Mr. Robert Friedland reports

IVANHOE MINES ANNOUNCES HIGHLY PROMISING PRELIMINARY TESTWORK FOR IMPROVING COPPER RECOVERIES AT KAMOA-KAKULA

Ivanhoe Mines Ltd. has provided an update on preliminary test work conducted to improve copper recovery at the Kamoa-Kakula copper complex.

Ivanhoe Mines' Founder and Executive Co-Chairman, Robert Friedland commented:

"Despite the Phase 1 and 2 concentrators exceeding the nameplate recovery rate, the grade of copper in Kamoa-Kakula's tailings is still much higher than that of most major copper mines globally. This is a direct consequence of Kamoa-Kakula being the highest-grade major copper mine globally. However, we are leaving a significant amount of copper behind... copper that this planet so desperately needs right now for our energy transition.

"If we can recover this copper, the production profile following the Phase 3 expansion could be in excess of 700,000 tonnes per annum. Not only would this provide additional revenue and cash flow, but also it would reduce even further our tailings footprint.

"We are targeting total copper recoveries in the mid-nineties from this breakthrough as well as from the other concurrent workstreams. Our experienced team, with a proven track record of execution and delivery, are leaving no stone unturned to improve the efficiency of extraction from this incredible endowment."

Kamoa-Kakula is the highest-grade major copper mine; further improvement in recoveries can result in significantly increased copper production

In 2022, Kamoa Copper's process engineering team, together with a number of internationally recognized external metallurgy specialists, initiated work to investigate ways to economically recover additional copper units from the tailings stream of the Phase 1 and 2 concentrators.

During 2022, the Kamoa-Kakula Copper Complex milled approximately 7.1 million tonnes of ore at an average feed grade of 5.5% copper, producing 333,497 tonnes of copper in concentrate. Based on the metallurgical recovery of 86% copper, which was in line with design parameters, in excess of 50,000 tonnes of copper was not recovered into concentrate and diverted to the tailings storage facility, or used underground as backfill. The grade of Kamoa-Kakula's tailings in 2022 averaged approximately 0.8% copper. For comparison, the average head grade of the copper mines globally was 0.6% in 2022, according to Bank of Montreal (BMO) research. See Figure 1.

Kamoa-Kakula's ore contains fine-grained copper sulphides (chalcocite), which to fully liberate from the host rock requires grinding of the ore to fine particle size. Grinding rock to an ever-finer particle size is exponentially energy intensive. During the original flowsheet development, a trade-off was struck between recovery and energy intensity. The Phase 1 and 2 concentrator design has primary grinding to 80% passing less than 53 microns (-53 mum). This grind size is already significantly finer than most copper concentrators globally.

Copper recoveries from the Phase 1 and 2 concentrators have improved year-to-date, averaging 87.1% during H1 2023, and periodically achieving as high as 90%. However, any further sustained improvement in copper recoveries presents a significant opportunity to generate additional revenue at Kamoa-Kakula.

To date, 13 workstreams with separate entities have been initiated leveraging various technologies to improve copper recoveries. This includes the recently announced collaboration with I-Pulse Inc., as announced on June 15, 2023.

More recently, promising preliminary results were received from work conducted by Expert Process Solutions (XPS) of Falconbridge, Canada. XPS has worked with Kamoa-Kakula since project inception, conducting metallurgical testwork during the study phases before construction. Therefore, XPS has a high degree of experience working with both the Kamoa and Kakula deposits.

Preliminary test results indicate a significant improvement in total copper recoveries can be achieved

XPS was reappointed for a dedicated scope of work focused on grinding and reprocessing the tailings stream from the Phase 1 and 2 concentrators. Initial preliminary results indicate that with a feed grade of less than 1% copper, approximately 65% of the contained copper can be recovered from the tailings stream. The results generated a saleable concentrate with a grade of approximately 40% copper that could be processed on-site at the 500,000 tonnes-per-annum direct-to-blister flash copper smelter that is currently under construction. For comparison, the copper concentrate grade from the Phase 1 and 2 concentrators is currently approximately 50%.

Additional copper recovery from tailings stream increases production, revenue and cash flow, improving overall economics

DRA Global of Johannesburg, South Africa, a company that has also been working with Kamoa-Kakula since project inception, was appointed to design a process based on the initial metallurgical results. DRA conducted a desktop study on the construction of a dedicated, stand-alone processing plant to treat the entire tailings stream from the Phase 1 and 2 concentrators. The circuit design for the stand-alone processing plant uses conventional technology, such as high-intensity grinding mills and Jameson cells (Glencore-owned technology) for the flotation, as well as additional thickening capacity.

DRA has also determined preliminary, high-level capital expenditure and operating costs associated with the construction and operation of the tailings recovery plant and the economics are significantly positive.

Further metallurgical test work by XPS and engineering by DRA will continue to verify and optimize the process design, with the view to advancing the project to an investment decision.

Concurrently, the other 12 workstreams will continue to explore the most suitable option that will be implemented. The workstreams, among others, consist of conventional leaching, glycine leaching, ion exchange, as well as pulsed-power technology by I-Pulse Inc. to crush rock. Pulsed power technology consists of high-intensity bursts of electrical energy that can quickly and efficiently shatter rocks and mineral ores by targeting the tensile weakness of rocks.

Qualified PersonsDisclosures of a scientific or technical nature at the Kamoa-Kakula Copper Complex in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines' Executive Vice President, Projects. Mr. Amos has verified the technical data disclosed in this news release.

Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the Kamoa-Kakula Copper Complex, which is available on the company's website and under the company's SEDAR profile at www.sedar.com:Kamoa-Kakula Integrated Development Plan 2023 Technical Report dated March 6, 2023, prepared by OreWin Pty Ltd.; China Nerin Engineering Co. Ltd.; DRA Global; Epoch Resources; Golder Associates Africa; Metso Outotec Oyj; Paterson and Cooke; SRK Consulting Ltd.; and The MSA Group.

The technical report includes relevant information regarding the assumptions, parameters and methods of the mineral resource estimates on the Kamoa-Kakula Copper Complex cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release.

About Ivanhoe Mines

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-one Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa; and the restart of the historic ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC.

Ivanhoe Mines also is exploring for new copper discoveries across its circa 2,400km2 of 90-100% owned exploration licences in the Western Foreland, located adjacent to, or in close proximity to, the Kamoa-Kakula Copper Complex in the DRC.

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