SouthGobi Resources Ltd. today announced changes to
the company”s Board of Directors, including the resignation of three existing
directors and the appointment of five new directors effective September 3,
2012.

The Board accepted the resignation of directors
Edward Flood, the Honourable Robert Hanson and chairman Peter Meredith, and
subsequently appointed Lindsay Dove, Sean Hinton, Kay Priestly, Brett Salt and
Kelly Sanders as directors of the company.

Messrs. Pierre Lebel, Andre Deepwell, Gordon
Lancaster and Alexander Molyneux continue to serve as directors of SouthGobi.

Kay Priestly, Chief Executive Officer of Turquoise
Hill Resources, has been appointed Chairman of the Board. Ms. Priestly has more
than 30-years of experience in the financial, mining and energy sectors. Sean
Hinton has been appointed as Deputy Chairman and will play an active role in
supporting the management team. Mr. Hinton has more than 23 years of experience
in Mongolia and China, including as an advisor to Rio Tinto PLC, Oyu Tolgoi LLC
and Goldman Sachs (Asia).

On her appointment, Ms. Priestly said, “Peter,
Ed and Robert have been longstanding directors and have been instrumental in
providing outstanding guidance in discovering, developing and successfully
operating SouthGobi”s flagship Ovoot Tolgoi mine. I want to sincerely thank
them for their long service to the company.

“I am honoured to be appointed chairman and
welcome the other new directors. I look forward to working with Pierre Lebel,
our lead independent director, Deputy Chairman Sean Hinton, my fellow directors
and the SouthGobi management team. With the termination of the Chalco
transaction, we will focus on the company”s core business performance and
realizing the operating potential of an outstanding asset.”

Commenting on the new Board appointments, Pierre
Lebel said, “On behalf of the Board, particularly on behalf of SouthGobi”s
independent directors, I want to welcome our new directors to the company. Each
brings significant skills and experience that will be very valuable to
SouthGobi as we move ahead with future development.”

Kay Priestly is Chief Executive Officer of
Turquoise Hill Resources. She was previously a senior executive at Rio Tinto,
most recently serving as Chief Financial Officer of the company”s global Copper
product group. Ms. Priestly joined Rio Tinto in 2006 as Chief Financial Officer
at Rio Tinto”s Kennecott Utah Copper operations. Prior to Rio Tinto, she spent
more than 24 years with global professional services firm Arthur Andersen, where
she provided tax and consulting services to global companies in the energy and
mining sectors and was a member of Andersen”s global executive team. Ms.
Priestly is also a director of Stone Energy Corporation.

Sean Hinton is founder and principal of Terbish
Partners, an advisory firm mainly focused on energy and mining projects. From
1997-2000, he served as Mongolia”s Honorary Consul- General in Australia.
Previously Mr. Hinton was a partner and principal at MEA, a London- based
boutique investment bank, and spent five years with McKinsey & Company
advising major clients on a wide range of strategic issues.

Lindsay Dove spent more than 30 years in the
international oil, coal and shipping industries with BP and Rio Tinto where he
held a variety of senior management positions. Since retiring from Rio Tinto in
2006, Mr. Dove has been an independent consultant advising on acquisitions and
corporate transactions, primarily in the international coal mining industry.

Brett Salt was appointed Senior Vice President, Strategy
and Development at Turquoise Hill Resources on May 1, 2012. Previously, Mr.
Salt was with Rio Tinto for 15 years in a variety of senior product group and
corporate level commercial roles. Most recently, he was General Manager
Business Development and Chief Financial Officer of the Rio Tinto Marine
business.

Kelly Sanders currently is President and CEO of
Kennecott Utah Copper and has been working in the mining industry for 32 years,
including 28 years with coal mining operations. Mr. Sanders previously held
senior positions with Rio Tinto Energy America and Ziegler Coal, both in
Wyoming”s famed Powder River Basin coal mining district.

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,
produces and sells coal to customers in China. The company plans to supply a
wide range of coal products to markets in Asia.

Marketwire