1. MNT 130.5 billion Initial Public Offering
BEREN MINING JSC
Mongolian Iron Ore Processing
Company
INVESTOR PRESENTATION March 2012

2. Forward Looking Statement
Today’s presentation may include forward-looking statements.
These statements represent the company’s belief regarding
future events that, by their nature, are uncertain and
outside of the company’s control. The company’s actual
results and financial condition may differ, possibly
materially, from what is indicated in those forward-looking
statements. You should not place undue reliance on these
forward-looking statements, which apply only as of the date
of this publication. Any opinions or estimates herein
reflect the judgment of the company at the date of the
publication and are subject to change at anytime without
notice. The statements in the presentation are current only
as of its date, March 07, 2011.
Beren Mining JSC, Mongolian Iron Ore Processing Company 2

3. The Company
• Founded in 2005, Beren Mining is a domestic company
that owns and operates:
• Mining and exploration licenses for several iron ore deposits in
central Mongolia
• Iron ore concentrate plant with the capacity of producing 250k
tons of iron ore concentrate per annum
• Direct reduction plant with the capacity of producing 30k tons of
direct reduced iron (DRI) per annum
• The mining licenses for iron ore deposits include 14.9
million tons of reserves, and 69.7 million tons of
resources, combined 84.5 million tons
• The exploration licenses cover 16.2 thousand hectares of
land
• The beneficiation plant commenced production in 2007
and currently exports majority of its product to China
besides supplying the direct reduction plant that
commenced production in 2008.
• 51% owned by Beren Group LLC and 49% owned by Sor
Metal LLC, both local companies
Beren Mining JSC, Mongolian Iron Ore Processing Company 3

4. Assets – Mining Operation
• The company started drilling in the
Tamiryn Gol area since 2006, and
explored 14.9 million tons of iron ore
reserves in 4 main deposits, which have
registered with the Mineral Resource
Authority of Mongolia.
• The iron content of the reserves range
from 38% to 42%
• It has also identified 69.7 million tons of
prognostic resources in the area, which
will be upgraded into reserve category Location:
after more detailed studies. Tuvshruulekh Soum, Arkhangai Province
Deposits:
• Completed “Technical-economic
-Tamiryn Gol (4.5 million tons of reserves, 40% proven)
characterization” (feasibility study)
- Uzliit (3.2 million tons of probable reserves)
approved by the Ministry of Mineral - Khadat Tolgoi (4.1 million tons of probable reserves)
Resources and Energy in 2011. - Tsenkher (3 million tons of probable reserves)
• In 1970s, Russian geologists estimated
prognostic resources of the Tamiryn Gol
area to be up to 250 million tons of iron
ore after complete survey.
Beren Mining JSC Mongolian Iron Ore Processing Company 4

5. The Assets
• Tamiryn Gol and Khadat Tolgoi deposits have completed
feasibility study approved by the authority body
• Tamiryn Gol deposit is currently being mined
Ulziit
• The company has budgeted 15.6 billion MNT (US$11.6 million) for
License: 11619A
further exploration until 2022 mainly based on Tsenkher and Ulziit
deposit which will upgrade up to 76 million resources into highly
measured reserve category
Khadat Tolgoi
License: 11595A
Tamiryn Gol
License: 9772A
Tsenkher Deposit
License: 10551A
Beren Mining JSC, Mongolian Iron Ore Processing Company 5

6. Production
Iron Ore Concentrate
• The plant commenced in 2007, exporting since
2008
• Current capacity is to produce 250k tons of iron
ore concentrate with 63% to 67% of iron content
per annum
• Raw material (iron ore) supplied by its own mine
• Currently using 84% of the existing capacity
• 100% owned by Beren Mining JSC
Currently sells 92% of the total outcome to China. (plant site)
Khukh Gan JSC - Direct Reduced Iron (DRI)
• The plant commenced in 2008, supplying
200000 150000
Darkhan Metallurgical Plant (DMP) since 2010 180000 145000
besides exporting with small volume 160000 140000
140000
• Current capacity is to produce 30k tons of DRI 120000
135000
with 88% to 92% of iron content per annum 100000 130000
80000
•
125000
Raw material (concentrate) supplied by the Iron 60000 120000
Ore Concentrate plant 40000
20000
115000
• The installed capacity has been fully used 0 110000
• 56% owned by Beren Group LLC 2008 2009 2010 2011
Export Domestic Export Price
The export volume rose 10x in 2011. Also supplies Khukh Gan
Beren Mining JSC, Mongolian Iron Ore Processing Company 6

7. Infrastructure
• Connected with the capital city of Mongolian with
420km auto-road 93% paved and 7% unpaved
• 30km from the central paved road, 70km from the
province capital and 20km from the nearest
residential center (soum)
• Connected to 35kW electricity line supplying
residential centers in the region
• Water is supplied through own technical water wells
• Currently >100 employees and to be increased to
over 800 as the expansion project advances
* Road to export market – 1153 km in total, 63% rail
Erilan City
UB City
Products trucked to UB City The company has
its own warehouse
and reloading
The plant
facility at UB City
Then shipped to China via
Trans-Mongolian railway
Beren Mining JSC, Mongolian Iron Ore Processing Company 7

