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September 2 - September 7, 2012 FRONTIER SECURITIES MONGOLIA EXPERT SERIES - PRESENTATION Erdenetsogt Energy HIGHLIGHTS Erdenetsogt Energy LLC to initiate an integrated power project in Altanshiree soum, Dornogobi province Mr. Peter F. Stummer, Senior Advisor for Erdenetsogt Energy LLC, gave the audience an overview on the company’s energy projects in Mongolia. Erdenetsogt Energy LLC (EE) is part of a Mongolian group of companies engaged in developing mining and energy projects in Mongolia. The group holds an exploration license of 130sqkm in Altanshiree soum, Dornogobi province. In July 2012, it has been granted a 30-year mining license covering 60sqkm by the Mongolian Mineral Resources Authority for its 2 billion tons Erdenetsogt lignite coal deposit. In August 2012, EE has been granted a construction license by the Mongolian Energy Regulatory Commission for a 600 MW power plant, adjacent to the Erdenetsogt lignite coal deposit. Preliminary negotiations on financing, power purchase agreement and construction management of EE´s project are underway. EE will initiate and implement a PPP model, that balances the interests of all project stakeholders including the sponsors, financing partners, the Mongolian government and local communities. Apart from its unique PPP model, the highlights of the project include favorable geographic location, high caliber of project team and advisers, ultra clean coal energy and fuel technology, fully committed project sponsors and attractive investment opportunity for strategic private equity co-investors. PRESENTER FOR MORE INFORMATION, PLEASE CONTACT: Mr. Peter F. STUMMER Senior Advisor Erdenetsogt Energy Gen Mitsuishi Masa Igata Frontier Securities Email: [email protected] or Email: [email protected] at Tel: +976-7011-9999 Fax: +976-7011-1991 Web: www.frontier.mn Frontier Securities Frontier Securities does and seeks to do business with companies covered in this series of reports. Thus investors should be aware that the firm may have conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. MONGOLIA EXPERTS AT FRONTIER SECURITIES ANNUAL CONFERENCE: Bank of Mongolia CRU China EBRD Erdenes MGL LLC Hogan Lovells Hong Kong Exchanges and Clearing Limited J.P. Morgan Khan Bank London Stock Exchange Moody's National Development and Innovation Committee PricewaterhouseCoopers State Property Committee

FRONTIER SECURITIES MONGOLIA EXPERT SERIES ......important figures from Hong Kong Exchange, Tokyo Stock Exchange and Mongolian Stock Exchange have also featured in our conference and

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Page 1: FRONTIER SECURITIES MONGOLIA EXPERT SERIES ......important figures from Hong Kong Exchange, Tokyo Stock Exchange and Mongolian Stock Exchange have also featured in our conference and

September 2 - September 7, 2012

FRONTIER SECURITIES MONGOLIA EXPERT SERIES - PRESENTATION

Erdenetsogt Energy

HIGHLIGHTS

Erdenetsogt Energy LLC to initiate an integrated power project in Altanshiree soum,

Dornogobi province

Mr. Peter F. Stummer, Senior Advisor for Erdenetsogt Energy LLC, gave the audience an overview

on the company’s energy projects in Mongolia.

Erdenetsogt Energy LLC (EE) is part of a Mongolian group of companies engaged in developing

mining and energy projects in Mongolia. The group holds an exploration license of 130sqkm in

Altanshiree soum, Dornogobi province.

In July 2012, it has been granted a 30-year mining license covering 60sqkm by the Mongolian

Mineral Resources Authority for its 2 billion tons Erdenetsogt lignite coal deposit. In August 2012,

EE has been granted a construction license by the Mongolian Energy Regulatory Commission for a

600 MW power plant, adjacent to the Erdenetsogt lignite coal deposit. Preliminary negotiations on

financing, power purchase agreement and construction management of EE´s project are underway.

EE will initiate and implement a PPP model, that balances the interests of all project stakeholders

including the sponsors, financing partners, the Mongolian government and local communities.

