Southgobi Announces Positive Profit Alert

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August 8, 2024

SOUTHGOBI ANNOUNCES POSITIVE PROFIT ALERT

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

“Company”) This announcement is made by the Company pursuant to Rule 13.09(2) of the

Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and the Inside

Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571

of the Laws of Hong Kong).

The Company wishes to inform its shareholders and potential investors that, based on the

preliminary assessment of the Company and its subsidiaries’ (the “ Group”) unaudited

management accounts for the six months ended June 30, 2024 (the “Interim Period”) and the

information currently available to the Company, it is expected that the Company would record

a net profit attributable to equity holders of the Company within the range of USD 9.0 million

to USD 11.0 million for the six ended June 30, 2024, as compared to a net loss attributable to

equity holders of the Company of approximately USD 52.8 million for the corresponding period

in 2023. The turnaround result is primarily due to (1) the increase in sales vo lume during the

Interim Period; and (2) an additional tax and tax penalty of USD 75.0 million imposed by MTA

was recorded in the second quarter of 2023 as disclosed in the announcements dated July 31,

2023, August 18, 2023, February 26, 2024, May 22, 2024 and June 12, 2024.

As at the date of this announcement, the Company is still in the process of preparing and

finalizing its interim financial results for the six months ended June 30, 2024. The information

contained in this announcement is based on the pr eliminary assessment of the information

currently available to the Company and the unaudited management accounts of the Group ,

which have not been reviewed or audited by the Company’s auditors nor confirmed by the

audit committee of the Company and may be subject to adjustments. Details of the Company’s

financial information and performance will be disclosed in the interim results announcement

for the three and six months ended June 30, 2024, which is to be published on August 14,

2024 (Wednesday).

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Shareholders and potential investors of the Company are advised to exercise caution

when dealing in the shares of the Company.

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]

Mr. Ruibin Xu

Chief Executive Officer

Office: +1 604 762 6783 (Canada)

+852 2156 1438 (Hong Kong)

Website: www.southgobi.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is

defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy

or accuracy of this release.