SouthGobi Announces Completion Of Issue Of Payment-In-Kind Interest Shares Under Convertible Debenture

HONG KONG, HK / ACCESS Newswire / July 15, 2026 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") announces that reference is made to the announcement of the Company dated July 13, 2026 and July 14, 2026 (the "Announcements"). Unless otherwise specified, terms used in this announcement shall have the same meanings as defined in the Announcements.

The Company announces that it has issued to Od Sar Trading Co. Limited (the "Assignee") 73,497,622 Common Shares (the "PIK Interest Shares"), representing approximately 19.83% of the issued and outstanding Common Shares following completion of the PIK Interest Shares issuance, in satisfaction of the PIK Interest Payment Request. The number of PIK Interest Shares issuable was determined based on the 50-day VWAP of approximately CAD$0.3272 (equivalent to US$0.2313) per Common Share as of the date of issuance.

The PIK Interest Shares were issued to the Assignee pursuant to the Assignment Agreement. Pursuant to the Assignment Agreement, JD Zhixing Fund L.P. had assigned to the Assignee the right to receive the Assigned PIK Interest. US$2 million of the Assigned PIK Interest remain outstanding and pursuant to the terms of the Convertible Debenture and related deferral agreements, the Assignee may, at its discretion, require the Company to satisfy the remaining Assigned PIK Interest by issuing Common Shares in an amount equal to the remaining Assigned PIK Interest divided by the 50-day VWAP of the Common Shares as of the date on which the Assignee makes such request.

Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.

By order of the Board

SouthGobi Resources Ltd.
Yingbin Ian He
Lead Director

Hong Kong: July 15, 2026

As at the date of this announcement, the executive directors of the Company are Mr. Ruibin Xu, Ms.Chonglin Zhu and Mr. Chen Shen; the independent non-executive directors of the Company are Mr.Yingbin Ian He, Ms. Jin Lan Quan and Mr. Fan Keung Vic Choi; and the non-executive directors of the Company are Mr. Zhu Gao and Mr. Zaixiang Wen.

About SouthGobi

SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, 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.

Contact:

Investor Relations
Email: info@southgobi.com

Mr. Ruibin Xu
Chief Executive Officer
Office: +852 2156 1438 (Hong Kong)
Website: www.southgobi.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain information included in this press release that is not current or historical factual information constitutes forward-looking statements or information within the meaning of applicable securities laws (collectively, "forward-looking statements"), including information about timing with respect to the issuance of Common Shares in satisfaction of the Assigned PIK Interest. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "could", "should", "seek", "likely", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on certain factors and assumptions including, among other things, the Assignee electing to exercise its right to receive the Common Shares in satisfaction of the remaining Assigned PIK Interest and other similar factors that may cause actual results to differ materially from what the Company currently expects. Actual results may vary from the forward-looking statements. Readers are cautioned not to place undue importance on forward-looking statements, which speak only as of the date of this disclosure, and readers should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to, update or revise any forward-looking statements, whether as a result of new information, further events or otherwise at any particular time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with Canadian securities regulatory authorities and the website of the Hong Kong regulatory filings and disclosures of listed issuer information. These can be found under the Company's profile on SEDAR+ and HKEXnews respectively, at www.sedarplus.ca and www.hkexnews.hk.

SOURCE: SouthGobi Resources Ltd.

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