SouthGobi Announces Positive Profit Alert

VANCOUVER, BC / ACCESSWIRE / May 8, 2023 / SouthGobi Resources Ltd. (TSX-V:SGQ09)(HK:1878) ("SouthGobi" or the "Company") wishes to inform the shareholders of the Company and potential investors that, based on the Company's preliminary assessment of the unaudited management accounts of the Company for the quarter ended 31 March 2023 and the information currently available to the Company, it is expected that the Company would record a net profit within the range of USD 5 million to USD 9 million for the quarter ended 31 March 2023, as compared to a net loss of USD 10.8 million for the corresponding period in 2022. The expected increase in net profit is mainly attributed to the increase in coal prices and coal sales volume during the first quarter of 2023.

As at the date of this announcement, the Company is still preparing and finalizing its quarterly results for the quarter ended 31 March 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, which have not been audited by the Company's auditors and is subject to further adjustments. Details of the Company's financial information and performance will be disclosed in the 2023 first quarter results announcement of the Company and is expected to be published on 19 May 2023.

SHAREHOLDERS AND POTENTIAL INVESTORS OF THE COMPANY SHOULD EXERCISE CAUTION WHEN THEY DEAL OR CONTEMPLATE DEALING IN THE COMPANY'S SHARES OF THE COMPANY.

About SouthGobi

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.

Contact:

Investor Relations

Office: +852 2156 1438 (Hong Kong)+1 604 762 6783 (Canada)Email: [email protected] Website: www.southgobi.com

SOURCE: SouthGobi Resources Ltd.