SouthGobi Resources Limited
TSX : SGQ
HKSE : 1878

SouthGobi Resources Limited

March 14, 2012 08:30 ET

SouthGobi Resources Comments on Recent Share Price Activity

HONG KONG, CHINA--(Marketwire - March 14, 2012) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) SouthGobi notes its share price fell by 9.9% and 7.6% in Toronto and Hong Kong respectively on 12 March 2012, with trading volumes substantially above recent averages. The Company believes the activity is associated with the announcement by Standard & Poor's Canadian Index Operations after the close of trading on 9 March 2012 that its shares would no longer be included in the Quarterly S&P/TSX Composite Index with effect from 19 March 2012. It is highly likely that index fund based investors are reducing holdings of SouthGobi shares.

About SouthGobi Resources

SouthGobi Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi Region. The company's flagship coal mine, Ovoot Tolgoi, is producing and selling coal to customers in China. The company plans to supply a wide range of coal products to markets in Asia.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, plans to supply a wide range of coal products to markets in Asia; and other statements that are not historical facts. When used in this document, the words such as "plan," "estimate," "expect," "intend," "may," "likely" and similar expressions are forward-looking statements. Although SouthGobi 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's Management Discussion and Analysis of Financial Condition and Results of Operations for the year ended Dec. 31, 2010 and quarter ended September 30, 2011 which is available at www.sedar.com.

Contact Information

  • SouthGobi Resources Limited - Hong Kong
    Dave Bartel
    Vice President Investor Relations and External Affairs
    +852 2156 7023

    SouthGobi Resources Limited - Vancouver
    Steven Feldman
    Investor Relations Manager
    +1 604 331 9813
    www.southgobi.com