Mongolian Mining Corporation Operational Update for the Quarter Ended 30 June 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 

MONGOLIAN MINING CORPORATION

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 975)

OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 JUNE 2025

ULAANBAATAR, Mongolia, July 25, 2025 (GLOBE NEWSWIRE) -- The board of directors (the “Board”) of Mongolian Mining Corporation (the “Company”, together with its subsidiaries, collectively the “Group”) wishes to announce the unaudited operational update for the quarter ended 30 June 2025. The comparative figures for the quarter ended 30 June 2024 and the quarter ended 31 March 2025 are also disclosed in this announcement (if and as applicable).

The Company is the largest internationally listed private mining company with operations focused on and located in Mongolia. The Group has consolidated a diversified business portfolio to develop and operate coking (metallurgical) coal, gold, copper, and other non-ferrous metals mining assets in southern and western regions of Mongolia.

Coking (metallurgical) coal operations

Energy Resources LLC (“ER”), the Group’s wholly-owned subsidiary, operates Ukhaa Khudag (“UHG”) coking coal mine and Khangad Exploration LLC (“KEX”), the Group’s majority-owned subsidiary, operates Baruun Naran (“BN”) coking coal mine, both located in Umnugobi aimag (province), Mongolia. The Group is the largest producer and exporter of washed coking coal products in Mongolia.

During the quarter ended 30 June 2025, the Group’s run-of-mine (“ROM”) coal mining combined output from UHG and BN mines was 3,428.4 thousand tonnes (“kt”), representing 7% quarter-on-quarter (“QoQ”) and 28% year-on-year (“YoY”) decrease as compared to the previous quarter ended 31 March 2025 and the corresponding period ended 30 June 2024, respectively.

The Group processed a total of 3,605.7 kt of ROM coking coal to produce 2,178.1 kt of washed coking coal products, representing 3% QoQ increase compared to the previous quarter ended 31 March 2025 and 2% YoY decrease compared to the corresponding period ended 30 June 2024.

The Group’s operating subsidiaries ER and KEX sold a total of 1,739.7 kt of washed coking coal products in the second quarter of 2025, whilst washed coking coal product mix supplied by the Group to its customers was as follows: (i) 959.0 kt of washed hard coking coal; (ii) 223.5 kt of washed semi-soft coking coal; and (iii) 557.2 kt of washed mid-ash semi-hard coking coal. This represents 9% QoQ increase compared to the previous quarter ended 31 March 2025 and 25% YoY decrease compared to the corresponding period of 2024.

The main operational data for coking (metallurgical) coal operations summarised and shown below in Table 1 are all rounded and derived from the internal records of the Group and are intended to give investors an overview of the Group’s operations in a timely manner and may differ from the data disclosed in periodic reports of the Company.

Table 1. Main operational data for the quarter ended 30 June 2025:

Gold and metals operations

The Group is 50% equity holder in Erdene Mongol LLC (“EM”), which is currently developing Bayan Khundii (“BKH”) gold mine located in Bayankhongor aimag (province), Mongolia.

Photo: BKH gold processing plant and support facilities

During the quarter ended 30 June 2025, commissioning of the BKH gold mine processing plant and site support facilities (including power, heat and water supply infrastructure, laboratory, warehouse, chemicals and blasting materials storages, office and accommodation camp) were conducted by relevant authorities. Commercial production is expected to commence within the third quarter of 2025.

Sale of gold to the Bank of Mongolia and/or its designated commercial banks at the international market price, denominated in local currency (Mongolian Togrog) is subject to the lowest applicable 5.0% royalty tax charged by the Government of Mongolia according to the relevant provisions under the Minerals Law of Mongolia.

Important notice

The aforesaid operational data are not an express or implied forecast or guarantee in respect of the Company’s future operating conditions.

In addition, various factors may affect results, including (but not limited to) force majeure events, changes in market conditions and regulatory interferences, as such material differences may exist in the operational data published from quarter to quarter.

Investors should note that undue reliance on or use of the above information may cause investment risks.

For and on behalf of the Board

Mongolian Mining Corporation

Odjargal Jambaljamts

Chairman

Hong Kong, 25 July 2025

As at the date of this announcement, the board of directors of the Company consists of Mr. Odjargal Jambaljamts and Dr. Battsengel Gotov, being the executive directors of the Company, Mr. Od Jambaljamts, Ms. Enkhtuvshin Gombo and Mr. Myagmarjav Ganbyamba, being the non-executive directors of the Company, and Dr. Khashchuluun Chuluundorj, Mr. Unenbat Jigjid, Mr. Chan Tze Ching, Ignatius, Ms. Delgerjargal Bayanjargal and Dr. Tsend-Ayush Tuvshintur, being the independent non-executive directors of the Company.

A photo accompanying this announcement is available at