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|  | | |  SouthGobi Energy Resources is a premium coal production and development company, with strategically located coal assets - closest coal to China -focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi Region to supply a wide range of coal products to markets in Mongolia and China. The company's flagship coal mine, Ovoot Tolgoi, is selling coal to customers in China - the largest consumer of coal in the world. Ovoot Tolgoi is located in southern Mongolia, approximately 40 kilometres north of the Mongolia/China border. SouthGobi owns three significant coal projects in Mongolia: a producing mine, the Ovoot Tolgoi Mine; and two development projects, the Soumber Deposit and the Ovoot Tolgoi Underground Deposit. In addition, SouthGobi holds mineral exploration licences in Mongolia. SouthGobi has positioned itself for the forecasted increase demand for coal with a pipeline of unique exploration and development projects in strategic locations that will help to provide for future growth and expansion. 
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