be defined COMMODITY PRICES by their geographical separation. Last price Performance Commodity (USD) Daily YTD MIAT gets new Boeing 767-300 (news.mn) Coking Coal/Seaborne (per ton) 84.0 0.00% -5.62% • Yesterday, Mongolia’s national carrier MIAT received a new Boeing Copper/LME (per ton) 4688.0 1.74% -0.36% 767-300 airplane (registration number EI-FGN) to join its fleet. Gold Spot/LME (per troy ounce) 1,245.4 0.10% 17.37% • The aircraft, which is being leased from UK-based Pembroke Aircraft Silver Spot/LME (per troy ounce) 16.4 0.12% 18.67% Leasing has a flight range of 11,000 kilometers, a speed of 850 km/hour Oil /WTI (per barrel) 48.9 0.56% 31.99% at a maximum ceiling of 12,500 meters. The length of the new aircraft

MONGOLIAN MACRO ECONOMIC INDICATORS is 54.9 meters, the wingspan is 47.6 meters, the height of the fuselage is Indicators Date Last YoY 5.41 meters and the width is 5.03 meters. Real GDP /MNT bln/ YTD Mar 2016 2,937.7 3.1% Real GDP /MNT bln/ YoY* Mar 2016 15,925.3 2.1% Fed's Mester says gradual rate hikes still appropriate after jobs report Nominal GDP /MNT bln/ YTD Mar 2016 4,705.9 2.0% (Reuters) Nominal GDP /MNT bln/ YoY* Mar 2016 23,259.0 2.8% • The latest disappointing U.S. jobs number has not changed the overall Inflation Apr 2016 - 2.1% economic picture and gradual rate hikes remain appropriate, Policy Rate May 2016 10.5% - Cleveland Federal Reserve President Loretta Mester said on Saturday. Trade Balance /USD mil/ Apr 2016 484.6 15.9% • Fed policy-makers next meet on June 14-15 to decide on rates. Money Supply M2 /MNT bln/ Apr 2016 10,525 8.5% • The U.S. economy added just 38,000 jobs in May, well below the Loan Outstanding** /MNT bln/ Apr 2016 11,629 -5.4% Int’ Reserve /USD mil/ Apr 2016 1544.1 21.9% consensus estimate of 164,000 and the smallest gain since September FDI*** /USD mil/ Mar 2016 166.5 - 2010. Apartment Price Index**** Apr 2016 103.5 -11.2% *YoY-Rolling 12-month method US Banks bear brunt of stock retreat as S&P 500 pares most of loss **O nly covers banking sector of Mongolia (Bloomberg) ***FDI to Mongolia, YTD /projected, subject to change/ • A 1.4 percent selloff in financial shares in the S&P 500 Index caught off ****Apartment Price Index by Tenkhleg Zuuch guard investors who anticipated that tighter monetary policy as soon

as this summer would bolster the outlook for earnings at banks and MARKET RATES COMPOSITE EXCHANGE RATES Against insurers. Rates Last YoY Last price YoY MNT • Short interest on the most-traded financial exchange-traded fund slid Libor 1M 0.4648 154.0% USD 1,990.0 5.9% to 1 percent of shares outstanding, down from a high of 7 percent in Libor 3M 0.6822 142.6% EUR 2,260.1 8.2% January, data compiled by Markit and Bloomberg show. Libor 6M 0.9857 132.5% GBP 2,878.6 0.3% • The S&P 500 fell 0.3 percent to 2,099.13 at 4 p.m. in New York, after Libor 1YR 1.3314 77.7% CHF 2,037.4 -6.1% losing as much as 1 percent, slipping from a seven-month high. The US 6M Bond 0.4064 470.8% RUB 29.6 -11.3% Dow Jones Industrial Average lost 31.50 points, or 0.2 percent, to US 2YR Bond 0.7716 8.9% JPY 18.6 24.6% 17,807.06, erasing most of a 149-point drop as Caterpillar Inc.’s 1.9 US 3YR Bond 0.9127 -16.6% CNY 303.7 0.2% US 5YR Bond 1.2307 -29.3% KRW 1.7 0.8% percent climb led a rebound. The Nasdaq Composite Index declined 0.6 US 10YR Bond 1.7004 -29.4% Against percent to snap a seven-day rally, the longest in 15 months. About 7 Last price YoY ISDA USD 1YR 0.8130 47.8% USD billion shares traded on U.S. exchanges, in line with the three-month ISDA USD 2YR 0.9350 -4.3% EUR / USD 1.1358 2.2% average. ISDA USD 3YR 1.0360 -23.4% GBP / USD 1.4466 -5.3% ISDA USD 5YR 1.2130 -35.3% USD / CHF 0.9767 3.9% Mongolia to export cement to Russia? (news.mn) SHIBOR 1M 2.8350 19.9% USD / RUB 65.8655 17.2% Iran wants to buy Mongolian two-humped camels (Montsame) SHIBOR 3M 2.9470 2.1% USD / JPY 106.7200 -15.0% SHIBOR 6M 2.9833 -6.7% USD / CNY 6.5518 5.6% SHIBOR 1YR 3.0500 -10.3% USD / KRW 1,164.80 3.6%

