Gene Wusaty, Chief Operating Officer of SouthGobi Energy Resources Ltd. (TSX
VENTURE:SGQ), announced today that errors have been discovered in a resource
estimate prepared by an independent, third-party consultant for the West Field
portion of the Ovoot Tolgoi coal mine in Mongolia.


These errors resulted in an overstatement of the resources in the West Field
that were calculated effective June 20, 2008, and reported by SouthGobi on July
31, 2008, primarily in the indicated and inferred categories. However, the
current resource estimates for the separate South-East Field and the Ovoot
Tolgoi underground project are not affected.


Mr. Wusaty emphasized that the current mining plan and operations at Ovoot
Tolgoi will not be impacted as it is based on an earlier estimate of the West
Field coal resources as of December 31, 2006.


SouthGobi will appoint a major international engineering firm to complete a new
Technical Report for Ovoot Tolgoi which is expected to be completed later in
2009. SouthGobi expects that this new report will incorporate outstanding data
obtained from drilling to the end of 2008 and redesign the surface mine to a
depth of 300 metres from the present 250 metres. In addition, the new Technical
Report will update the resource models and delineate reserves based on at least
a pre-feasibility level of engineering.


Management believes this new report will demonstrate the potential of the Ovoot
Tolgoi coal deposit. SouthGobi made considerable progress in identifying
additional resources at Ovoot Tolgoi in 2008, drilling over 23,200 metres down
to a depth of 800 metres in the West Field. In addition, there are 3,800 metres
of drill data from 2007 in the South-East Field that still require modelling.
Based on 2008 drill data the coal potential is continuous along strike and at
depth. "We are very encouraged with the results from drilling completed in 2008
and are confident we will be able to establish additional resources," Mr. Wusaty
said. "We are planning further drilling this summer, which also is intended to
expand the resource at Ovoot Tolgoi."


The incorrect West Field resource estimate included in the news release issued
by SouthGobi on July 31, 2008, was prepared by The Americas Group, Inc. (TAG) of
Lakewood, Colorado. In September 2008 TAG delivered to SouthGobi a Form 43-101F1
Technical Report based on drilling in 2007. The September Technical Report
contained the following, incorrect resource estimate for the West Field:




       Table 1: TAG Surface Coal Resources Summary for the
                 West Field of the Ovoot Tolgoi
                  Project as of June 20, 2008
        (incorrect -as originally reported July 31, 2008)

--------------------------------------------------------------
                                Resources at Ovoot Tolgoi
                           -----------------------------------
                   ASTM
Resource           Coal    Measured    Indicated     Inferred
Area               Rank     (tonnes)     (tonnes)     (tonnes)
-------------------------------------------------------------
West Field   hvB to hvA  79,567,545  113,623,016  138,821,278
-------------------------------------------------------------
Total                          193,190,561        138,821,278
-------------------------------------------------------------



TAG now has advised SouthGobi that the West Field resource estimate supported by
the September Technical Report, was incorrect. According to TAG, an arithmetic
error in calculating the resources and an error in the resource model resulted
in the resource estimate being overstated. TAG now has re-calculated the
resource estimate as shown in Table 2 below:




       Table 2: TAG Surface Coal Resources Summary for the
          West Field of the Ovoot Tolgoi as of
                       June 20, 2008
                        (corrected)

-------------------------------------------------------------
                                Resources at Ovoot Tolgoi
                           ----------------------------------
                   ASTM
Resource           Coal    Measured     Indicated    Inferred
Area               Rank     (tonnes)      (tonnes)    (tonnes)
-------------------------------------------------------------
West Field   hvB to hvA  74,972,951    27,687,201  18,761,047
-------------------------------------------------------------
Total                            102,660,152       18,761,047
-------------------------------------------------------------



Including the restated West Field resource estimate, the estimated combined
resources for the South-East Field and the West Field of the Ovoot Tolgoi
Project are shown in Table 3 below. The restated West Field resource estimate is
based on data to June 20, 2008. The resource estimate for the South-East Field
is based on data to December 31, 2006.




           Table 3: Restated Ovoot Tolgoi West Field and South-East
               Field In-Place Surface Coal Resources Summary

-------------------------------------------------------------------
                                     Resources at Ovoot Tolgoi
                                -----------------------------------
                        ASTM
Resource                Coal    Measured     Indicated    Inferred
Area                    Rank     (tonnes)      (tonnes)    (tonnes)
-------------------------------------------------------------------
South-East Field  hvB to hvA  49,752,000    15,987,000   6,502,000
-------------------------------------------------------------------
West Field        hvB to hvA  74,972,951    27,687,201  18,761,047
-------------------------------------------------------------------
Total                                 168,399,152       25,263,047
-------------------------------------------------------------------



TAG will deliver to SouthGobi for public filing an amended and restated
technical report to support the revised West Field resource estimate as of June
20, 2008. Once delivered and filed, the amended and restated technical report
will replace the September Technical Report, which no longer should be relied
upon.


New Appointments to Management and Resource Development Team

SouthGobi is pleased to announce two new appointments to its Management and
Resource Development team: Jess Harding and Stephen Torr.


Jess Harding has been appointed the company's new Vice-President, Evaluations
and Project Development. Mr. Harding has more than 15 years' experience in the
mining industry and assumes the same role that he presently holds at Ivanhoe
Mines Ltd. Mr. Harding has a Bachelor of Chemical Engineering from the
University of Leeds, UK.


Stephen Torr, (P.Geo.), has been appointed the company's new Resource Manager.
Mr. Torr has 19 years of experience in the mining industry and currently is the
Resource Manager for Ivanhoe Mines Ltd. Mr. Torr has a B.Sc. (Hons) Degree in
Geology from the University of Southampton and a M.Sc. in Applied Geoscience
from the University of Leicester. Mr. Torr has previous experience in estimation
of open pit and underground coal resources and will be assuming the role of
Qualified Person to oversee future independent resource estimates for SouthGobi.


Mr. Wusaty, SouthGobi Energy's Chief Operating Officer, a qualified person as
defined by National Instrument 43-101, supervised the preparation of the
technical information in this release.


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 and its Eocene-Age metallurgical and thermal coal deposits in East
Kalimantan, Indonesia. The company plans to supply a wide range of coal products
and electricity to markets in Asia. The company also is investigating the
implementation of clean-coal technologies in the development of coal
power-generating capacity to benefit all of its stakeholders.


Forward-Looking Statements: This document includes forward-looking statements.
Forward-looking statements include, but are not limited to, planning additional
drilling at Ovoot Tolgoi, the ability to establish additional resources at Ovoot
Tolgoi, the company's future ability to supply coal products and electricity to
markets in Asia, 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 believe 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 nine months ended September 30, 2008, and its
Annual Information Form dated March 28, 2008 which is available at
www.sedar.com.
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