- SouthGobi is a coal mining company operating in Mongolia with its core asset being the Ovoot Tolgoi coal mine located near the Chinese border. - The company has grown its coal resources significantly since 2005 and now has over 300 million tonnes of measured, indicated, and inferred resources across multiple deposits in Mongolia. - SouthGobi produces premium quality coking and thermal coals and has a competitive cost structure due to the geology of its deposits and infrastructure in place. - The company plans to continue expanding production capacity at its core Ovoot Tolgoi mine and advance other regional coal projects like Soumber to extract full value from its strategic position near key Chinese markets.

1. INVESTOR PRESENTATION
TSX: SGQ HKEx: 1878
OCTOBER 2010

2. 2
Disclaimer
Forward-looking statements
This presentation includes certain “forward-looking statements.” All statements, other than
statements of historical fact, are forward-looking statements that involve various risks and
uncertainties. There can be no assurances that such statements will prove accurate, and actual
results and future events could differ materially from those anticipated in such statements. Such
information contained herein represents management’s best judgment as of the date hereof based
on information currently available. The company does not assume the obligation to update any
forward-looking statement.
Qualified Persons
The technical information in this presentation is derived from SouthGobi’s news releases, each of
which has been reviewed by one or more qualified persons (QPs), as defined by NI 43-101. Copies
of the releases naming the QPs are available at Sedar or www.southgobi.com.

3. 1 COMPANY SNAPSHOT

4. 4
Company snapshot
Capitalization and shareholders
Share price performance (last 12 months)Capitalization summary
Share price (at October 4, 2010) C$10.65
C$ per US$1 1.02
Share price US$10.44
Shares outstanding 184.2m
Market capitalization US$1,923m
Cash* (at June 30, 2010) US$744m
Convertible debt (at June 30, 2010) US$250m
Enterprise value US$1,429m
* Cash includes money market investments
Key shareholders
On an “as converted” basis assuming full conversion of the CIC debenture, Ivanhoe will remain as the majority shareholder with approx. 50.3% ownership,
followed by CIC with approx. 23.8% ownership and the balance of 25.9% being the public float (total shares outstanding: approx. 209.3m)
Total shares outstanding =
184.2m
57.2% - 105.3m shares 29.5% - 54.3m shares
Other Public
Float
13.3% - 24.6m shares

5. 5
Company snapshot
Extracting full value from the Ovoot Khural Basin
Permian-age coal bearing basin only 40 km
from China
Coal identified over 150 km strike length
Land equivalent to prime hard coking coal
region of Bowen Basin in Australia (largest
seaborne coking coal exporting region
today)
Rail infrastructure and coal loader
constructed by Chinese to access
Importance of the Ovoot Khural BasinOur Assets
Mongolia
China
Substantially covered by SouthGobi’s
exclusive mining and exploration licences
89% of SouthGobi's resources located
there
Operating infrastructure in place
SouthGobi’s leadership in the
Ovoot Khural Basin

6. 2 CORE INVESTMENT HIGHLIGHTS

7. 7
Core investment highlights
Strategically located – closest coal to China
Substantial and growing resources
Premium quality coals
Highly competitive cost structure
In production with strong growth potential
1
2
3
4
5

8. 8
Western Inner Mongolia
Gansu
Hami, Xinjiang
(619 km to Jiayuguan)
Ovoot Tolgoi Mine
(492 km to Jiayuguan)
Strategically located – closest coal to China
Nearest coal production base to major coal consuming markets
Source: Shanxi Fenwei Energy Consulting
Average Selling Price (US$)
Coal type 2009 Actual YTD 2010
Premium coal 27 – 32 40 – 47
Thermal coal 20 – 24 25
Distribution of coal resources
in China
1
New rail completed to
access Ovoot Khural
Existing Railway
Coal Seam Basin
Provincial Boundary
National Boundary
Legend
0 160 km
Source: Shanxi Fenwei Energy Consulting
Strategies to increase relative ASPs
Benefit of improved transportation links
Elimination of third-party trading margin
Processing coal for enhanced product mix
*

9. 9
Substantial and growing resources
Track record increasing resources – finding cost US$0.16 / tonne
Historical resource growth track recordSummary of resources by mine and deposit
307.6
171.0
13.0
98.036.4
21.4
78.8
9.0
55.5
20.5
0
100
200
300
400
500
Ovoot Tolgoi
Mine
Ovoot Tolgoi
Underground
Deposit
Soumber
Deposit
Tsagaan
Tolgoi
Deposit
Total
Resource(Mt)
Inferred
Measured & Indicated
Ovoot Tolgoi Complex
Ovoot Khural Basin
Ovoot Tolgoi Mine
resource incorporates
114.1Mt of Proven and
Probable Reserves
166.0
202.4
221.3
307.6
65.8
74.8
71.0
98.0
0
100
200
300
400
2005 2006 2007 2008 2009
Resource(Mt)
Inferred
Measured & Indicated
Note:
SouthGobi’s resources are prepared in accordance with the Canadian NI 43-101 resource estimation standard – the table above summarizes those resources disclosed publicly in
individual NI 43-101 compliant tables
Total exploration costs of
approximately US$63.9m from Jan
2005 to Dec 2009
Equates to US$0.16/tonne resources
discovered
2
184.0 99.3 76.9 45.4 405.6

