Mr. Robert Friedland reports

IVANHOE MINES REPLACES OUTSTANDING $76-MILLION LOAN RECEIVABLE FROM HIGH POWER EXPLORATION WITH EQUITY INVESTMENT IN I-PULSE, ITS PARENT COMPANY

Ivanhoe Mines Ltd. has reached an agreement to replace the outstanding convertible loan balance owed to Ivanhoe Mines by High Power Exploration (HPX) into an equity investment in I-Pulse Inc., HPX's parent company. I-Pulse, a private American company, is a global leader and developer of pulsed-power technology with its research facilities based in Toulouse, France.

Pulsed-power is a technology that releases the equivalent power output of a nuclear power station in a billionth of a second. The technology has already found commercial application in high-speed metal forming and welding, as well as in mineral exploration.

Ivanhoe extended a $50-million convertible loan to HPX on April 25, 2019. As at May 31, 2023, the loan balance including accrued interest totalled approximately $76-million. Under the new agreement, Ivanhoe will transfer all convertible loan obligations from HPX to I-Pulse, in exchange for the issuance of common shares in I-Pulse to Ivanhoe.

Ivanhoe will also receive certain investor rights, including a pre-emptive right to maintain its percentage ownership in I-Pulse in the event of an equity financing, which ceases upon an initial public offering of I-Pulse securities.

Collaboration agreement being developed between Ivanhoe Mines and I-Pulse subsidiary, I-ROX

I-ROX SAS (I-ROX), a subsidiary of I-Pulse, is focused on the deployment of I-Pulse technology to transform the processes of crushing and grinding mineral ores in the mining industry. I-ROX was established in November, 2022, by I-Pulse and Breakthrough Energy Ventures-Europe (BEV-E), in conjunction with 12 million euros in financing from BEV-E.

In December, 2022, I-Pulse and I-ROX entered into collaboration arrangements with world-leading resources company BHP Group Ltd., which included an equity investment in both I-Pulse and I-ROX.

Ivanhoe Mines and I-ROX are working together to also form a collaboration agreement to investigate ways of deploying I-Pulse technology across Ivanhoe's operations. The collaboration arrangement aims to link the mining and processing expertise of Ivanhoe Mines with the pulsed-power technology and expertise of I-Pulse and I-ROX, to transform the economic and environmental impact of mining.

I-Pulse technology has potential to significantly lower the cost and environmental impact of processing mineral ores

Crushing and grinding of mineral ores into small particles, which is a required step prior to mineral concentration, is the most energy- and capital-intensive aspect of the entire mineral extraction process. Crushing and grinding are achieved by using energy-intensive conventional mechanical equipment such as jaw crushers, semi-autogenous (SAG) mills, ball mills and high-pressure grinding rollers (HPGR).

I-ROX has demonstrated that short, high-intensity bursts of electrical energy, delivered using pulsed-power technology, can quickly and efficiently shatter rocks and mineral ores. This process, which targets tensile weakness in rocks, could substantially reduce the time, energy usage and greenhouse gas (GHG) emissions currently generated by the planet's mining activities.

Samples of both copper ore and tailings from the Kamoa-Kakula copper complex in the Democratic Republic of the Congo (DRC) have been sent to I-Pulse's headquarters in Toulouse, France, for test work. The purpose of the test work is to evaluate opportunities to increase life-of-mine copper recoveries, by either improving recoveries through the milling and flotation process, or by recovering additional copper from the tailings stream.

During 2022, Kamoa-Kakula achieved an average copper feed grade of 5.5 per cent and recoveries of approximately 86 per cent, meaning that the grade of Kamoa-Kakula's tailings was approximately 0.8 per cent copper, significantly higher than the average head grade of the copper mines globally. The recoveries achieved in 2022 were in line with design parameters, and more recently have been above design parameters and periodically achieving 88 per cent. Any further improvement in copper recoveries presents a significant opportunity to generate additional revenue at Kamoa-Kakula.

About Ivanhoe Mines Ltd.

Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the expansion of the Kamoa-Kakula copper complex in the DRC; the construction of the Tier 1 Platreef palladium-rhodium-platinum-nickel-copper-gold project in South Africa; and the restart of the historic ultrahigh-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC.

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