SouthGobi Energy Resources is 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 and electricity to markets in Mongolia and China.

SouthGobi also is exploring and developing the Mamahak coal project in Indonesia. Mamahak is ideally located to target the Japanese, Korean, Indian and Chinese coastal markets, and complements SouthGobi's strategic advantage in Mongolia.

Ivanhoe Mines, the parent company of SouthGobi Energy Resources, announced a strategic partnership in October 2006 with Rio Tinto plc, based in London, England, and Melbourne, Australia, to develop Ivanhoe's world-class Oyu Tolgoi copper-gold deposit in southern Mongolia, 80 kilometres north of the Mongolia-China border .

Ovoot Tolgoi is the company's most advanced coal mine development project. Ovoot Tolgoi is located in southern Mongolia, next to the existing MAK/Qinhua coal mine, approximately 45 kilometres north of the Mongolia/China border. SouthGobi Energy Resources has received a permit to mine for the Ovoot Tolgoi coal mine. Stripping and development of the first coal-mining production benches for the planned open-pit mine has commenced.

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 Metals Division of SouthGobi Energy Resources, is focused on the exploration and development of its copper and gold projects in Mongolia and Indonesia.

The Mongolian Government's Mineral Resources and Petroleum Authority has named SouthGobi Sands LLC, a wholly-owned subsidiary of SouthGobi Energy Resources, Mongolia's "Best Exploration Company of 2007."