Update ON Pik Interest Payment Obligation Under November 2022 Deferral Agreement

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January 19, 2024

UPDATE ON PIK INTEREST PAYMENT OBLIGATION

UNDER NOVEMBER 2022 DEFERRAL AGREEMENT

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

“Company”) Reference is made to the announcement of the Company dated November 17,

2023 (the “November 17 Announcement”) in relation to the waiver provided by JD Zhixing

Fund L.P. (“JDZF”) of the Company’s payment obligations under the November 2022 Deferral

Agreement. Unless otherwise specified, terms used in this announcement shall have the

meaning as defined in the November 17 Announcement.

The Company announces that JDZF has agreed to extend the date upon which the Waiver is

in effect in relation to the Waived PIK Interest Default from January 19, 2024 to April 30, 2024.

Aside from the aforementioned extension, the other terms of the Waiver described in the

November 17 Announcement remain in effect and unamended.

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

English version shall prevail.

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

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

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Office: +1 604 762 6783 (Canada)

+852 2156 1438 (Hong Kong)

Website: www.southgobi.com

Forward-Looking Statements

Certain information included in this press release that is not current or historical factual

information constitutes forward -looking statements or information within the meaning of

applicable securities laws (collectively, “forward -looking statements”), in cluding information

about the potential of further future deferrals of its payment obligations under the Convertible

Debenture. Forward-looking statements are frequently characterized by words such as “plan”,

“expect”, “project”, “intend”, “believe”, “ant icipate”, "could", "should", "seek", "likely",

"estimate" and other similar words or statements that certain events or conditions “may” or

“will” occur. Forward -looking statements are based on certain factors and assumptions

including, among other things , the Company’s ability to successfully fulfil its payment

obligations of the November 2022 PIK Interest on or before April 30 , 2024 under the

Convertible Debenture and related November 2022 Deferral Agreement and the November

2022 Deferred Management Fees on or before August 31, 2024 under the Amended and

Restated Cooperation Agreement and the related November 2022 Deferral Agreement, and

other similar factors that may cause actual results to differ materially from what the Company

currently expects. Actual results may vary from the forward-looking statements. Readers are

cautioned not to place undue importance on forward -looking statements, which speaks only

as of the date of this disclosure, and not to rely upon this information as of any other dat e.

While the Company may elect to, it is under no obligation and does not undertake to, update

or revise any forward -looking statements, whether as a result of new information, further

events or otherwise at any particular time, except as required by law. Additio nal information

concerning factors that may cause actual results to materially differ from those in such forward-

looking statements is contained in the Company’s filings with Canadian securities regulatory

authorities and the website of the Hong Kong regulatory filings and disclosures of listed issuer

information. These can be found under the Company’s profile on SEDAR+ and HKEXnews

respectively, at www.sedarplus.ca and www.hkexnews.hk.

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.