SouthGobi Updates on Mongolia Tax Audit

SouthGobi Resources Ltd., a company listed on the TSX Venture Exchange and the Hong Kong Stock Exchange, has provided an update regarding a tax audit involving its Mongolian subsidiary, Southgobi Sands LLC. On April 25, 2025, the subsidiary received an order from the Administrative Court of First Instance in Ulaanbaatar. This court order, dated April 15, refused a claim by certain Mongolian Tax Authority (MTA) officials against the Tax Dispute Resolution Council (TDRC). The TDRC had previously reduced a tax penalty on Southgobi Sands from approximately $80 million to $26.5 million.

The Administrative Court dismissed the case, but the MTA officials have filed an appeal. For now, the reassessment result remains legally valid. SouthGobi stated it will continue tracking developments and update shareholders and potential investors as necessary.