SouthGobi Resources announced that it has received a mining license for its Soumber coal deposit in southern Mongolia.

The mining license covers 10,992.92 hectares for an initial term of 30 years with an option for two 20 year extensions.

Mr Alexander Molyneux president and CEO of South Gobi said "With the granting of the Soumber mining license and we can immediately finalize plans for mine development at Soumber."

He said that "Soumber will likely have an integrated coal processing facility and will require around two years of development for first clean coal production."

The deposit has NI 43-101 compliant resources of 61.4 million tonnes in the measured and indicated category and an inferred mineral resource of 65.8 million tonnes.

SouthGobi whose stock on the Toronto Stock Exchange edged up 0.65% to trade at USD 10.77 per share said it plans to complete a pre-feasibility study on the Soumber property following an update to its resources and reserves during 2012.

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