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CHAIRMAN’S MESSAGE

OUR MISSION

To be the premier business association in Mongolia dedicated to meeting the critical needs of its members,

namely:

To get more business such as profits, clients;

To obtain information critical to their businesses;

To have a legal and regulatory environment conducive to their businesses.

The Business Council of Mongolia aims to make constructive contributions to enhancing the business environment in Mongolia and works to foster trade and business relations by providing a networking forum for its members. We sponsor, partner and host Mongolia’s leading investment conferences locally and in foreign countries.

BCM works closely with the Government of Mongolia, private sector, embassies, NGOs, special interest groups and business associations. Approximately 300 individuals

from members are volunteers on BCM’s working groups which identify issues and make recommendations for BCM’s advocacy. We have or will make strategic alliances with sectoral organizations for substantial progress in representing and advocating the collective interests of our members.

The BCM stands to help you unfold new potentials and maximize the ensuing benefits for its members and for the Mongolian society. In the years ahead the BCM will continue to be a resourceful depository of information, business exchange and consultation. BCM will remain a prime source for our members to assist with visionary business and investment decisions.

BCM is your, our members, organization. Our mandate is to serve your business and investment needs. We always welcome your suggestions and contributions to make the BCM efforts more effective. I take this opportunity to thank our working groups and the staff of BCM for their hard work and dedication.

Chairman, Business Council of Mongolia BYAMBASAIKHAN Bayanjargal

February, 2015

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BOARD OF DIRECTORS

In September of 2007 a group of committed business people in Mongolia met to form the Business Council of Mongolia. Our organizing 7-person Board of Directors represented a cross-section of the business and economic mainstays of our economy. The organizing Board has been named as BCM’s Executive Committee, now with 9 members, as the Board has expanded to a total of 26 current directors.

Byambasaikhan is the CEO of Erdenes Mongol LLC, the nation's largest investment holding company that comprises of Erdenes Tavan Tolgoi JSC, Oyu Tolgoi LLC, Erdenet Mining Corporation, Shivee Ovoo JSC, and Baganuur JSC. He also chairs Business Council of Mongolia representing 260 active companies.In 2013, Byambasaikhan co-founded NovaTerra LLC, an investment, project management and financial advisory firm in UB. Developed and built first wind farm / IPP in Mongolia as CEO of a Mongolian technology investor. Financed energy projects in Central Asia with Asian Development Bank. Currently: Adviser (ex-officio) to the President of Mongolia and the Prime Minister; board member: Arts Council of Mongolia; Zorig Foundation USA, chair: Mongolian Economy magazine advisory board. Honorary Consul of South Africa in Mongolia. Vice-president of the Mongolian Archery Association. Sponsors the Environmental Fellowship Program. Graduate of George Washington University and the National University of Mongolia. Byambasaikhan is an infrastructure project financier and business executive, managed investments for public and private sector clients. Structured power plant, transmission and distribution investment transactions ($4bln) and lead multidisciplinary project teams in emerging Asian markets. Financed power projects and corporate deals through international and bilateral financial institutions, ECAs and carbon funds. Chaired the board of Mongolia’s largest telecom company. Established JVs with GE, SoftBank. Structured financing for a copper processing plant in Mongolia. Appreciates delicate cross cultural communications in government and business. Avid supporter of regional energy trade, working hard to establish the Asia Super Grid (Northeast Asian Power Market).

Byambasaikhan Bayanjargal, Erdenes Mongol – Chairman

Pete Morrow is a resident of Mongolia and was CEO of Khan Bank from 2000 to 2010. He has been a banker and financial consultant for 40 years, working in the United States and ex-socialist countries. He serves as Vice Chairman of the North America-Mongolia Business Council, Vice Chair of the Arts Council of Mongolia and various other corporate and NGO boards. Pete is the founding Chairman of American University of Mongolia (AUM), which intends to offer a liberal arts based, U.S.-style education in Ulaanbaatar.

J. Peter Morrow, NovaTerra - Founding Chairman

EXECUTIVE COMMITTEE

Randolph was elected as Vice Chairman of the Business Council of Mongolia in October 2013. He is President of Trade and Development Bank of Mongolia. He came to Mongolia in 2004 as part of the management and technical assistance program provided to TDB by ING Bank.Mr. Koppa also serves as a member of the Board of Directors of the Business Council of Mongolia and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).

Randolph Koppa, Trade and Devel-opment Bank - Vice Chairman

Mongolia represents Mr. Koppa’s twelfth country in his 43 year international banking career. He is a graduate in International relations from the University of Wisconsin. Trade and Development Bank is Mongolia’s oldest bank and the leader in corporate lending, trade finance, payments and foreign exchange business in the country. In addition, TDB serves Mongolians with top quality personal banking services including cards, electronic and SMS banking.TDB holds the rare distinction of being voted “Best Bank in Mongolia” two times in a row by “The Banker” and was awarded “Best Bank of the Year”, “Grand Prix in Banking and Financial sector of Mongolia”, “Best Business Entity for its Social Responsibility”, “Best Tax Payer” and many more by different international and local organizations.

Laurenz Melchers is founder and Chairman of MSM Group. He is a resident of Mongolia since 1997. Laurenz was Chairman of BCM from 2010 to 2012.MSM (www.msmgroup.mn), founded in 1998, is a Trade and Service company, active in the following fields of business: Mining & Construction Supply, Automotive Retail and Service, Chemicals Formulation and Supply, Agricultural Machinery Sales and Service and Beverage Distribution. MSM is known for quality of Services and Products and is the General Agent in Mongolia for many reputable conglomerates including: Mercedes-Benz, BASF, Atlas Copco, Moet Hennessy and others. Laurenz is also Chairman of the Advisory Board at Khan Investment Management in Singapore and acts as Mongolia country representative for the German Asia- Pacific Business Association (OAV).

Laurenz Melchers, MSM Group - Former Chairman

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Mr. Jargalsaikhan Dugar, Chairman and CEO of the MIH Group is an established entrepreneur, business leader, and long standing public servant in the Mongolia Federal Government. He began his career as a researcher with the institute of Geology and Mining in 1983. He later held various positions of authority including Officer of the Ministry of Geology and Mining, head of the Mining Department at Ministry of Heavy Industry, Vice President Finance of the State Owned extraction company Mongol Erdene Holding, Chairman of the Mineral Resources Authority of Mongolia, and Head of the Geology and Mines Department of the Ministry of Trade and Industry. Jargalsaikhan holds a BSc in Mining Economics from the Moscow State University of Economics Statistics and Informatics, specialized training from the Colorado School of Mines and has been awarded an Honorary MBA from the University of Science and Technology of Mongolia. Since entering the private sector Jargalsaikhan has focused on building the MIH Group LLC, of which he is now CEO and Chairman. MIH Group is one of Mongolia’s most successful private enterprises with multi-market activities in established and developing sectors. Among these are Mongolia’s first life insurance provider, first venture capital firm, investment banking and brokerage services, commercial and residential construction, property maintenance services, real estate leasing, food and beverage production, and agricultural manufacturing. The Group now comprises more than 20 subsidiaries and affiliated companies with over 200 employees combined. Mr. Jargalsaikhan is the Chairman of the Young Researchers Foundation at the School of Computer Science and Management of Mongolia, held a four year term as the President of the MNMA, and is the current President of Mongolian Federation of Checkers.

D. Jargalsaikhan - MIH Group

EXECUTIVE COMMITTEE (Cont’d.)

Sumati Luvsandendev is the Executive Director of Sant Maral Foundation since 1994. He is also the Chairperson of Transparency International – Mongolia and a board member of the Arts Council of Mongolia. Previously Sumati earned Diploma in Applied Mathematics (Informatics), Moscow State University, Moscow, USSR; attended summer school in Institute for Social Research, University of Michigan; and held fellowship in Institute of Computer Science, Polish Academy of Science, Warsaw. The “Sant Maral” Foundation (SMF) was established in September 1994 as a public benefit, self- governing, non-profit NGO. The founders of the Foundation formulated its main goal as to contribute to Mongolia’s social development geared towards the creation of a society based upon the principles of freedom, justice and democracy.Under Sumati's leadership Sant Maral has conducted numbers of opinion polls, market and research projects. For 15 years political surveys of Sant Maral were funded by the Konrad Adenauer Foundation of Germany. Among SMF clients are political parties, Khan Bank, World Bank, EBRD and Asia Foundation. Sumati served as Vice Chairman of BCM from 2010-2012.

Andrew Woodley joined Oyu Tolgoi in October 2014. He is the President and Chief Executive Officer of Oyu Tolgoi. His responsibilities cover all aspects of the Oyu Tolgoi business including safety, strategy, operations and growth initiatives.Andrew has 19 years of experience with Rio Tinto in a range of mining, minerals processing, and smelting leadership and commercial roles. Prior to joining Oyu Tolgoi, he was the Managing Director for Rio Tinto Coal Mozambique and Country Head for Rio Tinto in Mozambique. He has held the role of General Manager Operations at the 7.5mtpa capacity Hail Creek open cut coking coal mine in the Bowen Basin, Queensland, and has served as the Executive Assistant to the Chief Executive and Chairman of Rio Tinto. Prior to joining Rio Tinto, Andrew worked in exploration in Canada, as well as management consulting in mining, and manufacturing in Australia, New Zealand, Malaysia and the USA. He has established and operated three business ventures, and has a Mining Engineering degree from the University of New South Wales, Australia, and an MBA from Wilfrid Laurier University in Canada.

