SouthGobi Resources announces updated NI 43-101 Technical Report for Ovoot Tolgoi Coal Deposit, Mongolia

May 15, 2017

SouthGobi Resources announces updated NI 43-101 Technical Report for Ovoot Tolgoi Coal Deposit, Mongolia

VANCOUVER – SouthGobi Resources Ltd. (HK: 1878; TSX: SGQ) (the “Company”) is pleased to announce the issuance of an independent NI 43-101 technical report outlining the updated reserve and resource estimates for its Ovoot Tolgoi Coal Deposit located in Mongolia. The report, titled “NI 43-101 Technical Report for the Ovoot Tolgoi Coal Deposit, Mongolia” and dated May 15, 2017, is available at SEDAR at www.sedar.com and Company’s website at www.southgobi.com.

Measured and Indicated Resources have been estimated at 302.2 million tonnes (“Mt”) for the Ovoot Tolgoi Coal Deposit as of December 31, 2016, including Measured Resources of 201.9 Mt and Indicated Resources of 100.3 Mt. There are also Inferred Resources of 89.0 Mt.

Reserves, which are included within the above Measured and Indicated Resources of 302.2 Mt, have been estimated at 114.1 Mt for the Ovoot Tolgoi Coal Deposit as of December 31, 2016, including Proven Reserve of 99.5 Mt and Probable Reserve of 14.6 Mt.

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 Email: [email protected]

Website: www.southgobi.com