Southgobi Announces Delay of Annual Filings and Publication of 2021 Unaudited Annual Results

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March 24, 2022

SOUTHGOBI ANNOUNCES DELAY OF ANNUAL FILINGS

AND PUBLICATION OF 2021 UNAUDITED ANNUAL

RESULTS

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

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

March 11, 2022 (th e “Announcement”). Unless otherwise defined herein, capitalized terms

used in this announcement shall have the same respective meanings as defined in the

Announcement.

As disclosed in the Announcement, the Company has been advised by its Auditors that th ey

will not be in a position to render an unmodified opinion on the Company’s 2021 Financial

Statements prior to the filing deadline of March 31, 2022 because they have not been able to

obtain sufficient evidence to support management’s going concern assum ptions. The

Company continues to take active steps to address the going concern issues raised by the

Auditors, which have been exacerbated by the impact of the COVID -19 pandemic, including

periodic consultation with Mongolian and Chinese government officia ls regarding the

temporary closure of the Ceke Port of Entry, the restrictions on coal exports into China

implemented due to the COVID-19 pandemic, and continued discussions with its two largest

shareholders with respect to the possibility of providing fin ancial support. There can be no

assurance, however, that any or all of the foregoing steps will provide sufficient basis for the

Auditors to render an unmodified opinion on the 2021 Financials Statements. As a result, it is

anticipated that the Company will be unable to publish the audited annual results for the year

ended December 31, 2021 (the “2021 Audited Annual Results”) on or before March 31, 2022

in accordance with Rule 13.49(1) and Rule 13.49(2) of the Listing Rules.

In order to ensure the Company’s shareholders and potential investors are informed of the

Company’s business operation and financial position, the Company announces that the

unaudited annual results of the Company for the year ended December 31, 2021 (the ‘‘ 2021

Unaudited Annual Results ’’) will be issued on March 30, 2022 in accordance with Rule

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13.49(3) of the Listing Rules. At the Board meeting scheduled to be held on March 30, 2022,

the Board will review and approve, among other things, the publication of the 2021 Unaudited

Annual Resu lts based on the management accounts of the Company for the year ended

December 31, 2021 which will have been reviewed by the Audit Committee of the Company,

but not yet agreed with the Auditors.

The Company will make further announcements with respect t o (i) the status of the 2021

Annual Filings; (ii) the date of board meeting to consider and approve the 2021 Audited Annual

Results; (iii) the date of the release of the 2021 Audited Annual Results; and (iv) any material

information as and when appropriate in accordance with the Hong Kong Listing Rules and the

Securities and Futures Ordinance.

If there is any inconsistency or discrepancy between the English version and the Chinese

version, the English version shall prevail.

Shareholders of the Company and potential investors are advised to exe rcise caution

when dealing in the securities 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. 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

Office: +852 2156 1438 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com