THE MINERALS LAW OF MONGOLIA (Amended Law)               Official Translation 30/10/2006

CHAPTER ONE GENERAL PROVISIONS

Article 1. Purpose of the law 1.1. The purpose of this law is to regulate prospecting, exploration and mining of minerals within the territory of Mongolia.

Article 2. Legislation on minerals 2.1. Mineral related legislation consists of the Constitution of Mongolia, Land Law, the Subsoil Law, Environmental Protection Law, National Security Law, this law and other relevant legislative acts. 2.2. If an international treaty to which Mongolia is a party provides otherwise, the provisions of the international treaty shall prevail.

Article 3. Scope of application 3.1 This law shall be applicable for exploration and mining of all types of mineral resources except water, petroleum and natural gas. 3.2 Relations with respect to the artisan mining and exploitation of minerals from artisanal and small scale mines shall be regulated by a specific law.

Article 4. Definitions of terms 4.1 In this law the following terms shall have the following meaning: 4.1.1 "mineral" means any usable naturally occurring mineral concentration that was formed on the surface or in the subsoil as the result of geological evolutionary processes; Official Translation 30/10/2006 4.1.2 "reconnaissance" means an investigation identifying mineral concentrations through rock sampling, airborne surveys and reviewing related geological and minerals information without actually disturbing the subsoil; 4.1.3 ...........................

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