Source: SouthGobi Resources                               Date: 17 November, 2010

SouthGobi Resources Ltd. has announced its financial results for the nine months ended September 30, and identified the highlights of its activities for the quarter ended on that date and subsequent weeks.

These are:

 Signed a special coal sales agreement for 1.2 million tons.

 Entered into a contract for USD48 million to design and construct a paved coal¬haul highway.

 Third mining fleet commissioned ahead of schedule.

 Total sales for the three months ended September 30, 2010 were 194,000 tons and contracted sales for the month of October 2010 were 527,000 tons.

 Direct mining cash costs were USD18.59 per ton, a reduction of 13% compared to the quarter ended June 30, 2010.

 Average realized selling price for the third quarter of 2010 was USD37 per ton compared to USD28 per tonne for the third quarter of 2009.

Strategic investment in Aspire Mining Limited.

The company earned ???USD27.5 million for the three months ended September 30, compared to USD2.2 million in the same period of 2009. The income from continuing operations is impacted by the loss from mine operations, administration expenses, exploration expenses, finance income and finance costs. Revenues decreased to USD6.6 million in the third quarter of 2010 from USD17.7 million in the second quarter of 2010 and from USD11.9 million in the third quarter of 2009. Revenues have decreased compared to the second quarter of 2010 due to both lower sales volumes and lower realized sales prices.

The company's total assets at September 30, 2010 were USD938.2 million compared with USD951.4 million at June 30, 2010. The decrease relates primarily to cash used in operating activities. At September 30, 2010 the company had USD691.0 million in cash and cash equivalents and money market investments, compared to USD744.4 million at June 30, 2010. Long term liabilities at September 30, 2010 were USD226.7 million compared with USD276.2 million at June 30, 2010. The decrease relates to the decrease in the fair value of the CIC convertible debenture.