Apart from its unique PPP model, the highlights of the project include favorable geographic

location, high caliber of project team and advisers, ultra clean coal energy and fuel technology,

fully committed project sponsors and attractive investment opportunity for strategic private equity

co-investors.

PRESENTER FOR MORE INFORMATION, PLEASE CONTACT:

Mr. Peter F. STUMMER

Senior Advisor

Erdenetsogt Energy

Gen Mitsuishi Masa Igata Frontier Securities

Email: [email protected] or Email: [email protected] at Tel: +976-7011-9999

Fax: +976-7011-1991

Web: www.frontier.mn

Frontier Securities

Frontier Securities does and seeks to do business with companies covered in this series of reports. Thus investors should be aware that the firm may

have conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their

investment decision.

MONGOLIA EXPERTS AT FRONTIER

SECURITIES ANNUAL CONFERENCE:

Bank of Mongolia

CRU China

EBRD

Erdenes MGL LLC

Hogan Lovells

Hong Kong Exchanges and Clearing Limited

J.P. Morgan

Khan Bank

London Stock Exchange

Moody's

National Development and Innovation Committee

PricewaterhouseCoopers

State Property Committee

Page 2: FRONTIER SECURITIES MONGOLIA EXPERT SERIES ......important figures from Hong Kong Exchange, Tokyo Stock Exchange and Mongolian Stock Exchange have also featured in our conference and

September 2 - September 7, 2012

FRONTIER SECURITIES MONGOLIA EXPERT SERIES - PRESENTATION

Erdenetsogt Energy

ABOUT MR. PETER F. STUMMER

ABOUT MONGOLIA EXPERT SERIES

Mr. Peter F. Stummer is Senior Advisor for Erdenetsogt Energy LLC.

He has over 23 years of professional experience in the financial services

industry including numerous executive positions held at European,

American, Cayman Islands and Chinese investment management firms.

Being educated in Austria, Israel, the UK and the US, he holds various

degrees in Corporate Financial Strategy, Financial Management,

Architecture, Economics and Political Sciences.

Most recently, Mr. Stummer has been advising the Austrian government

and parliament on regulatory actions in the wake of the 2008 financial

crisis.

Mr. Stummer is a member of the board of the Austrian-Mongolian society.

This year’s conference was the sixth edition of its kind to be organized by Frontier Securities. Having

grown year on year in terms of importance since 2007, this conference has become a major event for

anyone interested in exploring the latest developments in Mongolia’s business environment from key

direct sources. This year, the conference focused primarily on the expected changes in the political

scene after the general election held on June 28 this year and its implications for foreign investors, and

on how and where the Mongolian companies could raise funds in such harsh an environment of global

economy. It further provided the global investors community with some relevant and up-to-date insights

about Erdenes Tavan Tolgoi, Oyu Tolgoi and other mining and non-mining projects.

The conference has gathered more than 600 prominent industry leaders and government officials

from organizations such as the State Property Committee, Financial Regulatory Commission, Bank

of Mongolia, National Development and Innovation Committee of Mongolia as well as various

professionals from international financial markets, including JP Morgan, Khan Bank, Moody's,

PricewaterhouseCoopers, Shearman & Sterling, Hogan Lovells, Prophecy Coal etc. In addition,

important figures from Hong Kong Exchange, Tokyo Stock Exchange and Mongolian Stock Exchange

have also featured in our conference and shared their views and knowledge with the audience.

Mongolia Expert Series is one of the in-house research reports of Frontier Securities which utilizes

the information collected during the Frontier Securities’ Annual Conference. We hope the series will

provide genuine insight into Mongolian investment environment, as well as various capital raising

opportunities present for Mongolian companies.

THE LINK OF THIS PRESENTATION CAN BE FOUND AT:

https://www.dropbox.com/s/

ao73j7y1us3mfr5/Erdenetsogt_Energy.pdf