Amount Bid price change Remaining Issuer Coupon Moody's Bid / Ask Price Bid / Ask YTM Issue Date Maturity Date (mln) (last 3m) months Mongol 2018 500 4.13% B2 95.96 / 96.56 6.88 / 6.46 7.8% 5-Dec-12 19 5-Jan-18 Mongol 2021 500 10.875% B2 102.93 / 103.46 10.08 / 9.95 2.7% 6-Apr-16 57 6-Apr-21 Mongol 2022 1000 5.13% B2 79.76 / 80.70 9.36 / 9.13 5.8% 5-Dec-12 77 5-Dec-22 Mongol CNY 2018 CNY 1 mln 7.50% NA 89.80 / 91.15 13.32 / 12.50 9.0% 30-Jun-15 24 30-Jun-18 DBM 2017 580 5.75% B2 99.49 / 100.29 6.41 / 5.35 4.7% 21-Mar-12 9 21-Mar-17 DBM 2023 JPY 30 mln 1.52% NA 103.57 / 103.94 1.01 / 0.96 -0.5% 25-Dec-13 89 25-Dec-23 TDBM 2020 500 9.375% B2 94.67 / 95.77 11.07 / 10.71 11.3% 19-May-15 47 19-May-20 TDBM 2017 CNY 700 mln 10.000% B3 99.17 / 99.87 11.37 / 10.17 7.4% 21-Jan-14 7 21-Jan-17 MMC 2017 600 8.88% Ca 23.25 / 23.25 308.15 / 308.15 40.9% 29-Mar-12 10 29-Mar-17

MONGOLIA RELATED BONDS (last price)

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 TRQ US USD 2.96 4.59 16.5 5,956,451 1.55 4.42 Denison Mines Corp DML CN CAD 0.67 0.00 (4.3) 276,203 0.47 1.04 Central Asia Metals PLC CAML LN GBP 162.50 3.50 5.9 262,233 121.25 188.00 Winsway Coking Coal 1733 HK HKD 0.77 -8.33 (57.5) 243,102 0.47 6.19 North Asia Resources 61 HK HKD 0.03 -3.33 (17.1) 218,997 0.02 0.20 Mongolia Investment 402 HK HKD 0.20 -0.97 (45.6) 214,202 0.19 0.66 General Mining Corp Ltd GMM AU AUD 0.77 0.00 200.0 175,294 0.04 0.83 MMC 975 HK HKD 0.09 0.00 (49.1) 106,120 0.03 0.56 Xanadu Mines Ltd XAM AU AUD 0.22 -2.27 95.5 71,185 0.07 0.26 Khan Resources Ltd KRI CN CAD 0.85 0.00 93.2 55,255 0.34 0.88 Modun Resources Ltd LVT AU AUD 0.19 5.56 (22.4) 52,851 0.15 0.41 Entrée Gold Inc ETG CN CAD 0.39 1.32 32.8 45,398 0.25 0.53 SouthGobi Resources 1878 HK HKD 1.36 -2.16 (43.3) 45,114 1.24 6.67 MoEnCo 276 HK HKD 0.17 -0.57 (2.3) 39,791 0.11 0.60 Erdene Resource ERD CN CAD 0.39 6.94 140.6 34,707 0.11 0.55 FeOre Ltd SAN AU AUD 0.09 0.00 500.0 13,541 0.01 0.10 Petro Matad Ltd MATD LN GBP 2.98 0.85 (4.8) 12,372 1.88 9.88 Kincora Copper Ltd KCC CN CAD 0.05 0.00 150.0 12,135 0.02 0.06 Mongolia Growth Group YAK CN CAD 0.44 7.32 29.4 12,061 0.33 0.98 Guildford Coal Ltd GUF AU AUD 0.01 0.00 (63.9) 10,131 0.01 0.05 Newera Resources Ltd CZL AU AUD 0.05 20.51 (14.5) 10,037 0.03 0.07 Prophecy Coal Corp PCY CN CAD 0.02 33.33 (42.9) 5,695 0.01 0.08 Aspire Mining Ltd AKM AU AUD 0.01 0.00 (25.0) 4,094 0.01 0.03 Manas Petroleum Corp MNAP US USD 0.01 1.54 (77.9) 2,193 0.01 0.09 Draig Resources Ltd DRG AU AUD 0.03 0.00 0.8 1,963 0.01 0.04 Blina Minerals NL BDI AU AUD 0.00 0.00 - 1,870 0.00 0.00 East Asia Minerals Corp EAS CN CAD 0.02 0.00 200.0 1,860 0.01 0.03 Wolf Petroleum WOF AU AUD 0.01 0.00 75.0 1,666 0.00 0.03 Origo Partners PLC OPP LN GNP 0.28 0.00 (81.7) 1,395 0.28 4.88 Haranga Resources Ltd HAR AU AUD 0.00 0.00 (50.0) 574 0.00 0.02

