SouthGobi provides bi-weekly status report - Seite 2

As previously disclosed in its announcement dated April 28, 2020, the Ceke Port of the Mongolian-Chinese border was reopened on March 28, 2020 for coal export on a trial basis, with a limit imposed on the total volume of coal that is permitted to be exported during the trial period. The Company’s coal export from May 1 to May 28, 2020 amounted to approximately 0.17 million tonnes, an increase of approximately 70% from the same period in April 2020.

In order to preserve its working capital, the Company has suspended the coal mining operations from February 11, 2020, but in the meantime, the Company is continuing its coal blending operations. The Company anticipates that its existing coal inventories are sufficient to satisfy expected sales demand for a period of at least two months as of the date hereof. The Company has finalized a repayment agreement with one of its biggest suppliers in Mongolia and is discussing repayment agreements with other suppliers. The Company is also in the process of finalizing a one-year extension of an existing bank loan in Mongolia to May 2021.

The Company confirms that (i) there have been no material changes to the information set out in the announcement dated May 12, 2020 that has not been generally disclosed; (ii) there have been no failures by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; (iii) there has been no other, or anticipated, specified default under NP 12-203 concerning the Company; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed. The Company will continue to comply with the provisions of the alternative information guidelines under NP 12-203 by filing bi-weekly default status reports in the form of news releases for so long as the MCTO remains in effect.

The Company will continue to take active steps to address the going concern issues raised by the Auditors and explore available options to attempt to obtain an unmodified opinion on the 2019 Financial Statements. The Company will make further announcements with respect to the status of the 2019 Annual Filings as and when appropriate.

SHAREHOLDERS OF THE COMPANY AND POTENTIAL INVESTORS ARE ADVISED TO EXERCISE CAUTION WHEN DEALING IN THE SECURITIES OF THE COMPANY.

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

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia.  SouthGobi produces and sells coal to customers in China.

CONTACT: Contact:

Investor Relations

Kino Fu
Office: [phone] (Hong Kong) 
[phone] (Canada) 
Email: [e-mail]
Website: www.southgobi.com