#1MIE Investor Presentation August 2014 0813-10 Strictly Private and Confidential MIE Holdings Corporation#2MIE Holdings Corporation Disclaimer The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, directors, employees, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss however arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. 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In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No money, securities or other consideration is being solicited, and, if sent in response to these materials or the information contained herein, will not be accepted.#3MIE Holdings Corporation Agenda 1. MIE Group update and highlights • • • • MIE group assets overview Significant reserves base Large resources inventory Production growth potential Company strategy 1H2014 results highlights . 2014 operational guidance 2. Group assets update • China oilfields (Jilin assets and Kongnan Block) SGE (Linxing and Sanjiaobei) Emir-Oil (Aksaz, Dolinnoe, Emir, Kariman, and prospects) US asset (Condor Energy) 3. Financial update 1H2014 financial performance summary Financial analysis 4. Appendix#4MIE Group update and highlights MIE Holdings Corporation#5MIE Holdings Corporation MIE Group update and highlights MIE group assets overview • • Independent onshore upstream oil and gas company in China, growing domestically and globally Significant near-term production growth Emir-Oil (ADEK contract area) (100%, operator) Aksaz, Dolinnoe, Emir, Kariman, and prospects Achieved 5,269 BOPD net production in 1H2014 vs. 3,454 BOPD net production in 1H2013, representing a 52.5% increase 102mmboe of 2P reserves as of year end 2013, 18.4% increase since yearend 2012 On-going exploration activities to prove up additional reserves Kazakhstan China • Major cash flow contributor Oilfields in Jilin (90%, operator) Daan PSC, Miao 3 PSC, Moliqing PSC Net production 9,992 BOPD in 1H2014, slight increase to 1.7% compared to 9,823 BOPD in 1H2013 due to strategic capex scale back for growth projects Attractive fiscal regime under PSC structure Diversification into China unconventional gas assets Sino Gas & Energy ("SGE") (51%, operator) Linxing PSC (SGE holds 64.75%), Sanjiaobei PSC (SGE holds 49%) Significant resource base with 2C & prospective resources of 1.95 Tcf, and 2P reserves 303 BCFG (50mm boe) Existing drilling campaign leading to China Reserve Report ("CRR") and ODP preparation Clear path to commercial production USA Oil asset . De-risked asset with stable cash flow Pan-China Resources (100%, operator) Kongnan block within Dagang oilfield Successfully increased net production since acquisition • Net production 1,187 BOPD in 1H2014 was up 27.5% compared to 931 BOPD in 1H2013 Direct cash flow contribution from the de-risked producing Kongnan block Gas asset Access to unconventional technology Condor Energy (80%, operator) Condor Energy: 61.25%-100% working interest covering 7,035 net acres in the Niobrara Shale oil trend, Colorado • Oil and gas production, with access to horizontal drilling and fracturing technologies used in developing shale oil and gas • As of June 30, 2014, Condor has a total of 5 horizontal wells with lateral lengths 4,000-8,100 ft and 16-33 frac stages 1#6bcf mmb bl MIE Holdings Corporation MIE Group update and highlights Significant reserve base 200 180 160 140 120 100 80 60 40 20 20 0 Proved - China oilfields Total oil reserves breakdown (as of Dec 2013) Equally likely that the actual quantity recovered is above or below the stated 2P quantity High degree of confidence stated Proved quantities will be commercially recovered 16 32 1 54 55 55 16 1 126 41 1 184 Proved Emir- Oil Proved US assets Total 1P Probable - China oilfields Probable - Emir-Oil Probable - US assets Total 2P Possible - China oilfields Possible - Emir-Oil Possible - US assets Total 3P Total gas reserves breakdown (as of Dec 2013) 700 Equally likely that the actual quantity recovered is above or below the stated 2P quantity 42 2 640 197 600 500 High degree of confidence. stated Proved quantities will be commercially recovered 400 53 3 399 169 300 38 3 174 Twice the 2P 200 134 of 2012 100 0 Proved SGE Proved- Emir-Oil Proved - US assets Total 1P Probable SGE Probable - Emir-Oil Probable - US assets Total 2P Possible SGE Possible - Emir-Oil Possible - US assets Total 3P Source: Company announcements China assets SGE Emir-Oil US asset Low probability the actual quantity recovered will exceed the stated 3P quantity Low probability the actual quantity recovered will exceed the stated 3P quantity 2#7MIE Holdings Corporation mmbbl 250 200 150 100 50 8 MIE Group update and highlights Large resource inventory provides significant upside to existing reserves Total oil resources breakdown (as of Dec 2013) 2C Contingent Resources BE Prospective Resources 1 9 0 2C China oilfields 2C US assets Total 2C PRMS Resources Contingent: Quantities estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies Prospective: Quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations. Uncertainty Range Case Low Estimate Best Estimate High Estimate Contingent 1C 2C 3C Prospective LE BE HE bcf 250 200 150 100 50 21 185 206 0 Prospective China oilfields Prospective - Emir-Oil Total prospective