Andrew Woodley - Oyu Tolgoi

B. Bayar - ELC Law Firm

Bayar Budragchaa graduated at the University of St. Petersburg of the Ministry of Interior Affairs, Russian Federation with a Bachelor of Law degree (1985) and the School of Law, University of Auckland, New Zealand with a Master of Laws degree (1997). Besides his 12 years of experience in law enforcement organizations he has been working as attorney for 11 years. Mr. Bayar is a member of the Mongolian Advocates Association and the International Bar Association.

Sumati Luvsan-dendev, Sant Maral Foundation - Former Vice Chairman

Mr. Bold Magvan was appointed as the Chief Executive Officer of Tenger Financial Group LLC since July 2014. Bold is a senior banking professional with more than 20-year expertise in public and private global financial institutions, including commercial bank, the Bank of Mongolia, the World Bank and the International Monetary Fund. Moreover, since 2008 he has been appointed as Honorary Council of Iceland. Bold has served as Vice President of the Mongolian Bankers Association since 2007 and was elected as President in December 2011 and served until December 2014. Bold has served the Honorary Consul of the Republic of Iceland in Mongolia since 2008. Mr.Bold graduated University of Economics in Budapest in 1986 and holds a Master's Degree in International Affairs with a major in economic policy management from the Columbia University, New York.

M.Bold – Tenger Financial Group, XacBank

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T. Amarzul - Petro Matad

Achit-Erdene Darambazar has been the President of Mongolia International Capital Corporation (MICC) since 2005, - the first investment bank offering corporate finance, stock underwriting, and brokerage services in the country. Achit-Erdene has been an innovator in the Mongolian financial sector and spearheaded many of the largest and most important recent finance transactions in Mongolia. Achit-Erdene completed a Master’s degree in International Relations from Columbia University and a Bachelor’s degree from Middlebury College. Achit-Erdene is fluent in English and Russian and proficient in Japanese and Korean.

D. Achit-Erdene - Mongolia International Capital Corporation

As President for Peabody Energy for Mongolia & India, Mr. Sayed manages Peabody’s businesses in these countries. In addition, he serves on the Lexus Advisory Board. As a member of this exclusive group, he is helping Lexus shape the future of Lexus vehicle design, customer service and marketing. Mr. Sayed is also a Board Member of the American Chamber of Commerce, Mongolia. Prior to joining Peabody in Oct 2010, Sayed was Country Manager and Resident Representative for The World Bank in Mongolia. Sayed represented The World Bank in various positions for more than 15 years. He served in the bank’s Corporate Strategy Group leading innovation and strategy initiatives, including the globally recognized Development Marketplace program – profiled in the Harvard Business Review as a best practice program in social innovation. As Senior Strategy and Operations Officer in the Office of the Vice President for Europe and Central Asia, Sayed assisted in oversight of operations and strategy for 24 countries. His prior experience includes founding a start-up company and working for the Government of Maharashtra in India.Sayed holds degrees in economics and finance from Bombay University. As a National Scholar, a Master of Public Administration degree from Columbia University in New York, and successful completion of an executive leadership program at Harvard University. Peabody Energy (NYSE: BTU) is the world's largest private-sector coal company, with 2013 sales of 251.7 million tons and $7 billion in revenues. Its coal products fuel 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.

Arshad Sayed - Peabody Mongolia and India

BOARD OF DIRECTORS (Cont’d.)

A Mongolian citizen, educated in Singapore Amarzul has worked in the Mongolian Government’s Foreign Investment and Foreign Trade Agency (FIFTA). She then joined the resources sector in Mongolia, holding senior management positions in private sector resource companies. Amarzul is Board member & Executive Director of Petro Matad. Petro Matad Limited is the parent company of a group focused on petroleum exploration as well as future development and production in Mongolia. The Group’s assets consist of Production Sharing Contracts over Matad Block XX (10,340 km2 in eastern Mongolian), and Bogd Block IV and Ongi Block V (total 50,000 km2 in southwestern central part of Mongolia). It was the first substantially Mongolian-owned company to list on an international stock exchange.

Mr. Bold Baatar is newly appointed as President, International Operations of Rio Tinto Copper. He previously served as Managing Director of Goldstream Mongolia, Chairman of Mongolian Stock Exchange, an advisor to Minister of Foreign Affairs on Foreign Investment and holds other leadership positions in non-government organizations such as Arts Council of Mongolia, Mongolian National Mining Association and others. Mr. Bold started his career on Wall Street with JPMorgan in 1998 where he was most recently senior banker in Investment Banking with a focus on Russia, CIS and Mongolia. He also worked in the Financial Sponsor

B. Bold - Rio Tinto

Group in New York originating and executing LBO, M&A, IPO and debt/equity capital market transactions for large private equity clients such as Blackstone, Warburg Pincus, KKR, Apollo and others. He has executed and closed over 30 transactions in Europe, US and Asia. From 2009-2011 he worked as CEO of Newcom Group and as a Chairman of Mobicom and Eznis Airways and led Newcom's efforts in the development of first wind power generating project. Mr. Bold also advised Mongolian Government and private Mongolian companies on attracting foreign investment.

Betina has worked in marketing communications, public affairs and public relations in the Americas, Europe and Asia for over 25 years. Working with private, public and non-governmental institutions, Betina has conceived and implemented communications strategies that have influenced opinions, changed behavior and built brand value.Betina is the founder of Breakthrough Communications, a company specialized in marketing, strategic communications and public relations. Betina has worked with international clients, such as KFC, Rio Tinto, Vale, Prophecy Resources,

Betina Moreira Infante - Break-through PR

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BOARD OF DIRECTORS (Cont’d.)

Enkhbat is Chief Financial Officer of Erdenes Tavan Tolgoi since 2012. Enkhbat recently became the member of the CSD Consulting which was founded by him in 1997 just after he served in the capacity of the CBD Officer of Just Group LLC since 2007. Formerly, he worked in TDB, ChKBank and Savings Bank. He was CEO of Mongol Daatgal, local insurance and Reinsurance Company.Enkhbat obtained his MBA from the Australian National University and completed several training programs in management. He completed his bachelor's degree in International Relations and Diplomacy in Moscow.

B. Enkhbat - Erdenes Tavan Tolgoi

Mr. Ganzorig was recently appointed as the first President of Golomt Bank and he also continues to work as a Chairman of the Mandal Daatgal LLC, which is owned by Golomt and UMC. Mandal is the largest insurer in Mongolia in terms of equity and 3rd largest insurance company in terms of assets. Mandal Daatgal LLC is introducing innovative risk management product through multi-national experienced team. He has previously been a senior banker and advisor to large banks in Mongolia. Mr. Ganzorig has a postgraduate degree in Financial management from Maaschricht School of Business in Netherlands, and BBA in accounting from ICB in Mongolia. He holds an ACI Dealing certificate. Ganzorig is an independent Director of the Mongolian Stock Exchange.

U. Ganzorig - Mandal Daatgal, Golomt Bank

Dr. Hancock's experience in the mining sector includes exploration and mining geology as well as financial analysis and valuations of mining and exploration projects. He also has significant experience in mining policy and regulation in a range of countries throughout Asia and the Pacific. He worked for 16 years in Papua New Guinea including a period as Director of Mines for the Government of Papua New Guinea, during which time he led a number of initiatives related to the sustainable development of mining impacted communities.Dr. Hancock was appointed Country Manager-Mongolia

Dr. Graeme Hancock - Anglo American Development, Mongolia

Daniel has worked and resided in Mongolia since 1997 as a partner in the law firm of MahoneyLiotta. Mr. Mahoney received his Bachelor of Science in Management degree, with high honors, from Tulane University of Louisiana, where he was a member of the Tulane Scholars and Honors Program and Beta Gamma Sigma honorary business fraternity. He then received his Juris Doctor degree, with high honors, from George Washington University in Washington DC. MahoneyLiotta advises and assists clients in structuring business transactions and relationships and in accessing the capital markets to obtain financing for ventures and projects in Mongolia.

