Update ON Mongolia Tax Audit
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August 18, 2023
INSIDE INFORMATION
UPDATE ON MONGOLIA TAX AUDIT
VANCOUVER – SouthGobi Resources Ltd. (TSX-V: SGQ, HK: 1878) (“SouthGobi” or the
“Company”) announces that reference is made to the announcement of the Company dated
July 31, 2023 (the “Announcement”) in relation to the Mongolia tax audit.
As previously disclosed in the Company’s Announcement, on July 18, 2023, the Company’s
wholly owned subsidiary in Mongolia, SouthGobi Sands LLC (“ SGS”), received a notice (the
“Notice”) from the Mongolian Tax Authority (the “ MTA”) relating to a periodic ta x audit on
certain SGS’s financial information between 2017 and 2020 (the “ Audit”). The MTA notified
SGS that they are imposing a tax penalty against SGS in the amount of approximately
US$75.0 million as a result of the Audit. According to Mongolian law, SGS has a 30-day period
from the date of receiving the Notice to file an appeal regarding the Audit.
As at the date of this announcement, SGS has engaged an independent tax consultant in
Mongolia to provide tax advice and support to the Company in relation to the Audit. On August
17, 2023, SGS filed an appeal letter in relation to the Audit with the MTA in accordance with
the Mongolian laws. The Company will make further announcement(s) to keep its
shareholders and potential investors informed of any progress as and when appropriate.
Shareholders and potential investors of the Company are advised to exercise caution
when dealing in the shares of the Company.
About SouthGobi
SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, owns
and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences
of its other metallurgical and thermal coal deposits in South Gobi region o f Mongolia.
SouthGobi produces and sells coal to customers in China.
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Contact:
Investor Relations
Email: [email protected]
Mr. Ruibin Xu
Chief Executive Officer
Office: +1 604 762 6783 (Canada)
+852 2156 1438 (Hong Kong)
Website: www.southgobi.com