SGQ.V · 2020-09-03 12:00:00

Resumption Guidance and Continued Suspension of Trading

Listings & Exchange

September 3, 2020

RESUMPTION GUIDANCE AND

CONTINUED SUSPENSION OF TRADING

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

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

August 12, 2020 and August 17, 2020 in relation to the delay in publication of 2019 Audited

Annual Results and despatch of the 2019 Annual Report, delay in publication of the Q1 and

Q2 2020 Financi al Results and trading suspension. Unless otherwise stated herein,

capitalized terms used herein shall have the same meanings as that ascribed to them in these

announcements.

RESUMPTION GUIDANCE

On September 2, 2020, the Company received a letter from the Hong Kong Stock Exchange

setting out the following resumption guidance for the resumption of trading in the shares of the

Company (the “Resumption Guidance”):

 Publish all outstanding financial results and address any audit modifications; and

 Inform the market of all material information for the Company’s shareholders and

investors to appraise its position.

Under Rules 6.01A(1) of the Listing Rules, the Hong Kong Stock Exchange may cancel the

listing of any securities that have been suspended from trading for a continuous period of 18

months. In the case of the Company, the 18-month period will expire on February 16, 2022. If

the Company fails to remedy the issues causing its trading suspension, fully comply with the

Listing Rules to the Hong Kong Stock Exchange’s satisfaction and resume trading in its shares

on the Hong Kong Stock Exchange by February 16, 2022, the Listing Division will recommend

the Listing Committee to proceed with the cancellation of the Company’s listing. Under Rules

6.01 and 6.10 of the Listing Rules, the Hong Kong Stock Exchange also has the right to impose

a shorter specific remedial period, where appropriate.

The Company is required to announce quarterly updates on its developments under Rules

13.24A of the Listing Rules, including, amongst other relevant matters, its business operations,

its resumption plan and the progress of impleme ntation. The first quarterly update will be

announced on or by November 16, 2020. The Company will also make further

announcement(s) in relation to the above matters, as and when appropriate.

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 a nd operates its

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

in China.

Contact:

Investor Relations

Office: +852 2156 1438 (Hong Kong)

+1 604 762 6783 (Canada)

Website: www.southgobi.com