Yesterday’s conference organized by the London Stock
Exchange (LSE) in Ulaanbaatar discussed issues relating to investment in
Mongolia, the future of the Mongolian Stock Exchange (MSE), corporate
governance and plans to develop the capital market.  The LSE held a similar conference last year
and followed it up with a Mongolian Companies’ Day at LSE in the summer.

The start of the meeting faced problems with translation,
and many in the audience missed what was said about the LSE’s likely role in
Mongolia’s development, investment conditions in the country, and about the LSE
itself.  Tracy Piers of the LSE later told journalists that work should
begin without delay on developing the capital market in Mongolia, so that the
expansion in mining received financial support. LSE would help sustain the flow
of foreign investment in Mongolian companies if it was asked to act as advisor
to the MSE. Some of the journalists’ questions to her and the answers she gave
are given below.

What do you think of
the Government of Mongolia’s plans to go for an IPO and also bond sales?
These are important matters and will be significant for the development of
Mongolia. Much preparatory work will be needed and the LSE is ready to offer
its support.

Did you hold this
meeting to support your chances to be chosen for the MSE restructuring?
The selection is under way and we are confident our reputation, expertise, and
experience will be noted. We would bring best management practices and the
newest technology to the MSE if we are chosen.

Will LSE allow an IPO
by Erdenes Tavantolgoi Ltd?
I do not want to answer hypothetical questions. Any Mongolian company
seeking an IPO will have to fulfill the requirements of the international
market. We shall be glad to offer help and suggestion if Erdenes Tavantolgoi
asks for our services in raising capital in the international market, but it
will have to meet our basic criteria.