SouthGobi Resources Ltd.

Corporate Presentation
November 2018

11/27/2018
1
Disclaimer
The information contained in this document is strictly confidential, is not for public dissemination and is for the exclusive use of the persons who are
authorized to receive this document. You are authorized to use the information contained herein solely for the purpose of considering whether or not you will
be making an investment in SouthGobi Resources Ltd. (the “Company”, together with its subsidiaries and controlled entities, the “Group”). You and your
directors, officers, employees, agents, affiliates and advisors must not use the information contained herein for any other purpose and must not
communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part, at any time.

The information contained in this document includes historical information about, and relevant to, the Company that should not be regarded as an indication
of the future performance or results of the Company, or an indication that there has been no change in the information about and relevant to the Company
since the date hereof or since the dates as of which information is given in this document. This document contains certain statements that reflect the
Company’s beliefs, plans, projections, targets and expectations about its prospect and the prospect of the general economy, global or local market and the
relevant industry of the Company as of the respective dates indicated. These forward-looking statements are based on management’s current expectations or
beliefs as well as a number of assumptions about the Company’s operations and factors that are beyond the Company’s control, and accordingly, are subject
to certain known and unknown risks and uncertainties that could cause actual results, performance or achievements of the Company or otherwise to differ
materially from those contemplated by the relevant forward-looking statements, and the forward-looking statements discussed in this document might not
occur. No representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets,
estimates or forecasts contained in this document, which speak only as of the date of this document. This document does not purport to be comprehensive or
to contain all the information that a recipient may need in order to evaluate the Company or the Group.

Certain data contained in this document was obtained from various external data sources, and none of the Company or any of their directors, officers,
employees or representatives has verified such data with independent sources. Accordingly, none of the Company or any of their directors, officers,
employees or representatives accepts responsibility for, or make representation as to, the accuracy, reliability, correctness, fairness or completeness of that
data, and such data involves risks and uncertainties and is subject to change based on various factors. The information in this document does not take into
account the effects of a possible transaction or certain transactions involving an actual or potential change of control, which may have significant valuation
and other effects. Nothing contained in this document is, or shall be, relied upon as a promise or representation as to the future or as a representation or
warranty otherwise.

www.southgobi.com 2
Corporate Overview

Shareholding Structure
SouthGobi Resources Ltd. (“SouthGobi”) is
An international resources company, founded in 2007.
A dual-listed company, primary listed on the Toronto Stock
Exchange and secondary listed on the Hong Kong Stock
Exchange.
23.75% China Investment
Corporation
TSX : SGQ HKEX : 1878

59.25% China Cinda Asset

17.00%
Management Co. Ltd
An integrated coal supplier, owns and operates a flagship
coal mine in Mongolia and trades coal in China.
One of the largest and most recognized enterprises in
Others Mongolia and an award-winning enterprise in China.

www.southgobi.com 3
Focused Strategy

To commence coal washing operation by end of 2018 to

increase coal product prices and margin
Commence People,
Coal Sustainability
Washing & Growth To increase coal production and reduce costs

Increase Increase To value our people, sustainability and growth

Production & Customer
Control Cost Base

To expand customer base further inland in China

www.southgobi.com 4
Strategic Location

SouthGobi is the closest mine site to world

largest coal consumer – China, located 45km
from China-Mongolia border

There are two railways for transportation of coal

at Ceke Port, a 440 km designated railway from
Ceke to Gansu Province with the annual
capacity of 6.4 million tonnes and a 770 km
railway from Ceke directly to Linhe, with annual
capacity of 3 million tonnes.

SouthGobi invested and constructed a paved

highway from Ovoot Tolgoi coal mine to Ceke.

www.southgobi.com 5
Abundant Reserves & Resources
Resources Summary Mining License Summary
Million tonnes

800 Mining License Issue Date Expiry Date

105
Ovoot Tolgoi(12726А) 2007.09.20 2037.09.20
600
295
East Soumber (MV-016869) 2011.07.04 2041.07.04
400 791
114 Central Soumber(MV-020436) 2016.01.12 2046.01.12
200
277 South Soumber(MV-020451) 2016.01.25 2046.01.25

0 Zag Suuj(MV-020675) 2016.11.09 2046.11.09

Ovoot Tolgoi Soumber Zag Suuj Total
Resources
Zag Suuj(MV-020676) 2016.11.09 2046.11.09

SouthGobi has a total 791 million tonnes of coal resources under the NI43-101 resource reporting standard.
The Ovoot Tolgoi Mine contains 391 million tonnes of resources, in which 114 million tonnes are reserves.
www.southgobi.com 6
Diversified coal product offerings
Ovoot Tolgoi Coal Mine Soumber Deposit
Type Ash（Average）
 7,000 Kcal/kg Premium Hard Coking Coal
 Ash Level：10%  Volatile Level ：16-23%
 G Caking Index ：Above 100
 Sulphur Level：0.6-0.8%  Sulphur Level ：Below 0.6%
Semi-soft Coking Coal
 Volatile Level：30-33%
 Moisture Level: 6
 G Caking Index：70
 6,500 Kcal/kg
Zag Suuj Deposit
 Ash Level：12-16%
Premium Thermal Coal  Sulphur Level：0.8-1.2%
Hard Coking Coal and Semi-soft
 Volatile Level：30-33% Coking Coal
 Moisture Level: 6  Volatile Level ：12-26%
 4,500 - 5,500 Kcal/kg  G Caking Index ：Above 90
 Sulphur Level ：Below 0.6%
 Ash Level：25%
Standard Thermal Coal
 Sulphur Level：1.0%
 Moisture Level: 6

www.southgobi.com 7
World-class equipment
SouthGobi has world-class mining equipment fleet

