SouthGobi Updates on Mongolia Tax Audit

VANCOUVER, BC / ACCESSWIRE / May 22, 2024 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") announced an update on the ongoing tax audit conducted by the Mongolian Tax Authority (MTA). The update follows previous announcements from July 31, 2023, August 18, 2023, and February 26, 2024.

On May 15, 2024, Southgobi Sands LLC (SGS), a wholly-owned subsidiary in Mongolia, received a revised notice from the MTA. The updated tax penalty stands at approximately US$80.0 million. According to Mongolian law, SGS has a 30-day window to appeal this reassessment.

SouthGobi's management, in coordination with an independent tax consultant in Mongolia, plans to file an appeal within the given period. As a result, the resolution of the tax audit may be delayed.

The company confirmed that the reassessment result will not impact its financial statements until the appeal's outcome is determined. Further announcements will be made as necessary to inform shareholders and investors about any developments.

Shareholders and potential investors are advised to exercise caution when dealing with the company's shares.