Total gas resources breakdown (as of Dec 2013) bcf 2C Contingent Resources 1,200 1,000 884 2 886 800 600 400 200 0 2C - 2C- Total 2C SGE US assets China assets SGE Source: Company announcements Emir-Oil 177mmboe 1,065 Prospective - SGE (total gas prospective) BE Prospective Resources US asset 3#8MIE Holdings Corporation MIE Group update and highlights Further production growth potential from existing asset base Oil production (BOPD) 45,000 1H2014 vs 1H2013 net oil production (BOPD) 15.5% 14,334 125 3,454 16,558 110 5,269 10,754 11,179 40,000 1H2013 1H2014 Gross wells drilled 35,000 China oilfields Emir-Oil 91 5 143 3 30,000 25,000 20,000 • Maintained strong free cash flow as a result of increase in profit oil Strong momentum for Emir-Oil's oil production continued with 52.5% increase from 3,454 BOPD in 1H2013 to 5,269 in 1H2014 Production forecast by technical consultants (1) 26.692 36,057 161 32,075 I I 2014 guidance: 15,300-16,300 BOPD 23,493 18,049 13 556 16.710 16,300 14,297 14,673 15,000 -100 12,705 23 145 2,787 4,320 5,200 6,507 2,104 9,349 10,000 12,813 13,355 5,000 10,601 11,487 11,402 10,208 9,349 10,000 10,018 0 2010 2011 China oilfields 2012 Emir-Oil 2013 (actual) I 2014 guidance US assets 2014E 1P production 2015E 2P production 2016E 2017E 3P production Gross wells drilled (forecast wells drilled based on 2P reserves) I China oilfields Emir-Oil US assets Total 200 466 431 102 156 156 465 443 201 I na na 8 10 1 12 17 16 na 200 na 466 3 2 0 2 8 19 24 I 442 114 165 159 485 479 241 (1) Production forecast (2014E-2017E) is the forecast of independent technical consultants as of 2013 year end, and does not necessarily represent management forecast 4#9MIE Holdings Corporation MIE Group update and highlights Company strategy Optimize development of two new core assets Emir-Oil Ramp up production - remove gas market bottleneck • Complete new O&G processing facilities • Lower export oil transport costs differential ●Reserve enhancement through exploration drilling SGE Undertake pilot production gas sales • Exploration & Development drilling and well testing Reservoir Assessment Reserve & Resource Additions Expedite CRR and ODP Optimize existing mature assets Leverage favorable PSC terms - reallocate free cash flow amongst Group's assets Extend production plateau thru advanced tech application Expand operational & technological capability Evident in our new projects globally ● Substantial advancement since 2010 IPO, when we were pure oil developer in China Upgrade current portfolio • Divesting non-core assets from current portfolio Replacing with better quality assets in politically stable environment (e.g. North America) 5#10(1) MIE Holdings Corporation Adj. EBITDA Production (US$m) (BOPD) drilled Wells China oilfields MIE Group update and highlights Efficient allocation of resources to ensure stronger growth and profitability FY2013 capex: US$337m 25% 35% 37% ■China oilfields ■ Emir-Oil ■ SGE ■ US assets Emir-Oil SGE FY2014 revised guidance capex: US$296m (1) 16% 42% 1% 41% China oilfields ■ Emir-Oil ■SGE ■ US assets US asset Group 91 156 40 143 9 5 5 3 13 18 15 205 161 109 134 2 11 1H13 2H13 1H14 FY14 1H13 2H13 1H14 guidance FY14 guidance 1H13 2H13 1H14 FY14 guidance 1H13 2H13 1H14 FY14 guidance 1H13 2H13 1H14 FY14 guidance 10,500 11,179 5,600 5,269 16,558 16,300 14.334 9,671 5,172 164 200 3,454 Near-term 125 110 15,006 10,000 5,200 14,334 production expected 100 15,300 1H13 2H13 1H14 FY14 1H13 2H13 1H14 guidance FY14 guidance for Linxing and Sanjiaobei 1H13 2H13 1H14 FY14 guidance 1H13 2H13 1H14 FY14 guidance 142 147 129 1H13 2H13 1H14 Represents management guidance 17 27 32 1H 13 2H 13 1H 14 168 155 136 1H13 2H13 1H14 Note: Adjusted EBITDA refers to EBITDA adjusted to exclude non-cash and non-recurring items such as share-based compensation expense, gain/loss on oil put option, write-off of inventory, loss on disposal of property, plant and equipment, geological and geophysical expanse and any other non-cash or non-recurring income/expenses 6#11MIE Holdings Corporation MIE Group update and highlights 2014 first-half results highlights Operational highlights Group gross oil production reached 26,961 BOPD, up 3.5% from 1H2013 Financial highlights 1H2014 average oil price realised down by US$3.16/bbl or 3.2% to US$96.02bbl compared to 1H2013 Group net oil production of 16,558 BOPD, an increase of 15.5% compared to same period in 2013 and above full year guidance range of 15,300 - 16,300 BOPD Emir-Oil recorded significant increase reaching 5,269 BOPD, representing a 52.5% growth from 1H2013 1H2014 Net:Gross ratio of 52% for China oilfields (compare to 1H2013 Net: Gross ratio of 48% (1)) ☑ 1H2014 Revenue reached US$294.9 mm, representing a 12.9% increase from same period in 1H2013 Emir-Oil ☑ Obtained official approval from Kazakhstan government on the construction of Central Processing Facility (CPF) Extension of ADEK exploration contract moving forward smoothly EBITDA maintained at US$161.8mm, representing a 5.1% increase from same period in 1H2013 Successful issue of US$500mm 5-year Notes at coupon rate 7.50% in April SGE CRR for East Block of Linxing PSC has been granted final approval Encouraging gas flow test results for vertical well TB-26 and horizontal well TB-1H