MONGOLIAN STOCK EXCHANGE TOP 20 Closing Change % Trade Volume Market Cap 52 week 52 week Name Ticker YTD % Price (day) (# shares) (MNT mln) low high s APU APU 4,129 2.56 5.98 1,794 306,734 3,252 4,149 Tavan Tolgoi TTL 1,450 - (50.85) - 76,365 100 4,350 Gobi GOV 7,645 (0.71) (9.85) 106 59,640 7,010 12,000 Baganuur BAN 2,550 - 3.24 - 53,485 1,350 3,310 Sharyn Gol SHG 3,500 - (9.14) - 35,596 2,000 8,600 Shivee Ovoo SHV 2,551 - (27.59) - 34,232 2,190 5,870 UB-BUK BUK 25,700 (1.53) (35.10) 29 28,997 25,000 40,200 State Department Store UID 525 5.00 (0.94) 1,704 19,324 455 883 Talkh Chikher TCK 17,980 5.15 3.45 13 18,406 15,000 21,000 HBOil HBO 330 - - - 17,199 330 500 BDSec BDS 1,550 - (20.06) - 17,050 1,300 2,000 Darkhan Nekhii NEH 15,300 - (16.16) - 16,914 15,100 24,040 Bayangol Hotel BNG 36,000 - (25.00) - 15,230 36,000 50,100 Hermes HRM 120 - (2.44) - 9,425 105 149 Maximpex MMX 2,288 (1.63) (19.44) 55 8,696 2,202 3,650 Arig Gal EER 1,900 - (19.15) - 6,611 1,900 2,700 Genco Tour Bureau JTB 65 - (13.33) - 6,500 62 100 Khukh Gan HGN 55 - (26.67) - 5,572 55 145 E-Trans Logistics ETR 105 - - - 4,851 86 130 Merex MRX 70 - - - 4,550 68 93

Investment Banking Department

Khan Bank’s Investment Banking Department (IBD) is committed to extend the Bank’s market share through maintaining long-standing and mutually beneficial cooperation with its clients upon providing them with comprehensive investment banking services at the highest level of proficiency tailoring the needs of the Bank and the customers.

Email: [email protected] Tel: 976-11-332333 Website: www.khanbank.com

DISCLAIMER This presentation has been prepared solely for informational purposes only and its not to be construed as a solicitation or any offer to buy or sell securities, commodities, or related financial instruments.

The Bank has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No investment, divestment or other financial decisions or actions should be based solely on the information in this presentation. Khan Bank accepts no responsibility in relation to this presentation, and shall not be liable for any loss or damage whatsoever suffered by any party arising from, relating to, resulting from or based upon the use of this presentation and any errors or omissions there from.

The news articles/materials in this presentation was found in public domain and newspapers and is provided here as a source of information to the general public. The views expressed on the news articles do not necessarily reflect the views of Khan Bank. Ownership rights to these materials remain with their original owner, author, and publisher.

This presentation has been prepared on a confidential basis solely for the use of the intended recipient. This material must not be copied, reproduced, distributed or passed to others at any time, in whole or in part, without the prior written consent of Khan Bank.