SouthGobi Energy Resources Ltd. (SouthGobi) is an integrated coal and energy development company. The Company’s principal focus is on its Mongolian coal operation at Ovoot Tolgoi, and coal exploration and development in southern Mongolia and Indonesia. The Ovoot Tolgoi coal deposit is located in the southwest corner of the Omnogovi Aimag (South Gobi Province) of Mongolia. The Ovoot Tolgoi Underground Project is contiguous to and located directly below the proposed surface mine development. The Tsagaan Tolgoi coal field is located in south-central Mongolia. The Company’s Tavan Tolgoi Extension Project is composed of eight exploration licenses located east of Dalanzadgad, the provincial capital in the Omnogovi Aimag. The Company holds an interest in the Mamahak coal project through a joint venture. In September 2008, the Company increased its working interest in the joint venture from 56% to 85%. On December 31, 2008 the Company sold its metals division to Ivanhoe Mines Ltd.