Entered into committed unsecured facility of up to US$35 mm with Deutsche Bank in May Completed full US$90 million cash call obligations into SGE for 51% equity interest in SGE (1) Net:Gross ratio calculated based on production volume 7#12MIE Holdings Corporation MIE Group update and highlights 2014 operational guidance # Gross Wells Net Capex (US$M) Net Production Original FY14 guidance 1H 2014 Revised FY14 Original FY14 Revised FY14 guidance guidance guidance Original FY14 guidance 1H 2014 Revised FY14 guidance China 163 143 156 125 122 10,000-10,500 11,179 BOPD BOPD 10,000-10,500 BOPD Oilfields SGE 59 15 40 70 70 48 1,000-1,500 MCFD Nil 300 MCFD Emir-Oil 8 3 USA 2 6 148 125 5,200-5,600 BOPD 5,000-5,400 MCFD 5,269 BOPD 5,871 MCFD 5,200-5,600 BOPD 5,000-5,400 MCFD Commentary • Re-aligned drilling program by reducing 9 vertical wells but added 2 horizontal wells to original drilling plan • Deferred drilling of 19 development wells and accordingly reduced capex spend of US$22 mm 7 1 100-200 BOPD 400-500 MCFD 110 BOPD 281 MCFD 100-200 BOPD 200 MCFD • 4 development wells, including 2 horizontal wells and 2 vertical wells 1 exploration well • 4 appraisal wells (1 less than originally planned) •Capex spend of CPF for FY2014 to be US$60 mm The original plan to drill 2 horizontal wells was canceled US$1 mm for lease extensions MIE 232 161 205 350 296 Total 15,300-16,300 BOPD 6,400-7,400 MCFD 16,558 BOPD 6,152 MCFD 15,300-16,300 BOPD 5,500-5,900 MCFD Represents a 4-11% y-o-y growth over FY2013 14,673 BOPD 8#13Group assets update MIE Holdings Corporation#14MIE Holdings Corporation Group assets update China oilfields Jilin assets Hebei (Kongnan block) (Daan, Moliqing, Miao 3) Baiyinnuole De-l o Qua Daging) Ownership Area 100% Ownership 90% O Lamalian (Daging complex) Xindian Talabong of 31km² Total wells drilled Daging inSberta (Daging complex) 140 Aogula Total wells in 1H2014 Wangjistan Northeastern uplift D Taibe (Songhao) Here drilled in 3 Horizontal wells Talabs 0 Longan Свом 1H2104 in 1H2014 Gross wells Gross wells Xinghuging Daging complex) Geotan Duing complexy Sheapping Tapinglan (Dange PacMantin Yushulin Lane Sanghan AnteWideg Shangjia alin Wurban 78 (as of Jun 2014) (as of Jun 2014) 2,784 Sifang Daan ging comple Acheta Daging complex) Sanrban Chaoyang go Zach ° Zhuangshen 1 PSC terms Total area Changchunling 2027 expiry Daan 253km² <- Xinbei Mina3 Puya Moliqing 72km² Western slope Miao3 -13 M Miao 3 81km² OQ'm PSC terms expiry Central basin area Daan 2024 Moliqing 2028 Changchun Miao 3 2028 Jilin assets Reserves & resources summary (as of Dec 2013) Kongnan Hebei (mmbbl) (mmbbl) Jilin 1P reserves 3 18 2P reserves 5 31 3P reserves 8 44 2C resources Prospective 9 21 resources Total reserves & resources (1) 5 61 (1) Total 2P Reserves+ 2C Contingent Resources+ Prospective Resources Moliqing Moliging MI Energy oilfields Oilfields Kongnan block ZILAITUN YESANBO ... DUANNAN XIXIEBO SHENJIAPU XIAOJI China oilfields: Group major cash flow contributor which accounts for 92.8% of group adj. EBITDA in FY2013 and 87.6% in 1H2014 Southeastern uplift Significant reserve base with long production track record Cost effective operations supported by advanced technologies and experienced management and technical team Favourable PSC structure with effective recovery of capex and operating costs Receives (Daqing) international oil price for Jilin oilfields and Cinta oil price for Kongnan block 9#15MIE Holdings Corporation Group asset update China oilfields 1H2014 operation update Jilin assets (Daan, Moliqing and Miao 3) Gross production decreased by 5.8% to 19,628 BOPD Net production of 9,992 BOPD (1H2013: 9,823 BOPD) flat production due to continued strategic capex scale- back for 1H2014 increase in profit oil translated into stronger free cash flow and EBITDA 140 wells drilled Strong performance of old wells Average realized oil price of US$104.54/bbl in 1H2014 (from US$105.46/bbl in 1H2013) Hebei (Kongnan) Acquired from Ivanhoe in 4Q 2012 for US$40 mm • 1H2014 EBITDA US$13.6mm Net 1H2014 production of 1,187 BOPD, representing 27.5% growth from same period in 2013 3 wells successfully drilled in 1H2014 and put into production • Average realized oil price of US$104.78/bbl US$/bbl US$/bbl bopd 20,000 15,000 10,754 10,000 5,000 1H2013 Net oil production 10,500 11,179 10,000 1H2014 2014 Guidance Average oil realized price 104.56 120 105.59 90 60 30 1H2013 1H2014 Lifting costs 11.65 10.00 9.31 8.00 6.00 4.00 2.00 1H2013 1H2014 10#16MIE Holdings Corporation Tarim Basin Group asset update SGE: Linxing & Sanjiaobei Daging •Harbin Daging Basin Shenyang Beijing Yinchuan Yulia Dallan. Tianjin ingbian Lenghu Ordos Basin Xl'an Geermu Shanghai Sichuan Basin West East pipeline Ordos Beijing pipeline I Ordos Beijing pipeline II Ordos Beijing pipeline III Local pipelines Existing pipeline (1) Total 2P Reserves+2C Contingent Resources+ Prospective Resources Linxing East (1,301 km²) SGE assets Ownership (through SGE) Gross wells (as of Jun 2014) Area Linxing East Linxing West Sanjiaobei PSC terms expiry Linxing: 64.75% Sanjiaobei: 49% 73 1,301km² 573km² 1,124km² 2028 Linxing West (573km2) Sanjiaobei (1,124 km2) Sino Gas Energy Linxing Sanjiaobei 2033 Exploration period expiry Linxing Aug 2016 Sanjiaobei