Source: SouthGobi Resources                      Date: 15 June, 2011

SouthGobi Resources Ltd. has authorized the renewal of its share repurchase program to purchase up to a total of 3,183,650 common shares of the company on either the Toronto Stock Exchange or the Stock Exchange of Hong Kong, representing approximately 1.7% of its current outstanding common shares. The share repurchase program will commence on June 15 and will remain until June 14 next year, or until the purchases are completed or the program is terminated by the company.

SouthGobi's Board of Directors believes that having the capability to repurchase common shares increases the investment alternatives that can be undertaken for the benefit of all shareholders. The program will not impact on SouthGobi's growth plans. Any shares purchased under the program will increase the proportionate interest of, and may be advantageous to, all remaining shareholders of SouthGobi.

From time to time, SouthGobi may not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. For example, according to applicable Hong Kong securities laws the Company is deemed to be an 'insider' in its own stock for four weeks in advance of any board meeting to receive quarterly results.