SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") Reference is made to the announcements of the Company dated July 31, 2023, August 18, 2023, February 26, 2024, May 22, 2024, June 12, 2024 and January 20, 2025 (the "Announcements") in relation to the Mongolia tax audit. Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Announcements.

As disclosed in the announcement of the Company dated January 20, 2025, the Company's wholly owned subsidiary in Mongolia, Southgobi Sands LLC ("SGS"), received a resolution ("Resolution") from the Tax Dispute Resolution Council ("TDRC") on January 10, 2025 in relation to the Tax Audit. As set forth in this Resolution, the TDRC has determined to reduce the re-assessed amount of the tax penalty against SGS from approximately US$80.0 million to US$26.5 million (the "Revised Re-assessment Result"). According to the applicable Mongolian laws, SGS is entitled to file an appeal to the Administrative Court regarding the Revised Re-assessment Result within a 30-day period from the date of receiving the Resolution (the "Appeal Period").

After careful consideration and consultation with the Company's independent tax consultant in Mongolia, the Company has determined not to pursue a further appeal of the Revised Re-assessment Result with the Administrative Court within the Appeal Period. As a result, the Revised Re-assessment Result will impact the Company's financial statements for the year ended December 31, 2024.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

About SouthGobi

SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.

Under the Law on Pets, the killing of stray dogs and cats through shooting is strictly prohibited. The law emphasizes the use of humane methods, prioritizing sterilization and discouraging cruel treatment. It also mandates that euthanasia should not be carried out in public spaces, roads, streets, or residential areas. However, the practice of kiling strays by shooting has resurfaced under the guise of a “stray dog and cat population reduction campaign” in the Bayanzurkh District.

This controversial measure was initiated last Monday and is expected to continue until February 20. As part of the campaign, residents have been instructed to keep their dogs and cats inside their properties to avoid them being targeted. One individual involved in the culling stated, “We were given funds of gasoline money and bullets from the district. With this, how could we not do it? We’re going street by street, starting from the front of the district and working our way back.”

The district has taken similar actions in previous years as well. In response to these events, officials from Bayanzurkh’s Department of Landscaping and Public Services clarified that they were following the guidelines set out in the law and its accompanying regulations. They explained that under Section 12.4 of the law, the ban on shooting strays will only be enforced five years after the law’s implementation. “Currently, the number of stray dogs and cats is too high, so shooting is being used as a measure. In the future, we will adhere to humane practices. Citizens should also act responsibly. You can contact the municipal veterinary office to have your pets sterilized,” an official explained.

This development raises significant concerns about the interpretation and enforcement of the law, as it seems to conflict with the intended humane treatment of animals. While the reduction of stray animal populations is a pressing issue, the public is divided on the methods being used to address it.

Troy Minerals Inc. ("Troy" or the "Company") (CSE:TROY) (OTCQB:TROYF) (FSE:VJ3) is pleased to announce the submission via its subsidiary company Grand Samsara Consulting LLC ("Grand Samsara") of its mining license application to the Ministry of Industry and Mineral Resources of Mongolia for the Tsagaan Zalaa Silica Project ("Tsagaan Zalaa" or the "Project"). This key milestone underscores the Company's commitment to advancing the project towards production and transforming Troy into a cash-flowing entity.

Located in southern Mongolia, 200 kilometres from the Mongolia-China border, the Tsagaan Zalaa Silica Project is strategically positioned to serve the growing regional and global demand for high-purity quartz silica ("HPQ"). The submission of the mining license application represents a critical step in unlocking the project's potential and advancing Troy's broader strategy of establishing itself as a key player in the HPQ market.