Daniel Mahoney – MahoneyLiotta

In August of 2014, Mr. Bolor was promoted to CEO of Newcom Group. Mr. Bolor started his career with Newcom in March 2013 as the Chief Financial Officer in charge of finances for the group's portfolio and projects. In January 2014 he was promoted to the position of the Deputy CEO. Mr. Bolor is an accomplished professional having worked as the fund manager at RSI Asset Management SA based in Geneva from 2006 to 2011. He was in charge of a long-only equity fund called Sirius Asia ex-Japan listed in Luxembourg (EC UCITS III) and focused on the Asia Pacific region excluding Japan and Australia/New Zealand with freedom of movement between the markets and sectors. He formulated and implemented the fund's investment strategy with regards to the stated objectives and constraints using the investment process comprised of a top-down macro approach to country and sector allocation, followed by a bottom-up stock selection. Prior to that, he worked as an investment analyst and in marketing/administration at the same company. Mr Bolor has extensive knowledge of financial markets including Asia Pacific equities, commodities, derivatives on the currency, interest rates and equities as well convertible bonds in India, Japan and Taiwan. Mr. Bolor has extensive educational background in finance having earned a BBA degree in Finance and Acct (Honors) at Webster University, Geneva as well as an MBA from the same university. Also, he passed CFA level 2 exam in 2004. He speaks fluent English, Russian and French.

А. Bolor – Newcom

Oracle, Herbalife, Russian Railways, the EBRD and World Bank and others, in key growth sectors, including mining, energy, infrastructure, banking, transportation and consumer goods, providing a variety of services ranging from stakeholder engagement, public relations, marketing and branding. In 2011, Breakthrough signed a strategic alliance with Ogilvy, a WPP company, expanding Breakthrough’s network and ability to service clients worldwide.Prior to launching Breakthrough, Betina led communications teams in a number of private and public organizations, including The Asia Foundation, USAID/Serbia and USAID/Indonesia, Multi-National Strategies, Inc., Donnelly Communications and others.

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BOARD OF DIRECTORS (Cont’d.)

Mark is the Executive Director of Leighton LLC in Mongolia. He holds an Engineering degree (civil) and has more than 30 years experience in the mining industry of which the past 27 years have been with the Leighton Group. Mark has spent 11 years in Kalgoorlie, Western Australia before taking on the role of Operations Manager and Mining Manager in Perth and as the Regional Manager – Mining, was instrumental in building a mining business for Leighton Asia Limited while based in Hong Kong. He has extensive experience at the operational, technical and corporate levels of the contract mining industry. Over the years, he has successfully delivered the safety, environmental, productivity and commercial objectives for over 25 significant mining projects covering gold, nickel, iron ore and coal. He has been the driving force behind the implementation and success of numerous alliance/relationship styled contracts which have delivered the safest and lowest cost production, achieving a win/ win outcome for both Leighton and the Client. Mark resides in and is responsible for growing Leighton’s business in Mongolia. Mark is an honorary member of Rotary and in 2005 was awarded a Paul Harris Fellow for his service to the community.

Hulan is Executive Vice President, Tavan Bogd Group of Companies which she co-founded with her husband, Ts. Baatarsaikhan. Formerly she was Vice President, Trade and Development Bank, and Sales Manager of the representative company of Gobi Cashmere in Tokyo, Japan. Hulan obtained her Bachelor’s degree in International Economics at Moscow Finance University and an MBA at Mongolian National University. Currently Hulan is also member of the Board of Directors of Khan Bank and Gobi Corporation, where Tavan Bogd Group has shareholding stakes. She serves as Honorary Consul of Luxembourg to Mongolia.Tavan Bogd Group is a diversified enterprise with interests in manufacturing; trade & services; consumer goods; travel & tourism. Most recently Tavan Bogd became a sales agent of Toyota Corporation and a franchisee of KFC and Pizza Hut brands in Mongolia.

Mark Bailey – Leighton

D. Hulan - Tavan Bogd Group

Harris Kupperman is the founder of Praetorian Capital, a hedge fund focused on using long-term macro trends to guide stock selection. Mr. Kupperman is also the Chairman and CEO of Mongolia Growth Group (YAK: Canada and MNGGF: USA) a publicly traded company focused on gaining leverage from the rapid growth of the Mongolian economy. In addition, Mr. Kupperman is the chief adventurer at adventuresincapitalism.com and a contributor to leatherapronletter.com.

Harris Kupperman- Mongolia Growth Group

Norihiko Kato - Khan Bank

of Anglo American Development in 2012. Prior to joining Anglo American Dr. Hancock was Chief Operating Officer at Erdenes Tavan Tolgoi JSC, a large state-owned coal mining company in Mongolia. His prior experience also includes being Director for Strategy and Business Development at Rio Tinto in Mongolia, a senior mining sector specialist at the World Bank, a senior civil servant, an academic and consultant. He holds a Masters Degree in Earth Sciences from New Zealand, and a PhD in Mineral Economics from the University of Queensland, Australia.

Norihiko Kato started serving Khan Bank as Acting CEO in November 2011 and was appointed CEO in September 2012. In 2009 and 2010 he worked at Khan Bank as Senior Advisor and then Managing Director for corporate banking. Norihiko has extensive banking business experiences of 28 years at The Bank of Tokyo - Mitsubishi UFJ (BTMU) in corporate banking and corporate planning. He took management positions at BTMU in the Middle East, the Netherlands, the USA and Japan. Norihiko obtained BA in economics from University of Tokyo and MBA from UCLA. He has wife and two sons. Khan Bank is the leading bank of Mongolia with well diversified business portfolio of retail, SME, and corporate. It has the largest branch network of 530 online offices throughout Mongolia. With its 4,600 professional staff, Khan Bank provides its 1.8 million customers in all parts of the country with innovative banking services.

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BOARD OF DIRECTORS (Cont’d.)

Tengis Garamgaibaatar is the Chief Executive Officer of Monroad LLC elected in February, 2013. He has been working at Monroad LLC since 2007. He has started from Engineer assistant and worked up to his present position. Monroad LLC is one of the first and largest companies in Mongolian Road Sector.G.Tengis completed a Master of Science from International Business School, Oxford Brooks University and Bachelor of Science from Budapest University of Technology and Economics. He is fluent in English, Russian and Hungarian.

G. Tengis – Monroad

BOARD OF DIRECTORS (Cont’d.)

Stephen J. Potter – Wagner Asia

Mr. Tumentsogt Tsevegmid is Executive Director of General Electric (GE) in Mongolia since May 2011. His responsibilities include representing, promoting and protecting GE’s interests, carrying out business liaison, conducting market research and study, exploring and developing business opportunities in Mongolia. Some recent projects include supplying wind turbines for Mongolia’s first grid connected Salkhit wind park, supplying SuperSkids locomotives for Ulaanbaatar railways, supplying of healthcare equipment etc.Tumentsogt worked at the World Bank from 2007 to 2011 and managed projects in energy, renewables, urban, water supply, and air pollution and contributed to several analytical studies. Tumentsogt held various positions at the Government of Mongolia, including Advisor to Minister of Fuel and Energy of Mongolia, Ministry of Infrastructure of Mongolia and State Property Committee and his responsibilities included energy policy & planning, restructuring, private sector participation, management of state owned assets, NEA regional energy cooperation. Tumentsogt served as a Commissioner at the Energy Regulatory Authority (ERA) of Mongolia and dealt with issues of power sector regulation, licensing of energy activities, tariff setting, consumer rights, developing power market rules. Tumen also has been appointed as a President of CEO Club in 2014.Tumentsogt holds Master’s in Electrical Engineering from Moscow Power Engineering Institute (Russia, 1993), and Master’s in Public Affairs from Indiana University (USA, 2001).

Steve joined Wagner Asia Equipment as Managing Director in August 2011 after 40 years of management experience with Caterpillar and Caterpillar Dealers in 10 countries spanning the UK, Middle East and Asia. Steve earned a BA (Hons) in Economics from the University of Keele, an MBA from the Scottish Business School, University of Edinburgh. He also has a Mining Diploma from the Colorado School of Mines and Safety & Environmental Diploma from the Indonesian Ministry of Mines.Wagner Asia Equipment is the authorized dealer for Caterpillar mining, construction and power generation equipment and since commencing operations in Mongolia in 1996 has become the largest distributor and rental company in the country, with a reputation for quality products and support services. The company runs the largest technical training institute in the country and typically graduates 200

T. Tumentsogt - General Electric

Mongolian apprentice technicians annually. Wagner also operates the largest equipment leasing company in Mongolia and is a leading automotive distributor representing Ford and Land Rover. Mr. Potter is also Executive Director of Wagner Asia Group Ltd and South Gobi Mining Services LLC and sits on the Board of the USAID-BPI sponsored QSDC, an NGO that helps develop Mongolian SME’s.

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BCM ADMINISTRATION

Jim co-founded BCM and was appointed Executive Director to manage its activities upon formation in September 2007. He lived in New York City and worked for Wall Street-based firms as an investment banker specializing in Mergers & Acquisitions since the 1970’s including the position as Global Head of M&A for Union Bank of Switzerland (UBS). Mr. Dwyer relocated to Ulaanbaatar in May 2001 to manage the successful privatizations of Mongolia’s two largest commercial banks, Trade & Development Bank and Khan Bank, and served pro bono as Chief Operating Officer of NAMBC-Mongolia from 2003 until the formation of BCM. Jim graduated with a BBA from the University of Notre Dame and an MBA from Columbia Graduate School of Business. He also serves as an independent director of Mandal Insurance; Independent Director of Mongolia Growth Group Inc; Chairman & President of Mongolia Education Foundation; and Chairman of Mongoljin Private Capital Limited, the Sponsor of the Mongolia Development Finance Fund.

