Thursday, June 26, 2014

Court of Justice in Mongolia Has Set June 30, 2014 as the Trial Date for the Tax Investigation Case Against SouthGobi Sands and Three of Its Former Employees

HONG KONG, CHINA--(Marketwired - June 24, 2014) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (the "Company") previously announced on May 13, 2014 that the charges for alleged violation of Mongolian tax law had been officially filed against the Company's three (3) former employees and against the Company's Mongolian subsidiary SouthGobi Sands LLC ("SGS") as "civil defendant". The case was transferred to the First Instance 2(nd) District Court for review by a judge in April 2014. The Company was advised on May 12, 2014 the appointed judge concluded that the investigation on the case was incomplete and ordered the case to return to the Prosecutor General for additional investigation.

The Company has been informed that the additional investigation has been completed and the case transferred back to the First Instance 2(nd) District Court which has set the trial date for June 30, 2014.

The Company, including its Mongolian subsidiary SGS, has prepared its financial statements in compliance with International Financial Reporting Standards, and lodged all tax returns as required under Mongolian tax law. During the investigative period, which has been ongoing since May 2012, the Company has been fully cooperating with the relevant authorities of Mongolia and devoted considerable internal resources in reviewing and responding to the allegations raised through the investigations by those authorities. The Company disputes these accusations and the procedures and conclusions of the investigations that led to these accusations and will vigorously defend itself and its former three (3) employees against these charges.

About SouthGobi

SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in which Turquoise Hill, also publicly listed in Toronto and New York, has a 56% shareholding. Turquoise Hill took management control of SouthGobi in September 2012 and made changes to the board and senior management. Rio Tinto has a majority shareholding in Turquoise Hill.

SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in Mongolia's South Gobi Region. It has a 100% shareholding in SouthGobi Sands LLC, the Mongolian registered company that holds the mining and exploration licenses in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.

SouthGobi Resources Limited

Investor Relations

Galina Rogova

+852-2839-9208

galina.rogova@southgobi.com

SouthGobi Resources Limited

Media Relations

Altanbagana Bayarsaikhan

+976 70070710

altanbagana.bayarsaikhan@southgobi.com

www.southgobi.com

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