Overview of the Depositary Receipt Instrument – ADR / GDR for Mongolian Market

1. Depositary Receipts Overview of the Depositary Receipt Instrument – ADR / GDRfor Mongolian Market

2. Depositary Receipts - The Basics Investor Benefits • Access over 3,000 DRs from 76 countries • Obtain quotes in U.S. dollars or Euros • Receive dividends in U.S. dollars or Euros • Clear and settle in globally recognized systems • Overcome foreign investment restrictions • Access improved information in English Broker Benefits • Enhance investment options for clients • Hedge for various country risks Issuer Benefits • Access deep international capital markets • Increase share valuation and liquidity • Diversify and broaden shareholder base • Prepare for future acquisitions • Express international commitment • Heighten profile for products and services

3. Depositary Receipt Market History 2008-2009 – Rise of unsponsored DRs due to SEC rule changes 2003 to 2007 - Markets Rebound and Grow • Falling U.S. dollar, low interest rates drive DR prices • International equity markets outperform and U.S. investors follow – rise of BRICs • Depositary banks increasingly act as consultants • 2001 to 2002 –Markets Consolidate • Technology bubble implosion • Corporate Governance reemphasis (Enron, Worldcom) • Greater demands placed on a depositary banks • 1990 to 2000 – Explosive Growth in the DR Market • Structural changes, decimalization and tighter spreads • DRs used in privatizations, capital raisings and M&A • Depositary role largely administrative and operational • 1930 to 1989 –DR Market largely unsponsored and investor driven • Depositary role totally administrative • and operational Source: The Bank of New York Mellon; 12/31/07

4. US or Internationally-traded equities that represent home-market shares Can be used to list on an exchange or to raise capital in the U.S. or globally Can be adapted to meet specific marketing needs Increasingly being adopted by stock exchanges as the preferred method of standardizing foreign securities for listing A merican DRs G lobal Introducing Depositary Receipts No Major Difference Between ADRs and GDRs

5. DR Program Comparison Issuer Selling New Shares Capital Raising Transactions Existing Shares Only Non-Capital Raising Transactions Level I ADR Over-the-Counter (OTC) Traded 144A GDR Unlisted Level III ADR U.S. Listed Regulation S GDR Internationally Listed Level II ADR U.S. Listed Regulation S GDR Internationally Listed Existing shares or new shares can be used

6. Requirements Determine Program Type Level III ADR High Level II ADR Medium Program Visibility/ Liquidity Reg S GDR – London (or another non-US) Stock Exchange Level I ADR 144A/RegS GDR - unlisted Low Low Medium High Disclosure Requirements Generally, Increased Disclosure Results in Increased Visibility

7. Where are Depositary Receipts traded? • GDRs are traded outside the U.S. or among U.S. qualified institutional buyers (QIBs) • ADRs have access to U.S. markets and can be traded OTC and anywhere outside the U.S. • Such securities are either subject to full S.E.C. registration OR can be automatically exempted from registration if traded OTC in the U.S.

8. Mongolian OpCo DR ISSUANCE PROCESS TRADING OTC or ON STOCK EXCHANGES or Convenient and liquid mechanism of holding Mongolian securities wrapped in USD-nominated security, paying dividends in USD and issued under US or UK law Euroclear / Clearstream / DTCC Clearing System Mongolian custodian bank Where BNY Mellon will have an account BNY Mellon Custodian (UK) Cyprus/Singapore/Isle of Man Holdco OR * Or another tax efficient holding company issuing shares/DRs for investors – no trading on Mongolian Stock Exchange Mongolian Stock Exchange OR OR Company issuing shares/DRs to investors