8. Expansion Project
• The plan is to double the existing iron ore concentrating plant capacity to 0.5 million
tons per annum and to build a new direct reduced iron plant with 0.3 Mtpa capacity
based on the mine
Mining
Concentration
Direct Reduction
- Iron Ore with 42% of iron - Iron ore concentrate with
content 65% of iron content - Direct reduced iron with
95% of iron content
- Capacity increases to - Capacity to increase 0.5
1Mtpa from 0.5Mtpa Mtpa from 0.25 Mtpa - 0.3 Mtpa capacity
Beren Mining JSC, Mongolian Iron Ore Processing Company 8

9. Raw Material Supply
• Being able to supply the major raw materials by itself is a big advantage
• The locally supplied raw materials are suitable for the plants
Raw material Quality consumption Supplier
Iron ore Iron ore 38-42% iron 1 Mtpa Own mine
concentrate content
plant
Iron ore > 63% Fe 401 Ktpa Own plant
concentrate
Direct reduced Coal > 3,000 kcal/kg 286 Ktpa Alag Chuluut,
iron (DRI) plant Saikhan Ovoo
Limestone > 80% activation 63 Ktpa Khutul
Clay pot Fire resistant 25,067 pieces China
Iron ore Concentrate Coal Lime Stone Clay pot DRI
Beren Mining JSC, Mongolian Iron Ore Processing Company 9

10. Production and transportation cost
• In terms of DRI (similar to pig iron) transportation costs account for 17% of the total
costs
• Mongolian parliament has approved the construction plan of new railroad connecting
UB city with the nearest residential center of the plant site
Production and transportation cost per ton Production cost breakdown (US$ per ton
Production cost US$ 32.1 Production US$ 11.3
of concentrate cost of DRI 135.8 9.9
7.1 35.7
32.1
Transportation
Plant to UB city US$ 31.4 Overburden removal
24.1
and extraction
2012
2013
2014
Iron ore
UB city to the border US$ 16.4 concentration
135.8 Direct reduction
135.8
117.8
Total costs US$ 80 US$ 183.7
Price at the US$ 117.7 US$ 400
border
* 2012 projection, * US$ rate = 1335.58 /Mongol Bank/
Beren Mining JSC, Mongolian Iron Ore Processing Company 10

11. Iron ore and DRI markets
Chinese iron ore import (mln tons)
• China is the largest consumer and
the largest importer of iron ore in the
world
• Chinese annual iron ore
consumption grown an average
11.3% since 2005
Source: WorldSteel • The country imports more than 60%
of its annual iron ore consumption
China imported iron ore price
• Its annual iron ore import grown
17.1% in the last 5 years
• Mongolia has annual consumption of
reported 230k tons of steel making
raw materials
Source: Bloomberg
Beren Mining JSC, Mongolian Iron Ore Processing Company 11

12. Chinese steel consumption
• Chinese steel consumption could reach 750 million tons by 2015
Beren Mining JSC, Mongolian Iron Ore Processing Company 12

13. Chinese iron ore/DRI consumption
• Steel making raw materials set for strong demand in another decade
Million tons
Source: WorldSteel
Beren Mining JSC, Mongolian Iron Ore Processing Company 13

14. The Issue
Issuer Beren Mining
Type of share Common
# of outstanding shares 1,740,813,320
post IPO
Par value MNT 157,35
# of shares offered 522,243,996
The offer price MNT 250
Expected capital to be MNT 130,5 billion
raised
Expected market cap MNT 435.2 billion /*US$ 325.8
post IPO million/
Use of proceeds Construction of the second
production line of the
concentrating plant and a DRI
plant
Listing of the shares Mongolia Stock Exchange
Date of regulatory (FRC) Feb 15, 2012
approval
Beren Mining JSC, Mongolian Iron Ore Processing Company 14

15. Public offering
• Placement for strategic investors is to take place before a public sale
• BDSec JSC as sole manager and book runner of the issue
• Q3 would be expected timing for the public sale
• The shares will be sold through Mongolian stock exchange
• The founders’ shares will be locked up until the commence of the proposed plants
The offer structure Use of proceeds
Beren
Mining JSC
(100%) DRI plant
Concentrate
plant
Founders
IPO (30%) other costs
(70%)
Beren Strategic Public
Sor Metal
Group LLC Investors Offering
LLC (49%)
(51%) (70%) (30%)
Beren Mining JSC, Mongolian Iron Ore Processing Company 15

16. Financial projection
Million MNT
2011 2012E 2013E 2014E 2015E
Concentrate production /tons/ 40,000 100,000 202,500 300,000 500,000
DRI production/tons/ 10,000 100,000 160,000 300,000
Sales revenue 6,262 16,605 60,282 97,270 179,565
COGS 1,910 6,098 22,239 34,554 62,780
Gross profit 4,352 10,507 38,043 62,716 116,785
Operating expenses 4,128 8,695 15,984 23,932 43,084
EBITDA 224 1,812 22,059 38,784 73,701
Tax 22 181 5,065 9,246 17,975
Net profit 202 1630 16,994 29,538 55,726
Beren Mining JSC, Mongolian Iron Ore Processing Company 16

17. Contact us
BDSec Munkhtulga Ganbold
Zaluuchuud Avenue 27-1 Head of Institutional Sales
8th Khoroo, Sukhbaatar District Email: mganbold@bdsec.mn
Ulaanbaatar, Mongolia Phone 976-11323411
Phone/Fax: 976-11313108
Email: info@bdsec.mn
Beren Mining JSC, Mongolian Iron Ore Processing Company 17