SouthGobi Resources Welcomes Opening of Expanded Border Crossing Infrastructure

HONG KONG, CHINA -- (Marketwire) -- 05/29/12 -- SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) notes that eight new border gates exclusively for coal transportation opened at the Shivee Khuren-Ceke border crossing on May 28, 2012. The gates will significantly increase the capacity for exportation of coal from Mongolia to China.

Prior to the commencement of the new border crossing infrastructure, all coal transported out of Mongolia at Shivee Khuren-Ceke went through a single crossing gate approximately eight meters wide. Generally, empty trucks would be admitted into Mongolia in the mornings and then loaded trucks could export to China in the afternoons. The new gates create a significant increase in capacity as a number of gates will be available for simultaneous export traffic and two gates will be reserved for inbound arrival of empty trucks such that a constant two-way flow of traffic can be facilitated. At this time, the eight gates will be operated from 8am to 8pm six days per week.

"Our daily transportation record for the old border infrastructure was actually achieved last week at 409 trucks - which crossed from Mongolia to China (ie, approximately 37,000 tonnes of coal)," said Alexander Molyneux, President and CEO. "We believe the new infrastructure will eliminate the 'bottleneck' at the border for quite some time. The expanded border crossing should also reduce transportation costs because of more efficient truck utilization for the transport companies."

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, increase in the capacity for exportation of coal from Mongolia to China, number of gates available for export traffic and inbound trucks, hours of operation, any elimination of the 'bottleneck' at the border, reduction in the transportation costs, 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 quarter ended March 31, 2012 which is available at www.sedar.com.