Southgobi Announces Appointment of Non- Executive Director

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May 17, 2023

SOUTHGOBI ANNOUNCES APPOINTMENT OF NON-

EXECUTIVE DIRECTOR

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

“Company”) is pleased to announce that Mr. Zaixiang Wen (“Mr. Wen”) has been appointed

as a non-executive Director of the Company, with effect from May 17, 2023.

Mr. Wen was nominated by Land Grand International Holding Limited (“Land Grand”, one of

the Company’s major sharehold ers) for appointment as non -executive Director of the

Company, pursuant to the contractual director nomination right granted in favor of Land Grand

in connection with the Subscription Agreement and the associated assignment letter entered

into amongst the Company, Land Grand and Novel Sunrise (please refer to the Company’s

announcement dated November 29, 2022). The Company has appointed the director nominee

to the Board as permitted under the Company’s Articles of Continuation and the Business

Corporations Act (British Columbia).

The biographical details of Mr. Wen is as follow:

Mr. Zaixiang Wen, aged 47, has over 20 years’ of experience in corporate management and

financial management. He possesses a comprehensive understanding of the coal industry

and the capital market. He has been the Vice President of Mengfa Energy Holdings Group

(“Mengfa Group”) since January 2018, where he is responsible for overseeing the group's

strategic development, capital operation s, investment and financing, public affai rs relations,

and real estate development. Mr. Wen joined the Mengfa Group in 2002 and has held various

leadership positions within the subsidiaries of Mengfa Group. Prior to joining Mengfa Group,

he worked as an accounting and finance professional in various energy resources companies.

Mr. Wen obtained a diploma in accounting from Inner Mongolia Yike Zhao League School of

Finance and Economics in 1996. He completed a certificate in financial management at the

Central University of Finance and Economics in 2018.

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As at the date of this announcement, save as disclosed above, Mr. Wen does not (i) hold any

directorships in other public companies, the securities of which are listed on any securities

market in Hong Kong or overseas, over the last three years preceding the date of this

announcement or other major appointments and professional qualifications; (ii) hold any other

position with any member of the Group and has not previously held any other position with

any member of the Group; (iii) have any interest in the shares, underlying shares or

debentures of the Company or any of its associated c orporations within the meaning of Part

XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong); and (iv)

have any relationship with any Directors, senior management, or substantial or controlling

Shareholders.

There is no specific term or proposed length of service for Mr. Wen as non-executive Director.

Mr. Wen will be subject to re -election at the annual general meeting of the Company in

accordance with the Articles. Consistent with the existing Company’s director compensation,

the director’s fee for Mr. Wen will be determined by the Board based on the recommendation

of the Compensation and Benefits Committee of the Board, which comprises the independent

non-executive Directors.

Saved as disclosed above, there is no other information relating to the appointment of Mr.

Wen that is required to be disclosed pursuant to Rule 13.51(2)(h) to (v) of the Hong Kong

Listing Rules nor any matters that need to be brought to the attenti on of the Company’s

shareholders.

The Board would like to welcome Mr. Wen for joining the Board.

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 of Mongolia.

SouthGobi produces and sells coal to customers in China.

Contact:

Investor Relations

Email: [email protected]

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Mr. Ruibin Xu

Chief Executive Officer

Office: +1 604 762 6783 (Canada)

+852 2156 1438 (Hong Kong)

Website: www.southgobi.com