SouthGobi Resources Limited
TSX : SGQ
PINK SHEETS : SGQRF
SEHK : 1878

SouthGobi Resources Limited

January 24, 2008 08:31 ET

SouthGobi Energy Resources Closes Equity Financings Raising C$111.5 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2008) - Peter Meredith, CEO of SouthGobi Energy Resources Ltd. (TSX VENTURE:SGQ), announced today that the company has closed the previously-announced equity placements of 10,000,000 common shares at C$8.00 per share and 3,500,000 common shares at C$9.00 per share with two institutional investors, for total gross proceeds of C$111,500,000.

Concurrent with the closing of the equity placements, Ivanhoe Mines Ltd. converted its preferred shares and debt into common shares of SouthGobi Energy Resources in accordance with the terms disclosed in SouthGobi's press release of January 7, 2008. Ivanhoe Mines currently owns 104,754,655 shares representing approximately 81% of the issued and outstanding common shares.

The 3,500,000 common shares issued at C$9.00 will be subject to a four-month hold period from the date of issuance.

About SouthGobi Energy Resources

SouthGobi Energy Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi Region to supply a wide range of coal products and electricity to markets in Mongolia and China. The company is investigating the implementation of clean-coal technologies in the development of coal power-generating capacity to benefit all of its stakeholders.

The company's metals division is focused on the exploration and development of its copper and gold projects in Mongolia and Indonesia.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, the company's plans to develop and supply various coal products and electrical energy to markets in Mongolia and China, and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "scheduled", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although SouthGobi Energy Resources believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" in SouthGobi Energy's Management's Discussion and Analysis of Financial Condition and Results of Operations for the three months ended September 30, 2007 and its Annual Information Form dated August 27, 2007, which are available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • SouthGobi Energy Resources Ltd. - Investors
    Steven Feldman
    (604) 681-6799
    or
    SouthGobi Energy Resources Ltd. - Media
    Bob Williamson
    (604) 681-6799
    Website: www.southgobi.com