SouthGobi Resources Issues PIK Interest Shares

SouthGobi Resources Ltd., listed on the TSX Venture Exchange and the Hong Kong Stock Exchange, announced the issuance of 73,497,622 Common Shares to Od Sar Trading Co. Limited. These shares represent approximately 19.83% of SouthGobi's issued and outstanding Common Shares. This move satisfies the Payment-In-Kind (PIK) Interest Payment Request under a Convertible Debenture agreement.

The shares were issued based on a 50-day Volume Weighted Average Price (VWAP) of CAD$0.3272 per share. This aligns with an agreement where JD Zhixing Fund L.P. assigned the right to receive PIK Interest to Od Sar Trading Co. Limited.

The transaction leaves US$2 million of PIK Interest outstanding. SouthGobi may issue additional shares to settle this amount. Shareholders and potential investors are advised to exercise caution in their dealings.