KHOTGOR Rare Earth Elements project South Gobi, Mongolia  

June 2010

I. Overview

II. Company Background

III. “KHOTGOR” Project Overview

IV. Infrastructure

V. Project Geology

VI. “KHOTGOR” Project Key Highlights

QGX MONGOL LLC

I. OverviewKhotgor Project Highlights

NEW SOURCE OF REE TO THE MARKET

PROXIMITY ADVANTAGE TO THE MARKET

MINING LICENSE

Significantly large resource - approx 200 Mt Inferred classification resource

300 km from Chinese-Mongolian Gashuun Sukhait border

Adjacent to world class UHG (80km) and Baruun Naran (60km) Easy access to the infrastructure

STRATEGIC LOCATION

Successfully defended Resource Estimation with the State and obtained Mining (A) license

II. Company BackgroundQGX Mongol LLC

QGX (former Canadian based company) incorporated in 1994 – first foreign company to obtain mineral license in Mongolia and was listed in TSX

Kerry Holding HK and MCS Holding Mongolia acquired QGX in Sep 2008

QGX BVI “QGX “is a holding company of 7 entities that are primarily involved in mining and mineral exploration in Mongolia

Among QGX’s subsidiaries, there are number of advanced projects including;

Baruun Naran - coking coal property - South Gobi province Bayan Airag - Au, Cu and Ag property - Zavkhan province

The group employs over 100 full time staff with local & international geological and mining expertise

III. The Geographic LocationProject overview

Approximately 530 km from capital city Ulaanbaatar and 300 km from Gashuun Sukhait border

III. The Resource EstimationProject overview

Hellman and Schofield (H&S Australia) has completed resource estimates for the Khotgor REE deposit on data from 26 drill holes in June 2009.

Individual REE assay were converted to oxides and combined with yttrium and expressed as total rare earth oxides (REOs). The REEs are dominated (96.1%) by the light rare earth elements - cerium, lanthanum, neodymium and praseodymium

Classification of Khotgor Resource by Cutoff Grade

IV. InfrastructureLocal Infrastructures and Access to the Market

V. Project GeologyExploration program

EXPLORATION WORK CONDUCTED FROM 2002 to 2009

In 2007 diamond drilling program KH01 to KH03In 2008 KH04 (depth at 574.7 meters), KH05 and KH06 Late 2008 – Feb 2009 20 drill holes

The REE at khotgor are largely contained in apatite rich veining and breccia cement in a large magmatic breccia body composed of mafic to ultramafic alkaline igneous rocks. The REE elements are likely largely contained in the apatite, although apatite may also be abundant in the absence of strong REE mineralization, and phosphate may be a potentially economic product. Primary galena, sphalerite and pyrrhotite are also present, and are locally abundant.

V. Exploration DrillingDrill hole locations & Geologic description

V. Project GeophysicsKhotgor Inverted Chargeability (225 m depth) & Susceptibility (200 m depth)

V. Grade Model3D grade model with Micromine software

0.5 – 1 %

1 – 5.9 %

0 – 0.5 %

REE oxide grade %

VI. Project Key Highlights“Khotgor” Key highlights

1st Resource Estimation approved REE project in Mongolia

The largest resource of REE in Mongolia

Strategically located to fast developing infrastructure

Strong interest in international markets toward REE as it being primary commodities for green technology and high tech

A new source of REE outside of mainland China

Mining license acquisition permitting/allowing additional exploration work to take it to production

When cut-off grade is 1%, the contained metal is over 1 million tonne