SouthGobi Announces Profit Warning

HONG KONG, HK / ACCESS Newswire / March 26, 2026 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") wishes to inform its shareholders and potential investors that, based on the preliminary assessment of the Company and its subsidiaries' (the "Group") unaudited management accounts for the year ended December 31, 2025 ("FY2025") and the information currently available to the Company, it is expected that the Company would record a net loss attributable to equity holders of the Company between approximately US$151.9 million and US$185.6 million for FY2025, as compared to a net profit attributable to equity holders of the Company of approximately US$92.5 million for the corresponding period in 2024. The expected net loss attributable to equity holders of the Company for FY2025 was mainly attributable to (i) the decrease in average realised selling price in FY2025 as compared to the prior financial year; (ii) the change in product mix year-over year, as the Company sold more processed coal with higher production costs; and (iii) impairment losses on coal stockpiles and cash generating units of approximately US$77.3 million and US$42.0 million respectively.

As at the date of this announcement, the Company is still in the process of preparing and finalizing its financial results for FY2025. The information contained in this announcement is based on the preliminary assessment of the information currently available to the Company and the unaudited management accounts of the Group, which have not been reviewed or audited by the Company's auditors and may be subject to adjustments. Details of the Company's financial information and performance will be disclosed in the results announcement for FY2025, which is to be published on Friday, March 27, 2026.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

SouthGobi Resources Ltd.

Yingbin Ian He

Lead Director

Hong Kong, March 26, 2026

As at the date of this announcement, the executive directors of the Company are Mr. Ruibin Xu, Ms. Chonglin Zhu and Mr. Chen Shen; the independent non-executive directors of the Company are Mr. Yingbin Ian He, Ms. Jin Lan Quan and Mr. Fan Keung Vic Choi; and the non-executive directors of the Company are Mr. Zhu Gao and Mr. Zaixiang Wen.

About SouthGobi

SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.

Contact:

Investor Relations
Email: info@southgobi.com

Mr. Ruibin Xu
Chief Executive Officer
Office: +852 2156 1438 (Hong Kong)
Website: www.southgobi.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: SouthGobi Resources Ltd.