Yannis Tsitos, President of Troy Minerals, commented, "Submitting the mining license application for Tsagaan Zalaa to the Mongolian authorities is a significant achievement for Troy and its subsidiaries. This milestone reflects our relentless focus on progressing our two main silica projects, Tsagaan Zalaa in Mongolia and Table Mountain in British Columbia, and sets the stage for the Company's main objective: to transform itself into a potential producer with cash flow generation serving both Central-East Asia and North America. We are confident that Tsagaan Zalaa will deliver long-term value for our shareholders and position Troy as an important new entrant in this critical mineral sector."

Strategic Importance of Tsagaan Zalaa:

Favorable Location: Proximity to some of the most established and "hungry" silica markets and off-takers, in addition, established road and rail infrastructure provide a strategic advantage (see Figure 1). The 1,670-hectare (4,127-acre) Project is located near a Japanese high-purity quartz quarry and refiner producing and directly exporting HPQ to Japan. (1)

High-Quality Resource: Previous bulk sample analysis (a 10-tonne bulk sample was sold to a Chinese off-taker in 2023) demonstrated silica purity of up to 99.98% after beneficiation, underscoring the project's viability for industrial and technological applications. Massive high-purity quartz veins upto 5 metres in width hosted by Upper-Middle Devonian sediments are exposed on surface over the Project (see Figure 2). (1)

Simplicity in Production & Sustainable Growth: Selling raw high-purity silica is the initial target of the company; simplicity in the surficial quarrying/mining process and no need for a processing plant at this first phase, make the "Blast-Scoop-Load" motto Troy's flag at Tsagaan Zalaa. The project's development aligns with Troy's commitment to sustainable mining practices, support of the local communities in Southern Mongolia and ultimately delivering growth value to Troy's shareholders.

Next Steps

With the mining license application submitted, Troy will focus on finalizing a Preliminary Economic Assessment (PEA) study, securing financing, and advancing discussions with offtake partners. Subject to the approval of the Company's Mining License Application in coming months by the Mongolian authorities, Troy remains on track to target initiation of production at Tsagaan Zalaa in 2025, and cash flow generation from HPQ sales.

Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

Qualified Person

Technical information in this news release has been reviewed and approved by Case Lewis, P.Geo., a "Qualified Person" as defined under NI 43-101 Standards of Disclosure for Mineral Projects.

References

TROY News Release Dated June 10, 2024: "Troy Minerals Enters Into Binding Letter of Intent to Acquire CBGB Ventures Corp." https://finance.yahoo.com/.../troy-minerals-enters...

About Troy Minerals

Troy Minerals is a Canadian based publicly listed mining company focused on building shareholder value through acquisition, exploration, and development of strategically located "critical" mineral assets. Troy is aggressively advancing its projects within the silica (silicon), vanadium, and rare earths industries within regions that exhibit high and growing demand for such commodities, in both North America and Central-East Asia. The Company's primary objective is the near-term prospect of production with a vision of becoming a cash-flowing mining company to ultimately deliver tangible monetary value to shareholders, state, and local communities.

On February 6-7, 2025, the first Meeting of the Mongolia-Uzbekistan Intergovernmental Commission on Trade, Economy, Science, and Technology Cooperation was held in Tashkent, the capital city of the Republic of Uzbekistan.

During the meeting, the two sides agreed to continue working closely to increase exports and supply of agricultural products, including leather, hides, wool, and cashmere goods, from Mongolia to the Uzbek market and decided to organize a "Made in Uzbekistan" Trade Fair in Ulaanbaatar this year.

Emphasizing the importance of developing cooperation in transportion, the two sides agreed to launch regular flights on the Ulaanbaatar-Tashkent route in the second half of this year as part of the implementation of the "Agreement on Aviation Relations" signed during the State Visit by President of Mongolia Khurelsukh Ukhnaa to Uzbekistan in 2024.

Also, the first session of the Mongolia-Uzbekistan Joint Committee on Transport was held. The two sides agreed to establish a new road corridor and routes connecting the two countries and to initiate pilot transport of goods. The two sides agreed to expand cooperation in the energy and mining sectors, particularly in geological surveys, exploration, extraction, processing, and mineral beneficiation.

