SouthGobi Announces RMB 235 Million Secured Loan

VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / October 13, 2025 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") announces that its Mongolian operating subsidiary, Southgobi Sands LLC ("SGS"), has entered into a secured loan with Khan Bank JSC (the "Lender") for a principal amount of up to RMB235,000,000 (equivalent to approximately CAD46,095,250) (equivalent to approximately CAD46,095,250) (the "Loan"), pursuant to the terms of a loan agreement by and among SGS and the Lender dated October 7, 2025 (the "Loan Agreement").

Loan Terms

The key terms of the Loan provide that the Lender will lend up to RMB235,000,000 (equivalent to approximately CAD46,095,250) to SGS. The Loan has a term of 18 months from the date of initial disbursement (the "Term"). The Loan accrues interest at a rate of 10% per annum on the outstanding principal, calculated on a 365-day year basis. In the event of default, additional interest equal to 20% of the loan interest will be charged on the outstanding principal, as set out in the Loan Agreement. The Loan is subject to a 0.5% loan service fee, capped at RMB7,500 (equivalent to approximately CAD1,471), and a 0.5% amendment fee on the outstanding principal, also capped at RMB7,500 (equivalent to approximately CAD1,471). The total principal amount of the Loan of RMB235,000,000 (equivalent to approximately CAD46,095,250) will be advanced by the Lender to SGS upon satisfaction of certain customary conditions precedents, including the registration of the collateral.

Loan repayments will consist of interest-only payments during the initial 12 months of the Term, followed by principal amortization payments during months 13 to 18 of the Term, all in accordance with the agreed loan disbursement and repayment schedule set forth in the Loan Agreement.

The Loan is secured by first-ranking pledges over specified immovable properties and land-use rights belonging to SGS at Nariin Sukhait (Gurvantes soum, Umnugobi province), including office buildings, employee accommodation, maintenance shop and camp infrastructure, a gas and fuel station and related facilities, as well as multiple mining and infrastructure land-use parcels. In addition, the Loan is secured by pledges over movable and intangible assets of SGS, including a mining licence, exploration and prospecting data and feasibility studies, accounts receivable, and inventory (goods and materials), together with proceeds thereof, and as further described in the related pledge agreements for immovable properties and for movable and intangible properties, both dated October 7, 2025 (the "Pledge Agreements"). The Company intends to use the proceeds of the Loan to support working capital, operating expenses, taxes and the settlement of accounts payable of SGS.