Jim Dwyer - Executive Director

Bayarmaa was appointed as BCM’s Vice Director in June 2014. Prior to this, she was specialized in carbon finance at Clean Energy LLC working on the first wind farm project in the country and on the World Bank project implemented at the Ministry of Environment. With over 8 years of research experience on climate change mitigation, emission trading and market based offset mechanisms; she gained expertise in environment sector while working on project development, management, procurement and finance. She is a Chevening alumna and graduated from the University of Oxford in MSc in Nature, Society and Environmental Policy and from the National University of Mongolia in BA in International Relations. Besides her Russian educational background, she studied in Japan at Akita International University and in Turkey for pre-master course. She also serves as a Board Member of the UK Alumni Association in Mongolia.

А. Bayarmaa - Vice Director

Saruul joined BCM in June 2010 and was named Project Manager in February 2013. She manages BCM's membership campaigns, conferences and special projects. She holds her Bachelor's degree of Linguistics from the University of the Humanities, Mongolia and a License degree in LEA (Affiliated Foreign Languages - specialized in International Commerce) from the University "Le Mirail", Toulouse, France. Saruul previously worked for one year as an Officer in the Department of Foreign Relations in the Ulaanbaatar City Governor's Office. She's been serving as a Continental Judge of Archery since 2013. Saruul was officially certified as an International Judge by World Archery in June 2014, USA.

E. Saruul - Project Manager

Tuguldur was named BCM’s Office Manager in November 2007 in charge of day-to-day administrative affairs of BCM. She holds her bachelor’s degree of Linguistics from the University of Humanities and a master’s degree in International Relations from the National University of Mongolia. Tuguldur previously worked for two years for the Alliance Francaise Mongolia as secretary.

B. Tuguldur - Office Manager

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BCM ADMINISTRATION

Battur Soyollkham got his PhD in agricultural science from Hokkaido University in 2010. He has studied Mongolian dzud for his thesis. He is working for BCM since 2011. In addition to his BCM work he is a free lance business coordinator and translator for international companies that have interest in Mongolia. His clients include Cameco Mongolia, SIAR Consulting, Skill Tech Global and Japanese companies such as Mikasatokai, Ichikawa Kankyo Engineering, Fujiki Tekkou. He knows English, Japanese and Russian.

Battur Soyollkham- Assistant Editor

Kh.Otgongerel joined BCM as Partnership Manager in November, 2014. She works in developing and implementing new partnership initiatives, marketing and coordinating media and public relations activities. Otgongerel has worked as translator, project administrator and public relations specialist in number of international projects and programs funded by Swedish Development Agency, European Union and US Millennium Challenge Corporation. She has Bachelor Degree in English-Russian translation from Institute of Humanitarian Science and Master Degree in Organizational Communication from Gothenburg University of Sweden.

Erdenetsetseg was named BCM`s Working Group Coordinator in May 2012. She coordinates BCM`s working groups with approximately 300 volunteers. She holds her bachelor’s degree in Philosophy from the University of Oriental Philosophy, Mongolia and Master`s degree in Philosophy from the National University of Mongolia. Erdenetsetseg previously worked for Mongolian American Business University as a Teacher and at Kempinski Khan Palace as Human Resource Manager and was on its Executive Committee. She also works at the Human Resource & Social Formation NGO as Executive Director, and is a member of Irish Mongolian Executive Community.

Kh. Otgongerel - Partnership Manager

T . Erdenetsetseg - Working Group Coordinator

Anuujin was named BCM’s Administrative Assistant in July 2014. She manages mail marketing, website and social media updates, media PR and admin works of BCM. She holds a College degree from the El Camino College in California, USA and is currently studying in Finance at the Institute of Finance and Economics of Mongolia. Anuujin previously worked at Coach Changer Training center.

T. Anuujin - Administrative Assistant

Terrence Edwards has been in Mongolia since 2009. Mr. Edwards came to Mongolia with a background in Journalism to serve with the U.S. Peace Corps teaching English as a Foreign Language (TEFL) volunteer in Uyanga Soum, Uvurkhangai Aimag. After finishing his service with the Peace Corps in 2011, he joined the BCM staff as Editor-in-Chief of BCM's NewsWire. In addition to his duties as editor, Mr. Edwards is a reporter for the Thomson Reuters news agency and is a regular contributor for the publication Business News Europe (BNE) and Nikkei Asian Review.

Terrence Edwards - Editor-in-Chief

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Asia Pacific Investment Partners received “Best Company of 2014” award

Legislative WG received the “Best Working Group of 2014” award

BCM's 7th anniversary and Membership Renewal Dinner, November 10, 2014

Meeting with Prime Minister, January 30, 2015

Meeting with Mayor of UB city, February 09, 2015

Meeting with Prime Minister, January 30, 2015

Meeting with Mayor of UB city, February 09, 2015

BCM's 7th anniversary and Membership Renewal Dinner, November 10, 2014

Tavan Bogd Group received “Best Company of 2014” award

Meeting with Prime Minister, January 30, 2015

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BCM MEMBERS National Companies International Companies NGOs, Embassies, Donors

Air Trans ABB (Mongolia) Representive Office EMBASSIES AND COUNCILS

Akiolumos Advanced Facilities Management Mongolia

Australian Embassy - Seoul

Ard Capital Group Allens Br itish Embassy

Ard Financial Group ALS Group Canadian Embassy

AREC MortgageAnglo Amer ican Development, Mon-golia

Embassy of Belgium in Beijing

BB Consulting Applus Velosi Embassy of the Czech Republic

BD Sec Archetype Mongolia French Embassy

Bodi Insurance Areva Mongol German Embassy

Boroo Gold Asia Pacific Investment PartnersHonorary Consul of the Republic of Estonia in Mongolia

Churchill's Aspire MiningHonorary Consul of Mongolia to Ireland

Clear Lakes Capital Atlas Copco Mongolia Indian Embassy

Corsec AWED Japanese Embassy

Cummins Mongolia Investment Bank of Tokyo Mitsubishi Korean Embassy

Dale Carnegie BDO Advisory Luxembourg Ambassador of Mongolia

Deloitte Onch Breakthrough PR Mongolia Consulate - New Zealand

Eermel / Cashmere Holding Clyde & CoMongolian Consulate General - Syd-ney

ELC EBRD Netherlands Embassy Office Rep.

Energy Resources Entrée Gold New Zealand Embassy - Beijing

Erdenes Tavan Tolgoi Ernst & Young South Afr ican Embassy - Beijing

EuroKhan Everdigm Mongolia Swedish Trade Council - Beijing

Fiscal Audit Falcon Dr illing Mongolia Turkish Embassy

Fontus Asia Firebird US Embassy

Fr iends of Mongolia Fluor NGOs

Frontier Secur ities GEE MonAmer ican Center for Mongolian Stud-ies

G and DS General Electr ic Arts Council of Mongolia

German Mongolian Entrepreneurs As-sociation

Global Minespec Australian Trade Commission

GK Mining Gunvor LLCBr itish Mongolian Chamber of Com-merce

Global Ideas GWMS Business Plus Initiative

Golomt Bank Hogan Lovells Cover Mongolia

GTs Advocates Hunnu Resources Global Green Growth Institute

IARUDI Consulting ING Bank Mongolian Coal Association

Integrated Financial Services International SOSMongolian National Mining Associa-tion

Interconsulting Group Khan Investment Management NAMBC

International Mining Consulting Lehman Lee & Xu South Gobi Business Council

Kempinski Hotel Khan Palace Leighton Taipei Trade & Economic Rep. office in UB

Khaan Daatgal M.A.D Investment Solutions The Asia Foundation

Khan Bank Minter Ellison IFIs

Kito Mitsubishi Corporation ADB

KPMG Audit Mitsui & Co GIZ

Liberty Partners Monadelphous International Monetary Fund

MahoneyLiotta Mongolia Development Resources Mercy Corps Mongolia

Major Dr illing Mongolia Energy Corporation Swiss Development Cooperation

Mandal Insurance MSM Group USAID

Metro Express Noble Group World Bank

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BCM MEMBERS National Companies International Companies NGOs, Embassies, Donors

MICC Ocean Partners SCHOOLS

MIG Insurance Oxford Business Group Amer ican School of Ulaanbaatar

MIH Group OyuTolgoi Amercan University of Mongolia

Mine Info Peabody Energy GMIT

Mongol Daatgal Pr icewaterhouseCoopers Institute of Finance & Economics

Mongol Express Rimu Resource International School of Ulaanbaatar

Mongolia Growth Group Rio TintoManagement Department of Economic School of NUM

Mongolian Economy Magazine Runge LLC Mongolian National University

Mongolian Exporters Association Saki Partners Santis Educational Services

Mongolian Mortgage Corparation Salmira Investment Fund University of the Humanities

