Mongolia Weekly

Selected Worldwide Indices

Performance
December 27-31, 2010 Index
Close
YTD
price
w-o-w (US$)
MSE TOP 20 14,760 1.02% 173.9%
Politics and Economy MonBiz Hong Kong 107 3.08% -19.8%
Preliminary Results of Livestock Census Announced MonBiz Mongolia 1,527 -1.94% 30.9%
Russia, Japan and South Korea to Jointly Bid for Mongolias Coal Mine Dow Jones 11,578 0.03% 14.1%
Flights Planned from Chinas Erlian to Ulaanbaatar FTSE 100 5,900 -1.81% 9.1%
Nikkei 10,229 -0.94% 11.4%
Advisors for Sainshand Industrial Park to be Announced Next Year MSCI EM Asia 468 2.27% 19.1%
Four New International Airports to be Built in Mongolia Hang Seng 23,035 0.88% 8.3%
Newcoms CEO Becomes Chairman of the Board of Directors of MSE Shanghai 3,128 -1.74% -8.1%
KASE 1,718 1.15% -1.4%
Financial Markets
RTS 1,773 0.22% 23.9%
Sharyn Gol Block Shares Worth US$1.96mn Traded
Industry Focus Top Movers on MSE
Construction Grows over 43% in Ulaanbaatar in 2010 Close Performance
Stock
price, MNT w-o-w YTD
M&A Monitor
Best performers
KOCOAL Acquires 51% of Nuurst Khotgor Coal Mine for US$10mn UB BUK 4,545 32.51% 1128.4%
Mon-It Buligaar 8,700 17.57% 304.7%
Eermel 2,875 17.35% 121.2%
Khar Tarvagatai 377 14.94% 161.8%
MSE TOP-20 Index
Erdes Khuvun 762 14.93% 32.1%
15,500 25,000
Worst performers
Bishrelt
13,500 20,000 1,999 -9.14% 185.6%
Industrial
Sor 750 -6.25% 89.4%
11,500 15,000 Almaas 350 -4.11% -49.3%
MNTmn

Atar Urguu 18,000 -2.17% 16.1%

9,500 10,000 Darkhan Nekhii 4,900 -2.00% 133.3%

Major Commodities
7,500 5,000
Performance
Commodity Last price
w-o-w YTD
5,500 -
Copper $/t 9,650 2.69% 31.44%
Feb-10

Apr-10

Sep-10
May-10

Aug-10
Jun-10
Jul-10
Jan-10

Mar-10

Nov-10
Dec-10
Oct-10

Gold $/oz 1,420.78 2.85% 29.52%

Coal1 $/t 127.83 - 14.09%
Top-20 Trading Volume (MNTmn) Top-20 index Iron ore2, $/t 192.22 0.34% 52.59%
Uranium $/lp 61.5 - 38.2%
Source: MSE Crude oil $/bbl 91.38 0.52% 15.15%

MNT vs Major Currencies

Rate3, Performance
Name
MNT w-o-w YTD
US$ 1,257 -0.87% 12.9%
Euro 1,680 -2.77% 18.9%
Japanese Yen 15 -2.79% 1.3%
Chinese Yuan 191 -1.44% 9.7%
Russian Rouble 41 -0.71% 13.7%
1
Qinhuangdao, Steam Coal
2
China Import Price Qingdao Port
3
Central bank rate
Source: Bloomberg, MSE, Eurasia Capital

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

ECONOMIC EVENT CALENDAR

Indicator Reported period Release date Actual result Previous result

Real GDP y-o-y, % 4Q2010 Jan 9, 2011 -- 6.3
CPI, m-o-m, % Dec 2010 Jan 9, 2011 -- 0.7
CPI, y-o-y, % Jan-Dec 2010 Jan 9, 2011 -- 4.2
Industrial output y-o-y, % Jan-Dec 2010 Jan 9, 2011 -- -3.3
Money Supply (M2), MNTbn Dec 2010 Jan 9, 2011 -- 3,937.4
Money Reserve (M1), MNTbn Dec 2010 Jan 9, 2011 -- 995.8
External trade turnover, US$mn Jan-Dec 2010 Jan 9, 2011 -- 4,033.9
Exports, US$mn -- 1,902.6
Imports, US$mn -- 2,131.3
Balance, US$mn -- -228.7
Budget, MNTbn Jan-Dec 2010 Jan 9, 2011
Revenue, MNTbn -- 1,993.0
Expenditure, MNTbn -- 2,321.6
Balance, MNTbn -- -328.6
Unemployment rate, % 3Q2010 Jan 9, 2011 7.8 9.5
Source: Bank of Mongolia, National Statistics Office of Mongolia

INTERNATIONAL IPO CALENDAR

Company name IPO size Stock Exchange Type Year

Iron Mining Intl US$1bn HKEx Iron ore 2011
Gobi Coal and Energy - HKEx Coal 1Q2011
Source: Company data

POLITICS AND ECONOMY

Preliminary Results of Livestock Census Announced

Montsame reported on December 24 that National Statistics Committee concluded preliminary results
of livestock census, the final results of which will be announced on January 10, 2011. According to the
results, Mongolia has 31,828,900 heads of livestock by the end of 2010 which decreased by 12,191,000
heads or 27.7% compared with the year end data of 2009. The main factors of the losses were extremely
cold winter and animal diseases. The most suffered provinces are Zavkhan, Dundgobi and Arkhangai
according to the report. Sukhbaatar province has become the only province that could increase all five
types of animals for the previous year.

