Novel Sunrise Announces Change of Ownership

TORONTO, ONTARIO--(Marketwired - July 20, 2015) - Novel Sunrise Investments Limited ("Novel Sunrise"), the largest shareholder of SouthGobi Resources Ltd. ("SouthGobi"), today announced that China Cinda (HK) Investments Management Company Limited ("Cinda"), a wholly-owned subsidiary of China Cinda Asset Management Corporation Limited, has acquired ownership and control of all of the outstanding voting (ordinary) shares of Novel Sunrise through Hope Rosy Limited, a wholly-owned subsidiary of Cinda. These shares of Novel Sunrise were acquired by Cinda pursuant to its exercise of a share charge which was granted by the former owner of such shares (Mr. Chen Guogang) as security for certain obligations of Novel Sunrise and such former shareholder relating to the financing which Cinda provided to Novel Sunrise in April, 2015.

Novel Sunrise owns and controls 71,291,147 common shares of SouthGobi (each, a "Common Share"), representing 29.04% of the total number of Common Shares outstanding.

Novel Sunrise is of the opinion that during the past few years SouthGobi has been facing, and that it continues to face, a number of serious problems, including with respect to the sale and marketing of its coal product in China, production management and costs (both operating and capital costs), relationships with local stakeholders in Mongolia and China (including governments, service providers and customers), logistics, and relationships with the capital markets in Hong Kong and China.

In view of these problems, Novel Sunrise intends, among other things, to closely evaluate the performance of SouthGobi and the value of its investment therein, including an analysis and assessment of SouthGobi's business, assets, operations, financial condition, prospects, capital structure, management and corporate governance.

Depending on the factors referred to above, and such other factors as Novel Sunrise may from time to time consider relevant, Novel Sunrise may, among other things, subject to applicable securities laws of Canada and Hong Kong (i) communicate with other shareholders of SouthGobi; (ii) solicit proxies or consents to be used at SouthGobi's upcoming annual general meeting or at a special meeting of shareholders, or otherwise; (iii) acquire additional Common Shares; (iv) dispose of some or all of its Common Shares; and/or (v) take such other actions with respect to SouthGobi as Novel Sunrise may from time to time determine appropriate. In particular, Novel Sunrise intends to approach the board of directors of SouthGobi with a view to reconstituting the board at the annual general meeting of SouthGobi scheduled to be held on August 6, 2015, including the election of individuals to be nominated by Novel Sunrise in substitution for, and in addition to, the individuals nominated by it before Cinda's acquisition of control of Novel Sunrise.

This press release does not constitute a solicitation of proxies and is being issued pursuant to the early warning requirements of applicable Canadian securities laws. An early warning report is being filed by Novel Sunrise in accordance with applicable Canadian securities laws and will be available on the SEDAR profile for SouthGobi at www.sedar.com.