SouthGobi Energy Resources Closes Convertible Debenture Financing

Alexander Molyneux, President and CEO of SouthGobi Energy Resources Ltd. (TSX
VENTURE:SGQ), announced today that, further to its news release of October 26,
2009, it has completed the US$500 million convertible debenture financing with a
subsidiary of China Investment Corporation.


The net proceeds of the offering will be used to expand the company's coal
mining and exploration activities in southern Mongolia and for general corporate
purposes.


About SouthGobi Energy Resources

SouthGobi Energy Resources is focused on exploration and development of its
Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi
Region. The company's flagship coal mine, Ovoot Tolgoi, is producing and selling
coal to customers in China. The company plans to supply a wide range of coal
products to markets in Asia.


Forward-Looking Statements: This document includes forward-looking statements.
Forward-looking statements include, but are not limited to, Plans to supply a
wide range of coal products to markets in Asia; Conversion price; Conversion
timing; and other statements that are not historical facts. When used in this
document, the words such as "could," "plan," "estimate," "expect," "intend,"
"may," "potential," "should" and similar expressions are forward-looking
statements. Although SouthGobi Energy Resources believes that the expectations
reflected in these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Important
factors that could cause actual results to differ from these forward-looking
statements are disclosed under the heading "Risk Factors" in SouthGobi Energy's
Management's Discussion and Analysis of Financial Condition and Results of
Operations for the year ended Dec. 31, 2008, and for nine months ended September
30, 2009, all of which are available at www.sedar.com.