Russia, Japan and South Korea to Jointly Bid for Mongolias Coal Mine

Bloomberg reported on December 27 that Korea Resources Corp, a state-run mineral explorer will bid
for a coal mine development project in Mongolia in cooperation with Russian and Japanese companies.

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

Japanese companies are Itochu Corp., Sumitomo Corp. and two trading firms while Russian company is
state-owned railway corporation RZD, according to Nihon Keizai Shimbun.
The investments in the project could reach US$2bn and the consortium will own less than 50% of the
project while the Government of Mongolia will own the remainder. The consortium is planning to
transport coal from the mine by rail to Russias east seaport. Rival companies from Japan and China are
expected to make a joint bid with U.S. coal company Peabody Energy.

Flights Planned from Chinas Erlian to Ulaanbaatar

According to news.mn, new flights are planned from a new airport near Chinese Erlian border city to
Ulaanbaatar. The airport is expecting flights to Ulaanbaatar and the Far East in Russia.
The Inner-Mongolia based airport is located at a 27-km distance from Erlian city and 32-km from the
Mongolian border.

Advisors for Sainshand Industrial Park to be Announced Next Year

According to Mongolian Mining Journals interview with B. Ganbaatar, head of Sectoral Development
and Investment Policy Coordination Department of National Development and Innovation Committee,
advisors for Sainshand Industrial Park will be announced in January 2011.
Sainshand Industrial Park Commission led by the Prime Minister announced an open tender to select
both technical and legal advisor in late-October and is now in the process of evaluation of the received
documents. The Commission received bids from seven companies and is reviewing materials from short-
listed six companies, four of which are engineering and the other two are legal companies. Legal
companies include consortium of Hogan Lovells and Lee & Lee, as well as Liberty Partners consortium
composed of three companies. Engineering companies include Bechtel Corporation, Flour Inc, Worley
Parsons and Hatch corporations.

Four New International Airports to be Built in Mongolia

During the Government meeting on December 29, a resolution was signed to increase number of
international airports in Mongolia by Choibalsan in Dornod province, Khovd in Khovd province,
Dalanzadgad in Umnugobi province and Murun in Khuvsgul province according to news.mn.
Dalanzadgad and Murun airports will commence operations from May 2012. This measure will alleviate
burden on capital city Ulaanbaatar and support regional development.

Newcoms CEO Becomes Chairman of the Board of Directors of MSE

On December 30, during a State Property Commissions (SPC) meeting, CEO of Newcom Group B.Bold
has been appointed as the Chairman of the Board of Directors of the Mongolian Stock Exchange (MSE).
Previously the MSE Board was led by L. Ganbat, Head of SPC Secretariat. The Board consists of the
members elected by the SPC resolution on May 2010: Peter Morrow, the former CEO of Khan Bank, L.
Bolormaa, CEO of BFAS LLC, U. Ganzorig, President of Mongolian Financial Markets Association, George

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

Taylor, Asia Pacific Capital Markets Department head of JP Morgan and Stefan Heinzelman, coordinator
of GTZ Mongolia office.
Batbayar Bat-Erdene
batbayar.bat-erdene@eurasiac.com

FINANCIAL MARKETS

Sharyn Gol Block Shares Worth US$1.96mn Traded

On December 29, Sharyn Gol block shares of around 240,000 were traded at MNT10,200/share for a
total of MNT2.45bn (US$1.96mn). 23 companies were traded taking total volume to MNT2,595mn;
share prices of 6 companies rose, 7 did not change and 10 declined.
Rentsendorj Yondon
rentsendorj.yondon@eurasiac.com

INDUSTRY FOCUS

CONSTRUCTION

Construction Grows over 43% in Ulaanbaatar in 2010

news.mn reported on December 27 that construction works in Ulaanbaatar city has reached MNT21.4bn
or 43.5% more than in 2009. 41 new fountains have been built, Seoul Street and Sambuu Streets have
been extensively repaired and Independence Square built in Chingeltei district. Besides, the square in
honor of D.Natsagdorj was repaired for MNT1.2 billion and 21 new gardens were built in Baganuur
district.
Batbayar Bat-Erdene
batbayar.bat-erdene@eurasiac.com

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

M&A MONITOR

KOCOAL Acquires 51% of Nuurst Khotgor Coal Mine for US$10mn

Korean news agency Yonhap reported on December 29 that Korea Coal Corporation (KOCOAL), a state-
run coal mine developer said that it will purchase a 51% stake in a coal mine in northwestern Mongolia
for US$10mn. The coal mine is Nuurst Khotgor, located in Uvs province and is said to have
approximately 109mn tonnes of coal reserves. The South Korean coal miner plans to produce 2mn
tonnes of coal annually from the mine.
On November 7, the same news agency reported that KOCOAL will invest US$18.1mn in a coal mine in
northwestern Mongolia without providing the name of the mine. It was reported that the mine has a
soft coal reserve of 79mn tonnes and will produce 1mn tonnes of coal annually.
KOCOAL was established in 1950 as a government-owned coal company to manage coal mines, and its
mission has been further increased with coal export and import businesses, including foreign coal mine
development. It currently operates three domestic coal mines, producing approximately 1.2mn tonnes
annually.

