HONG KONG, HK / ACCESS Newswire / July 14, 2026 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") This announcement is made by SouthGobi Resources Ltd. (the "Company") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Reference is made to the announcement of the Company dated July 13, 2026 (the "Announcement"). Unless otherwise specified, terms used in this announcement shall have the same meanings as defined in the Announcement.
The Company announces that it has received from Od Sar Trading Co. Limited (the "Assignee") a notice to exercise the Assignee's right to require the Company to pay US$17 million of the total Assigned PIK Interest (the "PIK Interest Payment Request)" though the issuance of Common Shares, with a requested payment date of July 13, 2026 (the "Payment Date").
As a result, the Company will issue to the Assignee a total of 73,497,622 Common Shares (the "PIK Interest Shares"), representing approximately 19.83% of the issued and outstanding shares of the Common Shares following completion of the PIK Interest Shares issuance, in satisfaction of the PIK Interest Payment Request. The number of PIK Interest Shares issuable was determined based on the 50-day VWAP of approximately CAD$0.3272 (equivalent to US$0.2313) per Common Share as of the Payment Date.
The PIK Interest Shares were issued to the Assignee pursuant to an assignment agreement (the "Assignment Agreement") entered into between the Assignee and JD Zhixing Fund L.P., being the registered holder of the Company's US$250 million Convertible Debenture issued on November 19, 2009 (the "Convertible Debenture"). Pursuant to the Assignment Agreement, JD Zhixing Fund L.P. had assigned to the Assignee the right to receive US$19 million of payment-in-kind interest accrued and outstanding under the Convertible Debenture and certain related deferral agreements (the "Assigned PIK Interest").
The Company will make a further announcement regarding the issuance of the PIK Interest Shares in satisfaction of the PIK Interest Payment Request as and when appropriate.
Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.
By order of the Board
SouthGobi Resources Ltd.
Yingbin Ian He
Lead Director
Hong Kong: July 14, 2026
As at the date of this announcement, the executive directors of the Company are Mr. Ruibin Xu, Ms.Chonglin Zhu and Mr. Chen Shen; the independent non-executive directors of the Company are Mr.Yingbin Ian He, Ms. Jin Lan Quan and Mr. Fan Keung Vic Choi; and the non-executive directors of the Company are Mr. Zhu Gao and Mr. Zaixiang Wen.