Aug 2015 Reserves & resources summary (bcf) (as of Dec 2013) 1P reserves 2P reserves 3P reserves 2C resources Prospective resources 134 303 499 884 1,065 Total reserves & resources (1) 2,252 11#17MIE Holdings Corporation Group asset update SGE: Linxing & Sanjiaobei • 1H2014 operation update Drilling program underway with 19 wells drilled and 18 wells fracc'd in 2014 First horizontal well TB-1H and the new vertical well TB-26 in Linxing block have achieved encouraging test results TB-1 H: flow testing resulted in a gas flow rate of 4.93 MMCF/day (c.140,000 cubic meters per day) with stable tubing head pressure of 2,008 psi (14MPa) TB-26: gas flow rate of 1.20 MMCF/day (c.34,000 cubic meters per day) with stable tubing head pressure of 1,740 psi (12MPa) Clear path to commercial production Development timeline status MIE value add 1 CRR for Linxing East Approved! Updated independent 2 reserves and reserves assessment (2013) 3 2014 drilling program Underway Pilot production sale agreement 4 Pilot pipeline gas sales In preparation Operational experience in China ODP and contract process experience Horizontal In June 2013, SGE entered into a pilot gas sales agreement with China United Coalbed Methane ("CUCBM") for Linxing project 5 Preparation of ODP Underway (Linxing East) drilling experience in ⚫ pipeline sales are expected to commence in 2H 2014 with an initial price of c.US$8/Mcf 6 Preparation of CRR (Linxing West, Sanjiaobei) US In progress On 10 July 2013, NDRC raised non-residential natural gas price to RMB1.95/cm (c. US$8.90/Mcf) 7 ODP preparation & Commence submission (Linxing West, Sanjiaobei) after CRR On 12 August 2014, NDRC further increased non-residential natural gas price to RMB2.47/cm (c.US$11.25/Mcf) In October 2013, CUCBM signed a supplementary gas sales agreement for CNG with an industrial purchaser in Shanxi Province, and commenced sales on December 21, 2013 (1) The independent technical consultant for Linxing and Sanjiaobei Commercial production 12#18MIE Holdings Corporation Group asset update SGE: Linxing & Sanjiaobei 3RD BEIJING PIPELINE Well-established infrastructure in Ordos Basin Tabamiao Sinopec Shell Wochen CNPC & Tota S PSC 1st Baying Pip 2nd Bois P Yuanping! Multiple gas pipelines with existing tie-in points will provide market access for Sino Gas' pipeline quality gas Linxian SA Mizhi Changdong CNPO Fortune Dart Yellow River Linxing CPF Minobian CNPC TB-18 TI-03 TB-01 Jinghian West to East Cas Pipeline TB-17 TR.15 Producing Gas Fields Existing Pipelines Pipelines under construction TB-1H Jiakian TB-09 TB-11 Fubn Yuji TB-14 IB-12 TB-07 TB-16 TB-05 Completed Well TB-09 Completed Pad Wells TB-02 SJB9 Planned Pad Wells CPF FB-04 SJB-03 SJB7 SJB1 SJB22 Planned Temporary Connection SJB2 Pipeline Under Construction Exisiting Long Distance Pipeline SJB6 SJB8 SJB14 Downstream Pipeline SJB4 SJB5 SJB11 SJB19 SJB15 South Shib Reflection i Bajjing Pipeli Sino GEnergy Yulin Jinan Pipeline Taiyuan PELIN YULIN-JINAN PIPELINE PIPELINE LINXIAN-LINFEN inxian Linxing: Pipeline construction site. Gas gathering pipeline design has been completed Key transcontinental gas transport hub Above ground infrastructure with ample spare capacity Existing and planned demand far exceeds supply Shanxi Province alone (population ~ 35 million) underpins supply Linxing CNG sales: Installation of CNG processing facility 13#19MIE Holdings Corporation 2 Group asset update Emir-Oil AKSAZ Emir-Oil (Aksaz, Dolinnoe, Emir, Kariman) Ownership Reserves & resources summary (as of Dec 2013) Emin ADEK Contract Area (Emir-Oil) ADEK contract area 100% 850km² Oil Gas (mmbbl) (bcf) 1P reserves 32 38 Gross wells 42 (as of 1H2014) 2P reserves 87 90 Borly Esen Exploration license expiry 3P reserves 129 133 Jan 2015 (1) Production license Dolinnoe expiry 2C resources Aksaz 2036 Prospective North 185 Dolinnoe 2036 resources Kariman 2030 Emir Kariman Total reserves & 272 90 Kariman 2036 resources (2) Emir-Oil continues to liaise with the Kazakhstan Ministry of Oil and Gas and has made good progress Total 2P Reserves+2C Contingent Resources+ Prospective Resources 14#20MIE Holdings Corporation Group asset update Emir-Oil 1H2014 operation update Oil production increased by 52.5% to 5,269 BPOD compared to 3,454 BPOD in 1H2013 Realized export price increased from US$ 85.73/bbl to US$ 88.19/bbl, but average realized oil price decreased from US$79.10/bbl to US$78.04/bbl due to decreased export sales (79% in 1H2014 vs. 85% in 1H2013) coupled with lower realized domestic oil price for 1H2014 Net oil production 10,000 8,000 5,600 5,269 6,000 3,454 4,000 2,000 5,200 1H2013 1H2014 2014 Guidance Average oil realized price (1) Lifting costs continued to decrease, from US$5.71/bbl to US$4.39/bbl as production ramps up 120.00 79.10 90.00 60.00 30.00 Kazakhstan authorities have officially approved preliminary design of CPF 0.00 1H2013 Currently preparing detailed design for the CPF and will subsequently open the bidding process for the construction of the facilities CPF construction work will be kicked off in 2H2014 (1) Weighted average of Emir-Oil's export and domestic oil sales Lifting costs 78.04 1H2014 8.00 6.00 5.71 4.39 4.00 2.00 0.00 1H2013 1H2014 15#21MIE Holdings Corporation Group asset update Emir-Oil Aidai-1 