Batbayar Bat-Erdene
batbayar.bat-erdene@eurasiac.com

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

ECONOMIC PERFORMANCE
Indicator 2003 2004 2005 2006 2007 2008 2009 2010e
Population and income
Population, mn 2.50 2.53 2.56 2.59 2.63 2.68 2.74 2.79
GDP per capita, US$ 581.7 720.1 905.3 1223.8 1502.9 1939.7 1560.2 2026.6
National accounts
Nominal GDP, MNTbn 1660 2152 2780 3715 4599.5 6020 6056 7500
Nominal GDP, US$bn 1.4 1.8 2.3 3.2 3.9 5.1 4.0 5.5
Nominal GDP at PPP, US$bn 5.4 6.1 6.7 7.5 8.5 9.4 9.4 10.1
Real GDP growth, Y-o-y, % 7.0 10.6 7.2 8.6 10.2 8.9 -1.6 7.2
Monetary indicators and inflation
M2 growth, Y-o-y, % 49.6 20.4 34.6 34.8 56.3 -5.5 26.9
CPI, Y-o-y, % 4.7 11 9.2 4.8 14.1 22.1 4.2 7.5
Exchange rate, MNT/US$, annual 1168 1209 1221 1165 1170 1166 1438
average
Gross foreign reserves, US$mn, - 208 333 718 1001 657 822 1200
eop
Government finance
Revenue, % of GDP - 33.1 30.1 36.6 40.9 35.4 32.9 40.2
Expenditure, % of GDP - 35.0 27.5 28.5 38.0 40.2 38.3 44.2
Budget balance, % of GDP -4.2 -2.1 3.2 3.9 2.2 -5.0 -5.4 -4.0
Balance of payments
Exports, US$mn 615.9 872 1069 1545 1952 2539 1903
Imports, US$mn 801 1021 1224 1516 2170 3616 2131
Exports, Y-o-y, % 17.5 41.2 22.4 44.9 22.5 30.3 -24.9
Imports, Y-o-y, % 16.0 27.5 16.0 25.4 36.1 66.6 -34.3
Trade balance, US$mn -185.1 -149 -155 30 -218 -1077 -229
FDI, US$mn 131.5 92.9 182.3 367 500 709 801
Source: National Statistics Office of Mongolia, the Bank of Mongolia, the IMF, the World Bank, Eurasia Capital

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

MSE AND MONGOLIA FOCUSED INTERNATIONAL MINING COMPANY

STOCKS PERFORMANCE SUMMARY

MSE TOP-20 Performance (December 27-31, 2010)

Daily Turnover (52Wk
Price Performance Market Cap
Code Name Avg)
Close 52 Wk high 52 Wk low w-o-w y-t-d MNTmn US$000 MNT US$
458 Tavan Tolgoi 576,000 670,000 135,000 0.17% 326.7% 303,352 241,295 9,857,074 7,841
396 Baganuur 10,500 11,000 2,800 6.60% 200.0% 220,231 175,178 86,268,184 68,620
460 Shivee Ovoo 13,000 14,900 3,300 0.00% 293.9% 174,448 138,762 7,348,652 5,845
90 APU 1,990 2,000 630 0.00% 215.9% 147,833 117,591 14,323,338 11,393
209 Mongolian Telecom 3,500 4,000 2,260 0.00% 52.8% 90,546 72,023 1,075,756 856
309 Sharyn Gol 10,500 13,500 1,696 1.94% 519.1% 75,930 60,397 47,775,063 38,002
354 Gobi 5,600 7,700 4,049 0.00% 38.3% 43,686 34,749 16,808,768 13,370
532 Khukh Gan 187 217 116 0.00% 57.1% 18,946 15,071 11,853,543 9,429
484 State Department Store 430 620 350 3.61% 13.2% 15,827 12,590 2,032,901 1,617
521 Genco Tour Bureau 94 123 88 4.44% -1.1% 10,340 8,225 3,765,920 2,996
13 Bayangol Hotel 23,900 29,990 17,000 0.00% 32.8% 10,111 8,043 1,179,337 938
191 Eermel 2,875 2,875 1,151 17.35% 121.2% 10,003 7,957 250,349 199
444 Mogoin Gol 11,800 11,800 1,970 0.00% 499.0% 9,790 7,787 1,896,181 1,508
3 UB Hotel 27,500 30,475 19,000 3.77% 41.0% 9,221 7,334 5,951,944 4,734
208 Makh Impex 1,800 2,080 1,000 -1.64% 56.5% 6,841 5,442 598,520 476
71 Darkhan Nekhii 4,900 5,199 1,900 -2.00% 133.3% 5,417 4,309 791,928 630
531 Nako Tulsh 325 352 190 0.00% 64.1% 4,100 3,261 4,807,342 3,824
22 Talkh Chikher 3,700 3,700 1,840 1.37% 85.0% 3,788 3,013 186,429 148
450 Zoos Goyol 790 1,080 501 -1.25% 42.3% 2,966 2,360 200,582 160
492 Berkh Uul 150 150 150 0.00% 0.0% 2,859 2,274 960,448 764
Source: MSE, Eurasia Capital

