Clarification Announcement

1

October 5, 2020

CLARIFICATION ANNOUNCEMENT

VANCOUVER – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the

“Company”) announces that reference is made to the announcement of the Company dated

September 30, 2020 in relation to the additional resumption guidance (the “Announcement”).

Unless otherwise stated herein, capitalized terms used herein shall have the same meanings

as that ascribed to them in the Announcement. This clarification announcement is published

for the purpose of correcting inadvertent clerical errors.

The Company hereby clarifies that the additional resumption guidance as disclosed in the

Announcement shall read as follow s: “resolve issues arisen from the Cease Trade Order

and/or the TSX Delisting Review, or take steps to the satisfaction of the Hong Kong Stock

Exchange that the Company will be eligible for a primary listing on the Hong Kong Stock

Exchange”.

Save for the a bove clarification, all other information and contents of the Announcement

remain unchanged.

CONTINUED SUSPENSION OF TRADING

At the request of the Company, trading in the shares of the Company on the Hong Kong Stock

Exchange has been suspended with effect from August 17, 2020 and will remain suspended

until further notice.

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its

flagship Ovoot Tolgoi coal mine in Mongolia. SouthGobi produces and sells coal to customers

in China.

2

Contact:

Investor Relations

Office: +852 2156 1438 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com