Southgobi Announces Profit Warning

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August 11, 2025

SOUTHGOBI ANNOUNCES PROFIT WARNING

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

“Company”) announces that this announcement is made by the Company pursuant to Rule

13.09 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 Future s 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”) unaudit ed

management accounts for the six months ended June 30, 2025 (“Interim Period”) and the

information currently available to the Company, the Company is expected to record a revenue

in the range of US$250.3 million to US$306.0 million for the Interim Period, as compared to

the revenue of approximately US$175.0 million for the corresponding period in 202 4. The

expected increase in revenue was due to increased sales volume during the Interim Period.

However, in contrast to the increased revenue, the Company is expected to record a net loss

attributable to equity holders of the Company between approximately US$44.1 million and

US$53.9 million for the Interim Period, as compared to a net profit attributable to equity holders

of the Company of approximately US$10.2 million for the corresponding period in 2024. The

expected net loss attributable to equity holders of the Company were mainly attributable to (i)

the decrease in average realised selling price; (ii) the change in product mix as the Company

sold more processed coal with higher production costs ; and (iii) an impairment loss on coal

stockpiles of US$12.3 million was recorded during the Interim Period.

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

finalizing its financial results for the Interim Period. The infor mation 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 adjustments. Details of

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

announcement for the Interim Period, which is to be published on August 14, 2025 (Thursday).

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.