SouthGobi Announces Equipment Purchase Loan

August 31, 2017

SouthGobi Announces Equipment Purchase Loan

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

“Company”) is pleased to announce that it entered into a loan agreement on July 6, 2017 and a

supplementary loan agreement on August 31 , 2017 with Beijing Jin Rui Tian Chen Asset

Management Co Ltd. (the “ Equipment Purchase Loan ”) for the purpose of financing the

purchase of mining equipment to increase the production capacity of the Company.

The key terms of the Equipment Purchase Loan are set out below:

 Principal: RMB 69 million;

 Maturity: 12 months from drawdown;

 Interest rate: 12% per annum;

 Repayment: the Company shall repay the principal and accrued interests at maturity

date; and

 Guarantee and security: the Company will provide a corporate guarantee to cover the

principal and interest owed, and provide mining equipment with value no less than RMB

69 million as security.

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