SouthGobi provides update on status of internal investigation

VANCOUVER, British Columbia, May 07, 2018 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX:SGQ) (HK:1878) ("SouthGobi" or the "Company") today provided an update on the status of the formal internal investigation by the special committee of independent non-executive directors of the Company (the "Special Committee") into charges against Mr. Aminbuhe, a non-executive director of the Company and its former chairman and chief executive officer, and the connection, if any, between those charges and the Company.  Mr. Aminbuhe's arrest and the formation of the Special Committee were disclosed by the Company on November 17, 2017.

As previously disclosed, the Company understands that Mr. Aminbuhe was arrested by the authorities in Rizhao City, Shandong Province in China (the "PRC Authorities") on October 11, 2017.  To the best of the Company's knowledge, as of the date of this announcement, the PRC Authorities have not laid charges against Mr. Aminbuhe or made any public statement of the basis for Mr. Aminbuhe's arrest, although the Company understands that it relates to an alleged fraudulent loan. The PRC Authorities have not sought information from the Company in respect of this matter. Furthermore, the Company is not aware of any definitive information which would suggest that Mr. Aminbuhe's arrest is related to any misconduct directly related to his position as chairman and chief executive officer of the Company or that the alleged fraudulent loan involved the Company. 

To date, with the assistance of their external counsel, the Special Committee has conducted an extensive review of records created or relating to Mr. Aminbuhe in the possession of the Company (including communications to and from Mr. Aminbuhe's email account with the Company, relevant public disclosure and other internal documents), and interviewed several directors and senior officers of the Company who had direct contact with Mr. Aminbuhe during his tenure of the chairman and the chief executive officer.

Where appropriate, the Company plans to communicate with the PRC Authorities to understand the current status of Mr. Aminbuhe's detention and communicate with Mr. Aminbuhe's defense counsel to understand the current status of Mr. Aminbuhe's detention and obtain any other information regarding the loans involved. The investigation is ongoing, and the Company will provide further updates as matters evolve.

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 licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.

Website: www.southgobi.com

Contact:

Investor Relations
Kino Fu
Office: +852 2156 7030
Email: kino.fu@southgobi.com

Source: SouthGobi Resources Ltd