Mr. Ruibin Xu reports

SOUTHGOBI ANNOUNCES POSITIVE PROFIT ALERT

Based on SouthGobi Resources Ltd.'s preliminary assessment of the unaudited management accounts for the year ended Dec. 31, 2023, and the information currently available to the company, it is expected that the company would record a net profit attributable to equity holders of the company of approximately no more than $1-million (U.S.) for the year ended Dec. 31, 2023, as compared with a net loss attributable to equity holders of the company of approximately $30-million (U.S.) for the year ended Dec. 31, 2022. The turnaround from net loss to expected net profit is primarily attributable to the increase in sales volume and improvement in the company's average realized selling price of coal during the year ended Dec. 31, 2023.

As at the date of this announcement, the company is still in the process of preparing and finalizing its annual results for the year ended Dec. 31, 2023. The information contained in this announcement is based on the preliminary assessment of the information currently available to the company and the unaudited management accounts of the group, which have not been audited by the company's auditors and may be subject to adjustments. Details of the company's financial information and performance will be disclosed in the annual results announcement for the year ended Dec. 31, 2023, which is to be published on March 28, 2024 (Thursday).

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.