Common use of SECURITIES TRANSACTIONS BY DIRECTORS Clause in Contracts

SECURITIES TRANSACTIONS BY DIRECTORS. The Company has adopted policies regarding directors’ securities transactions in its Corporate Disclosure, Confidentiality and Securities Trading Policy that have terms, which contain no less exacting than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 to the Hong Kong Listing Rules. Having made specific enquiry of all Directors, the Company received written confirmation from its directors that all directors had received, reviewed and abided by the terms of the Company’s Corporate Disclosure, Confidentiality and Securities Trading Policy throughout the year ended December 31, 2021. The COVID-19 pandemic has caused unprecedented challenges around the world and adversely impacted the global economy. The Company has adopted, and will continue to implement, strict COVID-19 precautionary measures at the mine site as well as in all of its offices in order to maintain operations in the normal course, while also complying with the advice or orders of local public health authorities. As a result of the restrictions on truck volume crossing the Mongolian border into China imposed by Chinese Authorities at the Ceke Port of Entry, the Company anticipates that it will continue to be negatively impacted by the COVID-19 pandemic for the foreseeable future until restrictions on trucking volume crossing are lifted, which will have an adverse effect on the Company’s sales, production, logistics and financials. In particular, the restriction of the number of trucks crossing the Mongolian border into China implemented will limit the Company’s ability to increase revenue despite the improved market conditions in China. Following the recent temporary closure of the Ceke border, there will be a material adverse impact on the Company’s sales and cash flow until such time as coal exports into China are allowed to resume. In order to control the inventory level and preserve the Company’s working capital, the Company temporarily suspended mining operations (including coal mining) beginning in early November 2021. The Company will continue to closely monitor the COVID-19 pandemic and the impact it has on coal exports to China, and will continue to react promptly to preserve the working capital of the Company and mitigate any negative impacts on the business and operations of the Company. The Company remains cautiously optimistic regarding the Chinese coal market, as coal is still considered to be the primary energy source which China will continue to rely on in the foreseeable future. Coal supply and coal import in China are expected to be limited due to increasingly stringent requirements relating to environmental protection and safety production, which may result in volatile coal prices in China. The Company will continue to monitor and react proactively to the dynamic market. In the medium term, the Company will continue to adopt various strategies to enhance its product mix in order to maximize revenue, expand its customer base and sales network, improve logistics, optimize its operational cost structure and, most importantly, operate in a safe and socially responsible manner. The Company’s objectives for the medium term are as follows: • Enhance product mix – The Company will focus on improving the product mix and increasing the production of higher quality coal by: (i) improving mining operations; (ii) washing lower quality coal in the Company’s coal wash plant and partnering with other nearby coal wash plant(s); (iii) resuming the construction and operation of the Company’s dry coal processing plant; and (iv) trading and blending different types of coal to produce blended coal products that are economical to the Company. • Expand customer base – The Company will endeavour to increase sales volume and sales price by: (i) expanding its sales network and diversifying its customer base; (ii) increasing its coal logistics capacity to resolve the bottleneck in the distribution channel; and (iii) setting and adjusting the sales price based on a more market-oriented approach in order to maximize profit while maintaining sustainable long-term business relationships with customers. • Optimize cost structure – The Company will aim to reduce its production costs and optimize its cost structure through engaging third party contract mining companies to enhance its operation efficiency, strengthening procurement management, ongoing training and productivity enhancement. • Operate in a safe and socially responsible manner – The Company will continue to maintain the highest standards in health, safety and environmental performance and operate in a corporate socially responsible manner, and continue to strictly implement its COVID-19 precautionary measures at the mine site and across all offices. In the long term, the Company will continue to focus on creating and maximizing shareholders value by leveraging its key competitive strengths, including: • Strategic location – The Ovoot Tolgoi Mine is located approximately 40km from China, which represents the Company’s main coal market. The Company has an infrastructure advantage, being approximately 50km from a major Chinese coal distribution terminal with rail connections to key coal markets in China. • A large reserves base – The Ovoot Tolgoi Deposit has mineral reserves of more than 100 million tonnes. The Company also has several development options in its Zag Suuj coal deposit and Soumber coal deposit. • Bridge between Mongolia and China – The Company is well-positioned to capture the resulting business opportunities between China and Mongolia under the Belt and Road Initiative. The Company will seek potential strategic support from its two largest shareholders, which are both state-owned-enterprises in China, and its strong operational record for the past decade in Mongolia, being one of the largest enterprises and taxpayers in Mongolia.

