Southgobi Announces Update ON Mongolia Tax Audit

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June 12, 2024

SOUTHGOBI ANNOUNCES

UPDATE ON MONGOLIA TAX AUDIT

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

“Company”) This announcement is made by SouthGobi Resources Ltd. (the “Company” and

together with its subsidiaries, the “ Group”) pursuant to Rule 13.09(2)(a) 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 Futures Ordinance (Chapter 571

of the Laws of Hong Kong). Reference is made to the announcements of the Company dated

July 31, 2023, August 18, 2023, February 26, 2024 and May 22, 2024 (the “Announcements”)

in relation to the Mongolia tax audit. Unless otherwise specified, capitalised terms used herein

shall have the same meanings as those defined in the Announcements.

The Company wishes to inform its shareholders and potential investors that , following

consultation with its independent tax consultant in Mongolia, on June 12, 2024, the Company’s

wholly owned subsidiary in Mongolia, Southgobi Sands LLC (“SGS”), has submitted an appeal

letter (the “Appeal Letter”) to the Tax Dispute Resolution Council (“TDRC”) regarding the Re-

assessment R esult on the Tax Audit as previously disclosed in the Announcements , in

accordance with applicable Mongolian laws.

The Company will make further announcement(s) to keep its shareholders and potential

investors informed of any progress as and when appropriate.

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

when dealing in the shares of the Company.

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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.