Ms. Marna Cloete reports

IVANHOE MINES ISSUES SECOND QUARTER 2023 FINANCIAL RESULTS, AND REVIEW OF CONSTRUCTION AND EXPLORATION ACTIVITIES

Ivanhoe Mines Ltd. president Marna Cloete and chief financial officer David van Heerden have presented the company's financial results for the three and six months ended June 30, 2023. Ivanhoe Mines is a leading Canadian mining company developing and operating its four principal mining and exploration projects in Southern Africa: expanding the operations of the world-class Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC); building the tier-one Platreef palladium, rhodium, nickel, platinum, copper and gold development in South Africa; restarting the historic, ultra-high-grade Kipushi zinc-copper-lead-germanium mine in the DRC; as well as exploring the expansive exploration licences of Ivanhoe's Western Foreland for copper discoveries adjacent to Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $87 million for Q2 2023, net of a $27 million non-cash loss on the $575 million convertible bond fair valuation, compared with a profit of $82 million for Q1 2023. The profit in the quarter includes Ivanhoe Mines' share of profit and finance income from the Kamoa-Kakula joint venture of $123 million.
• Kamoa-Kakula sold 101,526 tonnes of payable copper during Q2 2023, recognizing a record revenue of $702 million, an operating profit of $394 million and a quarterly EBITDA of $457 million.
• Kamoa-Kakula's cost of sales per pound (lb.) of payable copper sold was $1.24/lb. for Q2 2023 compared with $1.25/lb. and $1.15/lb. in Q1 2023 and Q2 2022, respectively. Cash costs (C1) per pound of payable copper produced in Q2 2023 totaled $1.41/lb., compared to $1.42/lb. and $1.42/lb. in Q1 2023 and Q2 2022, respectively.
• Ivanhoe Mines Adjusted EBITDA was $172 million for Q2 2023, compared with $101 million for the same period in 2022, and $172 million for Q1 2023.
• Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-Kakula joint venture has generated $1.82 billion of net cash from operating activities, which has funded both the Phase 2 and Phase 3 expansions to date.Ivanhoe Mines has a strong balance sheet with cash and equivalents of $393 million on hand as at June 30, 2023, and expects Kamoa-Kakula's Phase 1 and Phase 2 cash flow to be sufficient to fund the Phase 3 expansion capital cost requirements at current copper prices.
• On May 22, 2023, Kipushi Corporation entered into a financing facility with Rawbank SA, one of the largest financial institutions in the Democratic Republic of the Congo. Under the terms of the facility, Rawbank provided an $80 million loan, to be drawn down in two tranches of $40 million each. The first tranche has been drawn and will be used to fund Kipushi's working capital requirements. The facility bears interest of 8% per annum.
• On April 27, 2023, Ivanhoe and joint-venture partner Gecamines, the DRC's state-owned mining company, announced an offtake term sheet for 100% of Kipushi's zinc concentrate, together with a $250-million facility supported by Glencore International AG. The offtake and financing term sheet is subject to the execution of final, binding agreements, which are expected to be concluded in conjunction with the new Kipushi Corporation joint-venture agreement in the coming months.
• On June 15, 2023, Ivanhoe announced the replacement of an outstanding $77.4-million loan receivable from High Power Exploration (HPX) with an equity investment in I-Pulse, its parent company, joining leading mining company BHP Group Limited as an investor. The company intends to enter into a collaboration agreement with I-ROX, an I-Pulse subsidiary, to investigate and develop applications for pulsed-power technology in the mining sector.

