SouthGobi Resources Ltd. Opened an eight new border gates exclusively for
coal transportation at the Shivee Khuren-Ceke border crossing on May 28, 2012,
informed Marketwire.

The gates will significantly increase the capacity for exportation 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 meter wide. Generally, empty trucks would be admitted
into Mongolia in the mornings and then loaded trucks could export to China in
the afternoon. The new hates 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 8 am to 8 pm 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), told Alexander Mlyneux, President
and CEO to the Marketwire. “We believe the new infrastructure will eliminate
the ‘bottleneck’ at the border for quite some time. The expanded border
crossing should also reduce transportation cost because of more efficient truck
utilization for the transport companies” he added.