SouthGobi Energy Resources Celebrates the Grand Opening of the Ovoot Tolgoi Coal Mine, Southern Mongolia

VANCOUVER, BRITISH COLUMBIA, Jun 11, 2008 (MARKET WIRE via COMTEX News Network) --

Peter Meredith, Chief Executive Officer of SouthGobi Energy Resources Ltd. (TSX VENTURE: SGQ), and Gene Wusaty, Chief Operating Officer, announced today that the company held the official opening ceremony on June 4th for its Ovoot Tolgoi coal mine in southern Mongolia. The Ovoot Tolgoi mine is Mongolia's newest export coal mine and is leading the way in developing the high-quality coal resources in the South Gobi region of Mongolia. More than 100 guests, including political and community leaders, key supporters, shareholders and employees attended the opening ceremony at the Ovoot Tolgoi mine site (see www.southgobi.com for photos).

"The company wishes to recognize the assistance and support it has received from all levels of the Mongolian government and agencies during the permitting and development of the Ovoot Tolgoi project," Mr. Wusaty said. "The opening of Ovoot Tolgoi is a testament to the industrious and skilled workforce in Mongolia."

Since receiving its mining license in September 2007, a workforce of 180 employees, made up predominantly of Mongolian nationals, has been recruited and is now involved in all phases of mining activities. Open-pit coal production began in April and the mine is now operating on a 24 hours per day basis. The company plans to commence commercial production in July of this year. Three coal products have been identified for export from the Ovoot Tolgoi mine - thermal coal, premium thermal coal and metallurgical coal.

Demand for coal from the growing economies of Asia, most notably China, and constraints in supply, has put severe upward pressure on coal prices. China became a net coal importer for the first time in 2007, prompting many coal consumers to source coal from other coal producing regions, such as Mongolia and Indonesia, to meet their growing energy needs.

The Ovoot Tolgoi mine is 45 kilometres north of the Mongolian border with China. A Chinese steel mill has built a railway to the Ceke border point, where a modern, automated railcar coal loading facility opened last year. The Mongolian government is formally transforming the Shivee Khuren (Ceke) border point into a full-time border crossing that will allow daily deliveries of coal to customers in China.

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

The company's metals division is focused on the exploration and development of its copper and gold projects in Mongolia and Indonesia.

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 markets in Asia, the commencement of commercial production at Ovoot Tolgoi in July, 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 three months ended March 31, 2008, and its Annual Information Form dated March 28, 2008 which is available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: SouthGobi Energy Resources Ltd. - Investors Steven Feldman (604) 681-6799 SouthGobi Energy Resources Ltd. - Media Bob Williamson (604) 681-6799 Website: www.southgobi.com

SOURCE: SouthGobi Energy Resources Ltd.

http://www.southgobi.com

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