ENERGY AND RESOURCES DEVELOPER

Mongolia Energy Corporation(HKSE Stock code: 276)

Khushuut Coal Project Update

June 2010

June 2010

MEC’s business model is to acquire concessions and to put in place a strong in-house team, including industry veterans in the geological, mining and legal areas to lead exploration, development and compliance aspects relating to the concessions. In this sense it is “an energy and resources developer”. MEC’s business model is a focused, professional and realistic one.

MoEnCo LLC is a 100% owned subsidiary of MEC. MoEnCo is the operating company within Mongolia.

Energy Resources Developer

2

Business Model

June 2010 3

Our Businesses

Coal

Oil & Gas Minerals

June 2010 4

MEC Assets

Coal, Minerals, Oil & Gas

MINERALSCOAL OIL & GAS

Weste

rn

Mo

ng

olia

So

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ern

Mo

ng

olia

Xin

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PR

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19% of a wholly foreign owned Chinese corporation with scope to invest in coal, copper and iron resources in Xinjiang and elsewhere in China

20% interest of multi-metals project with 235,600 tonnes of tungsten trioxide and 49,400 tonnes of tin resources (pending completion)

20% consortium member in 1.18 MM hectares oil and gas project, Ergel XII Petroleum Block, at production contract ratification stage

34,000 hectares of coal concessions in Khushuut and Darvi in western Mongolia

2,986 hectares of ferrous metals concessions in Bayan-Olgiy, western Mongolia

32,000 hectares of coal, ferrous and non-ferrous metals concessions in Gants Mod, western Mongolia

263,008 hectares of coal, ferrous and non-ferrous metals resources concessions in Olon Bulag and Gobi Altai, western Mongolia

June 2010 5

MoEnCo

Western Mongolia

MoEnCo has Coal, Ferrous & Non-ferrous Metals Concessions in Western Mongolia

June 2010 6

Continued exploration of resources and planning of North Khushuut.

Exploration program overseen by independent technical advisor John T. Boyd Co.;

600 ha of 330,000 ha of concession developed (Khushuut)

Resources Exploration

Progress to Date

June 2010 7

Khushuut Project Overview

Khovd, Western Mongolia

Khushuut Coking Coal Mine

Darvi Soum District, Khovd Province, Western Mongolia

210 km south of the provincial capital of Khovd

1,350 km west of Ulaanbaatar

310 km northeast of Yarant border crossing between China and Mongolia

Environmental

Eastern flank of the Altay Mountain range

elevation of 2,000 m

rolling hills little vegetation and minimal soil cover

annual rainfall -100-300 mm per year

Temperature 25ºC in Summer,-25ºC in Winter,

-50ºC not uncommon

June 2010

John T. Boyd Company (“Boyd”)Independent Technical Advisor

Over 60 years of expertise in completing reserves audits

and stock listing requirements for coal companies

Conducted more than 2,000 reserves audits, including

audits for some of the largest coal producers in the US

Technical consultant of China Shenhua’s IPO

All exploration is with the input and advice of the

independent technical adviser

The exploration results are analyzed by the independent

technical adviser

The mining plans are developed with the independent

technical adviser

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Khushuut Project Overview

Professional Partners

June 2010

Resources Exploration (cont’d)

Substantial Established Resource Base

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Notes

1. Resource estimate for an open-pit mining operation to depth of up to 400 m

2. Includes in-seam partings up to 0.3 m thick

3. Includes mineable coals to a minimum overburden depth of 5 m

4. Includes material mined under the coal seams to allow for a 35º slope

Boyd calculated a Coal Resource estimate in accordance with the international JORC Standards for the two major seams at Khushuut

The Khushuut Mine resources consist of both premium coking coal and weathered coal that are surface minable

Indicated Coal Resources (JORC)(1)

Seam

Avg. True Thickness

(m)

In-Place(2)(3) Coal Seam

(MMt)

Over- burden(4) (Bm3 MM)

Burden Ratio

(Bm3/t)

C 29.1 101.7 657.8 6.5

B 13.8 47.5 78.7 1.7

Total NA 149.2 736.5 4.9

Source: ITR dated Oct 16, 09 issued by Boyd

June 2010

The Boyd ITR plans that the Khushuut Mine would produce coal at a full run rate of 8 MM tonnes per annum as of Year 4 (2013):

Coal Production

Production Schedule

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Note

1. Assumes product sold is Product 1: Blend of 15% coal < 50 m depth, 55% C Seam coal > 50 m depth, 30% B Seam coal > 50 m depth

0.50

3.00

5.00

8.00 8.00 8.00 8.00

0.48

2.85

4.75

5.85 5.85 5.85 5.85

0

3

6

9

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 19

Raw Coal Saleable Coal

Coal Production Schedule MMt

Source: ITR dated Oct 16, 09 issued by Boyd

June 2010 11

Leighton LLC (“Leighton”)International Contract Miner

Has been operating in Mongolia since 2007

A subsidiary of Leighton Asia (part of the Leighton

Group), Leighton Holdings is the world’s largest

contract miner, listed in the Australian Stock

Exchange (stock code: LEI AU)

Leighton Asia has been operating in Asia since

1975, it is Australia’s largest project development

and contracting group with annual revenues

exceeding US$16billion. Area of operations include

Hong Kong, Macau, China, Mongolia, Taiwan,

Philippines, Guam, Thailand, Vietnam, Laos,

Cambodia, Indonesia and Kazakhstan.

Khushuut Project Overview

Professional Partners

June 2010

Conventional open pit operations using diesel-powered equipment

Utilization of hydraulic excavators and large off-highway end-dump trucks will allow multiple mining faces for coal production

Produces a high-quality blended coal product

Maximizes the recoverable coal resource at low cost

Mining Method & Plan

Low-Cost, Open Pit Operations

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June 2010

Community and

Infrastructure Development

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After MoEnCo

construction

Before MoEnCo

construction

Creation of over 600 direct onsite and over 1000 direct contractor employment positions in the next 6 years

Over 10 x multiplier flow on effect

Local bag level business and development

340km road construction substantially built , scheduled for completion Autumn 2010

Construction of small power plant for mine specific use, to be expanded to supply into the local Western grid

June 2010

Exploration

88,500 m drilled to date, 366 drill holes

200 tonne bulk sample of high-quality coking coal was delivered to Baosteel Group Xinjiang Bayi Iron & Steel Co. Ltd. (“Baosteel Bayi”), in Xinjiang Province for full scale testing

Development

Land Use Agreements have been granted

accepted Mine Feasibility Study of the Khushuut Project on 22 Jul ’09

EIA submitted on 9 Sep ’09, approved on 12 Oct ’09

Mine plan approved May 2010

Leighton Asia Mining contract 1st July 2010

Marketing

In Jan 2010, MoEnCo entered into a long term coal supply agreement with Baosteel Bayi relating to years 2010 to 2020

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Khushuut Project Milestones

Exploration, Development & Marketing

June 2010

THANK YOU

Investor Relations Contact:

40th Floor, New World Tower 1, 16-18 Queen's

Road, Central, Hong Kong

Tel: (852) 2138-8000

Fax: (852) 2138-8111

Email: ir@mongolia-energy.com

Website: www.mongolia-energy.com