Machines & Specification Quantity Total

Liebherr Excavator - R996（34m3） 1
Liebherr Excavator - R996B（33m3） 1
7
Liebherr Excavator - R9250（17m3） 3
Liebherr Excavator - R974（5.2-8.25m3） 2
Terex Dump Truck - TR100C（91t） 11
31
Terex Dump Truck - MT4400（240t） 20
Atlas Drill - DM45LP(171mm) 1
Atlas Drill --DM45HP(171mm) 2 4
Atlas Drill - PV275(250mm) 1
CAT Wheel Loaders - 992G（12.3m3） 2
3
CAT Wheel Loaders - 950（12.3m3） 1
CATDozor -（DAT10010T） 2
6
CATDozor -（DAT10011T） 4

www.southgobi.com 8
Infrastructure and Operations
The Ovoot Tolgoi Coal Mine comprises of the Sunset
Coalfield in the West and the Sunrise Coalfield in the
East.

Products from the Ovoot Tolgoi Mine include coals with

coking (or metallurgical) properties, primarily a raw semi-
soft coking coal together with raw medium ash coals,
which can be washed and blended into semi-soft coking
coal.

Coal Production Coal Preparation Plant Mine Camp can Charter flight operates
accommodate 600 staffs weekly
www.southgobi.com 9
Coal Preparation Plant
SouthGobi has setup its own comprehensive product supply chain by constructing a coal preparation plant, which is
located 48 km from Ovoot Tolgoi mine site. The coal preparation plant was successfully commissioned in September
2018. The annual processing capacity of the plant is 2 million tonnes of input coal.

www.southgobi.com 10
Rewards & Recognitions
• Best Social Responsibility Enterprise of 2017 – Silk Road Award
2018 • Outstanding Operations Award in Ceke District, Inner Mongolia China

• Mongolian Outstanding Employers Award of the Year

2017 • Best Social Insurance Payer of the Capital City
• Outstanding Entrepreneur Award in Healthy and Safety

• Best Social Responsibility Enterprise of 2016 - Silk Road Award

2016 • Best Social Insurance Payer of the Capital City

2015 • Top 100 Tax Payer

• Top National Employer-Social Insurance Payer

2014 • Top Sustainable Operation Company award
• Top 100 Tax Payer

2013 • Top 100 Tax Payer

• Best Social Insurance Payer

2012 • Top 100 Tax Payer
www.southgobi.com 11
Our Sustainability Approach
As the best social responsibility enterprise in Mongolia, we constantly Social Responsibility
review our sustainability strategy to ensure SOUTHGOBI values has
Opportunities
fully engaged into the four pillars of our sustainability framework. We
will continue to fulfill our corporate social responsibility and will continue Utilization of Resources
contribute to the development of communities and sustainable future.
Teamwork

Healthy & Safety

Growth
Employee Engagement Community Environmental
Safety and Growth Development Protection Obligations

Best Practices

Innovation

www.southgobi.com 12
Employee Safety
SouthGobi values the principles of integrity and responsibility in operations. We have the best safety records in the Mongolian
mining industry. As at December 31, 2017, SouthGobi has recorded a lost time injury frequency rate of 0.03 per 200,000 man
hours based on a rolling 12-month average. Health and safety of the employees are always in the first priority. As one of the
largest corporation in Mongolia, we are committed to create safe and healthy workplaces and will continue to promote an
effective safety culture throughout the corporation. We pay consistent attention to:

Implement strict safety management system and policy

Develop positive working environment
Conduct various health and safety training activities
Perform regular safety inspections in all areas
Maintain zero accident rates

www.southgobi.com 13
Engagement and Growth
SouthGobi believes our employees are the key to lead our business towards success. Besides ensuring healthy and safe
workplaces, we strive to strengthen our competitiveness by developing talents and advancing our culture. SouthGobi is
committed to maximize the expertise and abilities of all employees and we are enthusiastic to conduct trainings to employees.
We are motivated to improve employee engagement and will continue to:

Organize professional skills trainings

Enhance career development
Implement diversity and equal opportunities policies
Boost morale and efficiency

www.southgobi.com 14
Environmental Protection
SouthGobi is one of the leaders in environmental protection in the Mongolian mining industry. Toward achieving a sustainable
community in Mongolia, we are committed to protect the environment by carrying out strict environmental monitoring program
to address environmental challenges and provide solutions. Since 2008, SouthGobi has carried out biological restoration of a
50 hectare area and planted over 2,000 trees and shrubs to reduce greenhouse gas emissions. We will continue to carry out:

Rehabilitation and restoration

Biodiversity offsetting
Energy conservation
Regular monitoring of pollutant emissions
Recycling and reduction of wastes
Responsive measures in protecting local area

www.southgobi.com 15
Community Development
Since 2007, SouthGobi has donated USD 4 million in public welfare donations and assistance for national and local
communities’ development. In collaboration with our stakeholders, we will continue to contribute to the development of
communities and focus on the local issues. Along with the community development, SouthGobi will foster local workforce by
providing career opportunities and skills trainings to the citizens from local communities in Mongolia, where. Throughout the
years, we had invested and supported in:

Construction of staff buildings

SouthGobi Annual Scholarships
School facilities reconstruction and donations
Communities donations

We will continue to expand our initiatives to develop a sustainable future for society.

www.southgobi.com 16
Thank you

www.southgobi.com