DELGERKHAAN FLUORSPAR PROJECT

Berkh Uul JSC

COMPANY HISTORY

1954 Established

1973-1999 Subsidiary of Monros

1999-2006 State run enterprise

2006 Fully privatized

2011 Firebird acquired a controlling interest

Corporate Snapshot

Share price (at Oct 28, 2011) ₮4900

Share price (USD at Oct 28, 2011) US$3.52

Shares outstanding 19.06 m

Market capitalization US$67.05m

Cash (at Dec 31, 2010) US$0.18

Debt (at Dec 31, 2010) US$3.40

Enterprise value US$70.27

56.5% 10.0% 33.3% 0.2%

Capitalization 3-month share price performance

Key shareholders

BEU Holdings Khanate

Resources

Holdings

Other

shareholders

CURRENT LICENSES AND OPERATIONS

� The company holds 6 mining licenses. The

most important is the Delgerkhaan fluorspar

deposit estimated at 9.6 million tons.

� Although fluorspar production ceased in 2008,

the company is in the process of restarting the

mine.

� The company operates a small coal mine which

produces coal for the local heating plant.

DELGERKHAAN DEPOSIT

The deposit lies 400km east of UlaanbaatarThe deposit lies 400km east of Ulaanbaatar

Rail spur at Baganuur is 270 km away

•200km by paved road

•70 km by high grade gravel road

•Alternatively the rail spur at Bor-under is 260km away by dirt road

Rail spur at Baganuur is 270 km away

•200km by paved road

•70 km by high grade gravel road

•Alternatively the rail spur at Bor-under is 260km away by dirt road

At over 9 million tons the Delgerkhaan deposit is the largest deposit measured with a 43-101 complaint resource in Mongolia.

At over 9 million tons the Delgerkhaan deposit is the largest deposit measured with a 43-101 complaint resource in Mongolia.

An on-site flotation plant would allow utilization of lower grade ore to produce acidspar and also significantly decrease transportation costs

An on-site flotation plant would allow utilization of lower grade ore to produce acidspar and also significantly decrease transportation costs

END USES OF FLUORSPAR

� Metspar- most common application is use as a flux in steelmaking.

� Use as a flux is declining and mainly used in old soviet steel mills.

� Acidspar- generally over 97%

� HF used to produce Hyrdofluoric Acid and other

� Used to make Aluminum Fluorite which is used in aluminum production

� Many other applications including teflon, welding rods, etc.

TRENDS IN FLUORSPAR CONSUMPTION

WORLDWIDE FLUORSPAR PRODUCTION

CHINESE FLUORSPAR PRODUCTION

� China has dominated worldwide production for the last few decades

� In 2010 China imposed an export quota on fluorspar in an effort to protect its declining reserves. This lead to a major spike in prices

� Chinese production continues to decline. Through the first six months of 2012, Chinese exports are down 30 percent compared to that same period last year

� Consolidation- The government has announced that over 2000 companies will be reduced or merged down to 20 approved companies. This will be accompanied by a crackdown on illegal mining and the revocation of many licenses.

� Recent reports indicate that imports of Mongolian raw materials are on the rise to use as feed for existing Chinese beneficiation plants and that China could become a net importer of fluorspar in the near future.

MONGOLIAN FLUORSPAR PRODUCTION

� Production of approximately 400,000 tons per year with the bulk being unprocessed metspar

� Dominated by JV between Mongolian and Russian government known as “Monros”

� Large potential for future growth will be determined by

� Discovery of new deposits

� Reopening of old mines

� Capital for beneficiation plant infrastructure

� Transportation logistics

FIREBIRD’S INVOLVEMENT

� In 2011, Firebird bought out majority shareholder Petrovis and took control of the company

� Firebird installed new directors and began holding regular board meetings

� Management has been upgraded with CFO in place and a mine manager with over 20 years underground mining experience scheduled to come on board by the end of the year.

RESTRUCTURING ACTIONS

� A complete legal due diligence has been carried out and action has been taken to rectify all previous legal issues

� BEU engaged Ernst & Young to carry out an international audit for the last two years of financial statements and is working to become IFRS compliant.

� A successful drill program has been carried out to verify the deposit at Delgerkhaan

DRILL PROGRAM - PREVIOUS DATA

� Russians drilled 439 holes from 1970 through

1990.

� A total of 88,196.7m during that time

� Most of the Russian drill data is complete

although core recovery was only 74%

� New drill program drilled a total of 1729.6m

� The deepest hole drilled reached 543 meters

BERKH UUL DRILLING MAP

• Blue points 2011

Micromine drilling

• Red points Russian

drilling

� Red lines- fluorite

veins

� Green lines - basalt

dykes

� Blue lines- faults

RECENT DRILLING

� 7 recent holes where drilled in the license area.

� 6 Micromine twin holes.

� Drill program was designed by Micromine to

ascertain whether the Russian data is accurate

enough to create a 43-101 report.

� 1 exploration hole was also drilled.

DRILLING

� Recent drilling includes.

Hole IDHole IDHole IDHole ID Meters DrilledMeters DrilledMeters DrilledMeters Drilled

C-239twn 225.4m

C-157twn 171.8m

C-193twn 543.5m

C-260twn 138.9m

C-217twn 90m

C-219twn 138.9m

BRHDD001 340m

Total meters drilled 1729.6m

DRILLING DATES

Hole IDHole IDHole IDHole ID Date startDate startDate startDate start Date EndDate EndDate EndDate End

C-239twn 17/09/11 23/09/11

C-157twn 24/09/11 27/09/11

C-193twn 2/10/11 9/10/11

C-193twn continued 13/10/11 20/10/11

C-260twn 10/10/11 13/10/11

C-217twn 20/10/11 22/10/11

C-219twn 22/10/11 30/10/11

BRHDD001 30/10/11 5/11/11

43-101 REPORT

� Micromine, an Australian company has recently

completed the report.

� Report shows a total resource of 9.6 million

tons

� 6.6 million of this is indicated resource and

� 3 million is inferred

� The average grade is 33.7%

WIREFRAME MODEL

FUTURE PLAN

� Currently the company is comparing bids for a prefeasibility study

� After the prefeasibility study is complete, we will decide if additional drilling is needed

� Next the company will carry out a feasibility study

� Finally the mine itself will be rebuilt

� It is envisioned that concurrent with the current mine being rebuilt we will build an onsite processing plant and possibly sink a new shaft.