SouthGobi Resources Limited
TSX : SGQ
HKSE : 1878

SouthGobi Resources Limited

July 29, 2015 00:25 ET

SouthGobi Resources Announces Further 30 Day Extension of Delisting Review by TSX

HONG KONG, CHINA--(Marketwired - July 29, 2015) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi" or the "Company") today announces confirmation of a further 30 day extension to the Toronto Stock Exchange (the "TSX") delisting review.

TSX DELISTING REVIEW

As announced by the Company on July 23, 2015, a meeting of the Continued Listing Committee of TSX was scheduled to be held on July 27, 2015 and their decision was expected no later than July 29, 2015.

As announced by the Company on July 28, 2015, the Company requested approval from the TSX for a 30 day extension of the delisting review hearing. Subsequently, the Company has received confirmation from the Continued Listing Committee of the TSX (the "Committee") that it will defer its scheduled meeting to consider whether the Company has met the listing requirements of the TSX until August 25, 2015. The Committee has determined to defer its delisting decision until no later than August 28, 2015.

The Company believes the extension will provide sufficient time for the implementation of the next stage of the funding plan described in the Company's announcement dated July 28, 2015 (the "Funding Plan"), which will allow it to meet its short term financing needs, and that it will be compliant with the continued listing requirements of the TSX; however, no assurance can be provided that the Funding Plan will be successfully implemented or to the outcome of the remedial delisting review when it occurs and the Company's Common Shares may become subject to delisting from the TSX.

If, at any time, TSX becomes aware of additional negative developments such that the continued trading or listing of the Company's securities is contrary to the public interest, an expedited review will be initiated.

For additional detail, please refer to the section "Liquidity and Capital Resources" under the heading "TSX Financial Hardship Exemption Application and Status of Listing on the TSX" in the MD&A issued on May 11, 2015 and available on SEDAR at www.sedar.com.

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, is focused on exploration and development of its metallurgical and thermal coal deposits in Mongolia's South Gobi Region. It has a 100% shareholding in SouthGobi Sands LLC, a Mongolian registered company that holds the mining and exploration licences in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.

FORWARD-LOOKING STATEMENTS

Except for statements of fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations of sufficient liquidity and capital resources to meets its ongoing obligations and future contractual commitments; the outcome of TSX delisting review; the ability to carry out the Funding Plan and other financing plans; and other statements that are not historical facts. Except as required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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