Southgobi Announces Profit Alert

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March 27, 2025

SOUTHGOBI ANNOUNCES PROFIT ALERT

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

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

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

management accounts for the year ended December 31, 2024 (“FY2024”) and the information

currently available to the Company, it is expected that the Company would record (i) a revenue

within the range of US$444.0 million to US$543.0 million for FY2024, as compared to the

revenue of approximately US$331.5 million for the corresponding period in 2023; and (ii) a net

profit attributable to equity holders of the Company between approximately US$83.6 million

and US$102.2 million for FY2024, as compared to a net profit attributable to equity holders of

the Company of approximately US$0.9 million for the corresponding period in 2023. The

expected growth in revenue and the increase in net profit attributable to equity holders of the

Company were mainly attributable to (i) increase in sales volume in FY2024 as compared to

fiscal year 2023 ; (ii) the expansion of the categories of coal products in its portfolio which

expanded the Group’s revenue streams; and (iii) a reversal of additional tax and tax penalty

payable against the Company’s wholly -owned subsidiary in the amount of US$ 48.5 million

following the revised re-assessment result in relation to the Mongolia tax audit (“Re-

assessment Result”), as disclosed in the announcement of the Company dated February 13,

2025.

The Company’s wholly owned subsidiary received notice of a Court proceeding brought by

certain officers of the Mongolian Tax Authority, as plaintiff, against the Tax Dispute Resolution

Council, as defendant, regarding the Re -assessment Result. For further information, please

refer to the Company’s announcement dated March 26, 202 5. As at the date of this

announcement (i) the Re-assessment Result remains legally valid, and (ii) the Company is still

in the process of preparing and finalizing its financial results for FY2024. 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 reviewed or audited by the Company’s auditors and may be subject to

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adjustments. Details of the Company’s financial information and performance will be disclosed

in the results announcement for FY2024, which is to be published on March 28, 2025 (Friday).

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.