Selected Non-MSE TOP-20 Member Leading Market Cap Companies (December 27-31, 2010)
Daily Turnover 1Wk
Price Market Cap Performance
Code Name (52Wk Avg) turnover
MNT US$ MNTmn US$000 w-o-w y-t-d MNT US$ (MNT)
524 Mongolia Development Resources 1,300 1.03 17,875.0 14,218.3 4.0% 31.3% 12,956,434 10,306 546,000
530 Remicon 72 0.06 9,190.3 7,310.2 0.0% -4.0% 496,344 395 1,267,276
509 Mongol Em Impex 210 0.17 8,402.2 6,683.4 0.0% 0.0% 0 0 0
517 Hotel Mongolia 560 0.45 5,600.0 4,454.4 0.0% -7.0% 396,077 315 0
17 Atar Urguu 18,000 14.32 3,134.4 2,493.2 -2.2% 16.1% 67,101 53 360,000
Source: MSE

Performance of MSE Stocks Traded (December 27-31, 2010)

Daily Turnover (52Wk
Price Performance Market Cap
Code Name Avg)
Close 52 Wk high 52 Wk low w-o-w y-t-d MNTmn US$000 MNT US$
458 Tavan Tolgoi 576,000 670,000 135,000 0.17% 326.7% 303,352 241,295 9,857,074 7,841
396 Baganuur 10,500 11,000 2,800 6.60% 200.0% 220,231 175,178 86,268,184 68,620
460 Shivee Ovoo 13,000 14,900 3,300 0.00% 293.9% 174,448 138,762 7,348,652 5,845
90 APU 1,990 2,000 630 0.00% 215.9% 147,833 117,591 14,323,338 11,393
209 Mongolian Telecom 3,500 4,000 2,260 0.00% 52.8% 90,546 72,023 1,075,756 856
309 Sharyn Gol 10,500 13,500 1,696 1.94% 519.1% 75,930 60,397 47,775,063 38,002
354 Gobi 5,600 7,700 4,049 0.00% 38.3% 43,686 34,749 16,808,768 13,370
522 BDSec 2,500 2,700 1,600 0.00% 56.3% 27,500 21,874 8,820,647 7,016
461 Aduunchuluun 8,000 8,331 450 9.59% 1539.3% 25,210 20,053 175,379 140
532 Khukh Gan 187 217 116 0.00% 57.1% 18,946 15,071 11,853,543 9,429
524 Mongolia Development 1,300 1,410 990 4.00% 31.3% 17,875 14,218 12,956,434 10,306

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

Resources
484 State Department Store 430 620 350 3.61% 13.2% 15,827 12,590 2,032,901 1,617
521 Genco Tour Bureau 94 123 88 4.44% -1.1% 10,340 8,225 3,765,920 2,996
13 Bayangol Hotel 23,900 29,990 17,000 0.00% 32.8% 10,111 8,043 1,179,337 938
191 Eermel 2,875 2,875 1,151 17.35% 121.2% 10,003 7,957 250,349 199
444 Mogoin Gol 11,800 11,800 1,970 0.00% 499.0% 9,790 7,787 1,896,181 1,508
3 UB Hotel 27,500 30,475 19,000 3.77% 41.0% 9,221 7,334 5,951,944 4,734
530 Remicon 72 80 39 0.00% -4.0% 9,190 7,310 496,344 395
208 Makh Impex 1,800 2,080 1,000 -1.64% 56.5% 6,841 5,442 598,520 476
71 Darkhan Nekhii 4,900 5,199 1,900 -2.00% 133.3% 5,417 4,309 791,928 630
195 UB BUK 4,545 4,545 370 32.51% 1128.4% 5,128 4,079 10,057 8
528 Hermes 54 75 37 0.00% -28.0% 4,241 3,374 1,467,740 1,167
531 Nako Tulsh 325 352 190 0.00% 64.1% 4,100 3,261 4,807,342 3,824
44 Takhi Co 3,270 3,270 1,580 14.74% 107.0% 3,891 3,095 11,225 9
22 Talkh Chikher 3,700 3,700 1,840 1.37% 85.0% 3,788 3,013 186,429 148
38 Mon-It Buligaar 8,700 8,700 2,150 17.57% 304.7% 3,482 2,770 130,131 104
17 Atar Urguu 18,000 22,000 12,000 -2.17% 16.1% 3,134 2,493 67,101 53
450 Zoos Goyol 790 1,080 501 -1.25% 42.3% 2,966 2,360 200,582 160
142 Tumriin Zavod 27,000 27,000 27,000 0.00% 0.0% 2,007 1,596 32,088 26
25 Moninjbar 115 125 95 0.88% 17.3% 1,825 1,452 219,207 174
525 HBOil 180 241 160 5.88% -10.0% 1,662 1,322 1,842,068 1,465
527 Olloo 150 178 58 0.00% 100.0% 1,455 1,157 625,105 497
264 Bishrelt Industrial 1,999 2,200 700 -9.14% 185.6% 1,400 1,114 16,813 13
2 Mongol Savkhi 550 640 420 3.38% 22.2% 1,361 1,083 36,904 29
34 Gazar Suljmel 4,500 4,500 2,365 0.00% 114.1% 815 649 15,545 12
97 Sor 750 1,040 300 -6.25% 89.4% 669 532 121,465 97
67 Nekheesgui Edlel 500 500 250 11.11% 100.0% 644 512 2,818 2
9 Mongol Nekhmel 1,300 1,300 781 8.33% 36.8% 616 490 7,141 6
236 Mongol Shevro 551 575 400 0.00% 22.4% 507 403 5,056 4
263 Guril Tejeel Bulga 610 632 400 1.67% 52.5% 348 277 5,577 4
333 Almaas 350 690 350 -4.11% -49.3% 180 143 1,821 1
455 Khar Tarvagatai 377 377 144 14.94% 161.8% 125 99 10 0
254 Erdes Khuvun 762 762 577 14.93% 32.1% 42 33 19,322 15
389 Undurkhaan 135 135 118 14.41% 14.4% 15 12 7,788 6
Source: MSE, Eurasia Capital

