Ann: Quarterly Activities Report , page-2

Hi Guys

Well looks like the AKM team have been really busy, plenty of information to digest in the report. Looks like we will have to wait a little longer for the scoping study, hopefully early next month.

A few quick highlights i picked up on

# Jilchigbulag cola project potentially contains COKING COAL with an average of 8m of coal being recorded in 5 out of 6 holes drilled. With further work to be done after coal samples are recieved.

# Nuramt hits one intersection of 12m of weathered coal at surface. More work to be completed after seismic survey data is interpreted.

# All drill rigs (3 rigs currently plus another shortly) are now focused on exploration drilling at Ovoot to test targets south and north of the current resource and more work to be done to the east due to equipment problems

# Power secured plus an agreement to sell coal to a new coal fired power station! Water studies underway and a new road proposed to be built in 2012 to upgrade road capacity to the rail head.

# Rail capasity secured on potential routes and capacity being sought at ports. Aditional transportation routes identified and study to be completed by end of year.

# Pre-Feasibility study to begin and be completed by December 2011 and targeting bankable feasibility study to commence in January 2012.

Plenty of news on the horizon looking forward to upcoming news and the scoping study. GL to all holders

GB