SECURITIES TRANSACTIONS BY DIRECTORS. The Company has adopted policies regarding directors’ securities transactions in its Corporate Disclosure, Confidentiality and Securities Trading Policy that have terms, which contain no less exacting than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 to the Hong Kong Listing Rules. Having made specific enquiry of all Directors, the Company received written confirmation from its directors that all directors had received, reviewed and abided by the terms of the Company’s Corporate Disclosure, Confidentiality and Securities Trading Policy throughout the year ended December 31, 2021. The COVID-19 pandemic has caused unprecedented challenges around the world and adversely impacted the global economy. The Company has adopted, and will continue to implement, strict COVID-19 precautionary measures at the mine site as well as in all of its offices in order to maintain operations in the normal course, while also complying with the advice or orders of local public health authorities. As a result of the restrictions on truck volume crossing the Mongolian border into China imposed by the Chinese Authorities at the Ceke Port of Entry, the Company anticipates that it will continue to be negatively impacted by the COVID-19 pandemic for the foreseeable future until restrictions on trucking volume crossing are lifted, which will have an adverse effect on the Company’s sales, production, logistics and financials. In particular, the restriction of the number of trucks crossing the Mongolian border into China implemented will limit the Company’s ability to increase revenue despite the improved market conditions in China. Following the recent temporary closure of the Ceke border, there will be a material adverse impact on the Company’s sales and cash flow until such time as coal exports into China are allowed to resume. In order to control the inventory level and preserve the Company’s working capital, the Company temporarily suspended mining operations (including coal mining) beginning in early November 2021. The Company will continue to closely monitor the COVID-19 pandemic and the impact it has on coal exports to China, and will continue to react promptly to preserve the working capital of the Company and mitigate any negative impacts on the business and operations of the Company. The Company remains cautiously optimistic regarding the Chinese coal market, as coal is still considered to be the primary energy source which China will continue to rely on in the foreseeable future. Coal supply and coal import in China are expected to be limited due to increasingly stringent requirements relating to environmental protection and safety production, which may result in volatile coal prices in China. The Company will continue to monitor and react proactively to the dynamic market. In the medium term, the Company will continue to adopt various strategies to enhance its product mix in order to maximize revenue, expand its customer base and sales network, improve logistics, optimize its operational cost structure and, most importantly, operate in a safe and socially responsible manner. The Company’s objectives for the medium term are as follows: • Enhance product mix – The Company will focus on improving the product mix and increasing the production of higher quality coal by: (i) improving mining operations; (ii) washing lower quality coal in the Company’s coal wash plant and partnering with other nearby coal wash plant(s); (iii) resuming the construction and operation of the Company’s dry coal processing plant; and (iv) trading and blending different types of coal to produce blended coal products that are economical to the Company. • Expand customer base – The Company will endeavour to increase sales volume and sales price by: (i) expanding its sales network and diversifying its customer base; (ii) increasing its coal logistics capacity to resolve the bottleneck in the distribution channel; and (iii) setting and adjusting the sales price based on a more market-oriented approach in order to maximize profit while maintaining sustainable long-term business relationships with customers. • Optimize cost structure – The Company will aim to reduce its production costs and optimize its cost structure through engaging third party contract mining companies to enhance its operation efficiency, strengthening procurement management, ongoing training and productivity enhancement. • Operate in a safe and socially responsible manner – The Company will continue to maintain the highest standards in health, safety and environmental performance and operate in a corporate socially responsible manner, and continue to strictly implement its COVID-19 precautionary measures at the mine site and across all offices. In the long term, the Company will continue to focus on creating and maximizing shareholders value by leveraging its key competitive strengths, including: • Strategic location – The Ovoot Tolgoi Mine is located approximately 40km from China, which represents the Company’s main coal market. The Company has an infrastructure advantage, being approximately 50km from a major Chinese coal distribution terminal with rail connections to key coal markets in China. • A large reserves base – The Ovoot Tolgoi Deposit has mineral reserves of more than 100 million tonnes. The Company also has several development options in its Zag Suuj coal deposit and Soumber coal deposit. • Bridge between Mongolia and China – The Company is well-positioned to capture the resulting business opportunities between China and Mongolia under the Belt and Road Initiative. The Company will seek potential strategic support from its two largest shareholdersShareholders, which are both state-owned-enterprises in China, and its strong operational record for the past decade in Mongolia, being one of the largest enterprises and taxpayers in Mongolia.

