Invitation for bidding

Date: December 23, 2010

Name: Open Bidding for Contract Miner for Tavan Tolgoi Coal Deposit

Number: Erdenes-TT/23/12/2010



1. Two-phase open bidding is being announced to select a contract miner/operator that will

conduct mining operations on a contract basis in eastern Tsankhi area – Erdenes-TT mine

at the Tavan Tolgoi coal deposit.



2. The Tavan Tolgoi coal deposit is Mongolia’s strategically significant and world-class

coking coal deposit located in southern part or Gobi region of Mongolia.



3. A corporate entity selected to enter into a contract as a result of the two-phase open bidding

shall become a contract miner/operator that will conduct coal mining operations in eastern

Tsankhi area – Erdenes-TT mine of Erdenes-Tavan Tolgoi company, subsidiary of Erdenes

MGL LLC, at the deposit.



4. The Client seeks to select an experienced, capable, and reputable contract miner/operator

that can have a positive impact on the company’s assessment – sale of shares of Erdenes-

Tavan Tolgoi company at international and domestic stock exchanges (IPO) and fund

raising, conducts operations at international level, and uses leading equipment/machinery

and technology and high standards.



5. The bidder shall deliver bid security as reflected in the tender document along with its bid.

The bid shall be valid for 150 days after it is opened.



6. The bidder shall purchase the Bidding Document for nonrefundable US$8,000 (eight

thousand US dollars) or equivalent amount in Mongolian currency (tugrug). The payment

shall be made to the Client’s bank account. Information on the bank account shall be

obtained at the contact address. The payment can be made in cash in person or through its

authorized representative. A copy of the receipt of the payment made through the bank

account shall be delivered to the Client by fax or e-mail.



7. The bidder shall deliver its bids prepared and sealed as per requirements stipulated in the

Bidding Document as per corresponding regulations by mail, express mail, or its authorized

representative. The Client shall not be responsible for lost mail and any cost incurred in

relation to preparation and delivery of the bidder’s bid.



8. Bids shall be delivered to the Client at the address for submission of applications prior to

16.00 pm on January 27, 2011. They shall be opened at 17.00 pm on January 27, 2011. The

Client shall reject the bids that have missed the deadline.



9. Mongolia’s corresponding laws, rules, and regulations and Bidding Document shall be

applicable to the bidding.



10. The bidding shall be conducted at two phases as set out in the Public and Local Procurement

Law and Bidding Document.



11. The Bidder selected to enter into a contract as a result of the bidding shall mine coal and

remove overburden and conduct other mine planning and organization-related operations on

a contract basis in eastern Tsankhi area – Erdenes-TT mine at the Tavan Tolgoi coal deposit

for a specific period of time (agreement shall be reached on the specific period of time

under a contract contingent on commencement of mine operations at full capacity).



12. Bidders that have obtained the Bidding Document as per corresponding regulations can

obtain information at the contact address.



13. Address for submission of bids and contact:



Erdenes MGL LLC

Bidding for Contract Miner

Suite 37, Diplomatic Complex 95, khoroo/sub-district 5

Chingeltei district, Ulaanbaatar, Mongolia

Tel: +976-7011-0735; +976-7011-0625

Fax: +976-7011-0725

Email: contractmining@erdenesmgl.mn



Contacts:

Ch. Batbaatar (Mobile: +976-9907-1318) (batbaatar.ch@erdenesmgl.mn)

Ts. Tsenguun (Mobile: +976-8820-2933) (tsenguun@erdenesmgl.mn)

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