Update on PIK Interest Payment Obligation Under November 2022 Deferral Agreement

VANCOUVER, January 19, 2024 - SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") Reference is made to the announcement of the Company dated November 17, 2023 (the "November17 Announcement") in relation to the waiver provided by JD Zhixing Fund L.P. ("JDZF") of the Company's payment obligations under the November 2022 Deferral Agreement. Unless otherwise specified, terms used in this announcement shall have the meaning as defined in the November 17 Announcement.

The Company announces that JDZF has agreed to extend the date upon which the Waiver is in effect in relation to the Waived PIK Interest Default from January 19, 2024 to April 30, 2024. Aside from the aforementioned extension, the other terms of the Waiver described in the November 17 Announcement remain in effect and unamended.

If there is any inconsistency or discrepancy between the English and Chinese version, the English version shall prevail.

About SouthGobi

SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.

Contact:

Investor Relations
Email: info@southgobi.com

Mr. Ruibin Xu
Chief Executive Officer

Forward-Looking Statements

Certain information included in this press release that is not current or historical factual information constitutes forward-looking statements or information within the meaning of applicable securities laws (collectively, "forward-looking statements"), including information about the potential of further future deferrals of its payment obligations under the Convertible Debenture. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "could", "should", "seek", "likely", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on certain factors and assumptions including, among other things, the Company's ability to successfully fulfil its payment obligations of the November 2022 PIK Interest on or before April 30, 2024 under the Convertible Debenture and related November 2022 Deferral Agreement and the November 2022 Deferred Management Fees on or before August 31, 2024 under the Amended and Restated Cooperation Agreement and the related November 2022 Deferral Agreement, and other similar factors that may cause actual results to differ materially from what the Company currently expects. Actual results may vary from the forward-looking statements. Readers are cautioned not to place undue importance on forward-looking statements, which speaks only as of the date of this disclosure, and not to rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to, update or revise any forward-looking statements, whether as a result of new information, further events or otherwise at any particular time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with Canadian securities regulatory authorities and the website of the Hong Kong regulatory filings and disclosures of listed issuer information. These can be found under the Company's profile on SEDAR+ and HKEXnews respectively, at www.sedarplus.ca and www.hkexnews.hk.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.