Mongolian Opportunities Fund Santa Fe Relocation Services OTHERS

Mongolian Properties Save the Children in Mongolia Forbes Mongolia Magazine

Monos Schneider Electr ic Mongolia Mr. Lewis Marks

Monroad Sedgman Consulting Mongolian National Broadcasting

Namaste Indian Restaurant Shangr i-La Hotel Ulaanbaatar National Geographic

National LifeSiemens Mongolia Representatives Office

Mr. Roger Perry

New Media Group SMEC Mongolia

NewcomSumitomo Corporation Ulaanbaatar Rep Office

Nomadic Cater ing & Integrated Ser-vices

Sumitomo Mitsui Banking Corporation

Nomadic Expeditions Mongolia Sustainability East Asia

NovaTerra TCKMO

Observe Consulting Techenomics Mongolia

Or ica Mongolia Terra Energy

Outotec Mongolia The Nature Conservancy

PATC Trafigura Mongolia

PCDP Transwest

Petro Matad Wagner Asia

Pr ime Info Wildlife Conservation Society

Ramada Ulaanbaatar City Center World Vision

Sandvik Mongolia

Sant Maral Foundation

Specialized Career Consulting

Standard Investment

Start–Up Weekend Mongolia

Steppe Learning

Tavan Bogd

Tenger Insurance

The Cycling World

Trade & Development Bank

Valiant Art

VIP (Very Important News)

Xac Leasing

XacBank

Xanadu Wines

Zag

ZAMine

Zor ig Foundation

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BCM GAINS MOMENTUM

BCM MONTHLY MEETING RECAP SEPTEMBER, 2014

surface water modeling, water resources engineering, aquatic-ecology and wetland management.5. GMIT is the youngest state university for scientific teaching and research, providing a pioneering model for the reform of university education in Mongolia, and this training of a new generation of engineers and technology experts in Asia.6. The Honorary Consul of the Republic of Estonia opened in Mongolia last May. Since May 2012, The Kingdom of the Majesty LLC has engaged in trading, financial services, and business development consultancy.7. Observe Consulting is a leading management consulting firm which specializes in management for system standards published by the International Organization for Standardization (ISO). Since its foundation in 2011, Observe Consulting has been providing its consultancy, training and auditing services to the leading companies in industries such as food processing, mining, construction, foreign trade and distribution, banking and finance, Information Technology and Telecommunication, and Energy.8. Cycling World LLC is the exclusive distributor in Mongolia of the U.S. bicycle brand TREK and Bontrager accessories. The mission is to introduce Mongolia to the bicycle lifestyle. In addition to the distribution and sales of bikes, Cycling World is developing a bicycle rental service and has been active in the cycling tourism in Mongolia.Kh. Dorjpalam, a treasury officer for Oyu Tolgoi LLC, spoke first to introduce the Risk Management and Insurance Conference to be held on 16 October in Ulaanbaatar.The first half of the conference will focus on mining, with speakers presenting on the risks to mining companies, contractors, and financial institutions. Organizers have invited experienced speakers to describe how true cases have played out and what resolutions were effective. Representatives of Mongolia's largest mining project, Oyu Tolgoi, will also be present to discuss some of their best safety practices. The second session will focus on political and trade risks. These two rounds will include a representative of Aon, the London based global insurance entity, organizer of the event, with the support of BCM, to explain some of its own crisis management practices.Next to speak was Peter Markey, managing partner of Ernst & Young Mongolia, presenting on the recently published “Business Risks in Mining and Metals” report. “This year the biggest risk is how do we cut costs so we can live without new budgets,” said Markey,”The current economic environment has been a long transition, he said, which has forced companies to begin behaving differently. Cost cutting has become key: mining companies are ramping down and selling off assets rather than growing. “Some of the reasons industry and the people leading are having difficulty

BCM MONTHLY MEETING RECAPS

The BCM meeting on 22 September was held in the Crystal conference room in Blue Sky Tower and Hotel with Jim Dwyer in the chair. In attendance were 170 members and invited guests—an all-time record turnout.

The eight newest members are:

1. Advanced Facilities Management is a member of Bin Butti International Holding Group, based out of the United Arab Emirates. Advanced Facilities Management is the integrated FM services provider arm of the holding group. Advanced FM adds value to the customer’s organization, allowing increased focus on core competences by unleashing the potential of outsourcing. The services in which it engages are full-facility services in catering, laundry, environmental and waste control, camp management, and commercial facilities management.2. Akiolumos LLC is a young local company with diversified businesses in finance, tourism and business consultancy for potential foreign investors offering investment regulatory, tax and auditing advice, business setting-up and connecting with local partners. Over the last one and half years—despite the deteriorated investment climate—Akiolumos has helped establish four Japanese-invested greenfield firms.3. BDO’s global network provides advisory services in 139 countries, with almost 55,000 people working out of 1,200 offices worldwide. With its continued international capabilities, BDO International is happy to announce the admission of BDO LLC in Mongolia, founded by the merger of leading auditing and advisory firms’ Itgelt Audit and Amar Incon LLC. BDO Mongolia has an excellent staff that consists of four partners and more than 40 experts with local and international accreditation and experience.4. Fontus Asia provide specialist services covering all aspects of water resources investigation, development and management across many sectors such as mining, oil and gas, agriculture, manufacturing, urban development, and government and financial institutions. Fontus is 100 percent Mongolian-owned providing industry-leading skills in hydrogeology, hydrology, groundwater and

BCM Monthly Meeting, September 2014 BCM Monthly Meeting, November 2014 BCM Monthly Meeting, November 2014

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The BCM meeting on 10 November was held in the Crystal conference room in Blue Sky Tower and Hotel with Bayanjargal Byambasaikhan in the chair. In attendance were 200 members and invited guests—an all-time record turnout—to celebrate BCM's 7th anniversary and Membership Renewal Dinner.

The five newest members are:

1. Corsec is a member of QMC Group and is a privately-held small business that provides a range of corporate governance, listing and business support services to a diversified national and foreign client base.2. Founded in 1912, Dale Carnegie Training has evolved from one man's belief in the power of self-improvement to a performance-based training company with offices worldwide.3. Groundwater Management Solutions (GWMS) provides specialist water supply and water management consultancy services to partners and prides itself on delivering practical, cost effective and high quality solutions.4. Tenger Insurance was established by investment from TenGer Financial Group LLC and Petrovis Company in 2001. It has operated in the Mongolian insurance industry for over a decade, recommending complex risk solutions to clients.5. XacLeasing was founded in 2007 as a wholly-owned subsidiary of TenGer Financial Group with the aim of developing the leasing sector in Mongolia.Matthew Pottle, managing partner of PricewaterhouseCoopers (PWC) in Mongolia, kicked off the evening presentations with a summary of the “PwC Global CEO Survey.” This year 40 of Mongolia's chief executive officers (CEOs) responded compared with 30 last year, to which Pottle credited BCM's assistance.“Historically, Mongolian CEOs have been much more optimistic about their own economy compared with the global economy,” said Pottle. But this year saw respondents distinguish less between the two. They were also less hopeful for 2015 than their international counterparts,” he said. “CEOs globally are much more optimistic than Mongolian. I don't have an answer, but I suspect it has to do with cooling down of the Chinese economy.Only 10 percent of respondents replied they were “very confident” about growth compared with 40 percent of their global counterparts, and 60 percent for Mongolia's CEO's in 2012. Mongolia's CEOs are hoping to find growth by expanding into new markets, forming new alliances and introducing new products, said Pottle. The full report will become available on 30 November.

is people grew up on good times and now there are tired times and it's difficult,” he said.Mongolia and its world-class mines are not immune to this trend, which is why conferences have become so much less crowded, and explorers must endure capital crisis and hedge for credit risks. Mongolia's government, too, is feeling the pressure. “Another area coming back to focus is use it or lose it. As state budgets come under pressure, there is increasing pressure for government and companies to use resources found and bring them to market.”The chief executive officer of the tech company, 3E Solutions LLC, Ehab Eltayeb, spoke next about how Mongolia's business leaders can push small start-up companies towards success with his Mongolia Business Accelerator initiative. “The target is start-ups and entrepreneurs, he said”. “We want to help start-ups not just reach a summit and fall. We want to help them reach growth.”Seed accelerators, he explained, can give a boost to struggling starts-ups with only a few clients, said Eltayeb. The investment can be as small as mentorship, but can also include office space or seed funds. “You get a start-up company that has a few clients pushing forward and you boost them by incubating them, giving them a little bit of funding so they don't go hungry; or you could educate them and mentor them for an equity fee.”3E Solutions implemented that model for itself with what today is its sister company, PromotionCraft, which focuses on marketing and design. When Eltayeb first approached the company, it was struggling and was near self destruction. But with some guidance and office space provided by 3E Solutions, PromotionCraft was able to turn over MNT 150 million—without any added capital—by serving clients such as the Business Council of Mongolia.The final presentation came from Turkish Ambassador, Murat Karagöz, to discuss Mongolia-Turkey relations. “When we talk about Turk-Mongol relations, of course it's important to start with the deep cultural and historical ties that bind us together—Turks and Mongols,” said Karagöz. These ties are found in the countless Turkish artifacts found around the country, the commonalities in their languages (Mongolian and Turkish are both of the Ural Altai family of languages), and even the common names citizens share.Now Turkey and Mongolia are taking their diplomatic relations to the next level. High level visits are becoming more frequent, their citizens can visit each others country freely without visas, and the countries are cooperating more on Mongolia's development. And with Turkey's help Mongolia can achieve more with more direct flights between their countries, experience sharing on how to cut down on bureaucracy, and together ensuring that promises made during high-level visits become reality.

