Mongolian Mining : PROFIT WARNING

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MONGOLIAN MINING CORPORATION

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 975)

PROFIT WARNING

This announcement is made by Mongolian Mining Corporation (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

References are made to the announcements of the Company dated 15 April 2020 and 21 July 2020 (the "Quarterly Update Announcements") in relation to the operational update for the quarters ended 31 March 2020 and 30 June 2020, respectively.

The COVID-19 virus outbreak since early 2020 has brought uncertainties in the Group's operating environment. Restrictions were imposed by the Chinese authorities, due to public health concerns, which impacted the Group's sales and distribution activities in China during the first half of 2020. Mongolian authorities also suspended coal export shipments during a period from 10 February 2020 to 23 March 2020 as a part of broader measures undertaken to impose cross border travel limitations.

As disclosed in the Quarterly Update Announcements, the Group's washed coking coal sales tonnages for the quarters ended 31 March 2020 and 30 June 2020 declined by 39% and 44% on a year-on-year basis, respectively.

The board of directors (the "Board") of the Company wishes to inform the shareholders and potential investors of the Company that after a preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2020 and information currently available, it is expected that the Group's profitability will be substantially reduced for the six months ended 30 June 2020 as compared to a consolidated net profit of USD47.1 million over the same period in 2019.

Although the above factors have impacted the Group's financial results for the six months ended 30 June 2020, the Board continues to believe that the Group remains well positioned to pursue its strategic objectives and operational targets, once the COVID-19 situation is under control and business activities return to normal.

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The Company is still in the process of finalizing the interim results of the Group for the six months ended 30 June 2020. The information contained in this announcement is based on a preliminary assessment by the Board solely on the basis of the unaudited consolidated management accounts of the Group and the current information available, which have not yet been reviewed nor audited by the independent external auditors of the Company.

Further details of the Group's performance will be disclosed in the interim results announcement for the six months ended 30 June 2020 to be published by the Company.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

For and on behalf of the Board

Mongolian Mining Corporation

Odjargal Jambaljamts

Chairman

Hong Kong, 27 July 2020

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. Enkhtuvshin Dashtseren, being the non- executive directors of the Company, and Dr. Khashchuluun Chuluundorj, Mr. Unenbat Jigjid and Mr. Chan Tze Ching, Ignatius, being the independent non-executive directors of the Company.

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