Second Module of MMC's CHPP Successfully Commissioned

To Boost ROM Coal Processing Capacity to 10 Million Tonnes per Annum

HONG KONG, Feb. 20, 2012 /PRNewswire-Asia/ -- Mongolian Mining Corporation ("MMC", or together with its subsidiaries, the "Group"; HKEx: 975), is pleased to announce that the second module of its Coal Handling and Preparation Plant ("CHPP") at its Ukhaa Khudag coking coal mine ("UHG mine") has been successfully commissioned by the State Commission, which comprises specialists from various government agencies of Mongolia, on 16 February 2012 as scheduled. The second module of the plant was built within 14 months and the capital expenditure totaled approximately USD91 million in line with the Group's original estimates.

Designed to operate for a minimum of 6,000 hours per year and with an in-feed operating rate at around 850 tonnes per hour of run-of-mine ("ROM") coal, the second module of the CHPP is capable of processing around 5.0 million tonnes of ROM coal per annum, which will enable the Group to double its current coal handling and processing capacity to at least 10.0 million tonnes per annum. Meanwhile, construction of the third module of the CHPP, which will further boost the Group's annual coal processing capacity to 15 million tonnes, is currently underway and is slated for completion by the end of 2012.

Dr. Battsengel Gotov, CEO of MMC, commented, "The successful commissioning of the second module of the CHPP is strong proof of MMC's determination to enhance its leading position and competitiveness in the region. Leveraging the continuous expansion of our CHPP operations as scheduled, we have been provided with a strong boost to our washed hard coking coal production volume. Especially with the positive market outlook and uptrend of domestic coal prices in China, we believe that our plan to sell only washed coal starting from 2012 will enable us to maximize our profitability and to build our own brand of quality washed coal. We will continue to execute our long-term growth strategy to enhance our production capacity so as to reinforce the sustainability of our business."

The first module of MMC's CHPP, which commenced commercial operations in June 2011, is the first coal handling and processing facility of its kind in Mongolia and has a coal processing capacity of 5.0 million tonnes of ROM coal per annum. The design, procurement and construction management of the CHPP was undertaken by Sedgman Limited, Australia, one of the world's leading engineering companies in coal processing and material handling technology.

About Mongolian Mining Corporation (MMC)

Mongolian Mining Corporation (MMC, or together with its subsidiaries, the "Group"; HKEx: 975) is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates an open-pit coking coal mine at the Ukhaa Khudag ("UHG") deposit located within the Tavan Tolgoi ("TT") coal formation, as well as the Baruun Naran ("BN") coking coal deposit, both located in South Gobi, Mongolia. MMC was listed on the HKEx in October 2010.

In June 2011, MMC's coal handling and preparation plant ("CHPP") at the UHG mine was successfully commissioned. The first of its kind in Mongolia, the new plant enables the Company to boost its competitiveness in the world market and solidifies MMC's position as the leading coking coal miner in Mongolia.

To learn more about the Company, please visit MMC's website at: www.mmc.mn

For further enquiries, please contact Hill+Knowlton Strategies Asia