Mr. Ruibin Xu reports

SOUTHGOBI ANNOUNCES PROFIT ALERT

Based on the preliminary assessment of SouthGobi Resources Ltd. and its subsidiaries' unaudited management accounts for the year ended Dec. 31, 2024, and the information currently available to the company, it is expected that the company would record: (i) revenue within the range of $444-million (U.S.) to $543-million (U.S.) for fiscal 2024, compared with revenue of approximately $331.5-million (U.S.) for the corresponding period in 2023; and (ii) a net profit attributable to equityholders of the company between approximately $83.6-million (U.S.) and $102.2-million (U.S.) for fiscal 2024, compared with a net profit attributable to equityholders of the company of approximately $900,000 (U.S.) for the corresponding period in 2023. The expected growth in revenue and the increase in net profit attributable to equityholders of the company were mainly attributable to: (i) an increase in sales volume in fiscal 2024 compared with fiscal 2023; (ii) the expansion of the categories of coal products in its portfolio, which expanded the group's revenue streams; and (iii) a reversal of additional tax and tax penalty payable against the company's wholly owned subsidiary in the amount of $48.5-million (U.S.) following the revised reassessment result in relation to the Mongolia tax audit, as disclosed in the announcement of the company dated Feb. 13, 2025.

The company's wholly owned subsidiary received notice of a court proceeding brought by certain officers of the Mongolian Tax Authority, as plaintiff, against the Tax Dispute Resolution Council, as defendant, regarding the reassessment result. For further information, please refer to the company's announcement dated March 26, 2025. As at the date of this announcement: (i) the reassessment result remains legally valid; and (ii) the company is still in the process of preparing and finalizing its financial results for fiscal 2024. 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 of the group, which have not been reviewed or audited by the company's auditor and may be subject to adjustments. Details of the company's financial information and performance will be disclosed in the results announcement for fiscal 2024, which is to be published on Friday, March 28, 2025.

Shareholders and potential investors of the company are advised to exercise caution when dealing in the shares of the company.

About SouthGobi Resources Ltd.

SouthGobi 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.