Additionally, the two sides agreed to deepen cooperation in education, culture, science, and technology by fostering collaboration among relevant institutions, research centers, and universities of the two countries. They also decided to enhance academic exchanges and organize joint symposiums, scientific conferences, concerts, and cultural days.

The two parties agreed to align Mongolia’s “Billion Trees” National Movement, initiated by the President of Mongolia, with Uzbekistan’s “Green Space” project. As part of this cooperation, the two countries will work on introducing Uzbek fruit tree saplings to Mongolia, establishing a model horticultural farm in the Gobi region of Mongolia, developing new sapling greenhouse farms, and exploring the possibility of creating a “Mongolia-Uzbekistan Friendship Park.”

During its regular session on February 12, 2025, the Cabinet of Mongolia authorized the State Property Policy and Regulation Department, Erdenes Tavan Tolgoi JSC, Mongolian Railway state-owned JSC, and Tavan Tolgoi Railway LLC to finance the Bagakhangai-Khushig Valley Railway Project with the net profit of “Mongolian Railway” JSC and “Tavan Tolgoi Railway” LLC in 2024, investments in 2025, and leveraging domestic resources.

“Mongolian Railway” Company will be responsible for the construction and operation of the Bagakhangai-Khushig Valley Railway in compliance with relevant laws, international standards, and quality requirements.

The Bagakhangai-Kushig Valley Railway will branch from the Bagakhangai station of the "Ulaanbaatar Railway" JV and pass through Selenge soum of Tuv aimag to Khushig Valley and reach Shuvuun Fabric, for a total of 102.8 km. The railway is planned to have three stations and four junctions. The project will be implemented in two phases.

The relevant officials have been instructed to promptly issue the technical conditions and relevant permits required for the construction of the railway infrastructure, and its components, including engineering facilities, energy, water supply, stations, crossings, and other buildings, according to the appropriate regulations.

Secretary General of the Mongolian Red Cross Society, Bolormaa Nordov, has voiced Mongolia’s readiness to expand cooperation with the Iranian Red Crescent Society (IRCS).

Lauding the capabilities of IRCS in addressing hazards, Nordov said, “Mongolia is one of the most disaster-prone areas in the world, with harsh winter. We are interested in benefiting from the experiences, and capacities of the Iranian Red Crescent Society, particularly in providing relief services,” Mehr news agency reported.

The official made the remarks on Tuesday in an online meeting with the head of the IRCS, Pirhossein Kolivand.

“The Mongolian Red Cross Society is responsible for people’s health and well-being. We are willing to utilize the Iranian Red Crescent Society's knowledge in medical and pharmaceutical sectors, as well,” Nordov further noted.

Highlighting the significance of boosting synergy among international societies, Kolivand, for his part, proposed running a joint university to train participants on the critical actions required to respond to emergencies, disasters, and accidents.

Establishing joint medical centers, pharmaceutical and textile companies, as well as launching health tourism comprehensive centers were among other suggested issues for the expansion of collaborations.

The official went on to say that the IRCS quick response teams are ready to provide assistance to other societies in any part of the world, highlighting that one of the main objectives of the IRCS is to educate and empower other societies.

Signing a memorandum of understanding will facilitate and lay the basis for furthering cooperation, Kolivand added.

IRCS is a top organization

In September 2024, the International Federation of Red Cross and Red Crescent Societies (IFRC) project manager, Faisal Mahboob, lauded the capabilities of the IRCS as outstanding.

The official said he was really impressed by the capacity and the wide range of activities carried out by the IRCS.

“The International Federation will support the activities of the Iranian Red Crescent Society to commence a new phase of collaboration with the society,” Mahboob added, the IRCS website reported.

In May 2024, Pir-hossein Kolivand, head of the IRCS, said the IRCS is recognized as one of the five prominent societies worldwide thanks to its wide range of activities and great achievements both nationally and internationally.

