Mongolia Growth Group Ltd. Considers Disposition of Non-Core Business

Mongolia Growth Group Ltd. Considers Disposition of Non-Core Business

Ulaanbaatar, MONGOLIA July 19, 2013 /FSC/ - Mongolia Growth Group Ltd. (YAK - TSX Venture),

Mongolia Growth Group Ltd. ("MGG" or the "Company") announces that after a thorough review, Mandal General Daatgal LLC ("Mandal"), MGG's Mongolian insurance subsidiary, has been determined to be a non-core business in respect of the future strategic direction of the Company. The board of directors of MGG has authorized management of the Company to seek value creating alternatives to the ongoing ownership of Mandal.

Management of MGG believes that a disposition of Mandal will allow MGG to focus its energy, corporate resources and capital on its core real estate leasing business with the goal of creating the most successful institutional property company in the rapidly growing economy of Mongolia.

While divesting Mandal will prevent the Company from participating in the future growth of the Mongolian insurance market, the benefits of a divestiture are expected to include the following:

* The release of capital to re-invest in the property business;

* Annual cost savings in the form of reduced audit, compliance and other expenses;

* Savings from the elimination of recurring marketing losses of Mandal;

* More predictable revenues by redirecting MGG exclusively to the property sector; and

* De-risking the business from the prospective of potential lenders to property assets.

"This was a very difficult decision," said Harris Kupperman, Chairman and CEO of MGG. "We are very proud of the success that Mandal has achieved. Unfortunately, an insurance business does not fit into the overall framework of our much larger property company. In addition, we expect that reductions in corporate expense from a divestiture of Mandal would help move MGG towards our long-term goal of being cash-flow positive on a recurring basis."

"Mandal no longer fits into the MGG portfolio" said Ganzorig Ulziibayar, President of Mandal. "MGG has been very supportive of us from the beginning. They have helped Mandal become one of the best insurance companies in Mongolia, and we are excited about our future as a standalone enterprise."

For more information on Mongolia Growth Group Ltd., please see our website:
www.MongoliaGrowthGroup.com

Or contact:

Jordan Calonego
Jordan@mongoliagrowthgroup.com

Legal Advisories

Additional information about the Company, including the Company's annual information form for the year ended December 31, 2012, is available under MGG's profile on SEDAR at www.sedar.com.

Forward-Looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "believes", "will", "expects" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to, among other things, the following: the expected benefits of a sale of Mandal, including, an improved cash flow position; and the availability of corporate resources and capital for MGG's property business.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of MGG including, without limitation: that MGG will continue to conduct its operations in a manner consistent with past operations, notwithstanding the proposed sale of Mandal; the general continuance of current or, where applicable, assumed industry conditions; continuity of political, legal and regulatory conditions in Mongolia; and availability of debt and/or equity sources to fund MGG's capital and operating requirements as needed.

MGG believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: MGG may be unable to dispose of Mandal; for reasons currently unanticipated, MGG's property portfolio may not increase scope or value in the manner currently expected; MGG's capital spending and operational plans for 2013 and future years may not be completed in the timelines anticipated, in the manner anticipated or at all and the execution of such plans may not have the results currently anticipated by MGG; the proposed disposition of Mandal may not positively impact MGG's business and operations in the manner currently anticipated or at all; changes in political, legal or regulatory conditions in Mongolia, increased debt levels or debt service requirements; limited, unfavourable or no access to debt or equity capital markets; increased costs and expenses; the impact of competitors; reliance on industry partners; and certain other risks detailed from time to time in MGG's public disclosure documents including, without limitation, those risks identified in this press release, and in MGG's annual information form, copies of which are available on MGG's SEDAR profile at www.sedar.com.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and MGG does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/mongoliagrowth07192013.pdf



Source: Mongolia Growth Group Ltd. (TSXV - YAK)
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