spudded July 25 and currently drilling Begesh Key Oil Fields Emir-Oil Block Other Operators Prospect Exploration activities Emir-Oil Block 850 sq km East Saura Emir Worth Aidai Borly Aidai Aksaz Dolinnce Yessen YE 2013 Reserve Report estimated the following Resources Unrisked Prospective Resources: 185 mmbbls (Best Estimate) Interpretation of merged 3D seismic data covering entire exploration block and producing fields scheduled complete by YE2014 • Appraisal drilling in progress at Emir-5 and Dolinnoe-12 Tanirbergen Saratobe (T2) North Kariman Kariman North Akar(T2) North Karagie (T3-T2) Matobe (T2) Yessen-2 deviated well testing in progress following reservoir core analysis Applied to extend pilot production permit for North Kariman-2 to YE 2016 • 2 appraisal wells planned for western area of North Kariman Extension of the ADEK exploration contract ongoing. We continue to liaise with the Kazakhstan Ministry of Oil and Gas and have made good progress 16#22MIE Holdings Corporation Group asset update US asset (Condor Energy) Condor Energy Ownership Net acreage Gross wells (horizontal) 80% 7,035 acres 5 1H2014 operation update Condor Energy As of Jun 2014, MIE operated 5 horizontal wells in a Colorado Niobrara asset through Condor Energy No drilling activities during 1H2014 in the US For 1H2014, the average daily net oil and gas production was 110 BOPD and 281Mcf/day, respectively Average realized oil and gas price was US$89.26/barrel and US$6.77/Mcf, respectively Operational and technological expertise gained from the drilling of 5 horizontal wells is being applied to Group's other existing assets Wyoming Area of Niobrara Carbonate Deposition (all benches) Condor Acreage Colorado 26 2 30 28 20 26 25 30 35 31 32 28 34 100 2 1 5 3 2 11 12 14 13 17 GO 23 24 20 26 25 29 28 1430 35 36 2 34 32 5 11 2014-5 25 2 36 28 27 25 25 34 35 36 STATE 7.60 1H 2 13 24 27 25 25 25 35 Niobrara Montana Thrust Bakken*** Det Cody Heath Basin Hom Powder River Gammon Mowry Mancos Greater Green Unta Basi Niobrara (Condor Energy) Antrim Denver Basin Excello moss dox Basin Ration Bone Spring Mulky Cherokee Platform Woodford Anadarko Palo Duro Bend Basin Pemian Basin Barnett FL. Worth Basin Fayetteville Albany Chattanooga Aroma Basin Back Warrior Basin Floyd- Neal TX-LAMS Salt Basin Tuscaloosa D 4 3 2 1 KEY 11 12 19 12 7 9 10 11 CISTRO 91H 14 27 26 30 16 15 14 33 10 17 10 15 14 13 22 23 DEV PV 3000 PS 10 20 21 22 23 24 " PB 27 26 25 30 28 21 20 18 " 10 22 24 26 36 31 32 33 34 15 Eagle Haynesville- Ford Bossier Conasauga, Valley & Ridge Province 17#23Financial update MIE Holdings Corporation#24MIE Holdings Corporation Financial update Financial performance summary 1H2013 1H2014 (In US$ million) China Emir-Oil USA Others Total China Emir-Oil USA Others Total Revenue 209.0 50.2 2.0 261.1 215.8 77.0 2.1 1H2014 vs 1H2013(%) 294.9 12.9% Total operating expenses (129.8) (42.0) (3.5) (4.8) (179.9) (145.3) (57.3) (4.8) (9.9) (217.3) 20.8% Profit from operations Margin 79.2 8.2 (1.5) (4.8) 81.2 70.5 19.7 (2.7) (9.9) 77.6 (4.4%) 37.9% 16.4% na na 31.1% 32.7% 25.6% na na 26.3% (4.8%) Profit before income tax 72.5 7.9 (1.3) (31.0) 48.1 66.7 25.2 (2.5) (68.5) 20.9(2) (56.5%) Net profit for the year Margin 53.5 5.4 (1.3) (31.0) 26.6 50.1 26.0 (2.5) (68.5) 5.1(21 (80.8%) 25.6% 10.7% na na 10.2% 23.2% 33.8% na na 1.7% (8.5%) EBITDA Margin 142.1 16.1 0.5 (4.7) 153.9 146.6 28.8 (0.2) (13.4) 161.8 5.1% 68.0% 32.0% 23.4% na 58.9% 67.9% 37.4% na na 54.9% (4.0%) Adjusted EBITDA (1) 141.8 17.1 0.5 (4.4) 155.0 146.6 31.9 (0.2) (10.8) 167.5 8.1% Margin 67.9% 34.1% 23.9% na 59.4% 68.0% 41.4% na na 56.8% (2.6%) (1) Adj. EBITDA refers to EBITDA adjusted to exclude non-cash items such as share-based compensation expense, loss on impairment of receivables, and any other non-recurring items such as acquisition expense, and geological and geophysical expenses. (2) Includes an one-off finance costs of RMB 155 million (US$25.2 million) regarding 2016 Notes redemption premium and certain unwinding of non-cash discounts/upfront-fees regarding the 2016 Notes. 18#25(US$/bbl) MIE Holdings Corporation 14.00 12.00 Financial update Lifting costs analysis of China assets and Emir-Oil 10.00 9.31 8.53 8.44 8.00 6.00 4.00 2.00 0.00 5.71 Lifting cost per barrel (1) 1H2013 ■China oilfields (excluding Kongnan) 12.48 13.10 11.65 10.33 10.52 4.82 4.39 2H2013 1H2014 ■China oilfields (including Kongnan) ■ Emir-Oil ■Total 9.29 (1) Lifting costs includes directly controllable costs to produce a barrel of oil. Other production costs such as safety fee, environment expenses, technical & research expense and overhead have not been included since they are not directly attributable to the production of a barrel of oil 19#26MIE Holdings Corporation (US$/bbl) Financial update Cash netback analysis of China assets and Emir-Oil Cash netback of China oilfields 105.46 105.59 104.54 104.56 Cash netback of Emir-Oil (1) (US$/bbl) 85.73 88.19 8.53 9.31 4.39 10.52 11.65 5.71 1.31 1.39 1.33 9.11 1.27 6.14 18.01 18.23 ■Lifting costs 17.63 17.73 ■Lifting cost 5.31 5.32 ■Distribution ■Taxes other than income taxes 77.62 76.66 75.05 73.91 Cash netback 1H2013 (excluding Kongnan) 1H2013 (including Kongnan) 1H2014 (excluding Kongnan) 1H2014 (including Kongnan) (1) Export: domestic