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SouthGobi announces Voting Results of the Annual General Meeting and the election of non-executive director

Shareholder Meetings

June 29, 2018

SouthGobi announces Voting Results of

the Annual General Meeting and

the election of non-executive director

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

is pleased to announce the voting results of the annual general meeting of the shareholders of the

Company (the “Shareholders”) held in Vancouver, Canada on June 28, 2018 (the “AGM”), including

the election of Ms. Lan Cheng as a non-executive director.

The majority of the Shareholders voted in favour of all resolutions at the AGM as set out in the

Company’s Management Proxy Circular dated May 14, 2018 (the “Circular”), namely:

 Fixing the number of directors to be elected at the AGM at seven.

 The election of Messrs. Zhiwei Chen, Yingbin Ian He, Xiaoxiao Li, Mao Sun, Wen Yao and

Mses. Lan Cheng and Jin Lan Quan as directors of the Company (the “ Directors”) for the

ensuing year.

 The appointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditors of the

Company for the ensuing year.

With respect to the election of Directors, each of the following seven nominees proposed by the

management and listed in the Circular has been elected as a director of the Company until t he next

annual general meeting of Shareholders, or until such person’s successor is elected or appointed,

with the following results:

Zhiwei Chen votes for:

votes withheld:

137,173,942 (99.91%)

129,988 (0.09%)

Lan Cheng votes for:

votes withheld:

137,173,942 (99.91%)

129,988 (0.09%)

Yingbin Ian He votes for:

votes withheld:

137,242,130 (99.95%)

61,800 (0.05%)

Xiaoxiao Li votes for:

votes withheld:

137,173,942 (99.91%)

129,988 (0.09%)

Jin Lan Quan votes for:

votes withheld:

137,243,330 (99.96%)

60,600 (0.04%)

Mao Sun votes for:

votes withheld:

137,243,330 (99.96%)

60,600 (0.04%)

Wen Yao votes for:

votes withheld:

137,173,892 (99.91%)

130,038 (0.09%)

At the AGM, Ms. Lan Cheng (“Ms. Cheng”), aged 37, was elected as a non-executive director of the

Company with effect from June 28, 2018. Ms. Cheng is currently a vice president of CIC Capital

Corporation (“ CIC Capital ”), a wholly owned subsidiary of China Investment Corporation and is

responsible for evaluating investment opportunities in the meta ls and mining industry and post -

investment management of CIC Capital’s existing portfolio assets in the same sector. Prior to joining

CIC Capital in 2015, Ms. Cheng was the senior commercial specialist at Chinalco Rio Tinto

Exploration Company, responsible for sourcing, evaluating and negotiating investment opportunities

in the mining sector. Ms. Cheng has approximately 10 years’ experience working for various mining

companies including Centerra Gold Inc., Sino Gold Mining Ltd. and Gold Fields Limited.

Ms. Cheng obtained her bachelor’s degree in hydrogeology in 2003 from the East China University of

Technology in China. She obtained her master’s degree in economic geology in 2006 from the China

University of Geosciences (Beijing) in China.

There is no specific term or proposed length of service for Ms. Cheng as non -executive director but

Ms. Cheng will be subject to retirement and re-election at the annual general meeting of the Company

in accordance with the articles of continuation of the Company. Consiste nt with existing Directors’

compensation, the director’s fees for Ms. Cheng will be determined by the board of directors of the

Company (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.

Messrs. Aminbuhe, Yulan Guo and Zhu Liu did not stand for re -election at the AGM. Following the

conclusion of the AGM, Mr. Zhu Liu ceased to be an independent non -executive Director, the

Chairman of the Compensation and Benefits Committee and a member of the Audit Committee, the

Nominating and Corporate Governance Committee and the Health, Environment, Safety and Social

Responsibility Committee. Mr. Yulan Guo ceased to be a non -executive Director and a m ember of

the Health, Environment, Safety and Social Responsibility Committee. Mr. Aminbuhe ceased to be a

non- executive Director.

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

Office: +852 2156 7030

Email: [email protected]

Website: www.southgobi.com