SouthGobi Securities Class Action Settlement

Did you acquire shares of SouthGobi Resources Ltd. between March 30, 2011 to November 7, 2013 (inclusive)? If so, you may be entitled to compensation or a distribution from this settlement.

Overview of the Class Action

The class action was commenced following SouthGobi’s November 2013 restatement of its financial statements. The Plaintiff alleges, among other things, that during the Class Period SouthGobi made misrepresentations by materially overstating its revenues through the improper recognition of revenue on coal sales that were not yet complete, in contravention of applicable accounting standards.

The Ontario Superior Court of Justice (the “Court”) has approved a Settlement Agreement between the Plaintiff and the Defendant. The Settlement Agreement resolves this litigation in its entirety.

What is the Settlement?

SouthGobi’s insurers have agreed to pay C$6,800,000 to settle the class action. The Settlement Amount includes all legal fees, taxes and administrative expenses. The Settlement Agreements are not an admission of liability, wrongdoing or fault by the Defendant.

Who is Included?

The Class includes all persons and entities, other than Excluded Persons, wherever they may reside or be domiciled, who acquired SouthGobi’s securities during the Class Period and continued to hold some or all of those securities as of November 8, 2013.

Class Period: March 30, 2011, through November 7, 2013, inclusive.

Excluded Persons: SouthGobi Resources Ltd., its controlling shareholders, past and present subsidiaries, affiliates, officers, directors, senior employees, partners, legal representatives, heirs, predecessors, successors and assigns, and China Investment Corporation.

Securities: Common shares of SouthGobi Resources Ltd., listed for trading on the Toronto Stock Exchange under the symbol “SGQ”, and on the Stock Exchange of Hong Kong under the trading code “1878”, and which, throughout the Class Period, were also admitted to trading on alternative trading venues in Canada, including Alpha Toronto and Chi-X Toronto.

How do I participate in the Settlement?

To be eligible for compensation, Class Members had to submit their claim form, including any supporting documentation, to the Claims Administrator.

The deadline to submit a Claim was on September 15, 2026.

The Claims Administrator is currently reviewing all claims received.

Procedure for Requesting SouthGobi Transaction History via the transfer agent, the TSX Trust Company

If you are experiencing any difficulties in obtaining your transaction history for SouthGobi, you can request this information directly from the transfer agent, TSX Trust Company. To submit your request, please email a signed letter of instructions that includes your account details to shareholderinquiries@tmx.com. Your request should include at least three (3) of the following pieces of identifying information so their team can review their records and provide you with the appropriate guidance.

• Stock registration as shown on the certificate or Share Ownership Statement
• Shareholder account number (located on T5 statements and quarterly dividend statements)
• Shareholder mailing address
• Dividend statement
• Tax receipt
• Last three (3) digits of your SIN 

You can also reach out to TSX Trust Company by phone at their toll-free number: 1-(800) 387-0825.

Summary of Your Legal Rights and Options