Summary

The purpose of this Contract is to establish regulation of relations between the Contractor and PAM, authorized by the Government of Mongolia to enter on its behalf into Contract related to Coal Bed Methane gas (CBM) Operations in the territory of Mongolia, and exercise supervision over implementation thereof. The Contractor shall have exclusive rights for conducting Coal Bed Methane gas (CBM) Operations in the Contract Area for Exploration as described in Annexes, attached hereto and made the integral part of the present Contract. The land, except that privately owned by Mongolian citizens, as well as the subsoil shall be the property of the State. Mongolia in the interest of all its people may allow foreign nationals, legal persons to lease land and exploit natural resources for a specified period of time, purpose, under conditions and procedures as provided for by law.