marketwire: SouthGobi Resources Provides Operating Update

SouthGobi Resources Ltd. (“SouthGobi”) operations continue to be effected by a number of external factors including regulatory issues in Mongolia and deteriorating market conditions. Regulatory issues in Mongolia: On April 16, 2012, SouthGobi announced that the Mineral Resources Authority of Mongolia (“MRAM”) held a press conference announcing a request to suspend exploration and mining activity on certain licenses but no official notification had been received. At this time, the Company remains in the position where no official notification has been received and therefore there is no legal impediment to continued operation. However, SouthGobi continues to be impacted by issues associated with the public announcement regarding its licenses. There are multiple ways SouthGobi is being affected by the uncertainty over its licenses with various levels of impact. Many government bodies and regulatory authorities in Mongolia are reluctant to provide approvals and permits due to the uncertain position. One example is that SouthGobi’s Mongolian operating subsidiary has been unable to receive an approval for a revision to its Environmental Impact Assessment for the dry coal handling facility (“DCHF”) from the Mongolian Ministry of Environment. Without such approval, SouthGobi may be unable to operate the DCHF. To read the full article, click hereSouthGobi Resources Provides Operating Update

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