Withdrawal of legal proceeding against subsidiary of the Company

January 30, 2019

Withdrawal of legal proceeding against subsidiary

of the Company

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

announces that, further to its press release dated September 20, 2018, the Company has received

notice that on January 24, 2019 the Ejinaqi People’s Court of Inner Mongolia Autonomous Region of

China rendered a judgment allowing the application by Jiayuguan Xiyuan Trading Co., Ltd. (“Xiyuan”)

to voluntarily withdraw its lawsuit against Inner Mongolia SouthGobi Energy Co., Ltd., a subsidiary of

the Company, and Ejinaqi Fulemeng Energy Industry Co., Ltd., in relation to a dispute over certain

coal sales contracts. Xiyuan’s application cited a lack of evidence.

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 metallu rgical and

thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to

customers in China.

Contact:

Investor Relations

Kino Fu

Hong Kong: +852 2156 7030

Canada: +1 604 762 6783

Email: [email protected]

Website: www.southgobi.com