Southgobi Announces Positive Profit Alert

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November 2, 2023

SOUTHGOBI ANNOUNCES POSITIVE PROFIT ALERT

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

“Company”) wishes to inform its shareholders and potential investors that, based on the

Company’s preliminary assessment of the unaudited management accounts for the three

months ended September 30, 2023 and the information currently available to the Company, it

is expected that the Company would record a net profit between US$26 million and US$ 34

million for the three months ended September 30, 2023, as compared to a net loss of US$8

million for the corresponding period in 2022. The expected net profit is primarily attributable to

the increased sales volume and improvement in the Company’s average realized selling price

during the third quarter of 2023.

As at the date of this announcement, the Company is still preparing and finalizing its quarterly

results for the quarter ended September 30 , 2023 . The information contained in this

announcement is based on the preliminary assessment of the information currently available

to the Company and the unaudited management accounts, which have not been audited by

the Company’s auditors and are subject to further adjustments. Details of the Company’s

financial information and performance will be disclosed in the 2023 third quarter results

announcement which is expected to be published on November 14, 2023.

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.

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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.