Leyshon Resources has applied for
exploration licenses over a large area in the Gobi Altai region of southwest
Mongolia, as part of a broader strategy to target and acquire high quality coal
assets located in western China and Mongolia. The license applications for five
areas totaling 2,664 km2 cover a region between 35 to 100 km from a recently
re-established Mongolia-China border crossing at Laoyemiao.

The applications are subject to Mongolian government approval. One has been
accepted while the other four are located in an area where licenses will be
issued after bidding.