Referring to health, treatment, and rehabilitation as one of the parts of the IRCS activities, Kolivand said the IRCS hospitals, pharmacies, and clinics meet the medical and therapeutic needs of thousands of citizens every day.

The IRCS medical centers abroad are reputable worldwide. As a humanitarian organization, the IRCS is trying to alleviate the suffering of the people involved in accidents, emergencies, and conflicts.

“Today, collaborations with knowledge-based firms have resulted in advancements in manufacturing orthoses, prostheses, artificial organs, and new medications, with plans to extend cooperation to rescue and relief efforts as well,” the official noted.

IRCS signs MOUs with 19 societies over three years

The IRCS has signed memorandums of understanding with red crescent societies of 19 countries over the past three years to expand and enhance cooperation in humanitarian as well as rescue and relief operations.

The IRCS looks forward to boosting cooperation with other societies to promote awareness, resilience, and capabilities of the societies in confrontation with disasters and the provision of relief services.

Mongolia's inflation rate, as measured by the Consumer Price Index (CPI), rose to 9.6 percent in January, up from 9.0 percent in December 2024, local media reported on Thursday, citing official data by the country's National Statistics Office (NSO).

This represents a 2.0 percentage-point rise compared to the same period last year, the NSO noted. The increase in inflation was primarily driven by higher prices for imported goods, particularly food products, according to the statistical agency.

Mongolia's consumer goods and services basket comprises 410 items, with over half of them being imported, the NSO said.

Despite the recent inflationary pressures, the government remains optimistic about the country's economic outlook and has forecast an inflation rate of around 7.2 percent for 2025.

The Open Government Partnership (OGP) Asia and the Pacific Regional Meeting was held in the Philippines on February 5-7, Montsame reported.

During the meeting, Head of the Office of the General Election Commission (GEC) of Mongolia D. Bat-Erdene, and Foreign Relations and Cooperation Officer B. Uyanga, participated in ministerial level discussions, interviews, and meetings, where the officials introduced electoral legal reforms and shared experiences of Mongolia.

The General Election Commission of Mongolia has become the first in Asia to join the Open Government Partnership's newly launched Online Platform for Publishing Political Finance Data, which has been in effect since 2024. The OGP's oversight committee reviewed the GEC’s initiative and officially certified Mongolia's participation during the conference.

More than 800 representatives from governments, civil societies, and international organizations across the Asia-Pacific region participated in the Open Government Partnership Asia and the Pacific Regional Meeting Philippines 2025. Discussions focused on strengthening democracy, enhancing transparency and accountability in governance, and addressing challenges in implementing open and transparent government initiatives in the region, according to the GEC.

UNDP’s “Climate Promise-2” project, funded by the Government of Germany, organized the “Advancing Gender Integration in Climate Action: Insights from the Gender Target Gap Assessment” workshop to raise awareness of ongoing efforts in developing Nationally Determined Contributions (NDC) 3.0, with a particular focus on integrating gender considerations into climate policies and actions.

The workshop brought together diverse stakeholders from sectoral ministries, development partners, civil society organizations, and experts to present key findings from the Gender Target Gap Assessment. Participants also discussed gaps, challenges, and opportunities for mainstreaming gender in climate policies and emphasized the need for stronger gender-responsive indicators in Mongolia’s NDCs and explored ways to enhance collaboration for more inclusive and equitable climate action.

Mongolia's effort and commitment to developing NDC 3.0 and adopting the Long-Term Low Emission Development Strategy (LT-LEDS), a national strategy for economy-wide transformation toward low-emission, climate-resilient development, reflects its dedication to global climate goals.

Under the Climate Promise 2025 Initiative, the UN, including UNDP, is supporting countries in aligning NDC 3.0 with the 1.5°C global target and the Sustainable Development Goals, while strengthening their quality, investment potential, and implementation. Through the "Climate Promise–2" project, UNDP has been supporting Mongolia in developing more gender-sensitive and inclusive climate commitments, ensuring alignment with the country’s long-term development priorities under Vision 2050.

