SouthGobi Resources Sells More Than Four Million Tonnes of Coal in 2011, 58% More Than 2010

HONG KONG, CHINA -- (Marketwire) -- 01/18/12 -- SouthGobi Resources Ltd. (TSX: SGQ)(HKSE: 1878) announces the successful completion of 2011 on guidance in terms of coal sales and production. The 2011 sales and production levels represent significant achievements for SouthGobi.

SouthGobi completed the fourth quarter of 2011 in-line with its guidance in terms of coal sales and production. The Company sold approximately 1.15 million tonnes of coal during the fourth quarter of 2011, resulting in full-year 2011 sales of 4.02 million tonnes against 2.54 million tonnes sold in 2010, an increase in sales of approximately 58%. Coal production for the fourth quarter of 2011 was approximately 1.34 million tonnes, resulting in full-year 2011 production of approximately 4.57 million tonnes against coal production of 2.79 million tonnes in 2010, showing growth for the year of approximately 64%.

About SouthGobi Resources

SouthGobi Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi Region. The Company's flagship coal mine, Ovoot Tolgoi, is producing and selling coal to customers in China. The company plans to supply a wide range of coal products to markets in Asia.

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,' 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, 2010, which are available at www.sedar.com.

Contacts:

SouthGobi Resources Limited - Hong Kong

Dave Bartel

Vice President, External Affairs and Investor Relations

+852 2156 7023


SouthGobi Resources Limited - Vancouver

Steven Feldman

Investor Relations Manager

+1 604 331 9813
www.southgobi.com