SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) announced today that the Mineral
Resource Authority of Mongolia (MRAM) has issued mining license MV-016869 to its
wholly-owned Mongolian operating subsidiary SouthGobi Sands LLC. The new license
pertains to the resource previously disclosed by the Company under NI 43-101
standards as the Soumber Deposit.


The Soumber Deposit is approximately 20 kilometres east of SouthGobi's flagship
Ovoot Tolgoi Mine. An independent NI 43-101 resource estimate for Soumber was
prepared in January, 2011 by Minarco-MineConsult ("MMC"). MMC estimated 61.4
million tonnes of measured and indicated resources and 65.8 million tonnes of
inferred resources. The coal resources are classified as bituminous coal and the
rank ranges from low-volatile bituminous coal to medium-volatile bituminous
coal, based on ASTM standard D388. Calorific values range between 5,000
kilocalories per kilogram to 7,800 kilocalories per kilogram. Coal quality data
suggest that there is good potential to produce a blend or washed coking coal
product from shallow (low stripping ratio) sources. Details of the assumptions
and parameters used to calculate these coal resources and coal quality estimates
are set out in the Technical Report entitled "Coal Geology and Resources -
Soumber Deposit, Mongolia" dated March 28, 2011 and available at www.sedar.com
and on the company's website (www.southgobi.com). 


The new 10,992.92 hectare mining license is granted for an initial term of 30
years with an option for two 20-year extensions.


"With the granting of the Soumber mining license, we can immediately finalize
plans for mine development at Soumber," said Alexander Molyneux, President and
CEO. "Soumber will likely have an integrated coal processing facility and will
require around two years of development for first clean coal production."


SouthGobi plans to complete a Pre-Feasibility Study on Soumber and include the
inaugural reserve report when it updates resources and reserves during 2012. 


Dave Bartel, P.Eng, the company's Vice President Investor Relations and External
Affairs and a "qualified person" as defined in National Instrument 43-101 has
reviewed and approved the technical information contained in this news 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, an integrated coal
processing facility at Soumber, plans to complete a pre-feasibility study on
Soumber, two years of development for first clean coal 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", "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, 2010 and quarter ended March
31, 2011 which is available at www.sedar.com.


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