BCM Monthly Meeting, November 2014 BCM Monthly Meeting, December 2014 BCM Monthly Meeting, December 2014 BCM Monthly Meeting, December 2014

BCM MONTHLY MEETING RECAP NOVEMBER, 2014

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Japanese Ambassador Takenori Shimizu gave the second speech of the evening, presenting on Japan-Mongolia relations, as well as the whirlwind political situation Mongolia stands at today following the ousting of former Prime Minister Norov Altankhuyag.“Mongolian politics now faces the most difficult but very interesting time since the democratic government was established in 2012. Political instability is not good for an economy, so I simply hope that a new government will be established as soon as possible so that we can continue cooperation.”Shimizu reminded guests of the multiple diplomatic meetings held between Japanese Prime Minister Shinzo Abe and President Tsakhia Elbegdorj, and how much closer they've brought relations. Together, he said, they are working to promote democracy, economic benefits and resolve disagreements through peaceful means, he said. “Building this kind of relationship between country leaders sometimes play an important role in promoting bilateral relations.”Trade has grown only modestly, he said, although the economic partnership agreement (EPA) that they've been negotiating for the last two years could expand it greatly. Mongolia and Japan have agreed on the principles, including the removal of duties on 96 percent of Japanese imports to Mongolia and 100 percent of Mongolian export goods to Japan. Such agreements have been a tremendous boost for other Asia nations, including Vietnam and Indonesia, which saw trade growth 1.6 times and 4 times, respectively.U.S. Ambassador Piper Campbell followed Shimizu with a similar speech on U.S.-Mongolian relationship: “Rather than a U.S. version of Shimizu's presentation, I'd like to complement that presentation with recall of another conversation 10 days ago when asking the question of what kind of trade do Mongolians want,” she said, adding “ I sometimes feel I get mixed answers to that question.”The United States has its own path open for an EPA that begins with a Transparency Agreement, said Campbell. Although the transparency deal is on Parliament's agenda, it has fallen to the wayside because of the government restructuring and ousting of the prime minister. It's also become controversial because of the misconception that it would provide business with the means to have ultimate control over political matters, rather than just grant access to politicians to provide input. “It does not obligate Mongolian Parliament to vote in a different way, or decide in a different way,” she said.“It does suggest more information. The more points of view you gather, the better informed you will be when decisions will be made.” Guests were next invited into the Diamond reception hall for a four-course meal and a series of performances. The master of ceremonies for the evening was Mr. Mergen Chuluun, President of Wagner Asia Auto, who introduced a ballet duo and then musical performances

BCM MONTHLY MEETING RECAP DECEMBER, 2014

The BCM meeting on 8 December was held in the Crystal conference room in Blue Sky Tower and Hotel with Jim Dwyer in the chair. In attendance were 90 members and invited guests.

The two newest members are:

1. Archetype Mongolia is a world-class multidisciplinary construction services company that has been in business since 2002. It has experienced rapid expansion across Asia and the world with 16 strategically positioned offices in 12 countries. The company first came to Mongolia in 2010 for the Shangri-la Hotel development and established offices in 2012.2. Specialized Career Consulting has the right people in the right job. Skillful people are the greatest investment. By hiring excellent professionals, skilled managers, and highly motivated people who think alike with the company’s mission and ideology you create greater value within shorter period of time. Established in 2010, Specialized Career Consulting specializes in the search and selection process to access the very best Mongolian and international talents within management, sales, logistics, procurement, safety, construction, mining technology and finance sectors.Su Young Kim, vice president of exchange operations for AIESEC in Mongolia, spoke first with his presentation "Global Talent with AIESEC in Mongolia."Christopher de Gruben, managing partner at M.A.D Investment Solutions, followed with a discussion on property valuations and how they can be used in Mongolia to help create a sustainable economy.Dr. S.V. Mahadevan, the director of Stanford Emergency Medicine International at Stanford University School of

by Clifton Hurt and national philharmonic orchestra singer Khulan. Artistic performances and music proceeded throughout the evening. Highlights included an Arts Council of Mongolia performance comprised of a fushion of costumes and sculpture which was preceded by 6 lively cabaret dancers.BCM also presented awards to its most outstanding member entities and working group for 2014. Asia Pacific Investment Partners and Tavan Bogd Group received the “Best Company of 2014” awards, while James Liotta and B. Bayar accepted awards as co-chairs of the Legislative Working Group for the “Best Working Group of 2014.”

BCM Monthly Meeting, January 2015 BCM Monthly Meeting, January 2015 BCM Monthly Meeting, January 2015

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BCM MONTHLY MEETING RECAP JANUARY, 2015

The BCM meeting on 26 January was held in the Crystal conference room in Blue Sky Tower and Hotel with Bayanjargal Byambasaikhan in the chair. In attendance were 85 members and invited guests.

“With the start of the new year, the political side of things is still very uncertain, which affects the whole monetary policy and fiscal matters,” said BCM Chairman Byambasaikhan. “A lot of companies, in my mind, are struggling with that and don't know where things will end. On our end, we're pushing decision makers to make things as clear as possible.”Summarizing events in BCM's working groups, Jim Dwyer, BCM Executive Director, said the Capital Markets Working Group at last week’s meeting focused on government bond trading. The working group co-chair Howard Lambert at the meeting talked about problems his firm, ING Bank, had experienced with processing trades with the Mongolian Stock Exchange. “Last week we heard loud and clear that regulations at the MSE are vague and need be laid out better to allow processing of bond trades. The Working Group will prepare a ‘policy paper’ on this subject for dissemination to the MSE, the Ministry of Finance and the public,” said Dwyer.

BCM’s newest members are:

1. Zag LLC is a group of companies founded in 1991 with 260 employees. Activities ranging from real estate development, construction material production, education, tourism and mining.2. PCDP LLC is a local project management and engineering company, founded in January 2013. PCDP is geared to provide best quality, low cost solutions for projects.The first speech of the evening came from Matthieu Le Blan, the head of the European Bank for Reconstruction Development's office in Mongolia, to

Medicine, gave the next talk on how everyday people in business can best respond to the emergency situations that might arise while working in a difficult environment such as Mongolia.The last presentation of the evening came from Randolph Koppa, president of Trade and Development Bank of Mongolia LLC, for his presentation "Key Challenges and Opportunities for Continued Growth in Mongolia."

discuss the bank's activities and plans for the future. “The process of approving projects in Mongolia… is a bit long. We try to be better and quicker but if you ask us to be equity partner it takes a good year,” said Le Blan.Unique to Mongolia is the volume of funds heading toward the country—“Mongolia is sixth of all our countries for pipeline to projects”—and the fact that 100 percent of lending has gone to the private sector. In addition to the mining sector, EBRD has focused on assisting companies interested in launching operations to replace imported goods and in a number of non-mining sectors.B. Narantsogt, the head of marketing at the magazine Mongolian Economy, spoke next to discuss the publishing market in Mongolia. “Mongolia has a lot of magazines,” said Narantsogt. “According to the Press Institute, there's 126 newspapers, 92 magazines. The market is saturated for the 2.9 million population.”Narantsogt said that his publication strives to stay ahead of the competition by staying steadfast to independence and providing English language content. For the future, they hope to bring in a larger readership with better design, along with a focus on issues that concern decision makers, development organizations, expatriate entrepreneurs and analysts. They also plan to concentrate more energy into the website, MongolianEconomy.mn.B. Bayarmaa, executive director of the Young Researcher Foundation, next spoke on the support it was giving to promote young researchers. “We've identified basic principles,” she said, including the commitment to multiple interests, transparency, non-profit values, and independence. They also hope to deliver feedback from society to decision makers. “We have the possibility to provide feedback through electronic mobile phones and support the expansion of this platform to provide greater possibilities.”U. Ganzorig, chairman of Mandal Insurance LLC, the founder and president of the Mongolia Financial Markets Association (FMA), and an independent director of the Mongolian Stock Exchange (MSE)gave the final presentation on developments within the MSE, which he said must be made more open to investment. His suggestion is to make it possible for pension funds to invest. “Pension funds are the way to go for significant buyers of local securities and bonds. I look at the accounts of pension funds – over MNT 1 trillion a year as float!”However, making a convincing argument to law makers and business professional isn't easy, he said. “I remember meeting one of the heads of one of the largest conglomerates and I said capital market development was the number-one priority for Mongolia.” But the conglomerate head did not agree, instead suggesting it was perhaps number 13 or 14. “I have a totally opposite belief,” Ganzorig said.