OPERATIONAL HIGHLIGHTS

• Record quarterly production of 103,786 tonnes of copper in concentrate was achieved at Kamoa-Kakula for Q2 2023, compared with 93,603 tonnes in Q1 2023 and 87,314 tonnes in Q2 2022.Over the first six months of 2023, Kamoa-Kakula has produced a total of 197,389 tonnes of copper in concentrate, placing it well on track to deliver annual production guidance of between 390,000 - 430,000 tonnes of copper.
• Kamoa-Kakula's Phase 1 and 2 concentrators milled a record 2.2 million tonnes of ore during the second quarter at an average feed grade of 5.2% copper. This included high-grade, run-of-mine ore from the Kakula Mine, supplemented with ore from the surface stockpiles to achieve throughput higher than original design capacity. On July 2, 2023, Kamoa-Kakula achieved a record daily milling rate of 29,968 dry metric tonnes, which is equivalent to an annual milling rate of 10 million tonnes per annum (after accounting for availability). For July, Kamoa-Kakula produced 35,636 tonnes of copper in concentrate, just short of a record, and achieved recoveries of 88%.
• Kamoa-Kakula's Phase 3 mine and concentrator expansion, 500,000-tonne-per-annum on-site, direct-to-blister copper smelter and the refurbishment of Turbine #5 at the Inga II hydroelectric facility are advancing on schedule and are expected to be complete in late 2024. At current copper prices, it is expected that cashflow from Kamoa-Kakula's Phase 1 and 2 operations will be sufficient to fund the remaining 2023 and 2024 expansion capital cost requirements of approximately $2.1 billion.
• On July 27, 2023, Ivanhoe announced significant preliminary test work for improving copper recoveries at Kamoa-Kakula. 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. Results to-date indicate a significant improvement in total recoveries can be achieved by liberating copper from the tailings stream, which would further increase production, revenues and cash flow.
• Ivanhoe continues its expansive copper exploration program on its Western Foreland licences that cover approximately 2,407 square kilometres adjacent to Kamoa-Kakula. The 2023 exploration program is budgeted at approximately $19 million. A total of 37 holes and 10,853 metres were completed during Q2 2023, following the conclusion of the wet-season in May. A total of 15,736 metres of diamond core have been drilled in the first half of 2023.Ivanhoe is on schedule to publish a maiden Mineral Resource estimate for its Makoko and Kiala high-grade copper discoveries in the Western Foreland in Q3 2023.
• Ivanhoe is undertaking optimization work to identify value-accretive options for installing hoisting capacity to Platreef's Shaft 3, which was originally planned as a ventilation and secondary escape shaft. Shaft 3 is currently under construction and now is planned to be equipped for hoisting. Shaft 3 is currently being reamed to a diameter of 5.1 metres. Approximately, 340 metres of the total 950 metres have been reamed to date, with completion planned in Q4 2023. The additional hoisting capacity from Shaft 3 may be used to accelerate underground mining activities for Phase 2, in advance of the completion of Shaft 2, which is expected in 2027.Platreef underground development work is focused on lateral development towards the high-grade Flatreef orebody on the 750-metre, 850-metre and 950-metre levels. More than 2,000 metres of lateral development has been completed to date across all three levels, advancing at a rate of approximately 200 metres per month. Once the crusher and loading feeder installation on the 950-metre level is completed at the end of August, the rate of lateral underground development is expected to increase to approximately 300 metres per month throughout the remainder of the year.
• Drilling of the pilot drill hole for the reaming of the 10-metre-diameter Shaft 2, which commenced in February 2023, was completed during the quarter. Preparations are now underway to commence reaming of Shaft 2 to an initial diameter of 3.1 metres.
• At the Kipushi Mine, overall construction progress is approximately 50% complete and construction of the concentrator is on schedule for commissioning in Q3 2024. The concentrator includes dense media separation and a milling and flotation circuit. Kipushi is expected to produce more than 270,000 tonnes of zinc contained in concentrate over the first five years of production.
• Kipushi's underground development activity is ahead of schedule, with 2,147 metres of lateral development completed since September 2022. Stoping of ultra-high-grade Big Zinc orebody is expected to begin in January 2024. The year-to-date underground development rate averages approximately 250 metres per month. The underground development rate is expected to increase to approximately 450 metres per month by year-end.

Conference call for investors on Thursday, August 3, 2023

Ivanhoe Mines will hold an investor conference call to discuss its 2023 second-quarter financial results at 3:30 p.m. London time / 10:30 a.m. Eastern time / 7:30 a.m. Pacific time on Thursday, August 3. The conference call will conclude with a question-and-answer (Q&A) session. Media are invited to attend on a listen-only basis.

To view the webcast please use the following link: https://edge.media-server.com/mmc/p/3envh996

Analysts are invited to join by phone for the Q&A using the following link: https://register.vevent.com/register/BI41a67c7e4bc743e7975234c0ae560d1a

An audio webcast recording of the conference call, together with supporting presentation slides, will be available on Ivanhoe Mines' website at www.ivanhoemines.com.

After issuance, the Financial Statements and Management's Discussion and Analysis will be available at www.ivanhoemines.com and www.sedarplus.ca.

SELECTED QUARTERLY FINANCIAL INFORMATION

The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period. All revenue from commercial production at Kamoa-Kakula is recognized within the Kamoa Holding joint venture. Ivanhoe did not declare or pay any dividend or distribution in any financial reporting period.

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