Mongolia Energy Corp., a mineral and energy explorer, fell to the lowest
level in more than five years in Hong Kong after posting a record full-year net
loss.

The shares dropped as much as 15 percent to 35 Hong Kong cents and traded at
35.5 cents as of 11:14 a.m. local time, the lowest level since Feb. 7, 2007.
The benchmark Hang Seng Index gained 1.6 percent. Hong Kong’s stock market was
closed yesterday for a holiday.

The net loss widened to HK$4.83 billion ($623 million) in the 12 months ended
March 31 from HK$310.8 million a year earlier, Mongolia Energy said in a June
29 filing to the Hong Kong stock exchange. The explorer said it accounted for a
HK$4.6 billion impairment loss related to its Khushuut coal mine operations in
western Mongolia.

Demand for the company’s coking coal in China’s northwestern region of
Xinjiang “will likely increase significantly” this year and the “Khushuut mine
project will soon be a positive cash-flow contributor to the company,” Mongolia
Energy said.