SouthGobi Comments on Trading Activity at Request of IIROC

SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) is issuing this announcement in response to a request from the Investment Industry Regulatory Organization of Canada (“IIROC”) to comment on the trading activity of the shares of the Company (the “Shares”) on the Toronto Stock Exchange on Monday, September 13, 2021.

The Company is not aware of any material, undisclosed information related to the Company’s operations and affairs that would account for the recent increase in the market price and level of trading volume of the Shares or any information which must be announced to avoid a false market in the Company’s securities.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares.

About SouthGobiSouthGobi, listed on the Toronto and Hong Kong stock exchanges, 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.