HONG KONG, CHINA–(Marketwired – May 15, 2016) – SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (“SouthGobi” or the “Company”) announces the filing on SEDAR of a technical report in respect of the Company’s previously announced, updated resource estimate for its Ovoot Tolgoi coal mine in Mongolia.

The technical report, prepared by RungePincockMinarco (RPM), supports the scientific and technical disclosure in the Company’s news release dated March 29, 2016 and the Material Change Report dated April 7, 2016 in which the Company disclosed updated resources, estimated as of January 1, 2015 (and confirmed as at March 24, 2016) of 170 million tonnes (Mt) of indicated resources and inferred resources of 78 Mt, compared to 133 Mt of measured resources, 60 Mt of indicated resources, and 24 Mt of inferred resources estimated in 2012.

The criteria used to limit the resources are:

• Minimum coal thickness = 0.3metres (m) (previous estimates used 0.3m).
• Minimum coal parting = 0.2m (previous estimates used 0.3m).
• Base of weathering = 4m (same as previous estimate).
• Resources are limited to a depth of 350m.
• Volumes are converted to tonnages using laboratory relative density analytical results converted to an estimated in-situ basis.
• Resources are limited to the mining license boundary.
• The Resource estimations contained within are on an in-situ basis (i.e. as an in-situ tonnage and not adjusted for mining losses or recovery).
• Resources depleted by mined out tonnage (as of 1 January 2015). Mined out surfaces are based on survey data from 27 January 2015 for the Sunrise Field and 19 November 2014 for the Sunset Field. No mining activity has taken place since the survey information was collected that would materially affect the resources estimate.

Reference is made to the news release dated March 29, 2016 and the Material Change Report dated April 7, 2016, both of which are filed on SEDAR. The technical report was prepared by, or under the supervision of, Brendan Stats, an employee of RPM and a qualified person as that term is defined in National Instrument 43-101.

ABOUT SOUTHGOBI

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates the Ovoot Tolgoi coal mine in Mongolia. It also holds the mining and exploration licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.