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SGQ.V ·

SouthGobi announces the appointments of executive director and vice president

Management Changes

July 3, 2018

SouthGobi announces the appointments of

executive director and vice president

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

is pleased to announce the appointments of Mr. Shougao Wang, the Company’s chief executive

officer, as an executive director and Mr. Tao Zhang as a vice president, with effect from July 3, 2018.

Appointment of executive director

Mr. Shougao Wang (“ Mr. Wang”), aged 51, the Company’s chief executive officer, has been

appointed by the board of directors (the “Board”) as an executive director and the chairman of the

Health, Environment, Safety and Social Responsibility Committee, with effect from July 3, 2018. Mr.

Wang is presently a director of various of the Company’s subsidiaries.

Mr. Wang is a seasoned mining profe ssional, having accumulated over 30 years of project

management and operational experience and has worked on a number of mining projects in Mongolia

and across the globe. Prior to joining the Company, Mr. Wang was the manager of the quality, health,

safety and environment department at China Nonferrous Metal Industry’s Foreign Engineering and

Construction Co., Ltd. (Shenzhen Stock Exchange, stock code: 000758) (“ NFC”) from March 2017

until May 2018, during which he was responsible for project quality contro l, health, environmental

protection, and workplace health and safety matters. Mr. Wang held various senior project

management positions at different international mining projects operated by NFC and its parent

company, China Nonferrous Metal Mining (Group) Co. Ltd., including project manager of the

Chambishi copper mine, a large -scale copper mine in Zambia, project manager and vice president

from 2000 to 2006 and chief executive officer of Tsairt Mineral LLC, the parent company of the

Tumurtiin-Ovoo zinc mine in Mongolia, from 2011 to 2017.

Mr. Wang is a certified engineer in China. Mr. Wang obtained his bachelor’s degree in civil

engineering from Kunming University of Science and Technology in China in 1989 and a master’s

degree in business administration from Renmin University in China in 2013.

There is no specific term or proposed length of service for Mr. Wang as executive director but Mr.

Wang will be subject to retirement and re -election at the annual general meeting of the Company in

accordance wit h the articles of continuation of the Company. Consistent with existing directors’

compensation, the director’s fees for Mr. Wang will be determined by the Board based on the

recommendation of the Compensation and Benefits Committee of the Board, which is comprised of

independent non-executive directors of the Company.

Appointment of vice president

Mr. Tao Zhang (“Mr. Zhang”), aged 36, has been appointed as a vice president of the Company and

as a director of various of the Company’s subsidiaries, with effect from July 3, 2018. Prior joining the

Company, Mr. Zhang was the senior supervisor of the corporate development ( investment)

department of NFC from June 2016 to May 2018. He joined NFC in March 2007 and has served as a

manager in the sales and human reso urces departments and as a superintendent of the general

manager’s office in Tsairt Mineral LLC, the parent company of the Tumurtiin -Ovoo zinc mine in

Mongolia, from November 2007 to December 2012. Between December 2012 and June 2016, Mr.

Zhang was a supervisor in the quality, health, safety and environment department of NFC.

Mr. Zhang is a certified safety engineer in China. Mr. Zhang obtained his bachelor’s degree in mining

and geotechnical in 2004 and a master’s degree in mining and safety engineering ma nagement in

2006 from the Central South University in China.

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, 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

Kino Fu

Hong Kong Office: +852 2156 7030

Vancouver Office: +1 604 762 6783

Email: [email protected]

Website: www.southgobi.com