Southgobi Announces Update ON Mongolia Tax Audit

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June 13, 2025

SOUTHGOBI ANNOUNCES

UPDATE ON MONGOLIA TAX AUDIT

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

“Company”) announces that reference is made to the announcements of the Company dated

July 31, 2023, August 18, 2023, February 26, 2024, May 22, 2024, June 12, 2024, January

20, 2025, February 13, 2025 , March 26, 2025, March 28, 2025 and May 6, 2025 (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.

On June 9, 2025, the Company’s wholly owned subsidiary in Mongolia, Southgobi Sands LLC

(“SGS”), obtained a copy of a judgement dated May 27, 2025 (“Appellate Court Judgement”)

issued by the Appellate Court for Administrative in Ulaanbaatar, Mongolia (the “ Appellate

Court”). As per the Appellate Court Judgement, the Appellate Court upheld the court order

issued by the Judge of the Administrative Court of First Instance in Mongolia on April 15, 2025.

As a result, t he claim brought by certain MTA Officials against the TDRC in an attempt to

dispute or overturn the previous decision made by the TDRC regarding the Re -assessment

Result has been dismissed and rejected. According to applicable Mongolian law, the Appellate

Court Judgement shall be final and is not subject to further appeal.

As of the date of this announcement, the Re -assessment Result remains legally valid and

effective. The Company expects no further dispute regarding the Re-assessment Result and

will only make further announcement(s) as and when there is new development regarding this

matter.

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

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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.