SouthGobi Resources Ltd. has identified the following as
highlights of its operational and financial results for the quarter ended March
31, 2010.

— Total shipments were 426,000 tons.

— Average realized selling price was USD36 per ton,
approximately 24% higher than in Q1 2009.

— Significant focus was put on realignment of Ovoot Tolgoi
open-pit.

— In January, SouthGobi completed a global equity offering
of 27 million common shares at a price of CAD17.00 per share for gross proceeds
of CAD459 million. The shares commenced trading on the Main Board of the Hong
Kong Stock Exchange on January 29.

— On March 29 the company completed the conversion of
USD250 million of the USD500 million convertible debentures issued to China
Investment Corporation (CIC) into 21,471,045 common shares of the company.
Following the conversion, CIC, through its indirect wholly owned subsidiary,
owns approximately 13% of the company.

— The company continues to ramp up production at the Ovoot
Tolgoi mine, where additional equipment for the second mining fleet is being
progressively commissioned. The company expects that the third mining fleet,
already ordered, will be commissioned in late 2010. The initial design of a
basic coal handling facility has been completed and engineering details for the
major components are well advanced.

— Drilling at the Soumber deposit re-commenced in March to
expand and better define the resource. Preparatory work for a formal mining
license application continues.