Ann: CIS Coal Summit Presentation , page-2

Hi Guys

Not the news we where waiting for but good to see that the company is still out on the PR trail and networking. The conference AKM presented at is biased in Russia and is a big event for coal companies and the industry in that area of the world. I have posted a description of what the event entails below:

Summit Introduction: Running 24th and 25th of May (Moscow)

Every year, this leading industry event provides senior industry professionals, investors, traders, analysts and top executives from Russia, the CIS and international markets with a platform for debate, analysis and networking, aimed at providing effective solutions for the industry's challenges.

KEY TOPICS OF DISCUSSION:

# Global coal industry outlook
# Industry Leaders? Panel Debate
# Liberalisation of energy markets
# Russia?s long-term energy strategies (2011 ? 2030)
# Coal transportation
# Coal exports to global markets

This presentation is very different to previous presentations in that it contains allot more product information. I wonder if the company is looking into possibly pushing its coal into Russia as another opportunity to broaden its market exposure once production begins. All this information about coal make up on the slides suggests they maybe now be marketing the product to see what interest their is for AKM's coal as final quality results have been received.

It is also good to see some clarification on the ROM I believe someone pointed out in the last quarterly that the company suggested 10.5mtpa (which is 70% yield from 15mt). Which is right as that figure is all coking coal the remainder of the 15mt capacity I am assuming will be lower grade product from Ovoot. Also we have the first time frame for stage 2 of the project which is when the rail,wash plant and required infrastructure will be in place and producing. Obviously lots of hurdles and milestones between 2016 but this helps to show that the company believes it is viable to go ahead at the current resource levels.

They have also used a 70% base yield figure in this presentation where in the past they have stated 65%, which is due to the recent results being factored in. Remember we are still waiting on wash results for the last of the 2010 drilling campaign, which will give a clearer picture again about final yields. Also good information about the seams across the current project area, the two seams containing 93% of the resource will help to ensure that operating costs are minimized as they are not having to process large amounts of rubbish (sediment) to get to the coal and gives a healthy strip ratio. With allot of other coal resources there may be up to 10 or twenty small seams mixed in with sediment making a deposit less economic due to strip ratio's.

Also liked the Jilchigbulag project slide as this project buts onto an existing coal mine. What does Ovoot have right next to the DSO area of the project? an existing coal mine. Will be looking forward to the results from this drilling as it looks promising for another possible coal deposit. The future is looking good for AKM!

GL to all holders

GB