Mr. Ruibin Xu reports

SUPPLEMENTAL ANNOUNCEMENT - IN RELATION TO 2022 ANNUAL REPORT

SouthGobi Resources Ltd. is making reference to the annual report of the company for the year ended Dec. 31, 2022, published on April 27, 2023. Unless otherwise specified, terms used in this announcement shall have the meaning as defined in the 2022 annual report.

In addition to the information disclosed in the section headed "directors' report" in the 2022 annual report, the company would like to add the following information pursuant to Rule 17.09(3) of the Hong Kong listing rules in relation to the equity incentive plan (EIP):

Share purchase plan

As at the date of the 2022 annual report, the total number of shares available for issue under the share purchase plan remained the same as that at Dec. 31, 2022 (which was 2,297), representing approximately 0.00078 per cent of the issued shares of the company as at such date.

Share bonus plan

As at the date of the 2022 annual report, the total number of shares available for issue under the share bonus plan remained the same as that at Dec. 31, 2022 (which was 1.8 million), representing approximately 0.61 per cent of the issued shares of the company as at such date.

The supplemental information provided in this announcement does not affect other information contained in the 2022 annual report and, save as disclosed above, the contents of the 2022 annual report remain unchanged.

About SouthGobi Resources Ltd.

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.