SouthGobi delivers first coal mined from Ovoot Tolgoi

SouthGobi Energy Resources
Ltd. (SGQ) has delivered the first coal from its Ovoot Tolgoi mine in
southern Mongolia to customers in China. 

Company officials said two
contracts for coal have been signed for 2008 coal deliveries totaling
700,000 tons of coal. 

The Ovoot Tolgoi coal mine
is located 45 kilometers north of the Chinese border in Mongolia.

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