SGQ SouthGobi Resources Ltd

Terry Krepiakevich, Chief Financial Officer of SouthGobi Energy Resources Ltd.
(TSX VENTURE:SGQ), announced today that on March 6, 2009, the British Columbia
and Ontario Securities Commissions granted the Company exemptive relief to adopt
International Financial Reporting Standards (IFRS) for financial reporting
periods beginning on or after January 1, 2009.


As background, in February, 2008, the Canadian Accounting Standards Board
confirmed that IFRS will replace Canadian Generally Accepted Accounting
Principles (GAAP) for all publicly accountable enterprises for financial periods
beginning on and after January 1, 2011, with the option available for
enterprises to early adopt upon receipt of approval from the Canadian Securities
regulatory authorities. Based on the granted exemption the Company will early
adopt IFRS for Canadian reporting purposes and will prepare its financial
statements in accordance with IFRS for financial reporting periods beginning on
January 1, 2009, with an adoption date of January 1, 2009 and a transition date
of January 1, 2005.


IFRS Conversion

The IFRS conversion plan is comprehensive and addresses matters including
changes in accounting policies, restatement of comparative periods,
organizational and internal controls and any required changes to business
processes. To facilitate this process and ensure the full impact of the
conversion is understood and managed reasonably, the Company retained an
external third party accounting firm and hired an IFRS conversion project
manager. The accounting staff also has attended several training courses on the
adoption and implementation of IFRS. Through in-depth training and the
preparation of reconciliations of historical Canadian GAAP financial statements
to IFRS, the Company believes that its accounting personnel have obtained a
thorough understanding of IFRS. Further, the accounting personnel at the
Mongolian and Indonesian subsidiaries are already familiar with IFRS and have
been working with IFRS due to either local adoption of IFRS or convergence of
local standards to IFRS in those jurisdictions.


In conjunction with the adoption of IFRS a new accounting system was
implemented, which will satisfy all the information needs under IFRS. The
Company has also reviewed its current internal and disclosure control processes
and believes they will not need significant modification as a result of our
conversion to IFRS.


Initial Adoption of International Accounting Standards

IFRS 1 "First Time Adoption of International Accounting Standards" sets forth
guidance for the initial adoption of IFRS. Under IFRS 1 the standards are
applied retrospectively at the transitional balance sheet date with all
adjustments to assets and liabilities as stated under GAAP taken to retained
earnings unless certain exemptions are applied. The Company is not applying any
exemptions on first-time adoption.


Impact of IFRS

IFRS employs a conceptual framework that is similar to Canadian GAAP; however
significant differences exist in certain matters of recognition, measurement and
disclosure. While the adoption of IFRS will not change actual cash flows, the
adoption will result in changes to the reported financial position and results
of operation. 


In order to allow the users of the financial statements to better understand
these changes, the Company has provided reconciliations between Canadian GAAP
and IFRS for the total assets, total liabilities, shareholders equity and net
earnings in the Company's Management Discussion and Analysis (MD&A) for the
period ended December 31, 2008. While these unaudited reconciliations do not
represent official adoption of IFRS, they provide an indication of the major
differences identified to date, relative to the historical financial statements.
In preparing the reconciliations, the Company applied the principles and
elections of IFRS 1, with a transition date of January 1, 2005, consistent with
those assumed in the application documentation for a secondary listing on an
Asian stock exchange. 


Disclosure of the transition process

- Additional details on the convergence plan and transition process have been
included in the MD&A for the year ended December 31, 2008, which has been filed
on SEDAR;


- The MD&A for the year ended December 31, 2008, will include, to the extent
known, qualitative and quantitative information regarding the impact of adopting
IFRS on key line items in the annual financial statements;


- The Company's first financial statements completed under IFRS will be the
interim financial statements for the three months ending March 31, 2009, which
will include notes disclosing extensive transitional information and full
disclosure of all new IFRS policies.


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's flagship coal mine, Ovoot Tolgoi in
southern Mongolia, is selling coal to customers in China. 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, 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 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 December 31, 2008, which is available at www.sedar.com.

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