Ann: Newera Issues Notice to Continue with its Sh, page-24

re: Ann: Newera Issues Notice to Continue wit... from my understanding, the coal quality from hole 2 is good quality and the only reason why it has been refer to as semi-anthracite is the ash(ARB) is 27%, if it is less 10%, it would be refer to anthracite, IMO.

from my research, Anthracite is believe to be the highest quality in the coal family, its Fix carbon is over 80%, some is around 90%,its VADF is less than 10%, CV of KCAL is average 6000-9000,toal moisure is low, especially the Inherent moisture, the higher the degree of coal metamorphism, the less its ingerent moisture,(when coal is buning, if the IM is higher, it will consume more heat so lower temperature), therefore, when we look at NRU's ann, " CV of 8263 kcal (DAF), 9.86% volatile matter (ARB), 7.47% total moisture / 0.83% inherent moisture, 27.65% ash (ARB), and 84.80% fixed carbon (DAF)", i do have a better understanding of what coal quality in that hole 2, the only concern is its ASH,so that is why it is SEMI-Anthracite.

when we look at the coal picture in the 4/10 ann of the hole 09R , its BLACK AND VERY BRIGHT, i do take it as a good sign of the coal quality, but had to wait for ANN to confirm.

Many mongolian coal also being consumed domestically, the Trans-Mongolia rail way is being used to transport coal to its capital and other towns, so if NRU's coal can be sold domestically( which mentioned by a mate here before), i believe its margin is even bigger because NRU's coal mine will be OPEN-PIT (cost is 10-15 usd)given NRU said if it is enonomic,which i believe.

All in all, based on my DYOR, if the coal in 09R is not having Coking coal properties , its coal quality still the high quality one, as i mentioned, you really can't argue 8263 Kcal, 84% FC, 0.83% IM , 9.7% Vadf in the hole of Hole2, really promosing, therefore, if the 9.7% Vadf increase to around 15%, its ash drop to 14%, it is very likely it is Coking Coal, if its ash drop to around 17%, if will likely to be considered as Anthracite,even not, anything similar as Hole 2 with 19M thick coal seam, it is still quite positive.

As for the eariler notice issued by Nru, it also tell the market, we wanna in because ........but we are not allowed to tell you now until the final analysing result come out.

All in all, i wrote here what i learnt and searched( i am a chinese so i do like to check chinese web sites)and you can check if you have any question by searching english web sites to check.

i do believe Nru can up strongly given its management knowledge, intention, china, a country still rely on coal consuming, even with the GDP of 7.4%, but is in another goverment stimulas at present,need to import more and more quality coal from outside, especailly Mongolia.