10. 10
Drilling for 2010 commenced post-winter in March
Approximately US$8.1m spent as at end of June
(target c. US$20m total for 2010)
64,050m3 of trenching already undertaken
Over 64,000 meters of drilling done
Drilling commenced in fields surrounding Soumber
and at SW target (6km south-west of Ovoot Tolgoi)
Additional drilling at Sunrise Pit area on Ovoot Tolgoi
license
Exploration licences and locations with core targets for resource increases
Status on key exploration targets
(Ovoot Khural Basin)
2 Substantial and growing resources
Exploration outlook

11. 11
Premium quality coals
Coking coal and an overall product mix superior to peers
Type Specification % Deposit
Coking
Coal
7,173 kcal/kg
Ash: 7.9%
CSN (FSI): 5.5
15%
Premium
Coal
6,369 kcal/kg
Ash: 14.9%
CSN (FSI): 3.0
41%
Thermal
Coal
5,360 kcal/kg
Ash: 26.0%
44%
3
Premium hard coking
Ro Max of 1.3 – 1.5%
VM <19%
OvootTolgoiMine(raw)Soumber
Semi-soft
coking
coals
Ovoot Tolgoi basic coal handling facility (construction
commenced)
― US$25m estimated capex – completion early
2011
― Removes large lumpy ash and sizes coal to
<50mm consistent product
― 6 million tonne per year capacity on single day
shift basis (hours extendable)
― c. 90% processing yield
― Second stage to be considered after further
testing
Soumber wash plant (testing and design)
― US$80 million estimated capex
― Likely full flotation or alternative process
Upgrading raw coalsSimplified coal product qualities

12. 12
OvootTolgoi
0
20
40
60
80
100
0 10 20 30 40 50
Cumulative Production (million tonnes)
FOBCashCosts(US$/tonne)
OvootTolgoi
0
20
40
60
80
100
0 50 100 150 200 250 300 350 400 450 500
Cumulative Production (million tonnes)
FOBCashCosts(US$/tonne) Highly competitive cost structure
Ovoot Tolgoi has globally competitive low direct mining cash costs
Low cost structure due to favourable geological condition – open-pit, and thick coal seams
resulting in low ratio of waste to coal (low “stripping ratio”)
Ovoot Tolgoi’s position on 2010F estimated semi-
soft/PCI coking coal mine cash costs curve
(FOB equivalent basis)(1)
Ovoot Tolgoi’s position on 2010F
estimated thermal coal mine cash cost
curve (FOB equivalent basis)(1)
Notes:
1. Based on independent report prepared by AME Consulting Pty Limited. Ovoot Tolgoi cost adjusted FOB
equivalent assuming rail transportation to Qinhuangdao port in China and excludes washing and processing
costs. AME assesses global mine cash costs for each coal type and then places such mines from lowest
cost to highest along the horizontal axis on a cumulative production basis
2. Based on December 31, 2009 Financial Statements for SouthGobi and Macquarie Research Equities report
dated March 10, 2009 for others
0
50
100
150
200
250
300
Ovoot
Tolgoi
(open-pit)
2009A
Typical
small
Chinese
mine
Typical
Shanxi
SOE
Shenhua China Coal Yanzhou
DirectMiningCashCosts(RMB/tonne)
Direct mining cash costs for
Ovoot Tolgoi vs. key Chinese coal companies(2)
4

13. 13
Self imposed slow-down and
suspension to deal with excess
inventories
Sunset pit
realignment
5
Fleet 1
994 shovel
13m3
Ovoot Tolgoi coal and waste material mined (April 2008 – September 2010)
In production with strong growth potential
Second mining fleet now commissioned and more capacity coming
Fleet 2
996 shovel
34m3
Fleet 3
996 shovel
34m3
Fleet 4
996 shovel
34m3

14. 3 STRATEGIES AND INVESTMENT PLANS

15. 15
Major strategies
Expanding production at
Ovoot Tolgoi Mine1
Extract Full Value from Our Leading Position in the Ovoot Khural Basin
Advancing regional coal
projects – near-term
emphasis on Soumber
2
Developing Ovoot Khural
Basin infrastructure3
Enhancing value of our
products 4
Exploration 5
Continuing focus on
operational excellence 6

16. 16
Investment plans
Growth investment plans 2011 - 2012 (US$m)
Ovoot Tolgoi Mine 60
Development of Soumber 135
Coal handling facilities 160
Regional transportation infrastructure 150
Exploration 40

17. Appendix – Selected Photos

18. 18
Appendix
Selected Photos
China – rail loading facility at Ceke borderMongolia – truck weighing bridge
Shivee Khuren-Ceke Mongolia-China border crossing China railway infrastructure only a few km from border

19. 19
Appendix
Selected Photos (cont’d)
Mining operationsExposed seam at the Ovoot Tolgoi Mine
Terex MT 4400AC haul truck Paved runway at the Ovoot Tolgoi airport

20. 20
Appendix
Selected Photos (cont’d)
Liebherr 994 shovel loading Terex haul truck

21. 21
Appendix
Selected Photos (cont’d)
New Liebherr 996 shovel (34 m3 bucket– 2.5x size of 994 shovel)