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SouthGobi announces appointment of Chief Executive Officer, Chief Financial Officer and Chief Operation Officer

Management Changes

June 1, 2018

SouthGobi announces appointment of Chief Executive

Officer, Chief Financial Officer and Chief Operation Officer

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

“Company”) is pleased to announce the appointment, effective today, of Mr. Shougao Wang as

Chief Executive Officer, Mr. Weiguo Zhang as Chief Financial Officer, and Mr. Aiming Guo as

Chief Operating Officer.

Mr. Wang, age 51, is a seas oned mining professional, having accumulated over 30 years of

project management and operational experience and has worked on a number of mining projects

in Mongolia and across the globe. Prior to joining the Company, Mr. Wang was Manager of QHSE

(Quality, Health, Safety and Environment) at China Nonferrous Metal Industry’s Foreign

Engineering and Construction Co., Ltd. (Shenzhen Stock Exchange: 00758) (“NFC”) from March

2017 until May 2018, during which he was responsible for project quality control, health,

environmental protection, and workplace health and safety matters. Mr. Wang held various senior

project management positions at different international mining projects operated by NFC and its

parent company, China Nonferrous Metal Mining (Group) Co. Lt d. (“CNMC”), including Project

Manager of the Chambishi copper mine, a large -scale copper mine in Zambia, and Project

Manager and Vice President from 2000 to 2006 and Chief Executive Officer from 2011 to 2017 of

Tsairt Mineral LLC, the parent company of the Tumurtiin-Ovoo zinc mine in Mongolia. Mr. Wang

is a certified engineer and obtained his bachelor’s degree in civil engineering from Kunming

University of Science and Technology in China in 1989 and a master’s degree in business

administration from Renmin University in China in 2013.

Mr. Zhang, age 54, has over 30 years of experience in financial accounting, auditing and

corporate finance. Prior to joining the Company, Mr. Zhang spent over 30 years working in a

number of different senior finance roles in NFC and CNMC’s various subsidiaries and global

offices, including as President of NFC’s Kyrgyzstan office (November 2012 to December 2017),

Deputy Manager of NFC’s audit department (January 2003 to January 2004) and Chief Financial

Officer of Guangdong Zhujiang Rare Metal Co. Ltd (January 2004 to September 2007), during

which he was responsible for financial and accounting management. He was the Vice Manager

of NFC’s corporate development (investment) department (September 2007 to November 2012).

Most recen tly, Mr. Zhang served as Manager of the cost control department of the first

construction division of NFC (December 2017 to May 2018). Mr. Zhang obtained his bachelor’s

degree (September 1982 to July 1986) in economics at Dongbei University of Finance and

Economics in China.

Mr. Guo, age 49, is a certified engineer with over 20 years of project management experience.

Prior to joining the Company, Mr. Guo was Deputy Chief Engineer at Shanxi Hongsha First

Construction Co., Ltd. (“Shanxi Hongsha”) from January 2014 until May 2018, during which he

was responsible for technical management. Mr. Guo spent over 9 years working in various

management capacities in Shanxi Hongsha’s Mongolia project department. Mr. Guo holds a

bachelor’s degree (September 1991 to June 1995) in survey engineering from the China

University of Mining and Technology.

The appointment of Messrs. Wang, Zhang and Guo as executive officers of the Company has

been approved by the Board of Directors of the Company (the “Board”) upon the recommendation

of the Nominating and Corporate Governance Committee of the Board, which is comprised of all

independent non -executive directors, by reference to each of their respective duties and

responsibilities as well as the prevailing market conditions.

Mr. Mao Sun, the interim independent Lead Director of the Board, said, “We are very pleased to

announce the appointment of Mr. Wang as Chief Executive Officer and Messrs. Zhang and Guo

to the Company’s senior management team. The new team has the support of China Investment

Corporation and China Cinda Asset Management Co., Ltd., the two largest shareholders of the

Company. Each of the new management appointees brings extensive mining industry experience

to the Company and we look forward to their leadership in g uiding and shaping the future of the

Company.”

Mr. Wang Bing, the Company’s former interim Chief Executive Officer, is returning to his prior

position as General Manager, Sales and Marketing of the Company. Mr. Yulan Guo, the

Company’s former Chief Financi al Officer, is leaving the management team to pursue other

business endeavors.

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, 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 of Mongolia. SouthGobi produces and sells coal to

customers in China.

Contact:

Investor Relations

Kino Fu

Office: +852 2156 7030

Email: [email protected]

Website: www.southgobi.com