The Union coal project is located in Central Mongolia only 130km south of Ulaanbaatar. The project is located only 14km from a rail siding where coal is currently being loaded to supply Ulaanbaatar’s three power stations (~5Mt/year).

The JV is currently talking with adjacent license holders looking at combining resources to enhance the project.

• Micromine Consulting evaluated the results of the drilling for Polo and defined a NI 43-101 compliant resource of 94.7 Mt Measured and Indicated and 38.4 Mt Inferred categories of coal.

• The main coal seam at Union is up to 80m thick, crops out at surface and results of drilling indicate potential for large scale, multi bench, open pit mining with low strip ratios.

• The size and quality of the resources within the JV’s licences at Union have the potential of supporting a significant size coal or gas fired power station for more than 20 years, supplying coal and electricity to domestic and Chinese markets.

The JV is currently talking with adjacent licence holders looking at combining resources to enhance the project.