HONG KONG, CHINA--(Marketwired - May 31, 2016) - SouthGobi Resources Ltd. (TSX: SGQ)(HKSE:1878) (the "Company" or "SouthGobi") announces today the May 24, 2016 decision of the Ontario Superior Court of Justice ("the Court"). The Court granted SouthGobi leave to appeal the decision made on November 5, 2015, which granted the plaintiff permission to commence an action claiming damages under the Ontario Securities Act with respect to the Company's restatement of financial statements as previously disclosed in the Company's public filings. The Company will therefore proceed to appeal the original decision which will likely be heard by the appellate court in the Fall of 2016.

For more details in respect of the class action lawsuit, refer to the Company's Management Discussion and Analysis for the quarter ended March 31, 2016 available on SEDAR at www.sedar.com, and, in particular, the sub-section on "Class Action Lawsuit" of the "Regulatory Issues and Contingencies."

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining and exploration licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.