Investment Agreement

Erdenes Methane LLC and Jade Methane LLC of Australia established Methane gas investment agreement to set reserves of coal seams of coal at Tavantolgoi deposit. Executive Director of Erdenes Methane LLC and Executive Director of Jade Methane LLC have signed the contract on May 17, 2019.

CEO of Jade Methane Joseph Burke said “Mongolia is close to the market of key customers in methane gas. It is seen as a major competitive advantage since the natural gas reserves are relatively close to 600km from Ulaanbaatar. China receives natural gas from other countries through its northern port. Instead of that, if they export natural gas and methane gas from Mongolia, China will have the opportunity to deliver at least cost to its core customers.”

The Board of Directors of Erdenes Mongol LLC made a decision to raise funds from the international market by exchanging exploration and feasibility studies for the Coal Seam methane gas project by foreign investors last year. According to this, Erdenes Methane announced an open tender and Australia’s Jade Methane was chosen as the foreign investor to cooperate on the project.