Mongolia Energy (HKG:0276) said that as the condition precedent under the its proposed acquisition of 20% copper, tin and multi-metals from Liu Chenglin remained outstanding by the deadline of the extension, its board of directors has resolved to exercise its right under the conditions of the extension to terminate the transaction effective on 5 January 2012.

As the transaction is terminated, the company has issued a notice to Liu requesting refund of the payment of HK$200 million paid by the company to the JV company controlled by Liu under the transaction to be made within 30 days.

At the same time, Mongolia Energy said that the approval for the use of the Khushuut Road of approximately 311 km from the Khushuut Mine Site stretching westward to the Yarant Border (Mongolia side) and Takeshenken Border (Xinjiang side) was granted by the Mongolian government in December 2011, and the company can formally use the Khushuut Road for coal transportation. The company has already commenced transporting coal products from its mine via the Khushuut Road to Xinjiang shortly after the approval.