SGQ.V · 2017-05-19 12:00:00

SouthGobi Resources announces appointment of non-executive director

Management Changes

May 19, 2017

SouthGobi Resources announces appointment of

non-executive director

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

announces the appointment of Mr. Wen Yao (“ Mr. Yao ”) as a non -executive director of the

Company, with effect from May 18, 2017.

Mr. Yao is currently a Managing Director of CIC Capital Corporation (“ CIC Capital”), a wholly

owned subsidiary of China Investment Corporation (“ CIC”). Mr. Yao is responsible for CIC

Capital’s global investment in the metals and mining industry and management of its existing

portfolio assets in the same sector. Prior to joining CIC Capital in 2015, Mr. Yao had been a

Managing Director at the Legal and Compliance Department of CIC since 2010. He has

extensive experiences and knowledge in legal aspects for the investment in public and private

companies, post -investment management and compliance, risk management, corporate

governance policies and various corporate matters. Prior to CIC, Mr. Yao was in private practice

at leading international law firms in the United States (the “’ US”) and the United Kingdom,

representing public and private companies in a variety of industries, mergers and acquisitions,

private equity investments and financings, venture capital financings, strategic alliance and joint

venture transactions, public and private offerings, and cross-border transactions.

Mr. Yao received Master of Business Administration and Juris Doctor degree s from Kellogg

School of Management and Pritzker School of Law of Northwestern University in the US,

respectively.

Mr. Yao was nominated for appointment as a director of the Company by CIC pursuant to a

contractual nomination right granted to CIC in connection with the convertible debenture issued

by the Company in 2009.

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