SouthGobi Resources Announces the Successful Closing of Novel Sunrise Transactions and Issues Select First Quarter 2015 Operating Results

HONG KONG, CHINA--(Marketwired - April 24, 2015) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (the "Company" or "SouthGobi") today announces the closing of the Novel Sunrise Investments Limited ("Novel Sunrise") private placement and the closing of the sale and purchase agreement between Novel Sunrise and Turquoise Hill Resources Ltd. ("Turquoise Hill") ("Novel SPA") (together the "Novel Sunrise transactions"). In addition, the Company issues select first quarter 2015 operating results. All figures are in U.S. Dollars unless otherwise stated.

Closing of Novel Sunrise transactions

The Company has been advised that the Novel SPA, as initially announced on February 24, 2015, closed on April 23, 2015 after receiving all necessary regulatory approvals. Pursuant to the Novel SPA, Novel Sunrise has purchased approximately 48.7 million common shares of the Company (each, a "Common Share") from Turquoise Hill.

As also announced on February 24, 2015, the Company entered into a private placement with Novel Sunrise for the issuance of approximately 21.7 million Common Shares for gross proceeds of approximately $7.5 million (the "Private Placement"). On March 3, 2015 the Company successfully closed the initial tranche of the Private Placement raising $3.5 million for the issuance of approximately 10.1 million mandatory convertible units of the Company, each unit convertible on a one for one basis for Common Shares of the Company (the "Mandatory Convertible Units"). Upon closing of the Novel SPA, the Mandatory Convertible Units automatically converted into Common Shares in accordance with their terms.

On April 23, 2015 the Company successfully closed the second tranche of the Private Placement for gross proceeds of approximately $4.0 million through the issuance of approximately 11.6 million Common Shares. The Common Shares are subject to a four month hold period from the date of issuance.

As a result of the closing of the Novel SPA and the Private Placement, Novel Sunrise now has a shareholding of approximately 70.5 million Common Shares, representing approximately 29.3 percent of the Company's share capital. Turquoise Hill's shareholding has been reduced to approximately 56.1 million Common Shares or 23.3 percent of the Company's share capital.