Our principal business is that of an energy and natural resources developer. We currently have projects and investments in the independent nation of Mongolia and Xinjiang, PRC. As an energy and resources developer, we acquire concession areas, and with an international team of experts, coordinate all aspects of mine development, including exploration, mine design and extraction to international standards.

We currently own approximately 330,000 hectares of concession areas in Western Mongolia at Khushuut, Darvi, Gants Mod, Olon Bulag, Gobi-Altai and Banyan-Olgiy for coal, ferrous and non-ferrous metals resources. We have interests in various oil and gas projects in Western and southern parts of Mongolia and an investment in a resources corporation authorized to invest in coal, copper and iron resources as well as minerals processing in Xinjiang and elsewhere in the PRC. These other interests and investments provide additional opportunities for our Company.

Over the last two and a half years, we focused on developing the Khushuut coal mine areas. These are 600 hectares out of 330,000 hectares of our concession areas in Western Mongolia. We have demonstrated approximately 149 million tones of JORC in-place coal resources. The coal resources are of a premium coking coal quality with low sulfur, low to mid volatile matters and a high caking index. These make our coal resources a premium blending material for the production of coke to be used by steel manufacturers wishing to manufacture premium steel products, including rolled steel and deformed steel products, for infrastructure projects in the PRC. Our roadway from Khushuut to the border with Xinjiang which has been substantially completed will assist our production scheduled to commence later this year.

In relation to the rest of the 330,000 hectares of concession areas we will continue exploration in the vicinity of Khushuut and conduct aerial reconnaissance over certain areas with indications of gold and copper prospects. We will also conduct general reconnaissance over the rest of the concession area. We also have a residual business of private jet charter services which continues.

Our major acquisitions are summarised below.

Coal, Ferrous and Non-Ferrous Metal Resources (Western Mongolia)

MEC has acquired title to approximately 330,000 hectares of concession areas in Western Mongolia for coal, ferrous, and non-ferrous metals.

In 2007, 600 hectares of the Khushuut mine areas were explored. 460 million tonnes of coal resources were demonstrated. Within the explored area, following further analytical work, 149 million tonnes of JORC compliant resources have been demonstrated. These are substantially coking coal resources.

MEC has substantially completed the foundation with related building works of a road from Khushuut to Xinjiang, PRC which is approximately 310km away, the "Khushuut Road", budgeted for RMB866 million. This will assist MEC to commence a 3 million tonnes per annum mining operation concentrating on coking coal scheduled and eventually building up to such production.

Oil and Gas (Southern and Western Mongolia)

MEC has successfully tendered for 1.18 million hectares of an oil and gas project in southern Mongolia. The Ergel XII block is 150 km from Erlian, Inner Mongolia. This is subject to production sharing contract ratification.

Coal (Xinjiang, PRC)

MEC has acquired 19% of a wholly-owned Xinjiang corporation with business scope to invest in coal, copper and iron resources and through which is working towards setting up of joint ventures with two Chinese geological bureaus for coal resources.