The Board of Directors of SouthGobi Resources has
authorized a share repurchase program to purchase up to 2.5 million common
shares of the company on each or either of the Toronto Stock Exchange and the
Hong Kong Stock Exchange, in aggregate representing approximately up to 5
million common shares or 2.7% of the current outstanding common shares of the
company. The share repurchase program will commence on June 15. The Board
decided on the repurchase program “as the current market price may not reflect
the underlying value of SouthGobi”s common shares”. The program is not expected
to impact on SouthGobi”s growth plans.