Mongolian Greenspar Project - Khuree Del

Mongolian Greenspar Project:Investment Opportunities &

Growth Strategy

Ek Rithy Foreign Relations Manager

2015

2

Disclaimer

This presentation is prepared for the purpose of providing information about GREENSPAR project to interested parties.

We take no responsibility for the adequacy or accuracy of the data it contains. You are therefore requested to contact us for confirmation.

This presentation should not be relied upon as a recommendation or forecast.

3

Agenda

▪ World Fluorspar Market At A Glance

▪ Mongolian Fluorspar Overview

▪ Greenspar Project – Investment Opportunities & Growth Strategy

4

Country Mine production (K ton) Reserves (K ton)2013 2014[e]

United States N.A N.A 4,000 Bulgaria 60 50 N.A

China 4,400 4,400 24,000 Germany 55 50 N.A Iran 70 70 N.A Kazakhstan 65 65 N.A Kenya 49 90 5,000 Mixico 1,230 1,200 32,000 Mongolia 226 340 22,000 Morocco 76 70 N.A Namibia 50 40 N.A Russia 80 20 N.A South Africa 175 230 41,000 Spain 117 107 6,000United Kingdom 45 45 N.A Other countries 73 70 110,000 World total (rounded)((rounded)

6,770 6,850 240,000

World Fluorspar Marke At A GlanceWorld Mine Production and Reserves

5

Market Dynamics

▪ Fluorspar is one of 14 critical raw mineral materials

▪ China became a net importer of metals and minerals. Fluorite demand is growing year after year.

▪ Mongolian-sourced fluorspar “will replace” Chinese material

World Fluorspar Marke At A Glance

6

Market TrendsGrowing downstream activities in China is touted to fuel the overall market growth. Considerable fluorspar reserves in Mongolia, Spain and Mexico are touted to assist their respective regional market growth over the next seven years.Growing construction in other emerging economics such as Malaysia, India, Russia, Vietnam and Indonesia is expected to bolster the global fluorspar market.


7

Market TrendsThe fluorochemicals market will probably rebound in the coming years as new applications for fluoropolymers are developed and the demand for refrigerants in developing countries increases.Lithium battery is a major end-use market for fluorspar and is expected to witness brisk growth over the next seven years.High supply risk as the worldwide production comes from a handful of countries.


8

Mongolia▪ was the fifth largest producer of fluorspar in

2003.▪ was the third largest producer of fluorspar in

2011 after China and Mexico.▪ produced 420,000 tonnes per annum in 2012.▪ is one of top five producers in the world.

Mongolian Fluorspar Overview

9

Mongolian Fluorspar Overview

Mongolian fluorspar concentrate export 2010-2014

405,600& 404,000& 408,900&

349,400&

305,700&

+

50,000&

100,000&

150,000&

200,000&

250,000&

300,000&

350,000&

400,000&

450,000&

2010 2011 2012 2013 2014

10

Greenspar Project

Investment Opportunities & Growth Strategy

11

▪ Greenspar project comprises: • Mali fluorspar mine • White Rock Mountain fluorspar mine • Spar Hill fluorspar mine • Khairkhan fluorspar mine • Bayankhaan fluorspar mine

▪ Total reserve: 4.7 million tons▪ Estimated total investment: USD 35 million▪ Invested capital: USD 2 million

Main Indicators

12

▪ Estimated mine life: 15 years▪ Project start: 2015▪ Full production: 150,000 t.p.a.▪ Create 400 jobs and make significant

social and economic contributions .

Main Indicators

13

Available Documents

NO NAME DEPOSIT NAME YEAR STATUS

1 Feasibility Study for Mali Fluorspar Mali Fluorspar 2011 Done

2 Environmental Impact Assessment Mali Fluorspar 2012 Done

3 Resources Report Mali Fluorspar 2010 Done

4 Laboratory Test Mali Fluorspar 2011 Done

5 Mine Survey Report Mali Fluorspar 2010 Done

6 Feasibility Study for Saihan Uul Fluorspar Saihan Uul Fluorspar 2013 Done

7Exploration Works Report for Saihan Uul Fluorspar

Saihan Uul Fluorspar 2011 Done

14

Greenspar Project Location

Russia

China

Mongolia

15

Opportunities

▪ Proximity to China, the largest consumer of fluorspar.

▪ The closest supply source to major consumers such as Russia, Japan and South Korea.

▪ Taxes rates have also been altered to attract foreign investors.

▪ Fluorspar is playing an increasingly important role in the country’s economy.

Greenspar Project

16

Challenges

▪ Undeveloped infrastructure▪ Limited access to global market (Mongolia is

sandwiched between Russia and China)▪ Lack of skilled and professionally trained

workforce▪ Short of capital and financing sources

Greenspar Project

17

Growth Strategy

▪ Create a long-term regulatory environment.▪ Develop transportation infrastructure.▪ Choose top technical engineering services

providers.▪ Use advanced production technology with

advanced equipment.▪ Promote social responsibility and local

development.

18

For more information:

http://www.youtube.com/watch?v=yXi8tg45nks

Thank you!

KHUREE DEL LLC

25/45A, MODERN TOWNMAHATMA GANDI STREET15 KHOROO, KHAN UUL DISTRICTULAANBAATAR MONGOLIA

WEBSITE: WWW.KHUREEDEL.MNCONTACT: EK RITHY, FOREIGN RELATIONS MANAGER,+976-96967588, [email protected]