Fundamental Valuation of MSE Listed Companies (December 31, 2010)

Market Cap Profitability
Ticker Price Debt/
Name P/E P/B Gross
(MSE) (MNT) US$000 MNTmn Equity ROA ROE Net Margin
Margin
Tavan Tolgoi TTL 576,000 241,295 303,352 7.10 5.73 0.1 72.7% 80.8% 58.2% 44.8%
Baganuur BAN 10,500 175,178 220,231 nm nm nm -12.1% 54.8% 10.6% -18.4%
Shivee Ovoo SHV 13,000 138,762 174,448 nm nm nm -12.0% 145.7% 9.8% -68.2%
APU APU 1,990 117,591 147,833 18.32 4.61 1.2 11.2% 25.2% 22.8% 9.3%
Mongolian Telecom MCH 3,500 72,023 90,546 32.62 2.80 0.2 7.0% 8.6% 15.7% 10.4%
Sharyn Gol SHG 10,500 60,397 75,930 345.26 52.92 5.6 2.3% 15.3% 10.9% 2.5%
Gobi GOV 5,600 34,749 43,686 38.69 2.07 0.5 3.6% 5.4% 26.4% 5.6%
BDSec BDS 2,500 21,874 27,500 nm 5.69 0.0 -9.5% -9.7% 4.5% -26.5%
Aduunchuluun ADL 8,000 20,053 25,210 61.53 11.82 0.5 13.0% 19.2% 33.4% 14.2%
Khukh Gan HGN 187 15,071 18,946 nm 1.95 0.2 -3.7% -4.4% -4.1% -318.3%
Mongolia Development Resources MDR 1,300 14,218 17,875 36.65 0.63 0.0 1.7% 1.7% nm nm
State Department Store UID 430 12,590 15,827 57.76 3.07 1.2 2.4% 5.3% 99.0% 31.4%
Genco Tour Bureau GTB 94 8,225 10,340 55.52 1.24 0.4 1.6% 2.2% 62.2% 20.3%
Bayangol Hotel BNJ 23,900 8,043 10,111 4.15 0.61 0.3 11.4% 14.7% 60.4% 44.6%
Eermel EER 2,875 7,957 10,003 20.41 0.70 1.0 1.7% 3.5% 100.0% 1228.2%
Mogoin Gol BDL 11,800 7,787 9,790 nm 4.33 0.4 0.1% 0.2% 24.4% 1.1%
UB Hotel ULN 27,500 7,334 9,221 10.97 1.78 0.1 14.4% 16.3% 82.3% 23.5%
Remicon RMC 72 7,310 9,190 nm 1.69 0.0 -13.2% -13.5% 43.5% -94.7%
Mongol Em Impex MEI 210 6,683 8,402 255.85 1.84 0.4 0.5% 0.7% 17.5% 0.6%
Suu SUU 20,987 5,743 7,220 6.01 1.36 0.6 14.5% 22.6% 22.1% 8.2%
Makh Impex MMX 1,800 5,442 6,841 253.74 nm nm 0.1% -186.4% 0.1% 0.5%
Hotel Mongolia MSH 560 4,454 5,600 nm 1.81 0.7 -1.4% -2.5% 69.7% -10.7%
Darkhan Nekhii NEH 4,900 4,309 5,417 4.47 1.15 0.2 20.7% 25.6% 38.7% 26.1%

