ASX: MUB www.mongolianresourcecorporation.com

MONGOLIAN RESOURCE CORP LTD ABN 83 127 620 482 Suite 14, Level 13, 3 Spring Street, Sydney NSW 2000 GPO Box 4216 Sydney NSW 2001,

MONGOLIAN RESOURCE CORPORATION MARCH 2012, QUARTERLY

ACTIVITIES REPORT

CORPORATE ACTIVITIES During this quarter two new non-executive directors joined the board. The appointment of Mr. Sereeter Galsan Jamts on 14th March, 2012 as non-executive director has brought to the board his extensive experience in public and government relations. During the quarter, Mr. Galsan has provided assistance and advice on ongoing permitting and procedural control within the company and is our spokesman for the group in Mongolian Affairs. Mr. John Hodder (48) has also joined the board on 14th March, 2012, in a non-executive role. John holds degrees in geology and commerce and a Masters in Finance. With more than 25 years’ experience in the resources industry he has worked as a geologist, project evaluator and has extensive experience in project financing. He has spent the past five years in the Fund Management Industry within Australia where he was directly involved in investing in resource companies listed on the ASX. The Board also announced this quarter, the appointment of Ms. Tanan Jargalsaikhan as acting chief financial officer. Ms. Jargalsaikhan holds a Bachelor Degree in Banking and Finance from the Institute of Finance and Economics of Mongolia and Diploma in Human Resource Management (Tokyo, Japan). She has held senior finance roles in Government and Private Enterprise and brings her skills in human resources as well as finance to the company.

Short list interviews were held this quarter for the role of Chief Operating Officer with the likely candidate having extensive experience in carbon in pulp (CIP) gold production. This is deemed necessary given the focus of the company toward gold production in 2012. This is the Company’s fourth quarter since the merger with the Mongolian assets in April, 2011. After its first year of operations the company is pleased with its progress on the design and development of its key projects at Sujigtei and Blue Eyes. The Mongolian Government entered election mode this quarter with the party changing six of the twelve ministers which formed the governing coalition. These changes, which include the environment minister which is delaying the issue of our cyanide permit, were not unexpected and the company is now revisiting the issue with the new ministers. The company can commence concentrate production at the Blue Eyes site using its completed 100 tonne per day floatation plant with the approval of the Blue Eyes Environment Plan.

Company Facts ABN:83 127 620 482 Mongolian Resources Corporation (ASX: MUB) is focused on the Developmentof two historic high-grade golddeposits in Mongolia with a near term production to commence in 2012. Key projects: • Blue Eyes Project • Sujigtei Project

Corporate Structure Shares on issue ~ 67.8m Shares Restricted 55.0m Options ~ 25.3m Performance Shares ~ 46.0m 52 week high A$0.68 52 week low A$0.08

Company Directors NaidansurenJargalsaikhan Non-Executive Director Tony Bainbridge Managing Director TananJargalsaikhan Executive Director & Acting CFO John Lee Non-Executive Director &Company Secretary John Hodder Non- Executive Director Sereeter Galsan Jamts Non-Executive Director

Enquiries Tony Bainbridge Mongolian Resources Corporation T +976 7011 1799 E info@mrc.mn

Karen Oswald Purple Communications T +61 8 6314 6300 E koswald@purplecom.com.au

For

per

sona

l use

onl

y

2 MONGOLIAN RESOURCE CORP LTD | OCT 2011 ASX ANNOUNCEMENT

CORPORATE FINANCE The company’s cash reserves sit at US$1.6m at the end of March, 2012 with a planned budget for Quarter 2, 2012 of US$0.9m. The board of MRC is fully aware of the company’s current cash situation and has been carefully planning its financing options to ensure the company has sufficient funds to operate. It is expected that gold production in Q2 will contribute significantly in covering the operating costs of the company, but the board has also taken the view that contingency finance is warranted. In this matter the board is in detailed discussion with financial groups to provide a convertible debt facility to the company. This finance is expected to be completed during Q2, 2012. MONGOLIAN PROJECTS Significant work completed this quarter includes Completed Front End Engineering and Design (“FEED”) work for 400tpd CIP gold plant 24 permits required for commencement of production were received. MRC readies to commence Stage I Plant commissioning in spring. EPC contracts were circulated to tender construction of Stage II CIP plant.

During the Mongolian Winter where temperatures range from -400C to -250C, the company focus is on completion of design, permitting and procurement for it spring operations (commencing in late April). The company, during this period, also completed a full refurbishment of its site heating systems so as to enable full production during the 2012/13 winter season. This included installation of a full dual electric/coal fired boiler system with new heat exchangers at the plant.

During this quarter, MRC completed the Front End Engineering and Design work for the 400tpd CIP (Carbon in Pulp) gold plant at its Blue Eyes Project. It is the Company’s intention that this larger plant will be used as a central mill for the nearby Sujigtei Project with both underground mines providing ore to this plant.

Details of Flow Sheet for 400tpd CIP Plant

For

per

sona

l use

onl

y

3 MONGOLIAN RESOURCE CORP LTD | ASX ANNOUNCEMENT

Early engineering results from IMO in Australia have confirmed both Blue Eyes and Sujigtei mines have high recoveries using cyanide leach techniques, and in particular lab test work shows that more than 50% of the gold was recovered in the gravity circuit. This reconfirms that the Knelson-gravity circuit designed for the plant will be a significant part of the operations and can extract the coarse gold observed at both mines.

