Resignation of Director

July 24, 2017

Resignation of Director

HONG KONG – SouthGobi Resources Ltd. (HK: 1878, TSX: SGQ) (the “Company”)

announces the resignation of Mr. Huiyi Wang as a non-executive director of the Company,

effective from July 24, 2017 (Canada time).

Mr. Wang’s resignation is a result of his recent resignation from China Cinda (HK) Holdings

Company Limited, an intermediate holding company of Novel Sunrise Investments Limited

which is a substantial shareholder of the Company and which nominated Mr. Wang as a

director of the Company. Mr. Wang has confirmed that he has no disagreement with the

board of directors of the Company (the “Board”) and there is no matter in relation to his

resignation that needs to be brought to the attention of the shareholders of the Company.

The Board takes this opportunity to express its sincere gratitude to Mr. Wang for his valuable

contributions to the Company.

About SouthGobi Resources Ltd.

SouthGobi Resources Ltd., listed on the T oronto and Hong Kong stock exchanges, owns and

operates its flagship Ovoot T olgoi coal mine in Mongolia. It also holds the mining licences of

its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia.

SouthGobi produces and sells coal to customers in China.

Contact:

Investor Relations

Kino Fu

Email: [email protected]

Website: www.southgobi.com