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

UB BUK BUK 4,545 4,079 5,128 nm 5.74 2.2 -3.3% -10.7% 34.4% -9.1%
Hermes HRM 54 3,374 4,241 59.40 0.53 0.0 0.9% 0.9% 100.0% 10.7%
Mongol Securities MSC 140 3,341 4,200 nm 5.75 0.0 -0.2% -0.2% 94.2% -4.8%
Nako Tulsh NKT 325 3,261 4,100 nm 4.34 0.4 -1.9% -2.6% nm nm
Takhi Co TAH 3,270 3,095 3,891 12.93 3.60 0.0 26.8% 27.9% 100.0% 30.8%
Talkh Chikher TCK 3,700 3,013 3,788 3.79 1.67 3.2 10.5% 44.0% 23.0% 6.3%
Mon-It Buligaar MBG 8,700 2,770 3,482 nm 0.75 1.8 -12.5% -34.6% -46.7% -90.2%
Material Impex MIE 2,500 2,721 3,421 24.09 3.48 4.0 2.9% 14.4% 10.5% 1.9%
Atar Urguu ATR 18,000 2,493 3,134 3.90 0.65 0.1 15.2% 16.6% 26.2% 10.4%
Zoos Goyol ZOO 790 2,360 2,966 53.73 2.39 0.0 4.3% 4.5% 37.6% 8.1%
Berkh Uul BEU 150 2,274 2,859 nm 3.24 1.1 -5.6% -12.0% 3.3% -60.0%
Khyalganat HLG 5,000 1,662 2,089 nm 14.68 0.1 0.4% 0.5% 32.1% 5.3%
Tumriin Zavod TMZ 27,000 1,596 2,007 nm nm 31.6 -10.7% -349.7% 100.0% -37.0%
Moninjbar MIB 115 1,452 1,825 144.82 1.10 0.9 0.4% 0.8% 21.8% 0.8%
UB Carpet UBH 4,460 1,436 1,806 nm 0.38 0.2 -0.6% -0.7% 12.6% -2.1%
Bayanteeg BTG 7,001 1,407 1,769 nm 1.69 0.9 -2.1% -4.0% 100.0% -7.5%
HB Oil HBO 180 1,322 1,662 nm 2.12 0.7 -8.5% -14.6% 27.1% -2329.0%
Auto Impex AOI 710 1,306 1,642 26.85 nm nm 2.2% -2.6% -14.8% 312.1%
Olloo OLL 150 1,157 1,455 nm 1.80 0.0 -19.0% -19.2% 100.0% -127.5%
Bishrelt Industrial HHC 1,999 1,114 1,400 266.59 2.28 0.5 0.6% 0.9% 100.0% 48.2%
Mongol Savkhi UYN 550 1,083 1,361 717.79 0.86 0.0 0.1% 0.1% 100.0% 0.5%
Gutal GTL 750 966 1,214 4.62 0.26 0.0 5.6% 5.7% 24.3% 86.2%
Niislel Urguu NUR 2,600 901 1,133 nm nm nm -0.3% 25.9% 14.9% -2.0%
Technikh Import TEX 601 692 869 3.01 0.48 0.9 8.4% 16.0% 14.1% 4.8%
Gazar Suljmel SUL 4,500 649 815 55.04 1.84 0.7 2.0% 3.3% 40.5% 1.9%
Sor SOR 750 532 669 nm 0.66 0.0 -8.0% -8.1% nm nm
Tsagaan Nuur TSN 480 527 662 nm 10.21 0.4 0.0% 0.0% 100.0% 0.0%
Nekheesgui Edlel NXE 500 512 644 nm 0.44 0.0 -3.0% -3.0% -2.3% -25.1%
Mongol Nekhmel MNH 1,300 490 616 445.33 2.30 2.7 0.1% 0.5% 32.6% 0.7%
Buunii Khudaldaa BHL 450 455 573 nm 0.47 0.2 -3.2% -3.8% 12.9% -340.9%
Mongol Shevro MVO 551 403 507 27.05 0.40 1.1 0.7% 1.5% 23.1% 0.9%
Agro Tech Impex ATI 330 397 499 nm 0.5 1.7 -2.0% -5.2% 53.5% -34.7%
Sonsgolon Barmat SSG 256 393 494 nm 4.0 4.6 -19.0% -105.3% 60.4% -219.4%
Tulga TLG 3,680 385 484 15.9 0.7 0.0 4.0% 4.1% 87.6% 22.2%
Source: MSE, Eurasia Capital

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

MonBiz Mongolia Index Companies Performance (December 27-31, 2010)