Ms. Lakshmi Boojoo, Advisor on Gender Issues to the Minister for Environment and Climate Change, stated “Gender-responsive climate policies are key to ensuring that no one is left behind in Mongolia’s transition to a low-emission and climate-resilient future. Today’s workshop presents a platform to address gaps, enhance commitments, and advance inclusive climate action.”

UNDP Deputy Resident Representative in Mongolia Ms. Lin Cao stated “This year marks the 10th Anniversary of the Paris Agreement, and it is critical to demonstrate that its promises are not only viable but transformative. Achieving this will require not just ambition but also tangible financial investments and stronger partnerships—both public and private—to show a clear pathway forward on climate action and SDG achievement. Every country has a role to play, and Mongolia’s contribution is vital.”

***

About UNDP

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.

For further inquiries:

Erdenesukh Otgonbayar | Communications Analyst | UNDP in Mongolia | erdenesukh.otgonbayar@undp.org

Since Mongolia’s democratization in the 1990s, USAID has been a major supporter of the country’s development. With USAID’s future in doubt, Ulaanbaatar is watching closely.

President Donald Trump began his second term in the Oval Office by making abrupt shifts in U.S. foreign policy, including halting all foreign aid for 90 days. In addition, Trump’s decision to gut the United States Agency for International Development (USAID) and the realignment of U.S. priorities in international development will directly impact Mongolia-U.S. cooperative programs, although it ultimately will not strain the Mongolia-U.S. strategic partnership.

On January 26, 2025, Trump signed an Executive Order on Reevaluating and Realigning United States Foreign Aid. The U.S. State Department press statement on implementing the order emphasized, “The United States is no longer going to blindly dole out money with no return for the American people.” The 90-day review will likely be a multistage process that will trim down specific programs and projects that are not aligning with the Trump administration’s international goals. What this means for Mongolia is that many of the U.S.-funded projects that support gender equity, environmental and wildlife protection, as well as academic and research funding are likely to be on the chopping block.

Since the dawn of Mongolia’s democratization in the 1990s, USAID has been a major supporter of Mongolia’s development. The agency supported Mongolia in strengthening democratic governance, civil society and financial institutions, as well as bolstering its economy and private sector competitiveness. According to U.S. government data, over $20.4 million in foreign assistance has been provided to Mongolia since 2001, with $6.6 million of that coming from USAID.

According to a summary from the U.S. embassy in Mongolia:

USAID assistance has spanned a variety of priority areas, including developing the energy sector, helping to establish and strengthen major banking institutions, providing humanitarian assistance, promoting small businesses and diversifying income in rural areas, and spurring inclusive participation in the democratic process.

Moreover, USAID funds academic and scholarly communities both in the United States and Mongolia. These activities ultimately strengthen cultural and people-to-people relations between Americans and Mongolians. Cutting USAID funds will have direct impact on anthropology, archaeology, and other research-based programs and projects.

U.S.-funded projects not only help with Mongolia’s overall development, but directly impact ordinary’s people’s lives.

Jonathan Addleton, who served as the U.S. ambassador to Mongolia from 2009 to 2012, pointed to the outsized impact of USAID in Mongolia particularly. “I would maintain that both USAID and Mongolia have ‘punched well above their weight’ during the last two decades,” he told The Diplomat, pointing to Mongolia’s success “in applying foreign assistance from all sources to move a better place with respect to GDP, per capita income, and the amount of revenue generated internally to finance a ‘real’ budget as compared to the tiny national budgets of the 1990s.”

Commenting on the recent development, Michael Klecheski, who served as the U.S. ambassador to Mongolia during the first Trump administration, stated, “Curtailing U.S. assistance work throughout the world will have an impact on our international image, but I believe the U.S.-Mongolia relationship will remain strong, as we continue to have important shared interests.”