sales split was 85%:15%, 79%:21% in 1H2013 and 1H2014, respectively 22.31 22.94 ■Export duty Mineral extraction tax ■Rent export tax 41.98 39.71 0.05 ■Property tax 5.71 1.18 4.39 Other taxes 0.93 0.05 ■Cash netback 46.26 44.36 35.10 32.33 Export 1H2013 Domestic Export 1H2014 Domestic 20 20#27(bbls/d) MIE Holdings Corporation Historical financials Key sales related statistics Average realized oil price Revenue breakdown by region 120.0 105.5 (1) 102.9110.2 (1) 106.2 109 8 104.1 99.2 108.9 104.5109.2 (1) 400 99.9 95.0 100.0 94.1 96.0 295 92.5 85.7 89.25 88.2 300 261 265 2 80.0 3 (US$/bbl) 2 77 $60.0 40.0 20.0 (US$m) 50 76 200 100 209 216 186 0.0 0 WTI 1H2013 ■ Brent 2H2013 1H2014 2013 1H 2013 2H 2014 1H ■Jilin assets ■Emir-Oil export price ■MIE Total Oil ■China Emir-Oil ■ US Average daily net oil production breakdown by region Adj. EBITDA and Capex (2) 18,000 16,558 250 75% 15,006 110 14,334 164 125 59% 57% 5,269 200 12,000 3,454 51% 168 5,172 155 143 (US$m) 150 136 6,000 10,754 11,179 9,671 100 85 50 60% 125 45% 30% 15% 0% (1) (2) 12 0 2013 1H ■China 2013 2H ■ Emir-Oil ■ US 2014 1H Emir-Oil average realized export oil price before transportation costs and marketing commissions borne by customer, Titan Oil Capex for this charts refers to the cash used for purchase fo PPE in the cashflow statement 0 2013 1H 2013 2H 2014 1H Adjusted EBITDA Capex Adjusted EBITDA Margin 21#28Financial update MIE Holdings Corporation Oil price performance US$/bbl 140 120 100 80 60 60 40 Jan-2013 Oil price (US$/bbl) Jilin assets 1H2013 1H2014 1H14 vs 1H13 Avg. realised oil price 105.5 104.5 (0.9%) Avg. Daqing price 107.3 104.9 (2.2%) Hebei (Kongnan) Avg. realised oil price. 106.9 104.8 (2.0%) Avg. Cinta price 106.3 104.7 (1.5%) Emir-Oil (export) Avg. realized export oil 85.7 88.2 2.9% price Transportation & 20.5 21.0 2.3% marketing costs Avg. realized export oil price pre transportation 106.2 109.2 2.8% costs & marketing costs Brent average price 104.1 108.9 4.6% US asset Avg. realised oil price 90.2 89.3 (1.0%) Apr-2013 Jul-2013 Brent Oct-2013 -WTI Jan-2014 -Daqing Apr-2014 Cinta Jul-2014 Avg W TI price 92.5 94.1 1.7% Source: Bloomberg 22 22#29MIE Holdings Corporation Financial update EBITDA breakdown analysis of China assets and Emir-Oil Breakdown of China Oilfields 105.46 105.59 104.54 104.56 Breakdown of Emir-Oil (1) 79.10 78.04 8.04 8.83 8.09 9.36 2.79 2.94 4.05 3.66 4.05 3.93 1.41 2.98 3.13 3.19 18.01 18.23 17.63 Purchases, services and other 14.13 8.58 ■Geological and geophysical expense 17.73 2.37 1.44 3.89 ■Purchases, services and other 5.99 ■Distribution and administrative expenses ■Distribution and administrative expenses 31.52 Employee compensation costs 32.03 Employee compensation costs 72.96 71.65 71.79 70.28 1H2013 (excluding (including Kongnan) Kongnan) 1H2013 1H2014 (excluding Kongnan) 1H2014 (including Kongnan) (1) Weighted average of Emir-Oil's export and domestic oil sales ■Taxes other than income tax ■ EBITDA ■Taxes other than income tax 28.49 24.11 ■ EBITDA 2013 1H 2014 1H 23 23#30MIE Holdings Corporation For the period ended June 30 (In US$ million) Financial update Cash flow statement and key credit statistics 1H2013 1H2014 Adj. EBITDA / net interest expense Cash Flow Statement Cash generated from operations 157 125 Interest paid (21) (27) 10.0x Income tax paid (24) (9) Net cash generated from operations 112 89 8.0x 6.4x Purchase of PP&E (157) (112) 5.5x 6.0x Others (1) (41) 4.8x Net cash used in investing activities (157) (153) 4.0x Proceeds from borrowings/bonds 209 495 Repayments of borrowings/bonds Others (152) (32) (432) (11) 2.0x Net cash from financing activities 25 53 0.0x 2013 1H 2013 2H 2014 1H Net increase/(decrease) in cash 217 (21) (11) Capitalization Table Cash Positions Short-term Debt Long-term Debt Total Debt Net Debt Total Equity Total Capitalization (1) Includes mainly cash-call by SGE Net Debt and total debt / Adj. EBITDA 52 35 5.0x 10 10 587 680 4.0x 597 690 3.0x 2.2x 545 655 1.9x 2.0x 2.0x 2.1x 1.8x 2.0x 570 599 1.0x 1,115 1,254 0.0x 2013 1H 2013 2H 2014 1H ■Net Debt/Adjusted EBITDA ■Total Debt/Adjusted EBITDA 24#31Appendix MIE Holdings Corporation#32MIE Holdings Corporation Key milestones Dec 2010 IPO on SEHK raised net proceeds of HK$750m Sep 2011 Completed the Emir-Oil acquisition for US$160m (2P reserves: 92mmboe) Nov 2011 Formed a JV (Condor Energy) with 80% interest, to acquire a shale project in Niobrara (Colorado, USA) Feb 2013 US$200m Senior Notes issued due 2018 Mar 2013 Emir-Oil was granted 17-year production license for Emir oilfield Sept 2013 Emir-Oil successfully drilled the first horizontal well Kariman-113 in Kazakhstan Jul 2014 CRR of Linxing East Block has been granted final approval by Chinese government to SGE 4Q 10 1H 11 2H 11 1H 12 2H 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 May 2011 US$400m Senior Notes issued due 2016 2012 Successfully drilled 4 horizontal wells in China in and 3 in USA Jul 2012 MIEH acquired 51% interest in SGE for US$100m, unconventional gas projects in Ordos Basin, China (2C: 970Bcf; prospective: 1,799Bcf) Dec 2012 Acquired PCR for US$39.6m after adjustment, producing oil assets in China (2P reserves of 2.5mmbbl) June 2013 SGE entered into a pilot gas sales agreement with CUCBM for Linxing