SGQ.V · 2017-11-17 12:00:00

SouthGobi provides update on status of Chairman and Chief Executive Officer

Corporate Updates

November 17, 2017

SouthGobi provides update on status of

Chairman and Chief Executive Officer

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

“Company”) announces that on November 16, 2017, it learned that Mr. Aminbuhe, the

Chairman and Chief Executive Officer of the Company, was arrested on October 11, 2017 and

is being detained at Rizhao City Detention Center in China as a suspect in a fraudulent loan

case.

The Board of Directors (the “ Board”) has formed a special committee (the “ Special

Committee”) of independent non-executive directors, comprised of Mr. Mao Sun, Ms. Jin Lan

Quan and Mr. Yingbin Ian He, to initiate a formal internal investigation into the charges against

Mr. Aminbuhe and the connection, if any, between those charges and the Company and his

conduct as Chairman and Chief Executive Officer of the Company, which will include engaging

external advisors to assist in the investigation. The Special Committee will report to the Board

from time to time with respect to the results and status of its investigation and the potential

impact of these matters, if any, on the business and affairs of the Company.

As announced on November 13, 2017, Mr. Aminbuhe is currently on leave from the Company

and that Mr. Bing Wang is acting as the Interim Chief Executive Officer in his absence. During

this interim period, the Company will continue to carry on i ts business in the normal course,

relying on the depth and experience of its management team and the Board.

The Board will continue to closely monitor this situation and will provide further information with

respect this matter as and when appropriate.

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

Website: www.southgobi.com