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SouthGobi announces change of Chief Executive Officer and executive director and Authorised Representative

Management Changes

March 30, 2020

SouthGobi announces change of Chief Executive Officer and

executive director and Authorised Representative

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

announces that Mr. Shougao Wang (“ Mr. Wang”) has tendered his resignation as the Company’s

Chief Executive Director (“CEO”), executive director, and the chairperson of the Health, Environment,

Safety and Social Responsibility Committee, and ceased to be an authorised representative of the

Company pursuant to Rule 3.05 of the Rules Governing the Listing of Securities on the Hong K ong

Stock Exchange (the “Authorised Representative”) with effect from March 31, 2020; and Mr.

Dalanguerban (“Mr. Dalanguerban”) has been appointed as the Company’s CEO, executive director,

Authorised Representative, and Chairperson of the Health, Environment, Safety and Social

Responsibility Committee with effect from March 31, 2020.

Mr. Wang has resigned as the CEO, executive director and Authorised Representative of the

Company due to career advancement. Mr. Wang has confirmed that he has no disagreement with the

Board of Directors of SouthGobi (the “Board”) and that there are no matters relating to his resignation

that need to be brought to the attention of the shareholders of the Company and the Hong Kong Stock

Exchange. The Board expressed its great gratitude to Mr. Wang for his leadership and commitment

to the Company since his appointment in 2018.

Mr. Dalanguerban, age 62, is a seasoned mining professional, having accumulated over 35 years of

international mining and operational experience including a number of mining projects in Mongolia.

Mr. Dalanguerban joined China Nonferrous Metal Industry's Foreign Engineering and Construction

Co., Ltd (“ NFC”) in 1985 and served in a variety of roles in various countries until his departure in

2017 when he was the Chief Representative of NFC in Mongolia. During this time in Mongolia, Mr.

Dalanguerban accomplished numerous achievements including the development and commissioning

of the Tumultin Ovoo zinc m ine, which is recognized as an “Exemplary Project of China -Mongolia

Cooperation” and for which he was awarded the “Mining Contribution” prize by the Mongolia’s Ministry

of Mines. Mr. Dalanguerban had served as a director, executive deputy general manager, and general

manager successively in Tsairt Minerals LLC (the holding company of the Tumurtiin-Ovoo zinc mine)

from its establishment in 1997 until 2005, when the Tumultin Ovoo zinc mine was put into production.

Mr. Dalanguerban cofounded the Mongolian Chinese Chamber of Commerce in Mongolia in 2002

and now serves as its Executive Vice President and Secretary -General. Mr. Dalanguerban studied

Arabic at the Shanghai International Studies University and graduated in 1980.

The appointment of Mr. Dalanguerban as the CEO and executive director of the Company has been

approved by the Board upon the recommendation of the Nominating and Corporate Governance

Committee of the Board, which is comprised of all independent non -executive directors. Consistent

with the Company’s executive c ompensation program, Mr. Dalang uerban’s remuneration will be

determined by the Board based on the recommendation of the Compensation and Benefits Committee

of the Board, which is comprised of independent non-executive directors of the Company.

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

of Mr. Dalanguerban as CEO to lead the Company’s senior management team. Mr. Dalanguerban’s

appointment has the support of China Investment Corporation and China Cinda Asset Management

Co., Ltd., the two largest shareholders of the Company. Mr. Dalanguerban brings extensive mining

industry experience to the Company and we look forward to his leadership in guiding and shaping the

future of 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.

Contact:

Investor Relations

Kino Fu

Office: +852 2156 7030 (Hong Kong) +1

604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com