SouthGobi Resources Notified Ivanhoe Mines and Aluminum Corporation of China Limited (Chalco) agree to Extend Time for Proportional Takeover Bid for SouthGobi Resources

HONG KONG, CHINA--(Marketwire - Aug. 2, 2012) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi") was notified today that Ivanhoe Mines and Chalco have agreed to extend by an additional thirty days until September 4, 2012 the time for Chalco to make a proportional takeover bid for up to 60%, but not less than 56% of the common shares of SouthGobi. The press release issued by Ivanhoe Mines and Chalco regarding the extension is available on www.sedar.com.

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, 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, 2011 which is available at www.sedar.com.