SECURITIES TRANSACTIONS BY DIRECTORS. The Company has adopted policies regarding directors’ securities transactions in its Corporate Disclosure, Confidentiality and Securities Trading Policy that have terms, which contain terms that are no less exacting than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 to the Hong Kong Listing RulesRules (“Model Code”). Having made In response to a specific enquiry of all Directors, made by the Company received written confirmation from its directors that on each of the directors, all directors confirmed that they had received, reviewed complied with the required standards as set out in the Model Code and abided by the terms of the Company’s Corporate Disclosure, Confidentiality and Securities Trading Policy throughout the year six months ended December 31June 30, 2021. The COVID-19 pandemic has caused unprecedented challenges around the world and adversely impacted the global economy. The Company has adopted, adopted and will continue to implement, implement strict COVID-19 precautionary measures at the mine site as well as in all of its offices in order to maintain operations in the normal course, while also complying with the advice or orders of local public health authorities. As a result of the restrictions on truck trucking volume crossing the Mongolian border into China imposed by Chinese Authorities authorities at the Ceke Port port of Entryentry, the Company anticipates that it will continue to be negatively impacted by the COVID-19 pandemic for the foreseeable future until restrictions on trucking volume crossing are liftedfuture, which will have an adverse effect on the Company’s sales, production, logistics and financials. In particular, the restriction of the number of trucks for crossing the Mongolian border into China implemented by the Chinese authorities will limit the Company’s ability to increase revenue despite the improved market conditions in China. Following the recent temporary closure of the Ceke border, there will be a material adverse impact on the Company’s sales and cash flow until such time as coal exports into China are allowed to resume. In order to control the inventory level and preserve the Company’s working capital, the Company temporarily suspended mining operations (including coal mining) beginning in early November 2021. The Company will continue to closely monitor the development of the COVID-19 pandemic and the impact it has on coal exports to China, China and will continue to react promptly to preserve the working capital of the Company and mitigate any negative impacts on the business and operations of the Company. The Company remains cautiously optimistic regarding the Chinese coal market, as coal is still considered to be the primary energy source which China will continue to rely on in the foreseeable future. Coal supply and coal import in China are expected to be limited due to increasingly stringent requirements relating to environmental protection and safety production, which may result in volatile coal prices in China. The Company will continue to monitor and react proactively to the dynamic market. In the medium term, the Company will continue to adopt various strategies to enhance its product mix in order to maximize revenue, expand its customer base and sales network, improve logistics, optimize its operational cost structure and, most importantly, operate in a safe and socially responsible manner. The Company’s objectives for the medium term are as follows: • Enhance product mix – The Company will focus on improving the product mix and increasing the production of higher quality coal by: (i) improving mining operations; (ii) washing lower quality coal in the Company’s coal wash plant and partnering with other nearby coal wash plant(s); (iii) resuming the construction and operation of the Company’s dry coal processing plant; and (iv) trading and blending different types of coal to produce blended coal products that are economical to the Company. • Expand customer base – The Company will endeavour to increase sales volume and sales price by: (i) expanding its sales network and diversifying its customer base; (ii) increasing its coal logistics capacity to resolve the bottleneck in the distribution channel; and (iii) setting and adjusting the sales price based on a more market-oriented approach in order to maximize profit while maintaining sustainable long-term business relationships with customers. • Optimize cost structure – The Company will aim to reduce its production costs and optimize its cost structure through engaging third party contract mining companies to enhance its operation efficiency, strengthening procurement management, ongoing training and productivity enhancement. • Operate in a safe and socially responsible manner – The Company will continue to maintain the highest standards in health, safety and environmental performance and operate in a corporate socially responsible manner, and continue to strictly implement its COVID-19 precautionary measures at the mine site and across all offices. In the long term, the Company will continue to focus on creating and maximizing shareholders value by leveraging its key competitive strengths, including: • Strategic location – The Ovoot Tolgoi Mine is located approximately 40km from China, which represents the Company’s main coal market. The Company has an infrastructure advantage, being approximately 50km from a major Chinese coal distribution terminal with rail connections to key coal markets in China. • A large reserves base – The Ovoot Tolgoi Deposit has mineral reserves of more than 100 million tonnes. The Company also has several development options in its Zag Suuj coal deposit and Soumber coal deposit. • Bridge between Mongolia and China – The Company is well-positioned to capture the resulting business opportunities between China and Mongolia under the Belt and Road Initiative. The Company will seek potential strategic support from its two largest shareholders, which are both state-owned-enterprises in China, and its strong operational record for the past decade in Mongolia, being one of the largest enterprises and taxpayers in Mongolia.:

