SouthGobi Executive Under Exit Ban

Justin Kapla, President of SouthGobi Sands LLC, has been under an exit ban from Mongolia for approximately 3 months. His family in Minnesota believe his exit ban, which does not allow him to leave Mongolia, began at the same time as SouthGobi's Australian attorney Sarah Armstrong. Ms. Armstrong's exit ban was lifted just prior to Christmas 2012 on December 24, and it has been assumed to-date that there were no other SouthGobi employees left living under an exit ban in Mongolia thereafter.

SouthGobi Sands LLC is a wholly owned subsidiary of SouthGobi Resources (SGQRF.PK). SouthGobi Resources is 58% owned by Turquoise Hill Resources (TRQ). Turquoise Hill Resources share price was impacted worse than SouthGobi by prior news cycles regarding Ms. Armstrong's exit ban, but both stocks have risen significantly since Ms. Armstrong'stravel ban was lifted December 24, 2012.



Photo of Justin Kapla from his LinkedIn home page.

A United States State Department Official stated, "We are aware of the case of U.S. citizen Justin Kapla, who has an exit ban in Mongolia. We are in contact with Mr. Kapla and are providing appropriate assistance. Due to privacy considerations, we are unable to comment further."

The family of Justin Kapla, was able to provide additional details on Mr. Kapla's situation in Mongolia. Justin Kapla previously had a short exit ban of several weeks in June 2012 prior to being able to visit his family in Minnesota. He discovered he was under an exit ban once again in October 2012 when he tried to take a trip to his company's office in Hong Kong.



Photo of Justin Kapla, an avid fisherman in better times.

Justin Kapla is familiar with Mongolia having worked there for most of the past decade, first with Boroo Gold, then with SouthGobi. His wife is a native of Mongolia and they have two children.

Justin Kapla, a graduate of Elk River Senior High School in Minnesota, is unable to visit his parents, friends, three siblings, and niece in Minnesota or elsewhere during this exit ban. He has been able to communicate with them and move freely within Mongolia according to his family's understanding of the situation. The family, whom do not wish to be contacted further about this story, have no knowledge of whether Justin Kapla has been charged or even questioned in any matters related to his activities in Mongolia.

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