SouthGobi Receives Notice from Mongolian Government on Strategic Mine Deposits

SouthGobi Resources Ltd., through its subsidiary SouthGobi Sands LLC, has been notified by the Mongolian government about negotiations over state ownership in its mining operations. This follows the National Wealth Fund Law, aiming to establish ownership in strategically important mining deposits. SouthGobi holds mining licenses for such deposits in Mongolia. Currently, four of its licenses, including Ovoot Tolgoi Mine and Soumber Deposit, are affected.

Negotiations began on April 24, 2025. Both parties aim for a cooperative agreement. SouthGobi is committed to collaborating with the government and sharing required information. The company is closely monitoring potential impacts on its business and will update investors as necessary.