Southgobi Announces Initiation of Delisting Review BY TSX

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September 13, 2020

SOUTHGOBI ANNOUNCES INITIATION OF DELISTING

REVIEW BY TSX

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

“Company”) announces that it was notified by the Toronto Stock Exchange (“ TSX”) on

September 11, 2020 that it is reviewing the eligibility for continued listing of the Company’s

common shares on the TSX pursuant to the TSX’s Remedial Review Process (“TSX Delisting

Review”). The Company has been granted 120 days from the date of this notification to

remedy the following delisting criteria, as well as any other delisting criteria that become

applicable during the Remedial Review Process: (i) financial condition and/or operating results;

(ii) adequate working capital and appropriate capital structure; and (iii) disclosure issues

(collectively, the “Delisting Criteria”).

The TSX Continued Listing Committee has scheduled a meeting to be held on January 7,

2021 to consider whether or not to suspend trading in and delist the shares of the Company

on TSX. If the Company fails to demonstrate to the TSX that no Delisting Criteria remain

applicable on or before January 11, 2021 , the Company’s common shares will be delisted

from the TSX 30 days from such date.

The Company is evaluating its options and action plan with respect to the TSX Delisting

Review and will make further announcements with respect to this matter as and when

appropriate.

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.

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Contact:

Investor Relations

Office: +852 2156 1438 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com