Southgobi Announces Profit Warning

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March 2, 2021

SOUTHGOBI ANNOUNCES PROFIT WARNING

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

“Company”) wishes to inform the Company’s shareholders and potential investors that, based

on the Company’s preliminary assessment of the unaudited management accounts of the

Company for the year ended 31 December 2020 and the information currently available to the

Company, it is expected that the Company would record a net loss between USD 19 million

and USD 24 million for the year ended 31 December 2020 , as compared with a net profit of

USD 4.2 million for the year ended 31 December 2019. The expected decrease in net profit is

mainly attributed to the impact caused by the COVID-19 pandemic, including the Mongolian-

Chinese border closure during February to March 2020 and the restrictions of coal

transportation in Mongolia and the restrictions of coal export into China during 2020.

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 31 December 2020. The information contained

in this announcement is based on the preliminary assessme nt of the information currently

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

audited by the Company’s auditors and is subject to further adjustments. Details of the

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

2020 announcement of the Company and is expected to be published in March 2021.

SHAREHOLDERS AND POTENTIAL INVESTORS OF THE COMPANY SHOULD

EXERCISE CAUTION WHEN THEY DEAL OR CO NTEMPLATE DEALING IN THE

COMPANY’S SHARES OR OTHER SECURITIES OF THE COMPANY.

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About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its

flagship Ovoot Tolgoi coal mine in Mongolia. SouthGobi produces and sells coal to customers

in China.

Contact:

Investor Relations

Office: +852 2156 1438 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com