Southgobi Resources Provides Clarification on Recent Change of Auditor

HONG KONG, CHINA -- (Marketwire) -- 04/20/12 -- SouthGobi Resources Ltd. (TSX: SGQ)(HKSE: 1878) ("SouthGobi") disclosed that Deloitte & Touche LLP ("Deloitte") had resigned from their position as Auditor of SouthGobi effective April 2, 2012 and were replaced by PricewaterhouseCoopers LLP. SouthGobi has noted some speculation and confusion regarding the announcement and provides some clarification.

Rio Tinto plc ("Rio Tinto") became the majority shareholder of Ivanhoe Mines Ltd. ("Ivanhoe") in January, 2012. Ivanhoe is the majority shareholder of SouthGobi and under SEC regulations Rio Tinto is therefore deemed to have control of SouthGobi through their majority ownership of Ivanhoe. Due to Deloitte's provision of non-audit services to Rio Tinto, an issue with SEC guidelines arose regarding auditor independence at SouthGobi. Deloitte was therefore required to tender their resignation from the position of Auditor of SouthGobi to remove the conflict with the services provided to Rio Tinto. We know of no other company specific matters related to Deloitte's decision to resign as Auditor of SouthGobi.

Deloitte has confirmed that, save as aforementioned, there are no circumstances connected with its resignation which it considers should be brought to the attention of the shareholders of SouthGobi.

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," "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 Resources Limited

Dave Bartel

Vice President Investor Relations and External Affairs

(Hong Kong) +852 2156 7023


SouthGobi Resources Limited

Steven Feldman

Investor Relations Manager

(Vancouver) +1 604 331 9813
www.southgobi.com