project Apr 2014 US$500m Senior Notes issued due 2019 May 2014 Subsidiary Gobi Energy entered into a facility agreement with Deutsche Bank for US$35m loan facility Financial Activities Corporate Events 25 45#33MIE Holdings Corporation Corporate and shareholding structure (Aug 2014) Far East Energy Limited (Hong Kong)(1) 53.4% TPG 8.7% MIE Holdings Corporation (Cayman Islands) HKSE Listed Company 100% 100% 92.2% 100% 100% 100% 100% Pan-China Resources Ltd. Asia Dynamic (BVI) (Cayman Islands) Asia Gas (Cayman Islands) MIE Jurassic (Cayman Islands) Gobi Energy Ltd (Cayman Riyadh Energy Ltd (Cayman Miao Three Islands) Islands) Energy Ltd (Cayman Islands) 100% Asia Dynamic Energy Trading Corporation (Cayman Islands) 51% Sino Gas & Energy Limited (Australia) 80% Kongnan PSC LX PSC SJB PSC Condor (Nevada)(2) Daan PSC Moliqing PSC Miao 3 PSC (1) (2) Public 37.9% 100% 100% MI Energy MIE New Ventures Corporation (Cayman (Cayman Islands) Islands) 1% 99% 100% Camel Oil and Gas Technical Services (Tianjin) Palaeontol Cooperatief U.A. (Netherlands) 100% Palaeontol B.V. (Netherlands) Emir-Oil (Kazakhstan) Exploration contract and ADEK production contract FEEL is held by Zhao Jiangbo ("Mrs. Zhang"), Zhang Ruilin ("Mr. Zhang"), Zhao Jiangwei ("Mr. Zhao") and Shang Zhiguo as to 80%, 9.99%, 10% and 0.01% respectively. FEEL holds 53.4% interests in MIEH through its wholly owned subsidiaries. Mr. Zhang, MIEH's executive director, chairman and chief executive officer, Mr. Zhao, MIEH's executive director and senior vice president and Mrs. Zhang are the controlling shareholders of FEEL Condor's working Interests in their assets vary from project to project and from well to well 26#34(1) (2) MIE Holdings Corporation Strong cash flow supported by PSC structure Production Jilin assets oil allocation under PSCS 1H2013 1H2014 Net: Gross 47% (2) 51% (2) VAT 5% of the total gross production Royalty Calculated at progressive ad valorem rates, ranging from zero to 12.5% based on the annual production of individual project Operating Cost Recovery Oil Operating costs borne by foreign contractors (1) (i.e. MIE) in the range of 48% to 80% Pilot-test and Development Cost Recovery Oil Profit-Sharing Oil 80% of production allocated to foreign contractors (1) (i.e. MIE) for the recovery of pilot-test and development costs, until ALL pilot-test and development costs incurred are recovered Remaining oil production allocated 48% to foreign contractors (1) (i.e. MIE) Oil produced is fully allocated to foreign contractors (1) (i.e. MIE) to recover ALL Opex and Capex, after which it is allocated 48% of oil production as profit-sharing oil Foreign contractors include MIE (90%) and GOC (10%) Net: Gross ratio calculated based on production volume 28#35MIE Holdings Corporation Jilin assets - sales and marketing PetroChina has been MIE's sole customer. Selling to PetroChina is MIE's choice, not obligation Sole customer MIE believes PetroChina is the best customer given they make timely payments Process MIE transports all crude oil produced from oilfields through their pipelines or by truck to the delivery points designated by PetroChina Transportation and sales costs US$1.24 per barrel (RMB52/ton) as stipulated in the sales contract Price of crude oil sold Billing and payment Determined each month according to the price of Daqing crude oil published in Platts Oilgram, for the previous month The average sales prices per barrel of oil in 2010, 2011, 2012, 2013 and 1H2014 were US$77.99, US$109.99, US$113.51, US$104.25 and US$104.54 respectively All invoice is issued to PetroChina within 5 days after the end of each month, who pays MIE within 20 days of invoice Invoice amount = Daqing crude oil price x volume of crude oil attributable to foreign contractors for the month The sales agreement and PSC structure ensures that Petro China purchases 100% of crude oil produced each year, with no volume restraint, subject to the approval of the production amounts by the joint management committee 29#36MIE Holdings Corporation 92.2% Asia Gas CUCBM SGE ownership & PSC structure SINO Gas & Energy 中澳煤层气能源 51% 49% SGE Annual Gross Production 85% Cost Recovery Gas Share of Operating Costs + Exploration Costs + Development Costs (plus 9% deemed interest) *Factor X=0.90-1.00 depending on production volume 64.75% 49% Remainder Gas 30% Linxing PSC Sanjiaobei 51% (1-Factor X*) Factor X* PSC 64.75% LX 49.0% SJB Portion CNPC 5.25% CBM of Chinese PSC Partners' Gas (Remainder Gas - Portion of 30.0% LX 51.0% SJB Energy share of gas for Chinese PSC 5.25% LX gas Partners) 15% VAT & Royalty Non-Cost Recovery Gas SGE(Asia Gas:51%/SHE:49%) Chinese PSC Partners CMB Energy 30#37MIE Holdings Corporation China's favourable government policies and incentives for unconventional gas Gas pricing Policies Gas pipelines NDRC implementing a pilot program to test a more market-based gas pricing system to replace the existing "cost-plus" system Unconventional gas will move toward import parity netback pricing On 10 July, 2013 NDRC raised non-residential natural gas price to RMB1.95/cm (c. US$8.90/Mcfg) • On 12 August, 2014 NDRC further increased non-residential natural gas price RMB2.47/cm (c. US$11.29/Mcfg) China's natural gas pipelines are under-developed Vast