SouthGobi Energy Resources Receives Permit to Mine for the Ovoot Tolgoi Coal Mine in Southern Mongolia

Pre-production begins after receipt of final government go-ahead

VANCOUVER, CANADA - Gene Wusaty, Chief Operating Officer of SouthGobi Energy Resources Ltd. (SGQ: TSX-V), announced today that an official government commission appointed by Mongolia's Minister of Industry and Trade has issued a Permit to Mine for the Ovoot Tolgoi coal project in southern Mongolia. The permit is the final authorization required for the Ovoot Tolgoi mine development to proceed.

"We are very pleased that we now have received all the required permits to allow us to commence open-pit coal mining operations at Ovoot Tolgoi," Mr. Wusaty said. "Coal sales contracts and transportation arrangements are being finalized. We are on track to begin deliveries to customers early in the third quarter of this year."

The Ovoot Tolgoi open-pit mine will be 45 kilometres north of the Mongolian border with China. A Chinese steel mill already has built a railway line to the Ceke border point, where a major, automated railcar loading facility opened last year. The Mongolian Government is formally transforming the Ceke border point into a full-time border crossing that will allow daily distribution of Ovoot Tolgoi coal to customers in China.

Pre-production at Ovoot Tolgoi under way

SouthGobi now will begin stripping and development of the first coal-mining production benches for the planned open-pit mine. The company started site clearing, topsoil stockpiling, drainage control and road construction in January this year.

Please click on the link below to read the news release:
http://www.ivanhoe-mines.com/i/pdf/2008-03-31_NR.pdf