SouthGobi Provides Update on Mongolian Independent Authority

SouthGobi Provides Update on Mongolian Independent Authority Against
Corruption Investigation 
HONG KONG, CHINA -- (Marketwire) -- 12/23/12 -- SouthGobi Resources
Ltd. (TSX:SGQ)(HKSE:1878) (the "Company" or "SouthGobi") has received
notification from the Mongolian Independent Authority Against
Corruption (IAAC), that it has concluded its questioning of
SouthGobi's Chief Legal Counsel Sarah Armstrong and that she is no
longer a suspect in their investigations. The IAAC has informed the
Company that she will shortly be able to leave the country. 
The IAAC has also confirmed to SouthGobi that it is continuing with
its investigation into historical licensing issues. The IAAC advised
that it is investigating the divestment of certain SouthGobi licenses
to third parties, and the involvement and conduct of government
officials in connection with this. 
SouthGobi continues to cooperate fully with the IAAC's investigation,
and is satisfied that Sarah's interviews were carried out
professionally, and that she was able to have her lawyer and
interpreter present throughout.  
Newly-appointed SouthGobi President and CEO Ross Tromans said,
"SouthGobi is pleased that the phase of the IAAC's investigations
involving Sarah has been concluded and that she can return home. 
"I would also like to reiterate our commitment to returning Ovoot
Tolgoi to operation as market conditions allow, and realizing its
potential." 
Sarah Armstrong said, "I am really grateful for the support provided
to me by the Australian Consul General in Mongolia. I have cooperated
with the IAAC throughout and I am pleased that these investigations
are over and that I am no longer a suspect." 
About SouthGobi Resources 
SouthGobi Resources is listed on the Toronto and Hong Kong stock
exchanges, in which Turquoise Hill Resources Limited, also publicly
listed in Toronto and New York, has a 58% 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 Resources 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, the Mongolian
registered company that holds the mining and exploration licences in
Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot
Tolgoi produces and sells coal to customers in China. 
Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited
to, plans to supply a wide range of coal products to markets in Asia;
and other statements that are not historical facts. When used in this
document, the words such as "plan", "estimate", "expect", "intend",
"may", "likely" and similar expressions are forward-looking
statements. Although SouthGobi believes that the expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be
given that actual results will be consistent with these
forward-looking statements. Important factors that could cause actual
results to differ from these forward-looking statements are disclosed
under the heading "Risk Factors" in SouthGobi's Management Discussion
and Analysis of Financial Condition and Results of Operations for the
year ended Dec. 31, 2011 which is available at www.sedar.com. 
Contacts:
SouthGobi Sands LLC (Mongolia)
Altanbagana Bayarsaikhan
+976 9910 7589
Altanbagana.Bayarsaikhan@southgobi.com 
Brunswick Group (Hong Kong)
Christina Pantin
+852 9166 3697 
Brunswick Group (Hong Kong)
Crystal Chan
+852 9669 3632
southgobi@brunswickgroup.com
www.southgobi.com
 
 
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