potential of commercializing unconventional gas is hindered by pipeline infrastructure obstacles Government has given priority to unconventional gas over conventional gas for pipelines connection Government Subsidies . Government subsidy of RMB0.40/cm for shale gas from 2012-2015(1) Government subsidy of RMB0.20/cm for CBM, which is expected to increase to RMB0.60/cm VAT Tax refund and accelerated depreciation Permits Environmental consideration Foreign companies have been allowed a majority stake in unconventional gas projects Overall Development Plans ("ODP") is a key milestone toward commercial production The 12th 5-yr plan aims to reduce 1) by 17% carbon dioxide emissions by 2015, and 2) the weighting of fossil energy, which signaling promotion of clean energy Non-conventional gas is considered an important energy source to tackle China's environmental concerns (1) based on relevant policies set by Chinese government 31#38MIE Holdings Corporation Understanding SGE Gas Reservoirs GEOLOGICAL TRAPS Linxing-East CONVENTIONAL COALBED METHANE GAS SHALE GAS Sanjiaobei & Linxing-West TIGHT GAS 0m Reservoir seal Groundwater Source rock containing shale gas 1000 m Conventional natural gas reservoir. Tight traditional reservoir Traditional permeable reservoir Gas migration over geological time e.g. North Dome or Urengoy e.g. Marcellus or Barnett 2000 m 3000 m Horizontal Drain + Frac 4000 m 32#39MIE Holdings Corporation Emir-Oil O&G marketing options Infrastructure Map BELARUS Brody Moscow makinak UKRAINE Kremenchug Samaro Orsk Pavlodar RUSSIA Aaona Karaganda A15 KAZAKHSTAN Kazakhsta Korachagane Alasbe i Benyok Alynov Kozokhatan Oxpe Kunojarska Kumkel Karakon Deusly Kyzylorda Dushonai Druh Urumqi Almaty UZBEKISTAN Shegyr Tekesu KYRGYZSTAN Fargona TURKMENISTAN Toshkent Sea Turkmenbashhonthou Ashgabat Bukhoro TAJIKISTAN Dushanber Lisichanak Odessa GO CPC Now Mohoc Cupid Akou ROMANIA Feodosio 1 Constando BULGARIA Block Sea bul Samsun Ankara De Kirikala TURKEY CYPRUS Mad Neroneon-Se Ceyhan _ GEORGEL Erevan D BTC LEBANON SYR EGYPT Tako IRAQ Bogdoc IRAN Esfahan Kaboul AFGHANISTAN slamabad ISRAIL Bender Koman JORDAN Geneve hang New Delic SAUDI Pension C Bandar Abbos PAKISTAN INDIA Source: IEA ARABIA CHINA Existing oil pipeline Proposed pipeline/ transportation system Railroad Tanker terminal Aktau Industrial User 3 km Mangyshlak Train Station Oil Storage RR Filling Station Uzen-Atyrau-Samara Oil Pipeline Road distance 27km KasTrans Oil Pipeline Connection Rail Road Oil pipeline pipeline Future oil 25km Proposed processing station Aksaz 40km Emir Oil Pipeline 12.2km Gas Pipeline 8.5km Dolinnoe Oil Pipeline 8.3km Future gas pipeline Kariman Mayak Gas Pipeline System Connection Export Pipeline Gas pipeline Group Unit Gas Utilization Unit • Proposed gas pipeline Proposed processing station. New oil and gas processing station Processing capacity: oil 12,000bopd, gas 600,000 m³/d (21,000 mmcfgpd) • FEED completed and the proposal had been approved by the government Land rights already in place ⚫ Jan 2014: awarded China-listed Beijing Oil HBP the contract for skid-mounted oil and gas processing equipment Signed in Feb 2014 and construction work has started New oil pipeline • Specification: length of 25km, diameter of 219mm • Transportation capacity: 2- 4.5mm bbl p.a.(5,450- 12,400BOPD) Land rights already in place Design underway New gas pipeline . Specification: length of 35km, diameter of 219mm • Transportation capacity: 300,000-600,000 m³/d (10.6- 21.2 mmcfgpd) Land rights agreement reached Design underway The proposed facilities expected to be completed in 1H 2015 Proposed oil pipeline Note: The diagram is only a schematic diagram, not scaled in actual ratio 33#40MIE Holdings Corporation Kazakhstan tax summary Rent export tax Calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than US$40 per barrel to as high as 32% if the export sales price per barrel exceeds US$190 Mineral extraction tax Export duty Excess profit tax Depends on annual production output. The tax code currently provides for a 5% mineral extraction tax rate on production sold to the export market, and for domestic oil is calculated at 2.5% based on barrels of domestic oil multiplied by production cost per barrel multiplied by 120% In July 2010 the government issued a resolution that reenacted the export duty for several products, including crude oil. Emir Oil became subject to the export duty in September 2010. Effective in Apr 2013, the government of the Republic of Kazakhstan increased the fixed rate for the export duty from US$40 per ton to US$60 per ton. Effective in March 2014, the fixed rate for export duty further to US$80 per ton, or approximately US$10.53 per barrel exported EPT is applicable as soon as the ratio of annual aggregate income to annual tax deductions exceeds a ratio of 1.25. Deductibles include costs and losses. EPT is structured to encourage operators to invest/develop in oil/gas fields. Emir Oil has never had to pay EPT Property tax Property tax is payable on oil and gas assets which have been granted a production license at a rate of 1.5% based on average balance of oil and gas properties Corporate income tax The Tax Code set the tax rate at 20%. Prior to 2009, corporate income tax rate was 30% 34