Resumption Plan and Business Update
VANCOUVER, British Columbia, Nov. 16, 2020 (GLOBE NEWSWIRE) — SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) announces that reference is made to the announcements of the Company dated September 3, September 13, September 30 and October 4, 2020 (the “Announcements”). Unless otherwise defined herein, terms used in this announcement shall have the same meanings as those defined in the Announcements.
This announcement provides a quarterly update on resumption progress and the update on the business operations of the Company.RESUMPTION GUIDANCEOn September 2 and September 30, 2020, the Company received the letters from the Hong Kong Stock Exchange setting out the Resumption Guidance of the Company:publish all outstanding financial results and address any audit modifications;inform the market of all material information for the Company’s shareholders and investors to appraise its position;announce quarterly updates on the Company’s developments under Rules 13.24A of the Listing Rules, including, amongst other relevant matters, its business operations, its resumption plan and the progress of implementation; andresolve issues arising from the Cease Trade Order and/or the TSX Delisting Review, or take steps to the satisfaction of the Hong Kong Stock Exchange that the Company will be eligible for a primary listing on the Hong Kong Stock Exchange.RESUMPTION PLAN AND PROGRESS OF IMPLEMENTATION
The Company has been taking active steps to address and comply with the Resumption Guidance as disclosed above; and is now working to complete the first key milestone in the resumption plan as outlined below:UPDATE ON BUSINESS OPERATIONSThe sales volume the Company has increased from approximately 0.5 million tonne in the second quarter of 2020 to approximately 1.0 million tonne in the third quarter of 2020. The Company resumed its mining operation on August 2, 2020 and the raw coal production volume was 0.5 million tonne in the third quarter of 2020. The Company also resumed its coal washing operation on October 18, 2020.CONTINUED SUSPENSION OF TRADINGAt the request of the Company, trading in the shares of the Company on the Hong Kong Stock Exchange has been suspended with effect from August 17, 2020 and will remain suspended until further notice.About SouthGobiSouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. SouthGobi produces and sells coal to customers in China.Contact: Investor Relations Office: +852 2156 1438 (Hong Kong) +1 604 762 6783 (Canada) Email: Website: www.southgobi.com