SouthGobi Resources Announces the Completion of the Construction of a Paved Coal Highway to Mongolia-China Border

HONG KONG, CHINA--(Marketwired - Sep 28, 2014) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi") announced today that construction of a paved highway from the Ovoot Tolgoi Complex to the Shivee Khuren Border Crossing has been completed. Traffic opening ceremony of the highway was held on September 27, 2014.

"With the completion of the paved highway, I am pleased to announce that we have achieved one of our key objectives for 2014. The highway will significantly increase the safety of coal transportation, reduce environmental impacts, and improve efficiency and capacity of coal transportation" said Ross Tromans, President and CEO.

On August 2, 2011, the State Property Committee of Mongolia ("SPC") awarded the tender to construct a paved highway from the Ovoot Tolgoi Complex to the Shivee Khuren Border Crossing to consortium partners NTB LLC and SouthGobi Sands LLC, a wholly-owned subsidiary of SouthGobi (together referred to as "RDCC LLC"). SouthGobi Sands LLC holds a 40% interest in RDCC LLC. On October 26, 2011, RDCC has concluded a 15 year build, operate and transfer agreement with the SPC and commenced the construction of the highway on June 16, 2012.

The paved highway has a carrying capacity in excess of 20 million tonnes of coal per year.

About SouthGobi

SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in which Turquoise Hill, also publicly listed in Toronto and New York, has a 56% shareholding. Turquoise Hill took management control of SouthGobi in September 2012 and made changes to the board and senior management. Rio Tinto has a majority shareholding in Turquoise Hill.

SouthGobi 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, the Mongolian registered company that holds the mining and exploration licenses in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.