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SouthGobi Provides Update on Mongolian Independent Authority Against Corruption Investigation

HONG KONG, CHINA -- (Marketwire) -- 12/24/12 -- 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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