Daily Volume
Close MktCap Price Performance
Name Ticker Currency (y-t-d)
Price
US$mn 52 wk high 52 wk low 1D chg y-t-d US$mn
IVANHOE MINES LTD IVN US USD 22.92 12,978.3 28.31 11.45 -6.22% 66.4% 38.68
CENTERRA GOLD INC CG CN CAD 19.84 4,704.2 23.60 9.76 -0.45% 83.7% 12.53
MONGOLIAN MINING CORP 975 HK HKD 9.07 4,323.4 9.72 7.02 3.19% - 12.75
SOUTHGOBI RESOURCES LTD 1878 HK HKD 99.50 2,352.0 130.00 74.00 5.29% - 1.76
WINSWAY COKING COAL HOLDINGS 1733 HK HKD 4.67 2,276.0 4.70 3.35 4.01% - 25.79
MONGOLIA ENERGY CORP LTD 276 HK HKD 2.32 1,822.7 4.93 2.23 1.31% -41.7% 4.96
EAST ASIA MINERALS CORP EAS CN CAD 8.20 628.2 8.73 2.81 9.92% 76.7% 2.25
ENTREE GOLD INC ETG CN CAD 3.47 397.1 3.59 1.84 10.86% 36.1% 0.36
PETRO MATAD LTD MATD LN GBp 121.00 345.3 199.00 18.50 13.08% 554.1% 0.44
HUNNU COAL LTD HUN AU AUD 1.34 289.7 1.40 0.20 10.33% - 0.97
ASPIRE MINING LTD AKM AU AUD 0.48 261.2 0.53 0.06 -1.03% 757.1% 0.35
TAVAN TOLGOI JSC TTL MO MNT 576,000 241.3 679,000 135,005 0.17% 326.7% 0.01
ORIGO PARTNERS PLC OPP LN GBp 41.00 193.2 42.75 15.00 0.00% 164.5% 0.10
BAGANUUR JSC BAN MO MNT 10,500 175.2 11,000 2,800 6.60% 200.0% 0.07
SOLARTECH INTERNATIONAL HOLD 1166 HK HKD 0.05 155.8 0.18 0.02 -2.04% -69.0% 3.67
SHIVEE OVOO JSC SHV MO MNT 13,000 138.8 14,900 3,100 0.00% 293.9% 0.01
MONGOLIA INVESTMENT GROUP LT 402 HK HKD 0.15 135.2 0.76 0.11 13.85% -76.1% 1.27
PROPHECY RESOURCE CORP PCY CN CAD 1.00 134.1 1.28 0.33 7.53% 155.6% 0.52
CENTRAL ASIA METALS PLC CAML LN GBp 90.25 121.2 104.50 83.00 2.56% - 0.03
APU JSC APU MO MNT 1,990 117.6 2,010 630 0.00% 215.9% 0.01
NORTH ASIA RESOURCES HOLDING 61 HK HKD 0.91 99.7 2.65 0.91 -1.09% -61.9% 1.07
MONGOLIAN TELECOM JSC MCH MO MNT 3,500 72.0 4,100 2,260 0.00% 52.8% 0.00
SHARYN GOL JSC SHG MO MNT 10,500 60.4 14,000 1,800 1.94% 519.1% 0.04
ASIA COAL LTD 835 HK HKD 0.25 53.7 0.46 0.18 -3.85% -25.4% 0.16
BESTWAY INTL HOLDINGS LTD 718 HK HKD 0.14 48.4 0.56 0.13 0.71% -64.8% 0.17
GOBI JSC GOV MO MNT 5,600 34.7 7,700 4,001 0.00% 38.3% 0.01
Source: Bloomberg, Eurasia Capital

Rentsendorj Yondon
rentsendorj.yondon@eurasiac.com

Sherzod Rakhimov
sherzod.rakhimov@eurasiac.com

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

PROPERTY PRICES
Residential Property Prices in Ulaanbaatar
860

840

820

800
US$/sqm

780

760

740

720

700

Source: Eurasia Capital

M&A DEAL SUMMARY

Buyer Announce
Target Company (TC) Buyer TC Listing TC Sector TC Reserves Stake, % Deal Terms
Country Date
SWFs Deals
Iron Mining China Investment Corp. CHN N/A Iron ore N/A N/A US$700mn 29.10.09
Iron Mining Temasek Holdings/ Hopu SG/ CHN N/A Iron ore N/A N/A US$300mn 01.04.08
Investment Management
SouthGobi Resources China Investment Corp. CHN N/A Coal 122.3mn tn N/A US$500mn 26.10.09
SouthGobi Resources China Investment Corp., CHN/SG N/A Coal 122.3mn tn N/A US$50mn each in 29.01.10
Temasek Holdings HK IPO
Recent EBRD Deals
Energy Resources EBRD Int-l N/A Coal N/A N/A US$180mn loan 19.02.10
APU EBRD Int-l MSE Food & N/A N/A US$25mn 22.01.10
Beverages convertible loan
Petro Matad EBRD Int-l AIM Oil & Gas 638mn bbls 17 US$6mn 18.12.09
resources convertible
Leighton Mongolia EBRD Int-l N/A Mining N/A N/A US$35mn loan 10.11.09
Private Equity Deals
Well Delight Holdings Ming Hing Waterworks HK HKSE Coal, Copper, N/A 100 US$245mn 30.05.10
Ltd/ Tugrugnuuriin Holdings Ltd gold
Energy LLC
North Asia Resources Green Global Resources CHN HKSE Iron ore 148.9mn tn 100 US$227mn 16.12.09
Group iron, 180,000
tn copper*
Ikh Shijir Erdene LLC/ Solartech International CHN HKSE Gopper, gold, 1.44mn tn N/A US$192mn 04.05.10
Sun Progress Holdings silver copper, 4 tn
gold, 196 tn
silver
Two Tungsten mines Bestway International HK N/A Tungsten N/A 100 US$122mn 03.07.09
Holdings
Winsway Coking Coal Hopu Investment/ two CHN N/A Coal N/A 20 US$110mn 02.04.10
Chinese firms
Millennium Hong Kong Mongolia Energy Corp Ltd HK N/A Ferrous 504mn tn 100 US$35mn 24.06.09

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 Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

