Minister for Mineral Resources and Energy D.Zorigt told
the Government meeting yesterday that Russia has not supplied the agreed amount
of fuel and accordingly there is a deficit of diesel in the country. The
Government has decided to release diesel from the state reserve and to restrict
public transportation services. It will also send teams to Russia and China to
seek diesel.

The state budget will allocate more funds to increase petroleum storage
capacity in the remaining months of the year and in 2012. The Ministry will
submit a report on setting up a petroleum refinery to the Government meeting
next week.

The Government also decided to limit the amount of diesel mining companies,
including Energy Resource LLC and Erdenes Tavantolgoi LLC, can use, as the
present stocks are not sufficient.