SECURITIES TRANSACTIONS BY DIRECTORS. The Company has adopted policies regarding directors’ securities transactions in its Corporate Disclosure, Confidentiality and Securities Trading Policy that have terms, which contain terms that are no less exacting than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 to the Hong Kong Listing RulesRules (“Model Code”). Having made In response to a specific enquiry of all Directors, made by the Company received written confirmation from its directors that on each of the directors, all directors confirmed that they had received, reviewed complied with the required standards as set out in the Model Code and abided by the terms of the Company’s Corporate Disclosure, Confidentiality and Securities Trading Policy throughout the year nine months ended December 31September 30, 2021. The COVID-19 pandemic has caused unprecedented challenges around the world and adversely impacted the global economy. The Company has adopted, adopted and will continue to implement, implement strict COVID-19 precautionary measures at the mine site as well as in all of its offices in order to maintain operations in the normal course, while also complying with the advice or orders of local public health authorities. As a result of the restrictions on truck trucking volume crossing the Mongolian border into China imposed by Chinese Authorities at the Ceke Port port of Entryentry, the Company anticipates that it will continue to be negatively impacted by the COVID-19 pandemic for the foreseeable future until restrictions on trucking volume crossing are liftedfuture, which will have an adverse effect on the Company’s sales, production, logistics and financials. In particular, the restriction of the number of trucks for crossing the Mongolian border into China implemented by the Chinese authorities will limit the Company’s ability to increase revenue despite the improved market conditions in China. Following the recent temporary closure of the Ceke border, there will be a material adverse impact on the Company’s sales and cash flow until such time as coal exports into China are allowed to resume. In order to control the inventory level and preserve the Company’s working capital, the Company decided to temporarily suspended suspend mining operations (including coal mining) beginning in as of early November 2021. The 2021.The Company will continue to closely monitor the development of the COVID-19 pandemic and the impact it has on coal exports to China, and will continue to react promptly to preserve the working capital of the Company and mitigate any negative impacts on the business and operations of the Company. The Company remains cautiously optimistic regarding the Chinese coal market, as coal is still considered to be the primary energy source which China will continue to rely on in the foreseeable future. Coal supply and coal import in China are expected to be limited due to increasingly stringent requirements relating to environmental protection and safety production, which may result in volatile coal prices in China. The Company will continue to monitor and react proactively to the dynamic market. In the medium term, the Company will continue to adopt various strategies to enhance its product mix in order to maximize revenue, expand its customer base and sales network, improve logistics, optimize its operational cost structure and, most importantly, operate in a safe and socially responsible manner. The Company’s objectives for the medium term are as follows: • Enhance product mix – The Company will focus on improving the product mix and increasing the production of higher quality coal by: (i) improving mining operations; (ii) washing lower quality coal in the Company’s coal wash plant and partnering with other nearby coal wash plant(s); (iii) resuming the construction and operation of the Company’s dry coal processing plant; and (iv) trading and blending different types of coal to produce blended coal products that are economical to the Company. • Expand customer base – The Company will endeavour to increase sales volume and sales price by: (i) expanding its sales network and diversifying its customer base; (ii) increasing its coal logistics capacity to resolve the bottleneck in the distribution channel; and (iii) setting and adjusting the sales price based on a more market-oriented approach in order to maximize profit while maintaining sustainable long-term business relationships with customers. • Optimize cost structure – The Company will aim to reduce its production costs and optimize its cost structure through engaging third party contract mining companies to enhance its operation efficiency, strengthening procurement management, ongoing training and productivity enhancement. • Operate in a safe and socially responsible manner – The Company will continue to maintain the highest standards in health, safety and environmental performance and operate in a corporate socially responsible manner, and continue to strictly implement its COVID-19 precautionary measures at the mine site and across all offices. In the long term, the Company will continue to focus on creating and maximizing shareholders value by leveraging its key competitive strengths, including: • Strategic location – The Ovoot Tolgoi Mine is located approximately 40km from China, which represents the Company’s main coal market. The Company has an infrastructure advantage, being approximately 50km from a major Chinese coal distribution terminal with rail connections to key coal markets in China. • A large reserves base – The Ovoot Tolgoi Deposit has mineral reserves of more than 100 million tonnes. The Company also has several development options in its Zag Suuj coal deposit and Soumber coal deposit. • Bridge between Mongolia and China – The Company is well-positioned to capture the resulting business opportunities between China and Mongolia under the Belt and Road Initiative. The Company will seek potential strategic support from its two largest shareholders, which are both state-owned-enterprises in China, and its strong operational record for the past decade in Mongolia, being one of the largest enterprises and taxpayers in Mongolia.: