SouthGobi Resources Ltd. announced Mr. Dong Wang will be redesignated from an executive Director to a non-executive Director, and remain a member of the Health, Environment, Safety and Social Responsibility Committee and the Operations Committee of the Board of Directors. The Nominating and Corporate Governance Committee of the Board, which comprises the independent non-executive Directors, will continue to evaluate the suitability of Mr. Wang for the Board's directorship and memberships in various Board committees, and commence a search process to identify a suitable candidate to replace Mr. Wang, if appropriate. Mr. Wang, aged 49, was appointed as the executive Director and CEO on September 8, 2022 and the Authorized Representative on December 6, 2022.

Mr. Wang was nominated for appointment as Director by JD Zhixing Fund L.P. ("JDZF") pursuant to contractual nomination rights contained in the securityholders agreement between the Company, JDZF and a former shareholder of the Company and certain deferral agreements between JDZF, the Company and certain of its subsidiaries relating to the Company's US$250 million convertible debenture held by JDZF (as disclosed in the announcement of the Company dated May 27, 2022 and the Management Proxy Circular of the Company dated June 29, 2022). The Company had appointed him to the Board as permitted under the Company's Articles of Continuation (the "Articles") and the Business Corporations Act (British Columbia). Mr. Wang was also the legal representative, executive director and general manager of SouthGobi Trading (Beijing) Co.

Ltd. from January 2023 to April 2023, and an employee of SouthGobi Resources (Hong Kong) Limited and Inner Mongolia SouthGobi Energy Co. Ltd. from September 2022 to May 2023.