SouthGobi Resources Announces Soumber Coal Deposit Officially Registered With Government of Mongolia

HONG KONG, CHINA--(Marketwire - June 3, 2011) - SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) announced today that it has been notified by the Mineral Resource Authority of Mongolia (MRAM) that the company's Soumber coal deposit has been officially registered.

The registration process includes calculation of resources to Mongolian standards, review of the calculations by MRAM-appointed industry experts, and defense of the calculations before the Minerals Resource Committee. Mineral deposit registration is a prerequisite for applying for a Mining License. Under the Minerals Law of Mongolia, mining licenses are issued by MRAM. The initial term for a mining license is 30 years with an option for two 20-year extensions.

Having completed the resource registration step, SouthGobi intends to formally apply for the Soumber mining license in coming weeks.

The Soumber deposit is approximately 20 kilometres east of SouthGobi's flagship Ovoot Tolgoi operation.

About SouthGobi Resources

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, is producing and selling coal to customers in China. The company plans to supply a wide range of coal products to markets in Asia.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, applying for the Soumber mining license, plans to supply a wide range of coal products to markets in Asia; and other statements that are not historical facts. When used in this document, the words such as "plan", "estimate", "expect", "intend", "may", and similar expressions are forward-looking statements. Although SouthGobi believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" in SouthGobi's Management Discussion and Analysis of Financial Condition and Results of Operations for the year ended Dec. 31, 2010, and quarter ended March 31, 2011 which is available at www.sedar.com.

Source:South Gobi Resources