YAK:CN - Leveraged to Mongolia’s Growth March 2012
Legal Disclaimers This is not an offer to sell or a solicitation of an offer to purchase securities looking statements are typically identified by terminology such as “may,” by Mongolia Growth Group (the “Company”). Any such offer or “will,” “should,” “expect,” “anticipates,” “plans,” “intends,” “believes,” solicitation will only be made by means of the Company’s Offering “estimates,” “projects,” “predicts,” “seeks,” “potential,” “continue” or Documents (e.g., prospectus, offering memorandum, subscription other similar terminology. Forward-looking statements are inherently agreement and or similar documents) and only in jurisdictions where unreliable, and prospective investors should not rely on them. The permitted by law. Investors should refer to the Offering Documents for forward-looking statements are based on the Company’s current more complete information, including investment risks, fees and expenses. expectations, assumptions, estimates and projections about future events. Actual results are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in a forward- The securities are a highly speculative investment and are not intended as a looking statement as a result of various factors which may be further complete investment program. They are designed only for sophisticated described in the Company’s Offering Documents. The Company does not persons who can bear the economic risk of the loss of their investment in have any obligation to update or otherwise revise any forward-looking the Company and who have limited need for liquidity in their investment. statements in the attached material or to reflect the occurrence of There can be no assurance that the Company will achieve its objectives. unanticipated events. Target investment goals are not a guarantee of future returns. Certain information contained herein have been prepared by third-party The attached material is provided for informational purposes only as of the sources, and such information has not been independently audited or date hereof, is not complete, and may not contain certain material verified by the Company. The Company has used its best efforts to ensure information about the Company, including important disclosures and risk the accuracy and completeness of the information presented. factors associated with an investment in the Company. This information does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. More complete disclosures and the terms and conditions relating to a particular investment is, or will be, contained in the Offering Documents. Before making any investment, prospective investors should thoroughly and carefully review the Offering Documents with their financial, legal and tax advisors to determine whether an investment is suitable for them. The attached material includes forward-looking statements relating to, among other things, the future financial performance of and objectives of the Company; plans and expectations for the operation of the Company; and estimates or expectations for fees, costs and expenses. These forward- 2
Legal Disclaimers Forward Looking Statements may carry on business; the speculative nature of oil and natural gas exploration, production and development, including the risks of obtaining This document, together with any documents incorporated by reference necessary licenses and permits; diminishing quantities or grades of herein, contains statements about expected future events and financial and reserves; competition; loss of key employees, additional funding operating results that are forward-looking. From time to time, we may also requirements; stock market volatility and ability to access sufficient capital provide oral or written forward-looking statements in other materials we from internal and external sources; actual results of current exploration or release to the public. Forward-looking statements give our current reclamation activities; changes in project parameters as plans continue to expectations or forecasts of future-events. You can identify these be refined; accidents; labour disputes; and defective title to claims or statements by forward-looking words such as "expects", "does not expect", property or contests over claims to oil and gas properties. In addition, there "plans", "anticipates", "does not anticipate", "believes", "intends", are risks and hazards associated with the business of oil and natural gas "estimates", "projects", "potential", "scheduled", "forecast", "budget" and exploration, production and development, including environmental similar expressions, or that events or conditions "will", "would", "may", hazards, industrial accidents, unusual or unexpected formations, pressures, "could", "should" or "might" occur and similar words. In addition, cave-ins and flooding (and the risk of inadequate insurance or inability to statements that we make in this document including any documents obtain insurance, to cover these risks). You should not place undue incorporated by reference herein that are not statements of historical fact reliance on forward-looking statements. may also be forward-looking statements. We do not promise to notify you if we learn that our assumptions or Forward-looking statements are not guarantees of our future performance projections are wrong for any reason except as required under applicable and involve risks, uncertainties and assumptions that may cause our actual securities laws. We do not undertake any obligation to update forward- results to differ materially from the expectations we describe in our looking statements, whether as a result of new information, future events or forward-looking statements. For example, some risks, uncertainties and otherwise except as required under applicable securities laws. You should assumptions include: capital requirements; fluctuations in the international be aware that all the risk factors discussed in this document could cause our currency markets and in the rates of exchange of the currencies of Canada actual results to differ from any forward-looking statements. and the United States; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production and between actual and estimated reserves and resources; changes in national and local government legislation in Canada, the United States and Mongolia or any other country in which the Company currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which the Company does or 3
Mission Statement � Leverage the tremendous growth in Mongolia � Focused on acquiring, constructing and managing investment real estate in Mongolia while helping to build the country’s insurance industry 4
Why Mongolia? � Rich in mineral wealth � Construction of world class mines � Proximity to China � Experiencing a high teen annual GDP growth rate � Hard working and ambitious, pro-Western culture 5
The Country � Land area: 1.56m sq.km � Population: 2.7 million � Political System: Democracy Ulaanbaatar � Capital: Ulaanbaatar � Located between Russia and China � 19th largest country in the world � GDP (2011): $8,14 Billion * � GDP per capita: $2,872* � GDP is likely to accelerate significantly in the future 6 *NSO (National Statistical Office of Mongolia)
How Big is the Opportunity? Copper production forecast, thousand tonnes 1200 1000 Oyu tolgoi, 800 Tsagaan suvarga, Bayan-Airag 600 Erdenet 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ACI Mongolia, The Financial Markets Association 7
How Big is the Opportunity? Mining production forecast, by minerals Nominal GDP estimation, mln USD type, mln USD 35,000 30000 30,000 25000 25,000 20000 20,000 15000 Oil Other sector 15,000 increase Iron ore Mining 10000 Coal 10,000 By capacity Copper 5000 GDP, mln usd 5,000 Gold - - - - - - - - - 0 - 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 ACI Mongolia, The Financial Markets Association 8
Foreign Direct Investment � Foreign investments in Foreign Direct Investments, US$MN* Mongolia have increased in recent years � Investments are primarily in 1,200 1,026 the resource sector 1,000 820 801 � FDI per capita is $380US 800 709 643 600 500 485 367 337 400 317 195 184 200 - 2005 2006 2007 2008 2009 2010 FDI FDI-Mining 9 *NSO (National Statistical Office of Mongolia)
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