SouthGobi Resources Ltd. Updates on Mongolia Tax Audit Resolution

SouthGobi Resources Ltd. (TSXV:SGQ) announces a key development in its ongoing tax audit case in Mongolia. On June 9, 2025, the company's subsidiary, SouthGobi Sands LLC, received a judgment from the Appellate Court for Administrative in Ulaanbaatar. The court upheld the previous decision by the Administrative Court of First Instance, rejecting claims against the Tax Dispute Resolution Council (TDRC) regarding the Re-assessment Result. This judgment is final and not subject to appeal, solidifying the validity of the Re-assessment Result.

With this resolution, SouthGobi anticipates no further disputes on this matter, committing to announce any new developments if they arise. The company, which operates the Ovoot Tolgoi coal mine in Mongolia, continues its operations undisturbed, supplying coal to customers in China.