Mr. Ruibin Xu reports

SOUTHGOBI ANNOUNCES PROFIT WARNING

Based on the preliminary assessment of SouthGobi Resources Ltd. and its subsidiaries' unaudited management accounts for the year ended Dec. 31, 2025 (FY2025), and the information currently available to the company, it is expected that the company would record a net loss attributable to equity holders of the company between approximately $151.9-million (U.S.) and $185.6-million (U.S.) for FY2025, as compared with a net profit attributable to equity holders of the company of approximately $92.5-million (U.S.) for the corresponding period in 2024. The expected net loss attributable to equity holders of the company for FY2025 was mainly attributable to (i) the decrease in average realized selling price in FY2025 as compared with the prior financial year; (ii) the change in product mix year over year, as the company sold more processed coal with higher production costs; and (iii) impairment losses on coal stockpiles and cash generating units of approximately $77.3-million (U.S.) and $42.0-million (U.S.) respectively.

As at the date of this announcement, the company is still in the process of preparing and finalizing its financial results for FY2025. 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 FY2025, which is to be published on Friday, March 27, 2026.

About SouthGobi Resources Ltd.

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.