Southgobi Announces Profit Warning

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March 26, 2026

SOUTHGOBI ANNOUNCES PROFIT WARNING

HONG KONG – SouthGobi Resources Ltd. (TSX-V: SGQ, HK: 1878) (“SouthGobi” or 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 year ended December 31, 2025 (“FY2025”) and the information

currently available to the Company, it is expected that the Company would record a net loss

attributable to equity holders of the Company between approximately US $151.9 million and

US$185.6 million for FY2025, as compared to a net profit attributable to equity holders of the

Company of approximately US$ 92.5 million for the corresponding period in 2024. The

expected net loss attributable to equity holders of the Company for FY2025 was mainly

attributable to (i) the decrease in average realised selling price in FY2025 as compared to the

prior financial year; (ii) the change in product mix year-over year, as the Company sold more

processed coal with higher production costs; and (iii) impairment losses on coal stockpiles and

cash generating units of approximately US$77.3 million and US$42.0 million respectively.

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

finalizing its financial results for FY2025. The information contained in this announcement is

based on the preliminary assessment of the information currently availa ble 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 adjustments. Details of the

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

announcement for FY2025, which is to be published on Friday, March 27, 2026.

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

when dealing in the shares of the Company.

By order of the Board

SouthGobi Resources Ltd.

Yingbin Ian He

Lead Director

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Hong Kong, March 26, 2026

As at the date of this announcement, the executive directors of the Company are Mr. Ruibin

Xu, Ms. Chonglin Zhu and Mr. Chen Shen; the independent non -executive directors of the

Company are Mr. Yingbin Ian He, Ms. Jin Lan Quan and Mr. Fan Keung Vic Choi; and the

non-executive directors of the Company are Mr. Zhu Gao and Mr. Zaixiang Wen.

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: +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.