MINISTER N.BATBAYAR: OT LLC ACCEPTS GOVERNMENT'S DEMANDS

Ulaanbaatar /MONTSAME/ The Oyu tolgoi LLC has accepted the Mongolian side's demands and says it will give a concrete response to them. It was reported by N.Batbayar, the Minister of Economic Development, at a press conference Tuesday. He said the 6th shareholders' meeting of the OT LLC is considered as running these days and that working sub-groups are functioning. As we informed before, six problems have accumulated in the shareholders--the government of Mongolia--the Rio Tinto ties, such as: Conflict of interests of the consulting company which worked for the Mongolian side; The investment agreement's clauses that do not meet the national laws; dramatically increased investments of the project and implementation of the feasibility study; The special license owned by the Entree Gold Inc; Realization of the Mongolian laws and resolutions; The payment for management services. The government demands that the investors' side explain a reason of augmenting the investment cost and other problems. If these requirements are fulfilled, the government will be ready to approve the 2013 action expenses for the OT project. The OT LLC has admitted own and the investors' obligation to strictly obey Mongolian laws, and says it intends to release a research into increasing the initial investments. According to the Minister, the meeting is likely to run on March 20 after a preparation is fully made. B.Khuder