The Company appointed Glogex LLC (“Glogex”) to complete the FEED study after their successful conclusion to the Mongolian Feasibility Study. Glogex has now had approval of all designs for mine construction. The Minister has also granted MRC with the relevant government approvals for mine construction to be undertaken

.

Plan of layout of mine showing CIP plant and new tailings dam

The FEED designs include the finals for Mill design and CIP Flowsheet. In design of the mill, three separate metallurgical programs were conducted at Central Mongolian Laboratories, Actlabs and at Boroo Pilot Plant (10t sample). The Stage II plant has been designed with excess capability in the crushing circuit up to 1500 tonnes per day and initial total capacity built around grinding capacity of a 3.8m diameter x 4.5m ball mill.

In the event that the current exploration program outlines a larger resource, the plant has been designed in such a manner that additional ball mills can be added in parallel to increase capacity. The circuit is a smaller copy of the adjacent Boroo Gold Mine plant which treats 7,500 tonnes per day feed of similar quartz mineralisation.

For

per

sona

l use

onl

y

4 MONGOLIAN RESOURCE CORP LTD | OCT 2011 ASX ANNOUNCEMENT

MRC focused during winter on completion of turnkey EPC (Engineering, Procurement & Construction) contracts with reputable Chinese gold plant manufacturers for the development of the Stage II plant. The Company will advise the market on costs of completion of the Stage II plant as they are received.

Stage II 400tpd CIP plant design summary plan.

For

per

sona

l use

onl

y

5 MONGOLIAN RESOURCE CORP LTD | ASX ANNOUNCEMENT

Schematic 3D Plan of the Mine Development. Geological Advancements The winter period has allowed the MRC Geological team to complete its annual reporting requirements and undertake review of its geological programs for the 2012 field season. The mapping and geological work at the company’s main gold prospect has shown some interesting features that reconfirm its similarity to the very large neighbouring gold deposit of Gatsuurt (approx. 3 Moz) held by Centerra Gold Group listed on the Toronto Exchange (market capitalisation of C$4.6b ). Centerra also own the neighbouring Boroo Gold Mine.

The geology at Sujigtei Mine has revealed that the system is dominated by near vertical left lateral faults reflecting major movements along the principal regional Sujigtei Fault Structure itself. These faults are syn-mineralisation and form sub vertical high grade mineralisation zones along the structure. Laterally extensive in nature, they have not previously been recognized as a primary target and have only been mined historically by the Ninja (Local Partisan Miners). These narrow veins have widths from 0.2-0.6m and contain bonanza gold grades averaging (previously reported sampling) in the order of 30-45 g/t Au. It is felt the three major structures identified to date will significantly add ounces to the deposit (see diagram below).

Between the steep structures discussed above are more moderately south west dipping (50-70 degrees) jog structures that display stockwork style mineralisation up to six metres in width. Although lower grade in the vicinity of 3-15 g/t Au (also previously reported), these structures add significant tonnes to the deposit and are being looked at in terms of open cut potential. Micromine will commence a resource / reserve calculation in Q2 for the company’s Sujigtei Project.

The first six stope blocks (6 months of production) have been engineered at the Sujigtei Mine and will form the basis of the first mining undertaken at the site. This initial mining will be on the higher grade narrow fault veins (FV) as described above. Paramina Mining Contract Group from the Philippines who specialize in shrinkage and ramp stope mining of narrow veined gold deposits has been invited to provide a contract mining quotation for development of both the Blue Eyes and Sujigtei Mines. If MRC uses contract miners in conjunction with training our local mine workforce, it will ensure that sufficient ore will be delivered to the mill. During the next 6

For

per

sona

l use

onl

y

6 MONGOLIAN RESOURCE CORP LTD | OCT 2011 ASX ANNOUNCEMENT

months MRC will commence to build its mine capacity with the expectation that by the fourth quarter and with completion of the mill, the mines will be operational at the full 400tpd capacity. The plant design includes a large ROM Pad for ore storage areas so we can continue to build up mine stockpiles.

Geology Level Plans of bottom three levels of Sujigtei Gold Mine and Long Section.

For

per

sona

l use

onl

y

7 MONGOLIAN RESOURCE CORP LTD | ASX ANNOUNCEMENT

For further information on our projects please visit www.mongolianresourcecorporation.com For more information: Tony Bainbridge Managing Director Mongolian Resources Corporation E: tony@mrc.mn T: +976 7011 1799 Media enquiries: Karen Oswald Purple Communications E: koswald@purplecom.com.au T: +61 8 6314 6300

Competent Person. In this report, the information concerning Mongolian operations that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Tony Bainbridge, who at the time was a consultant of Mongolia Resources Corporation (MGL) LLC and is a member of The Australasian Institute of Mining and Metallurgy. Mr Bainbridge has sufficient experience which is relevant to the mineralisation and type of deposit under consideration and to the activity, which he is undertaking, to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Tony Bainbridge consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Forward Looking Statements. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Mongolian Resource Corporation (MRC). There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. MRC assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change

For

per

sona

l use

onl

y