Mongolia Orientation Training, February 16, 2015

Annual Risk Management Forum, November 2011

Risk Management and Insurance Solutions Conference, October 16, 2014

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TAXThe Tax Working Group was initially formed in 2003 by the Mon-golian branch of North-America Business Council (NAMBC). The Tax Working Group advocates on matters that affect general business and/or business sectors, but does not provide free con-sultancy service for individual members.

BCM WORKING GROUPSBCM now has 7 active Working Groups with approximately 300 volunteers working for reform of laws, policies and practices that inhibit economic growth.

CAPITAL MARKETSThe Capital Markets Working Group was formed in May 2009. The WG advocates for sound development of Mongolia’s embryonic capital markets including stock markets, debt and mortgage markets, private equity, venture capital, and insurance; each is so necessary for private sector development.

Working Group Co-chairs Nick Cousyn BDSec JSC Howard Lambert ING Bank

Working Group MembersAchit-Erdene D MICCAdrian Chu Ernst &YoungAlimaa E Lehman, Lee & XuAltai Kh IndividualAmarbaysgalan E Golomt SecuritesAmarjargal S Lehman Lee & XuArthur Cookson OTAshidmaa D Tenger Financial GroupAugustine H Xac BankBatulzii M Khan BankBayarmagnai N Hunnu ResoursesBold B RioTintoBolor J NewcomByambaa L Mandal Asset ManagementChirstop Both Development Bank of MongoliaChris MacDougall MIBGDorjpalam Kh OTEnkhzul D Mongolian Stock ExchangeErdenedelger B Khan BankGanbat E MMCGansuld T OutotecGantugs G Mongolian Mortgage CorporationGanzorig U UMC HoldingHajime Uchida SMBCHarris Kupperman Mongolia Growth GroupInoue Kayoko Embassy of Japan

John Barton US Treasury advising the Ministry of Finance

Kevin Trzcinski National University of MongoliaKhaliun L PwCLuvsanchultem V Zag Mandar Jayawant Mongolia Opportunities FundMatthew Pottle PwCNemuun Gal Nova TerraNiel Isbrandtsen Khan BankOch O Golomt BankOliver Thirlwall Asian Real Estate Capital

Otgochuluu Ch Mining Ministry, Director Department of Strategic Policy and Planning

Peter Morrow NovaTerraRandolph S Koppa TDBUyanga D NewcomRay Nadarajah Rio Tinto

Working Group Co-chairs Onchinsuren D Deloitte OnchTsendmaa Ch PwC

Working Group MembersAmarbayasgalan D Terra Energy

Amarzul T Petro MatadAmgalan N BPIAndrew Wee International SOSAriunaa Tserenjav Noble EnergyArthur Cookson OTBaasansuren P Atlas CopcoBatbileg S IUEBolor B PATCChuluunbaatar B Lex LociDaniel Mahoney MahoneyLiottaDavid Reiner MSM GroupDoljindemberel B KPMG Tax TMZDorjpalam Kh OTE.Erdene-Ochir Deloitte OnchEnkhjargal J SouthGobi SandsEnkhtuvshin Sh WCSGanhuleg B Boroo GoldTuya E Lehman Lee & XuHulan D Tavan Bogd

Hulan P OTJames Liotta MahoneyLiotta

John Henriksen PetroMatadJonathan Tjia LeightonMichael Ahren PwC

Munkhtuya Khan Bank

Saruul G Bodi GroupShaukat Tapia PwCShin Bonggun Standard Chartered BankTsend Ts BNP ParibasTsogtgerel B Golomt BankTugusjargal Ch OTTuya E Lehman Lee&XuUlziibayar B Ard CapitalUuganbayar O Mahoney Liotta

William Cotter US Treasury advising the Ministry of Finance

Zandan B British Embassy

Education WG Meeting, November 15, 2014 Legislative WG Meeting, December 20, 2014 Legislative WG Meeting, December 20, 2014

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BCM has formed a Legislative Working Group to advocate for on key legal and business practice matters.

LEGISLATIVE

Working Group Co-chairsBayar B ELC LLCJames Liotta MahoneyLiotta LLC

Working Group MembersAmarbayasgalan D OTAmarbayasgalan D Terra EnergyAmarjatgal L Lehman Lee & XuAmarmurun A Lehman Lee & XuAmarzul T Petro MatadBaasansuren P Atlas CopcoBattulga J OTBayarmagnai N Hunnu CoalBujinlkham Ts MNU

Christopher Melville Hogan Lovells

Chuluunbaatar Lex LociDavid L.Wyche U.S. EmbassyEdamura Nobuhisa Japan EmbassyElisabeth Ellis Minter EllisonEnkh-Amgalan M Erdenes Tavan TolgoiEnkhbat B MDS&Khan LexEnkhsaikhan N MonnisEtienne Laumonier Audier&PartnersGanbat E MMCGlenys Hodges Allens

Working Group ChairBulganmurun Ts GGGI

Working group members:

Amanda Fine Wildlife Conversation Society/Vietnam/

Amarjargal Lh Lehman Lee & XuAriunaa N The Asia FoundationAyako Maruyama JICABatjargal Yu The Nature ConservancyBatsanaa Xac BankBayarjargal B South Gobi SandsBayarlkham B JICABayarmaa A Business Council of MongoliaBayarmaa B Sustainability East AsiaBrad Pitts Arvin MonsparBulgan A JICA

ENERGY AND ENVIRONMENTBCM Environmental Working Group was formed in February 2010. The mission is to use a multi-stakeholder approach to inform and promote environmentally sound and sustainable development (en-vironmental, social and economic) business practices in Mongolia. Since February, 2015 this WG has expanded its operation to the energy sector and is now named Energy and Environment WG. The first expanded WG meeting was held in February, 2015.

Namuun B Atlas Copco

Narantuya Sh OutotecNasanjargal D PATCNick Cousyn BDSecNyamdulam N PATCOyunbayar Ts International SOS

Phyllis Pang Terra Energy

Rentsenkhand BDOShinejargal M Golomt BankSolongо S Business Plus Initiative (BPI)Soyolmaa Ts Kempinski Hotel Khan Palace

Tanya T WCS

Tarnavska Maryna PWC

Tengis O Ernst &Young

Tomas Balco KIMEP (Almaty)

Tomas Morocz Santa Fee

Tuvshinbayar B Terra Energy

Tuya E Lehman Lee & Xu

Uuganbayar O MahoneyLiotta

Uugantsetseg B WCS

Uyanga M Ernst & Young

Zuvsanchultem V Zag

John Henriksen Petro Matad

Kayoko Inoue Japanese Embassy

Khash-Erdene Golomt BankLkhamaa Kh OTLuvsanchultem V ZagManduul A AllensMaralmaa X OTMatthew Pottle PwCMichael D.Richmond U.S.EmbassyMendsailhan T BonalexNamuun B Atlas CopcoNarantuya D OTNemuun G Nova TerraNyamdulam N PATC

Otgochuluu ChMining Ministry, Director Department of Strategic Policy and Planning Ministry of Mining

Oyunchimeg B ArevaPierre-Michel Motteau Audier&PartnersPierre-Oliver Guy ELCSolongo B Hogan LovellsSunjidmaa J Anglo American DevelopmentTony Burchill Australian Counsel Tuvshinbayar B Terra EnergyTuya E Lehman Lee & XuUlziibayar B Ard CapitalUyanga D NewcomZandan B UK EmbassyZoljargal D GTs AdvocatesZoljargal D GTs Advocates

Capital Markets WG Meeting, January 22, 2015 Capital Markets WG Meeting, January 22, 2015 Tax WG Meeting, January 23, 2015

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EDUCATIONThe Education Working Group was established in February 2009. The Working Group serves as a bridge linking representatives from government agencies, donor groups, NGOs, Mongolian and international institutions of higher education and technical and vocational institutions with BCM members in order to improve the skills of the national work force and upgrade standards to meet international requirements in vocational schools and higher education institutions.

Working Group ChairSaha Meyanathan Development Advisory Services

Working Group members

Altannar Ch German-Mongolian Institute for Resources and Technology

Andrew Orgill Santis Educational Center

LOGISTICSThe Logistics Working Group was established in April 2014. The WG aims to leverage best practices and expertise by implementing research towards identifying and recommending practical solutions for clarification and further improvement of the Government policies. The mission is to provide development of the following: Process standardization; Efficiency; Market access; Customs and compliance; Domestic transport/warehousing.

