SouthGobi shareholders approve new deferral agreement with CIC

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June 13, 2019

SouthGobi shareholders approve

new deferral agreement with CIC

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

“Company”) is pleased to announce that a majority of the Company’s disinterested

shareholders voted in favour of a shareholder resolution authorizing and approving the deferral

agreement (the “2019 Deferral Agreement”) between Land Breeze II S.à.r.l. (“CIC Subco”),

a wholly-owned subsidiary of China Investment Corporation, the Company and certain of its

subsidiaries at the adjourned annual and special meeting (the “Adjourned Meeting ”) of

shareholders of the Company held in Vancouver, Canada on June 13, 2019.

As disclosed in the Company’s press release dated April 23, 2019, the effectiveness of the

2019 Deferral Agreement and the respective covenants, agreements and obligations of each

party under the 2019 Deferral Agreement were subject to the Company obtaining approval

from disinterested shareholders in accordance with the requirements of Section 501(c) of the

TSX Company Manual. A summary of the material terms of the 2019 Deferral Agreement can

be found in the Company’s Management Proxy Circular dated April 23, 2019, a copy of which

is available under the Company’s profile on SEDAR at www.sedar.com.

If there is any inconsistency or discrepancy between the English version and the Chinese

version, the English version shall prevail.

About SouthGobi

SouthGobi is a coal mining company, listed on the Toronto and Hong Kong stock exchanges.

Its flagship 100% owned Ovoot Tolgoi coal mine is located in South Gobi Province, Mongolia.

SouthGobi also owns several metallurgical and thermal coal deposits in the vicinity areas.

SouthGobi produces and sells coal to customers in China.

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Contact:

Investor Relations

Kino Fu

Office: +852 2156 7030 (Hong Kong)

+1 604 762 6783 (Canada)

Email: [email protected]

Website: www.southgobi.com