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

SouthGobi Resources Limited

January 03, 2008 14:13 ET

SouthGobi Energy Resources Named "Best Exploration Company of 2007" by Mongolia's Mineral Resources and Petroleum Authority

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 3, 2008) - The Mongolian Government's Mineral Resources and Petroleum Authority has announced that SouthGobi Sands LLC, a wholly-owned subsidiary of SouthGobi Energy Resources (TSX VENTURE:SGQ), has been selected as Mongolia's "Best Exploration Company of 2007."

Peter Meredith, Chief Executive Officer of SouthGobi Energy Resources Ltd. (TSX VENTURE:SGQ) and Gene Wusaty, Chief Operating Officer, said today that SouthGobi Sands had received an honorary diploma signed by Lu Bold, Chairman of the Mongolian exploration licencing authority, citing the company "for its contribution to the economy of Mongolia and the outstanding achievement in geology and (the) minerals industry."

"This is a fitting and significant recognition for SouthGobi as the company evolves from an exploration company to a coal producing and development company in 2008," Mr. Meredith said. "The award is a tribute to the hard work by a very competent group of SouthGobi professionals based in Ulaanbaatar who have directed our discoveries and are planning our mine at Ovoot Tolgoi."

SouthGobi's exploration program in 2007 focused on the Ovoot Tolgoi surface mine, Ovoot Tolgoi underground, Ovoot Tolgoi extension, Tsagaan Tolgoi, Tavan Tolgoi extension and greenfields drilling. At the peak of the 2007 program, SouthGobi had six exploration drills operating in the southern Gobi region of Mongolia. Further results from the 2007 exploration program will be released when available.

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.

Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) is SouthGobi Energy Resources' largest shareholder, currently owning approximately 87% of the issued and outstanding shares.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning the company's plans to evolve from an exploration company to a coal producing and development company, 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", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although SouthGobi Energy Resources believe 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, which is 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