Working Group Co-chairs Tengis G MonroadEnkhbat D MonEx

Ariunaa J Embassy of CanadaBaterdene R National University of MongoliaBattuvshin Ch University of the HumanitiesBayarmaa B Minter EllisonBayarmaa G Energy ResourcesChuluun T World BankDavaasuren B Energy ResourcesDavid Reiner MSM GroupDavid Turnball Transwest

Dorjderem N German-Mongolian Institute for Resources and Technology

Dr. Purevdorj D MUSTEnkhchimeg D Mongolian National UniversityEnkhtsetseg G American University of Mongolia

Enkhtugs D MCC

Enkhtur S Consultant to MECS

Enkhzaya Ch German-Mongolian Institute for Resources and Technology

Eo Kyu Cheol KOICA

Gerelmaa D Institute of Finance and Economy

Itgel L ADBJohn Case TranswestJuergen Hartwig GIZKern Von Hagen OT

Mark Tasse American Center for Mongolian Studies

Mitsuaki Toyoda Save the ChildrenNarangarav D Labour Exchange Central OfficeNergui D Mongolian National UniversityOlga Khardaeva PwC

Oyuntsatsral Z Institute of Finance and Economy

Robin Charpentier American University of MongoliaShinebayar G Labor Exchange Central OfficeSolongo D Australian Trade Commission

Sukhbaatar J Institute of Finance and Economics

Telmen E Save the Children

Tomas Kuball Mongolian National Chamber of Commerce and Industry

Tsetsentsolmon B Higher Education Reform ProjectUyen G PwC

Byambasuren L Groundwater Solutions

Christa Hasenkopf Univ. of Colorado/NationalUniv. of Mongolia/

Darsuren P USA EmbassyDelgernaran Wagner AsiaEnkhjin B Zorig FoundationEnkhtuvshin Sh Wildlife Conservation SocietyEnkhtuya O The Nature ConservancyErdene N SDCGerel E Lehman Lee & XuGerelmaa M Lehman Lee & Xu

Gerelt-Od Ministry of Environment and Green Development

Jargal N GDS ITKeith Swenson New Zealand Nature InstituteKevin Trzcinski Mongolian National UniversityMarc Newby OT

Mark Tasse American Center for Mongolian Studies

Maruyama Ayako JICAMeloney Lindberg The Asia FoundationNathan B. Johnson US EmbassyNoah Elbot Xac Bank

Nyamjav E Swiss Agency for Development and Cooperation

Odonchimeg N Wildlife Conservation SocietyOlga Khardaeva PwCOngonsar P ADBOnon B. Wildlife Conservation SocietyOtgonsuren A Wildlife Conservation SocietyPhilippe Aubry Schneider ElectricPurevdorj B Zorig FoundationRyan Calvert XacBankRobertMark Hargreaves CESShinetsetseg L Breakthrough PRSugarkhorloo E TechenomicsSusan Giles Sustainability East AsiaTserendavaa RPS GroupTsolmon A Areva Mongol

Tax WG Meeting, January 23, 2015 Logistics WG Meeting, February 4, 2015 Energy and Environment WG Meeting, February 5, 2015

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RISK WORKING GROUPThe Risk Working Group was initially formed in March 2012, as a result of the 3rd annual Risk Forum of Mongolia. In 2015, the working group has been reborn with a renewed mission. Risk Working Group’s mission is to be the leading advocate on risk management issues in Mongolia by offering a platform for risk management related information sharing, organizing and participating in activities to expand awareness of social and business risks, contributing to development of risk management field in Mongolia, promoting risk management best practices of BCM members as well as the wider business community and engaging relevant stakeholders from all sectors.

BCM IN THE CLASSROOMThe ‘BCM in the University Classroom’ series was launched in March 2012. Led by BCM’s Education Working Group, the program provides lectures at universities to help inspire students and give them direction for their future careers. This activity was well received by the students, therefore we have increased the number of lectures in this Academic Year of 2014-2015 to total number of 20. Moreover, starting in 2015 we will be cooperating with Mongolian University of Science and Technology in addition to the current four universities, including: Mongolian National University, National University of Mongolia, Institute of Finance and Economics and University of the Humanities.As of now 2,100 students, and teachers have participated in the 'BCM in the University Classroom' project.

Working group members:Alexandre Guerin Areva MongolBayarmagnai N Hunnu Recourses CoalBuyandelger Ts Cummins Mongolia

Enkhtur GMongolian Opportunities Fund

Enkhtuvshin S Industrial ConstructionHao Yuan MSM GroupIderbat A Aurum Partners

Kevin TrzcinskiMongolian National University

Luvsanchultem V ZagNicole Puntsag Schneider ElectricOdkhuu M OTOkada Nobuo Mitsui Ulaanbaatar

Otgonjargal YMongolian National University

Philippe Aubry Schneider Electric

Rentsendorj YMongolian Opportunities Fund

Robert Mark Hargreaves GIZSteve Potter Wagner AsiaThomas Morocz Santa Fe Relocation ServicesTumentsogt Ts General ElectricZandan B British Embassy

HIGHLIGHTS AND NEWSBCM MEETS THE PRIME MINISTERBCM began a new annual tradition to sit with Mongolia's Prime Minister to discuss the most important issues within Mongolia's

LUNCHEON WITH THE MAYOR OF UB CITYBCM representatives participated in a Luncheon with the UB City Mayor, Mr. Erdeniin Bat-Uul on February 09, 2015. The Mayor has stated that his office is working with a new mission to make the capital city the “Investor friendly UB city”. The BCM participants expressed their views, feedback and concerns with regard to creating and maintaining safer and more favorable environment for international as well as local investors.

BCM MADE A STATEMENT ON CASE RELATED TO FORMER EMPLOYEES OF SOUTHGOBI SANDS LLCThrough an official statement published in daily newspapers dated February 5th, 2015, BCM expressed its position with regard to the court verdict following the investigation that lasted nearly 3 years into alleged violations of Mongolian taxation law against three former employees of SouthGobi Sands LLC (SGS) and against SGS as “civil defendant”. SGS's parent company, SouthGobi Resources Ltd., is a BCM member.According to practices in many other countries as well as clearly defined articles in Mongolian taxation laws, tax disputes can be and usually solved through civil proceedings. BCM regrets that this case has been considered as a criminal case against above legislation and that the defendants received very harsh sentences. One of the fundamentals of a good investment climate is certainty and the Court’s verdict has left investors with many questions about transparency, governance and the rule of law, not only for companies but also for individuals. BCM believes that effective cooperation between public and private sectors, equal legal and human rights and fairness regardless of nationality are key to the development and prosperity of Mongolia.

Energy and Environment WG Meeting, February 5, 2015 BCM in Classroom of Institute of Finance, Randolph Koppa, President of TDB, February 22, 2013

BCM in Classroom of University of Humanities, O.Unurjargal, Mongolian Talent Network, October

09, 2014

business sector. BCM board of directors and members met with Prime Minister Chimed Saikhanbileg on January 30, 2015 where they expressed their support for the option to support Mongolia's big projects in the text message referendum held in January, 2015. Saikhanbileg and his advisors B. Delgermaa and O. Chuluunbat discussed a broad array of issues including phase-two development at Oyu Tolgoi, the construction of rail for the Tavan Tolgoi mines, the Gachuurt gold mine and Power Plant No. 5.The Prime Minister stated that he sees BCM as a strong platform of Mongolian and international business entities that can provide the Government with valuable feedback and recommendations on improvement of the national economy.

The Business Council of MongoliaExpress Tower, 12th floorPeace Avenue, P.O.Box-29Ulaanbaatar, Mongolia 15160

Tel/fax: 976 11 317027, 976 70114442 E mail: jim@bcmongolia.org, bayarmaa@bcmongolia.org, tugi@bcmongolia.org saruul@bcmongolia.org erka@bcmongolia.org anuujin@bcmongolia.org otgongerel@bcmongolia.org Website: www.bcmongolia.org/en www.bcmongolia.org/mn

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THE BUSINESS COUNCIL OF MONGOLIA

BCM MEMBERSHIP BENEFITS

1. NETWORKING:

• Participation in BCM Monthly Meetings and Receptions• Participation in BCM’s 7 working groups Capital Markets, Tax,

Legislative, Education, Energy & Environmental, Logistics and Risk• Participation in Annual BCM Renewal Dinner• BCM Football Cup• Join us on Facebook, Twitter and LinkedIn

2. PUBLICIZE YOUR COMPANY:

• Company introduction during BCM Monthly Meeting with bro-chures for distribution

• Company banner on BCM website in ‘New Member Section’• Company introduction, logo with direct website link to be dis-

played on BCM website• Possibility to display company banner at reasonable rates on BCM

NewsWire issues distributed to over 1400 member individuals plus 400 people at Diplomatic missions

• Possibility to send out special “Paid Advertisement” to all BCM members mailing list

3. LATEST BUSINESS NEWS

• Weekly electronic BCM NewsWire Issues • Business related news, Presentations, Reports, and NewsWire ar-

chives on BCM website• Various event information through BCM Mailing List

4. DISCOUNTED PRICE FOR CONFERENCES

• Participation at discounted rates in International and Local confer-ences, seminars and trainings.

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