SouthGobi Energy Resources and Glencore International AG Sign Marketing Agreement

SouthGobi Energy Resources and Glencore International AG Sign Marketing Agreement

Alexander Molyneux, President of SouthGobi Energy Resources Ltd., and Gene Wusaty, Chief Operating Officer, announced today that an agreement has been signed with Glencore International AG to provide SouthGobi with coking coal marketing expertise and river barging/vessel loading logistical services for SouthGobi’s Mamahak coal project in East Kalimantan, Indonesia.

“We have developed Mamahak to a point that we are now ready to introduce our high-quality coking coal to the Asian markets,” Mr. Wusaty said. “Our agreement with Glencore is a major milestone in the development of this project.”

With the coal marketing agreement now in place, SouthGobi plans to extract and ship an initial 30,000-tonne trial shipment prior to the end of the second quarter of 2009 for delivery to various Asian customers for testing. The coal will be trucked on a recently completed 34-kilometre haul road to a new barge-loading facility on the Mahakam River.

Glencore International is one of the world’s largest suppliers of a wide range of commodities and raw materials to industrial consumers. Glencore, through its subsidiaries, is a market leader in the marketing of coal to the world’s industrial consumers. The agreement with Glencore gives them exclusive marketing involvement for the company’s coking coal sales for a two-year period which is subject to a review in 12 months.

SouthGobi, through its wholly owned subsidiary Pt. Multi Mamahak Batubara (MMB), has commenced the development of surface coal deposits in four concessions covering 22,968 hectares, at the Mamahak Project. SouthGobi has an 85% working interest in the project. The company was authorized to begin mining on the MCM concession under a location permit issued last January.

Gene Wusaty, SouthGobi Energy’s Chief Operating Officer, a qualified person as defined by National Instrument (NI) 43-101, supervised the preparation of the technical information in this release. A NI 43-101 technical report on the Mamahak coal project was filed on March 26, 2009, and is available at

Ivanhoe Mines is SouthGobi Energy Resources’ largest shareholder, currently owning, directly and indirectly, approximately 80% the issued and outstanding shares.

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