Mr. Ruibin Xu reports

UPDATE ON PIK INTEREST PAYMENT OBLIGATION UNDER NOVEMBER 2022 DEFERRAL AGREEMENT

Reference is made to the announcement of SouthGobi Resources Ltd. dated Nov. 17, 2023, in relation to the waiver provided by JD Zhixing Fund LP (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 Nov. 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 payment-in-kind (PIK) interest default from Jan. 19, 2024, to April 30, 2024. Aside from the aforementioned extension, the other terms of the waiver described in the Nov. 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 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 the South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.

We seek Safe Harbor.