9. DR Trading on the local and international market Investor 1. Investor contacts a foreign broker (e.g. Goldman) with instructions to purchase 2B. Foreign broker purchases shares in the local stock market for arbitrage reasons or absence of available DRs on international markets 2A. Broker purchases existing DRs on international stock exchange OR Or any other major trading platform 3B. Shares are deposited with BNYM’s local custodian Mongolian Stock Exchange OR 4B. Local custodian credits BNYM’s account and instructs BNYM to issue DRs Mongolian custodian bank 5B. BNYM delivers DRs to foreign (e.g. British) broker account via Euroclear 6B. Euroclear clearing system credits DRs to foreign (British) broker’s account on behalf of the investor Euroclear / Clearstream / DTCC * Conversion of DRs back to Mongolian shares in reverse order

10. Total Sponsored & Unsponsored Depositary Receipt Programs Total available DR programs grew by nearly half, rising to 3,096 from 2,149 a year ago, largely due to the changes in U.S. regulations. Source: The Bank of New York Mellon 2009 Mid-Year Market Review

11. Depositary Receipts in Perspective • Growing base of companies choosing to list DRs outside of the US. • London Stock Exchange DR trading exhibiting strong growth. • Pipeline for future GDR IPOs remains strong. • LSE’s International Order Book (IOB) platform’s trading value was 30% higher year-on-year. • Of the most actively-traded GDRs on the IOB, the most actively traded companies are from Russia, Egypt, Taiwan and Korea.

12. Creating a DR Program Adds Shareholder Value Oxford Metrica Conclusion • DRs add (on average) up to 10% of shareholder value in their first year of trading. • An upgrade to a U.S.-listed (Levels II or III) program adds on average a further 15% of value as markets welcome the greater financial disclosure, transparency and signal of superior governance.

13. The Depositary Receipt Market Today LSE Source: The Bank of New York Mellon 2009 Mid-Year Market Review

14. Total Sponsored & Unsponsored Depositary Receipt Programs Total available DR programs grew by nearly half, rising to 3,096 from 2,149 a year ago, largely due to the changes in U.S. regulations. India remains the country with the largest number of DR programs at 271 in total. Industry-wide, DR programs from issuers in 76 countries were available to investors at the half-year mark. Source: The Bank of New York Mellon 2009 Mid-Year Market Review

15. The BNYM Team Mongolia Hong Kong Christopher Kearns Managing Director – Asia Christopher.kearns@bnymellon.com Tel: +85228409875 Gregory Roath Relationship Management/ New Business Development Groath@bnymellon.com Tel : +85228409821 Cathy Huang Relationship Management Cathy.huang@bnymellon.com +85228409768 Joseph Oakenfold Broker and Institutional Marketing Joe.Oakenfold@bnymellon.com Tel: +85228409717 New York Anthony Moro Managing Director - EEMEA Anthony.Moro@bnymellon.com Tel : +1 212 815 5838 Ludmila Leliavskaia Relationship Management Ludmila.Leliavskaia@bnymellon.com Tel : +1 212 815 4493 Vladimir Kotlikov Relationship Management Vladimir.kotlikov@bnymellon.com Tel : +1 212 815 5948 Azat Nugumanov Relationship Management Azat.nugumanov@bnymellon.com Tel: +1 212 815 2570 London Michael Cole-Fontayn CEO Depositary Receipts Michael.Cole-Fontayn@bnymellon.com Tel : +44 207 964 6318 Graham Marshall New Business Development Graham.Marshall@bnymellon.com Tel : +44 207 964 6544 Yury Mandzhiev New Business Development Yury.Mandzhiev@bnymellon.com Tel : +44 207 964 6104 James Green Managing Director Broker and Institutional Marketing James.T.Green@bnymellon.com Tel. +44 207 964 6080 Moscow Irina Baichorova Relationship Management/ New Business Development Irina.Baichorova@bnymellon.com Tel : +7 495 967 3110 Maria Mozhina Relationship Management Maria.Mozhina@bnymellon.com Tel : +7 495 967 3106 www.adrbnymellon.com

16. Connecting Investors with Leading Depositary Receipt Issuers The Bank of New York Mellon is the leading provider of American and global depositary receipt services, managing nearly two-thirds of all programs from 65 countries.