GOBI COAL & ENERGY TO EXPAND ACROSS ENERGY RESOURCES VALUE CHAIN

Gobi Coal & Energy ("Gobi Coal") is pleased to announce its ongoing strategic initiative to expand across the energy resources value chain into hard coking coal, coking coal mine consolidation, and graphite and uranium development and mining both inside and outside of Mongolia.

During 2015, Gobi Coal successfully completed a drilling program at its primary coking coal mine at Shinejinst. The drilling program consisted of a total of 637.3 meters of drilling comprised of 8 diamond core boreholes that enlarged the deposit area to the southeast with average coal thickness of 9.3m. One hole returned an exceptional coal seam of 44m in thickness with low volatile materials. 76 coal quality samples were obtained in 2015 and submitted to a laboratory for testing with subsequent results confirming hard coking coal properties and the potential for a new sub-basin at Shinejinst. Successful water testing confirmed that the area has significant water potential, which is very important for future mine development.

During 2014 and 2015, Gobi Coal engaged in detailed analyses of, and negotiations with, several coking coal companies throughoutMongolia as part of a broader consolidation strategy. The aim is to build economies of scale and pricing power for the export of coking coal into China from southwest Mongolia at Ceke where pricing is significantly below international benchmarks. Negotiations are ongoing and will continue during 2016 in relation to Gobi Coal