HONG KONG, CHINA--(Marketwired - Nov. 20, 2014) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi" or the "Company") is delaying the payment of the November 2014 installment of cash interest due on the secured convertible debenture it entered into with a wholly owned subsidiary of China Investment Corporation ("CIC") and continues to seek additional funds.

In November 2009, the Company entered into a financing agreement with a wholly owned subsidiary of the CIC for $500 million in the form of a secured, convertible debenture bearing interest at 8.0% (6.4% payable semi-annually in cash and 1.6% payable annually in the Company's shares) with a maximum term of 30 years. The CIC convertible debenture is secured by a charge over the Company's assets and certain subsidiaries.

On March 29, 2010, the Company exercised its right to call for the conversion of up to $250.0 million of the CIC convertible debenture into approximately 21.5 million shares. As at November 20, 2014, the CIC owned, through its indirectly wholly owned subsidiary, approximately 16.5% of the issued and outstanding common shares of the Company.

On November 19, 2014 the Company was due to pay approximately $8.1 million in cash. The Company has been advised by CIC that CIC will extend the cash interest payment date to December 1, 2014. As at November 20, 2014, the Company had cash of $4.9 million and continues to seek additional funding in order to meet its interest obligations under the CIC convertible debenture.

In the event the Company fails to make the CIC convertible debenture interest installment when due on December 1, 2014, this would result in an event of default under the CIC convertible debenture and CIC would have the right to declare the principal and accrued interest owing thereunder immediately due and payable, which could result in voluntary or involuntary proceedings involving the Company as discussed under the heading Risk Factors in the Management Discussion and Analysis issued on November 10, 2014 and available on SEDAR at www.sedar.com.

About SouthGobi

SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in which Turquoise Hill Resources Ltd. ("Turquoise Hill"), also publicly listed in Toronto and New York, has a 56% shareholding. Turquoise Hill took management control of SouthGobi in September 2012 and made changes to the board and senior management. Rio Tinto has a majority shareholding in Turquoise Hill.

SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in Mongolia's South Gobi Region. It has a 100% shareholding in SouthGobi Sands LLC, Mongolian registered company that holds the mining and exploration licenses in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.

Contact Information:

Investors Relations
Galina Rogova
Office: +86-21-6103-3550
Email: galina.rogova@southgobi.com

Media Relations
Altanbagana Bayarsaikhan
Office: +976 70070710
Email: altanbagana.bayarsaikhan@southgobi.com
Website: www.southgobi.com