SouthGobi Resources Successfully Commissions Dry Coal Handling Facility at Its Ovoot Tolgoi Mine in Southern Mongolia

HONG KONG, CHINA -- (Marketwire) -- 02/13/12 -- SouthGobi Resources Ltd. (TSX: SGQ)(HKSE: 1878) announced today the successful commissioning and startup of the dry coal-handling facility ('DCHF') at its Ovoot Tolgoi coal mine in southern Mongolia.

The DCHF has a capacity to process nine million tonnes of run-of-mine ('ROM') coal per year. The facility includes a 300-tonne-capacity dump hopper, which will receive ROM coal to feed a rotary breaker and screens that will size coal to a maximum of 50 millimetres and reject oversize ash.

'The new dry coal-handling facility will improve the quality of our coal and enable us to achieve better product consistency,' said President and CEO, Alexander Molyneux. 'It represents the first step towards more integrated processing at Ovoot Tolgoi, which will create more value than mining and selling raw coal.'

The DCHF will be upgraded during 2012 to include dry air separation, as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending.

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, the DCHF improving the coal quality and upgrading the DCHF during 2012 to include dry air separation and covered load conveyors with stackers, 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 and quarter ended September 30, 2011, which are available at www.sedar.com.

Contacts:

SouthGobi Resources Ltd. - Hong Kong

Dave Bartel

Vice President, Investor Relations and External Affairs

+852 2156 7023


SouthGobi Resources Ltd. - Vancouver

Steven Feldman

Investor Relations Manager

+1 604 331 9813
www.southgobi.com