Group Ltd/Concession Resources

area
Taishen Development North Asia Resources Group HK N/A Iron ore 79mn tonnes 100 US$25.1mn 29.07.10
LLC
Polo-Peabody JV Winsway Coking Coal CHN N/A Uranium, N/A 50 US$25mn 26.05.10
Holdings Coal
Aspire Mining Ltd SouthGobi Resources CN ASX Ovoot Coking N/A 20 US$20.10 25.10.10
Coal Project
Gobi Coal and Energy Origo Partners Plc UK N/A Coal 320mn tn 21.3 US$15mn 27.11.09
resources
Shine Shivee LLC DeTeam Co Ltd HK N/A Coal 2.14bn 100 US$10mn 20.07.10
Khurgatai Khaikang Aspire Mining Ltd AUS N/A Coal N/A 100 US$7.73mn 25.11.09
LLC
Land Mongolia Corp Gloworks Co Ltd SK N/A N/A N/A 50 US$7.63mn 13.07.09
Mongolia Resource Alamar Resources AUS ASX Gold projects N/A 100 US$4.85mn 27.10.10
Company
MKMN HandySoft Corp SK N/A N/A N/A 51 US$4.19mn 21.12.09
Kinkora Ltd Origo Partners PLC UK N/A Bronze Fox N/A 25 US$3mn 13.09.10
copper-gold
prospect
Ovoot Coking Coal Windy Knob Resources AUS N/A Coal N/A 100 US$3.5mn 26.11.09
Project + Shares
Mongolian BML LLC Blina Diamonds AUS N/A Coal 250mn tonnes 100 US$2.18mn 30.09.10
Erdenetsogt project Mangreat Ltd British N/A Coal N/A 5 US$2mn 01.11.10
Virgin
Islands
"The Mongolian Xanadu Mines AUS N/A Thermal Coal N/A 100 A$1mn Jun-10
Company"
Troy Mongolian Alt Meritus Minerals CAN N/A Gold N/A 100 US$0.5mn + 20.01.10
Resources Shares
Lotus Minerals Company of Mr. James N/A Plus Fluorspar N/A 100 GBP200,000 29.10.10
Mongolia Rodriguez de Castro Markets projects
Argalant Gold-Copper Voyager Resources AUS N/A Gold, Copper N/A 100 US$50,000 19.01.10
Project + Shares
PanAsian Petroleum Sunwing Energy Ltd CAN N/A Oil, gas N/A 100 All Shares 18.11.09
"The Mongolian North Asia Resources HK N/A The Land N/A 100 N/A 01.07.10
Company" Group/Golden Pogada LLC rights licence
to build Dock
Buyan Coal Project Hunnu Coal AUS ASX Coal N/A 60% N/A 08.06.10
Tsohio Coal Project Hunnu Coal AUS ASX Coal N/A 60% N/A 02.06.10
Amguulan LLC Lotus Resources PLC UK N/A N/A N/A N/A N/A 19.06.09
Erdenes Thermal Coal Hunnu Coal AUS ASX Coal 140-180mn tn 80 N/A 11.03.10
Project
Tsant Uul Coal Project Hunnu Coal AUS ASX Coal 50-100mn tn 90 N/A 26.05.10
Other Deals
Western Prospector CNNC CHN Delisted Uranium 20mn lbs 69 US$18.5mn 15.04.09
(9,525 tn)
Red Hill Energy Prophecy Resource Corp CAN TSX Coal 1.5bn tn 100 Merger 21.01.10
resources All Shares
SMG Oil & Gas BKM Management AUS ASX Oil, gas N/A 100 All Shares, 10.03.10
A$0.01/share
offered
Source: Bloomberg, Eurasia Capital

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Mongolia Weekly (December 27-31, 2010) January 3, 2011 (Monday)

CONTACTS

Research:
Sardor Koshnazarov Head of Research, Oil & Gas sardor.koshnazarov@eurasiac.com
Dosbergen Musaev Analyst, Strategy dosbergen.musaev@eurasiac.com
Neal Detert Analyst, Strategy neal.detert@eurasiac.com
Akmal Aminov Analyst, Metals & Mining akmal.aminov@eurasiac.com
Batbayar Bat-Erdene Analyst, Metals & Mining batbayar.bat-erdene@eurasiac.com
Rentsendorj Yondon Analyst, Mongolia Equities rentsendorj.yondon@eurasiac.com
Zultsetseg Chuluunbat Analyst, Mongolia zultsetseg.chunluunbat@eurasiac.com
Bahadir Uskenbaev Analyst, Kazakhstan bahadir.uskenbaev@eurasiac.com
Hoosniddin Hakimov Analyst hoosniddin.hakimov@eurasiac.com
Sales and Trading:
Dima Orazimbetov Director dima.orazimbetov@eurasiac.com
Zhyldyz Sadyralieva Associate zhyldyz.sadyralieva@eurasiac.com
Sherzod Rakhimov Analyst sherzod.rakhimov@eurasiac.com
Bolor Ulziisaikhan Broker bolor.ulziisaikhan@eurasiac.com

Addresses:
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Hong Kong
Tel.: +852 2824 8716
Fax: +852 2166 8999

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th
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st
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Tel: +976 7013 0078
Fax: +976 7013 0078

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