SouthGobi Resources Announces Increased NI 43-101 Compliant Resources Following Record Exploration in 2011, Including New Coking Coal Deposit

HONG KONG, CHINA--(Marketwire - March 19, 2012) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) announced today that new, independent estimates prepared by Minarco-MineConsult ("MMC"), have updated coal Resources and Proven and Probable Mineral Reserves contained at the Company's Ovoot Tolgoi Complex, (comprised of the Ovoot Tolgoi mine and the Ovoot Tolgoi Underground Deposit). Independent estimates for coal Resources have also been updated by MMC for the company's Soumber Deposit (comprised of the Central Soumber, East Soumber, Biluut, South Biluut and Jargalant Fields) and an inaugural estimate of coal Resources at the Zag Suuj Deposit has been completed.

Estimate of Resources - Ovoot Tolgoi Complex, Mongolia

SouthGobi is pleased to announce that the Company has received an updated independent NI 43-101 compliant Resource estimate for the Ovoot Tolgoi Complex. Ovoot Tolgoi surface and underground Resources contain Measured plus Indicated coal Resources of 302.3 million tonnes (approximately 14% increase), with an additional Inferred coal Resource of 86 million tonnes (approximately 11% decrease). The Mineral Reserves (Table 4) are included in the Mineral Resources (Table 1).

Ovoot Tolgoi Resources are found in two different Resource areas, referred to as the Sunrise and Sunset fields. The Resources identified have been determined to be suitable for surface mining to a maximum depth of 300 metres below surface and potential underground mining between a depth of 300 metres below surface to a maximum depth of 600 metres.

Table 1: Total Ovoot Tolgoi (Surface and Underground) In-Place Coal Resources as of October 31, 2011

Area	Type	Resource Limits Depth (metres)	Resources (million tonnes)
			Measured	Indicated	Inferred
Sunrise Field	Surface	Surface to 300m	75.5	24.4	9
Sunset Field	Surface	Surface to 300m	57.8	35.5	15
Subtotal			133.3	59.9	24
Sunrise Field	Underground	300m to 600m	14.6	22.9	37
Sunset Field	Underground	300m to 600m	51.2	20.4	25
Subtotal			65.8	43.3	62
Total			199.1	103.2	86
Totals may not add due to rounding

Quality analyses performed to date by SGS Mineral Labs in Denver, Colorado and Tianjin, China, rank Ovoot Tolgoi coal as high-volatile B to A bituminous based on the ASTM D388 standard. High-volatile B and A bituminous coals are hard black coals. High-volatile B produces between 7,212 to 7,785 kCal/kg and high-volatile A produces greater than 7,785 kCal/kg heat output.

Estimate of Resources - Soumber Deposit, Mongolia

SouthGobi completed an extensive drilling program at the Soumber Deposit in 2011. The drilling focused on both in-fill drilling to increase the confidence level of the resources, and on expanding the deposit generally eastward. The results of this program are a significant increase in the resource base in Soumber. The Company intends to further define the deposit with continued exploration work while also substantially advancing the feasibility and planning for a mine at Soumber. An inaugural NI 43-101 compliant reserve study is being prepared, and is expected to be completed in third quarter this year.

SouthGobi is pleased to report that it has received an updated independent NI 43-101 compliant Resource estimate for its Soumber Deposit, consisting of the Central Soumber, East Soumber, Biluut, South Biluut and Jargalant Fields. The estimate also was prepared by MMC.

The deposit area is estimated to contain Measured plus Indicated coal Resources of 137.3 million tonnes (approximately 124% increase), with an additional Inferred coal Resource of 83 million tonnes (approximately 26% increase) (Table 2).

Table 2: Soumber (Surface and Underground) In-Place Coal Resources Summary as of January 25, 2012

Area	Type	Resource Limits Depth (metres)	Resources (million tonnes)
			Measured	Indicated	Inferred
Central Soumber Field	Surface	Surface to 300m	30.8	16.3	11
East Soumber Field	Surface	Surface to 300m	16.9	15.1	10
Biluut Field	Surface	Surface to 300m	10.2	32.4	11
South Biluut Field	Surface	Surface to 300m	0.0	0.0	0
Jargalant Field	Surface	Surface to 300m	0.0	10.5	10
Subtotal			57.9	74.3	42
Biluut Field	Underground	300m to 600m	0.0	2.1	12
South Biluut Field	Underground	300m to 600m	0.0	2.5	25
Jargalant Field	Underground	300m to 600m	0.0	0.5	3
Subtotal			0.0	5.1	40
Total			57.9	79.3	83
Totals may not add due to rounding

Based on analytical results and available composite coal quality data, the coal rank for the Soumber and Biluut fields ranges between low to medium volatile bituminous coal, defined by ASTM Standard D388. Volatile matter (on a dry ash free basis) for the Biluut seams is more variable than for Soumber, however this may be due to insufficient samples. The average calorific values for individual seams range between 5,000 to 7,800 kcal/kg.