Klecheski added, “Given Mongolia’s geostrategic position, good ties with the U.S. and other ‘third neighbors’ are vital to it. And after all, when Trump was president last time, he had a terrific visit from Mongolia’s then-President Battulga Khaltmaa. I trust that remains significant to this White House.”

Mongolia and the United States became strategic partners in 2019, during Trump’s first term as president. While the strategic partnership implied economic cooperation, U.S. aid to Mongolia dropped significantly during the Trump administration, from $46 million in 2018 to $12 million in 2020. At the same time, it is important to highlight that the United States did provide approximately 24.8 billion Mongolian tugrik ($8 million) to Mongolia to support its effort to combat COVID-19.

During the Biden administration, U.S. aid continued to flow to Mongolia’s developmental projects. In 2023, USAID announced a five-year strategy for Mongolia, particularly targeting the energy sector, banking institutions, and strengthening democratic values within the framework of sustainable development. As the Trump administration reviews the USAID five-year strategic framework for Mongolia (2023-2028), Ulaanbaatar should expect projects in gender equality, environmental issues, as well as public health sectors will likely be impacted.

Moreover, with recent actions, there is a worry that the Millennium Challenge Corporation (MCC) Mongolia Water Compact may be impacted, despite the fact that the project is almost complete. The MCC project is a joint program between Mongolia and the United States, with both committing large sums to address Mongolia’s critical water supply challenges in Ulaanbaatar. The MCC’s $462 million pledge – $350 million from the MCC, and $112 million from Mongolia – will go toward the improvement of water infrastructure in Ulaanbaatar, including new wells, a water purification plant, and a wastewater treatment plant. As of September 2024, $305.5 million or 87.3 percent of the U.S. grant has been committed to projects; of that $214.8 million (61.4 percent) has already been disbursed.

The latest allocation of USAID to Mongolia was $13 million, just before Biden left office.

In the face of increasing uncertainty over Trump’s foreign policy and international outreach, policymakers in Ulaanbaatar are paying attention. The United States’ relationship with Mongolia has focused on what is known as the the “3D” approach: defense, diplomacy, and development. To some degree, if the development element gets dropped, Mongolia would still have defense and diplomacy to pursue cooperation with the United States. Of the U.S. assistance to Mongolia since 2001, 37 percent was aimed at military goals.

On February 7, Mongolian Defense Minister Byambatsogt Sandag visited the U.S. Indo-Pacific Command in Hawaii. During a meeting between Byambatsogt and the U.S. Army Lt. Gen. Joshua M. Rudd, deputy commander of U.S. Indo-Pacific Command, Mongolia focused on welcoming the new Trump administration. The two sides discussed defense ties and how the Mongolia-U.S. cooperation mechanism should continue and uphold its strategic significance.

According to the Mongolia’s embassy in the United States during the meeting, Mongolia highlighted its commitment and goal to triple the number of peacekeepers, with an eye toward the technical assistance and human resources needed to achieve this goal.

As the Mongolia-U.S. strategic partnership comes to a new starting point, Ulaanbaatar does have an opportunity to push Washington to pass the long-anticipated Third-Neighbor Trade Act, while accelerating U.S. investment in Mongolia’s critical minerals, tourism, technology, and science sectors.

Trump’s decision to either abolish USAID or drastically reduce funding will impact projects and programs in Mongolia. His actions are also a wakeup call for the Mongolian government not to solely depend on foreign aid for its development.

That said, it is also important note that one of the strengths of Mongolia’s multi-pillared foreign policy is that it has a number of different partners helping to support the country’s democracy, civil society, gender equity, public health, and business environment. Multilateral mechanisms and organizations such as the United Nations Development Program, UNICEF, and to some degree, the American Chamber of Commerce could serve as alternative funding sources within this multi-donor system.

By Bolor Lkhaajav

Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.