Southgobi Announces Positive Profit Alert

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March 26, 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

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

ended December 31, 2023 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 of approximately no more than US$1 million for the year ended December 31, 2023,

as compared to a n et loss attributable to equity holders of the Company of approximately

US$30 million for the year ended December 31, 2022 . The turnaround from net loss to

expected net profit is primarily attributable to the increase in sales volume and improvement

in the Company’s average realized selling price of coal during the year ended December 31,

2023.

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

finalizing its annual results for the year ended December 31, 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 of the Group, which have

not been audited by the Company’s auditors and may be subject to adjustments. Details of

the Company’s financial information and performance will be disclosed in the annual results

announcement for the year ended December 31, 2023, which is to be published on March 28,

2024 (Thursday).

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

when dealing in the shares of the Company.

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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.