Estimate of Resources - Zag Suuj Deposit, Mongolia

As part of the extensive drilling program completed in 2011, the Company continued drilling in greenfield areas on its exploration licenses that are known to contain coal resources. SouthGobi is pleased to announce the inaugural resource report on the Zag Suuj Deposit. Zag Suuj lies approximately 150 km east of the Ovoot Tolgoi Complex, within the Ovoot Khural basin.

SouthGobi is pleased to report that it has received an independent NI 43-101 compliant Resource estimate for its Zag Suuj Deposit. The estimate also was prepared by MMC.

The deposit area is estimated to contain Measured plus Indicated coal Resources of 17.0 million tonnes with an additional Inferred coal Resource of 66 million tonnes (Table 3).

Table 3: Zag Suuj in-Place Coal Resources Summary as of December 31, 2011

Area	Type	Resource Limits Depth (metres)	Resources (million tonnes)
			Measured	Indicated	Inferred
Zag Suuj	Surface	Surface to 300m	0.0	17.0	66
Total			0.0	17.0	66
Totals may not add due to rounding

Based on analytical results and available composite coal quality data, the coal rank for the Zag Suuj deposit ranges between low to medium volatile bituminous coal, as defined by ASTM Standard D388. The average calorific value for individual seams ranges between 5,600 and 6,100 kCal/kg (ad).

Estimate of Reserves - Ovoot Tolgoi Complex, Mongolia

As a result of additional drilling, updating of the geologic model, improved pricing (primarily the result of beneficiation), the NI 43-101 compliant reserves at Ovoot Tolgoi increased approximately 65% to 175.7 million tonnes. The increased reserve base allows for an increased steady-state run-of-mine production rate of approximately nine million tonnes per annum which is expected to be achieved by 2015.

Table 4: Ovoot Tolgoi Open Pit Mineral Reserves as of December 11, 2010

Reserve Area	Reserves (million tonnes)
	Proven	Probable	Total
Sunrise Field	71.5	25.1	96.6
Sunset Field	47.6	31.4	79.1
Total	119.1	56.5	175.7
Totals may not add due to rounding

"We are very pleased and excited about the updated resources and reserves at SouthGobi," said Alexander Molyneux, President and CEO. In addition to operating our flagship Ovoot Tolgoi mine, we continue to be a true exploration company, differentiating us from most of our Chinese and Mongolian peers. Our overall finding cost for new resources is a mere $0.17/tonne. Our significant resources will be the basis f or substantial volume growth over the next 5-7 years as we establish their economic viability and subsequently bring these properties into production."

Additional Information

Details of the assumptions and parameters used to calculate the reserves, resources and coal quality estimates and information on data verification are set out in an Annual Information Form dated March 19, 2012, and available at www.sedar.com.

Qualified Persons

Merryl Peterson, a Geologist at Runge Limited (Minarco-MineConsult is a trading division of Runge Limited), and a Qualified Person as defined by NI 43-101, has reviewed the data underlying the resource estimate and approved the technical and scientific information pertaining to the Ovoot Tolgoi Complex, the Soumber Deposit and the Zag Suuj Deposit contained in this release.

Robert Mackenzie, a mining engineer and Executive Consultant at Minarco-MineConsult and a Qualified Person as defined by NI 43-101, has reviewed the data underlying the reserve estimate and approved the technical and scientific information pertaining to the Ovoot Tolgoi Complex contained in this release.

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 Company intends to further define the deposit with continued exploration work while also substantially advancing the feasibility and planning for a mine at Soumber, an inaugural NI 43-101 compliant reserve study is being prepared, and is expected to be completed in third quarter this year, the increased reserve base allows for an increased steady-state run-of-mine production rate of approximately nine million tonnes per annum which is expected to be achieved by 2015, our significant resources will be the basis f or substantial volume growth over the next 5-7 years as we establish their economic viability and subsequently bring these properties into production, 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.