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BEREN MINING COMPANY

IPO:Summary

Largest Initial Public Offering To Date on the Mongolian Stock Exchange

2012Underwriter

Member of Mongolian Stock Exchange“BDSEC” JSC

THE INITIAL PUBLIC OFFERING

Name of security: Beren Mining

Type of shares: Common

Form of shares: Intangible

Nominal value: 157.35MNT/0.11 USD/

Total number of shares: 1,740,813,320

Number of shares that can be retained by current shareholders: 1,218,569,324

Percentage of shares that can be retained by current shareholders: 70%

Number of shares offered to public: 522,243,996

Percentage of shares offered to public: 30%

The offer price: 250 MNT/0.18USD/

Total amount raising: 130,560,999,000 MNT/96,513,820 USD/

Placement in primary market: The shares will be mostly offered to institutional investors and other investors on the Mongolian Stock Exchange.

QUICK FACTS ABOUT THE COMPANY

• INCORPORATED IN 2005

• MINING PERMTIS ON WORLD CLASS IRON ORE DEPOSITS 500 MILLION TONS; ARKHANGAI WIDE UP TO 1.3 BILLION TONS

• MININING OPERATIONS SINCE 2007, EXPORTS TO CHINA

•THE ONLY IRON ORE COMPANY IN MONGOLIA TO ADOPT COMPREHENSIVE WET PROCESSING TECHNOLOGY

• THE SOLE MANUFACTURER OF INDUSTRY STANDARD IRON ORE FINES WITH 65% TFE IN MONGOLIA

PROJECT TO SUPPLY THE WORLD’S BIGGEST IRON ORE MARKET

CHINA’S NORTHEASTERN STEEL INDUSTRY

BEREN MINNIG COMPANY

CURRENT MAJORSUPPLY ROUTES

Iron Ore Beneficiation Plant

Beren MiningCamp Site Beren Mining

Iron Ore MinePit #1

Beren MiningIron Ore Mine

Pit #2

BEREN MINING COMPANY – CURRENT STATE

MINING CRUSHING GRINDING CLASSIFICATIONMAGNETIC

GRAVITATIONALSEPARATION

DEWATERING

Fe 42%

>200ìì

Fe 42%

30ìì-3ìì

Fe 42%

77ìê>

Fe 42%

77ìê>

Fe 65%

77ìê>

Fe 65%

77ìê>

• MANUFACTURING FLOWSHEET

BEREN MINING COMPANY

BEREN MINING COMPANY

BEREN MINING COMPANY

BEREN MINING COMPANY PRODUCTS

EXPORT TO CHINA AND OTHER COUNTRIES

- Integrated Steelmakers- Blast furnaces, Agglomeration & Sinter plants- Minimills & Direct reduction plants

IRON ORE CONCENTRATE FINES

~65% TFE, S≤0.01, P≤0.1

BEREN MINING PRODUCT

10551А Tsenkher10551А Tsenkher

9772А Tamiryn Gol

9772А Tamiryn Gol

11595А Khadat Tolgoi

11595А Khadat Tolgoi

11619А Ulziit

11619А Ulziit

Scale: 1:500,000

Name of the deposit

Resource amount

Measured

Iron ore deposit of Tamiryn Gol

4,541,156

Iron ore deposit of Tsenkher

21,218,300

Iron ore deposit of Ulziit

16,701,200

Iron ore deposit of Khadat tolgoi

42,180,000

Total indicated reserve

84,640,656

- Beren Group LLC have 4 Iron ore deposits in Arkhangai Province. Total reserve of the 4 deposits are 84 million tons- Deposit operation period is 100 years-”Beren Mining” LLC holds 9513 hectare land with 9774X, and 6736 hectare land with 11472X exploration licenses in Tsenkher, Khotont and Tuvshruulekh soums of Arkhangai province. 11

Iron ore deposits in possession of Beren Mining LLC

BEREN MINING

• CURRENT STATE

- In operation since 2007

- Manufacturing capacity; 250,000 tons per year

- The indicated iron ore reserves of the company is 84 million tons. The inferred resources is approximately 500 million.

• THE PURPOSE OF THE IPO

- Increase the capacity to 0.5 million tons per year

- Increase the capacity of DRI plant to 300,000 tons per year

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# Matter Value

1500 thousand ton’s concentrator, 300 thousand ton’s direct reduced iron plant’s business value

$ 310,617,348.92

2 Total number of shares 1,740,813,320.00

3 Per share to be allotted $ 0.18

BEREN MINING VALUATION

Value Of The IPO• Based only on the future cash-flow

• Resource value not included in the evaluation 84.64 million metric tons of INDICATED resources Possible 500 million tons of inferred resource When calculated from the 84.64 million tons, the resource evaluation as per commonly practiced routines amounts to over 800 million USD

Prospective value: in excess of 1.1 billion USD

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By the end of year 2014, iron ore beneficiation plant will engage full capacity which is 500,000 tons annually. Furthermore, DRI plant located next to iron ore beneficiation plant will also emerge full capacity production at the same time.

Revenue Appreciation

Year 2012 2013 2014 2015

Iron ore beneficiation plant 250,000 202,500 300,000 500,000

Targeted capacity usage percentage, % 40% 41% 60% 100%

Direct reduced iron plant 10,000 100,000 160,000 300,000

Targeted capacity usage percentage, % 3% 33% 53% 100%

Construction of plantConstruction of plants, trial

period

Alignment,

Production

Commencing

production with full

capacity

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Estimated Income Statement

    2012 2013 2014 2015

1 Revenue        

1.4 Net sales 11,860,567.41 43,058,725.45 69,478,667.86 128,261,236.61

2 COGS 4,355,736.96 15,885,177.24 24,681,280.18 44,842,722.13

3 Gross profit 7,504,830.45 27,173,548.21 44,797,387.68 83,418,514.48

4 Operational expenses 6,205,832.05 11,411,158.32 17,088,559.41 30,768,791.57

5 Operational income /loss/ 1,298,998.40 15,762,389.89 27,708,828.26 52,649,722.91

8 Surplus or deficit from ordinary activities 1,298,998.41 15,762,389.88 27,708,828.26 52,649,722.91

12 Income before tax/Loss/ 1,298,998.41 15,762,389.88 27,708,828.26 52,649,722.91

13 Income tax 129,899.84 3,619,168.90 6,605,778.49 12,841,002.16

14 Net income during balance report /Loss/ 1,169,098.56 12,143,220.98 21,103,049.77 39,808,720.75

15 EPS /loss/ ₵0.6 ₵0.7 ₵1.22 ₵2.29

16 Non-cash expenses 7,669,870.77 7,669,870.77 7,669,870.77 7,669,870.77

17 Main financing charges (40,078,855.54) (50,397,572.11) (927,142.86) (927,142.86)

20 Net cash flow (31,239,886.21) (30,584,480.36) 27,845,777.69 46,551,448.66

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ENDTHANK YOU

Beren GroupUlaanbaatar, Mongolia

Tel: +976 55151715Email: contact@beren.mnWebsite: www.beren.mn