Resignation of Director

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March 12, 2020

Resignation of Director

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

“Company”) announces that, the resignation of Mr. Wen Yao (“Mr. Yao”) as a non-executive

director of the Company, effective March 11, 2020.

Mr. Yao resigned as a director of the Company due to a change to his duties and

responsibilities at CIC Capital Corporation, a wholly owned subsidiary of China Investment

Corporation (“CIC”), which is a substantial shareholder of the Company.

CIC nominated Mr. Yao as a director of the Company in 2017 pursuant to a contractual

nomination right granted to CIC in connection with the convertible debenture issued by the

Company to CIC i n 2009 . CIC has nominated another nominee director candidate to the

Company and the Nominating & Corporate Governance Committee of the Company is in the

process of arranging interview for the nominee director candidate.

Mr. Yao 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 op portunity to express its very sincere gratitude to Mr. Yao for his

valuable contribution to the Board and the Company.

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.

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Contact:

Investor Relations

Kino Fu

Office: +852 2156 7030 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com