Mr. Robert Friedland reports

IVANHOE MINES REPORTS RECORD QUARTERLY PRODUCTION OF 103,947 TONNES FROM KAMOA-KAKULA COPPER COMPLEX FOR Q3 2023

Ivanhoe Mines Ltd.'s Kamoa-Kakula copper complex in the Democratic Republic of the Congo (DRC) produced a record 103,947 tonnes of copper in concentrate during the third quarter of 2023.

Kamoa-Kakula's phase 1 and 2 concentrators have consistently operated at a steady-state throughput rate of 9.2 million tonnes per annum (Mtpa) following the ahead-of-schedule completion of the debottlenecking program during the first quarter, and have regularly surpassed this throughput rate during the second and third quarter. The phase 1 and 2 concentrators produced 35,267 tonnes of copper in concentrate for August and produced 33,044 tonnes of copper during the shorter month of September.

Kamoa-Kakula's phase 1 and 2 concentrators milled approximately 2.24 million tonnes (Mt) of ore during the third quarter at an average feed grade of 5.55 per cent copper (Cu). This included high-grade, run-of-mine ore from the Kakula mine, supplemented with ore from the surface stockpiles to achieve throughput in excess of original design capacity. Strong copper recoveries continued for the quarter, averaging 87.2 per cent.

The third quarter brings Kamoa-Kakula's year-to-date production to 301,336 tonnes of copper in concentrate, which includes the ramp-up of the debottlenecking initiatives since February, 2023. The 2023 annual production guidance for Kamoa-Kakula is maintained at between 390,000 tonnes to 430,000 tonnes of copper in concentrate.

All figures are on a 100-per-cent project basis and metal reported in concentrate is before refining losses or deductions associated with smelter terms.

Watch a September, 2023, Kamoa-Kakula highlight video on Vimeo.

Robert Friedland, Ivanhoe Mines founder and executive co-chair, commented:

"Kamoa-Kakula continues to set records and outperform our expectations, with continued strong performance in terms of throughput, grade and recovery at the phase 1 and phase 2 plants. This has all been achieved despite ongoing challenges presented by electrical grid instability, where we now have a plan in place with the Congolese national utility to materially improve reliability across the network for all users over the next year. Meanwhile, the successful connection of the Kamoa 1 and Kansoko underground declines marks a major milestone for the phase 3 expansion. This achievement demonstrates our commitment to operational excellence, and is a testament to our strong partnership with Zijin Mining and the DRC government. Construction remains on budget and schedule for commissioning by the fourth quarter of 2024, further solidifying our track record of success.

"Ivanhoe Mines is on the cusp of a major turning point in the company's journey, with the conclusion of the phase 3 expansion expected to mark the commencement of major cash flow and profit for the company. This is an extremely exciting time for Ivanhoe's stakeholders and shareholders as we move forward with our vision of building the world's next major, diversified mining company. We would like to again commend Kamoa Copper's team for continuing to deliver industry-leading results across the operation."

Kamoa-Kakula reports record quarterly production of 103,947 tonnes of copper during the third quarter of 2023

Ivanhoe Mines announced the completion of Kamoa-Kakula's $50-million phase 1 and phase 2 debottlenecking program ahead of schedule on Feb. 27, 2023. The debottlenecking program increased the nameplate ore processing capacity by 22 per cent, from 7.6 Mt to 9.2 Mt of ore per annum, increasing production capacity up to approximately 450,000 tonnes per annum of copper in concentrate. For comparison, Kamoa-Kakula produced 333,497 tonnes of copper in concentrate in 2022.

Following the completion of the debottlenecking, the Kamoa-Kakula phase 1 and phase 2 concentrators continued to perform strongly in the third quarter, including the quarterly production of 103,947 tonnes of copper in concentrate. On July 2, 2023, a record daily milling rate of 29,968 dry metric tonnes was achieved, which is equivalent to an annual milling rate of 10 million tonnes per annum (after accounting for availability).

Kamoa-Kakula milled 2.24 million tonnes of ore during the third quarter at an average grade of 5.55 per cent copper. While the continuing expansion of underground infrastructure at the Kakula mine continues, ore is drawn as required from surface stockpiles to maximize copper production.

Kamoa-Kakula's high- and medium-grade ore surface stockpiles totalled approximately 4.1 million tonnes at an estimated grade of 3.55 per cent copper as of the end of September, 2023. The operation mined 2.18 million tonnes of ore grading 5.31 per cent copper in Q3 2023, which was composed of two million tonnes grading 5.57 per cent copper from the Kakula mine, including one million tonnes grading 7.10 per cent copper from the mine's high-grade centre.

The quarterly production record at Kamoa-Kakula was achieved despite continued intermittent grid instability.

Since 2023, Kamoa Copper has been working alongside DRC's state-owned power company, La Societe Nationale d'Electricite (SNEL), to identify the causes of instability across the southern DRC's grid infrastructure and to assist with delivering long-lasting solutions. Kamoa Copper has identified a series of upgrades and has agreed on a project plan with SNEL to deliver the improvements. Mobilization of resources is continuing, with vendor selection and equipment procurement having commenced.

In addition, Kamoa Copper's engineering team is currently expanding the on site backup generation capacity to ensure there is full on site redundancy for the current phase 1 and 2 operations, as well as future phase 3 operations. On site backup power generation capacity is set to increase, via a phased rollout, from the current 48 MW (megawatts) to a total of over 200 MW in time for the completion of the phase 3 expansion in Q4 2024.

Concurrently, negotiations to source up to, initially, an additional 30 MW of power from the Zambian grid interconnector are nearing completion.

Ball mill components for Kamoa-Kakula's phase 3 concentrator delivered to site -- concentrator execution is now 56 per cent complete and well on target for commissioning in Q4 2024

Kamoa-Kakula's phase 3 expansion, consisting of two new underground mines known as Kamoa 1 and Kamoa 2, and a new, five-Mtpa concentrator plant, is well on target for first production in the fourth quarter of 2024. The expansion also includes the integration of Africa's largest direct-to-blister flash smelter, which will have a capacity of 500,000 tonnes of copper per annum and will be constructed on site at Kakula, adjacent to the existing phase 1 and phase 2 concentrator plants.

Associated power and surface infrastructure constructed for the phase 3 expansion will be designed to support future expansions of the Kamoa-Kakula copper complex. Underground mining activities are expected to commence at Kamoa 1 in late 2023 and Kamoa 2 in 2025. Both new underground mines will use the same mechanized mining methods employed at the current Kakula mine. In addition, the phase 3 concentrator will use the same, upscaled process design as that used by the phase 1 and 2 concentrators.

Overall project progress of the phase 3 concentrator is now approximately 56 per cent complete. Production is well on schedule for the fourth quarter of 2024.

Detailed engineering design and procurement activities are essentially complete, with fabrication activities well advanced. The rate of equipment deliveries to site is steadily increasing. A total of 1,484 of the forecasted 1,950 truck deliveries have already arrived on site.

Civil works are now effectively complete, with nearly 30,000 cubic metres of concrete poured to date. The steel, mechanical, piping and plate work (SMPP) contract was awarded during the second quarter, and delivery of structural steel commenced. Over 6,300 tonnes of the required 7,400 tonnes of structural steel and plate work have been shipped to site.

The last lot of the 1,830-tonne primary and secondary ball mill equipment package from CITIC Heavy Industries of Henan province, China, has arrived at site except for the secondary mill feed chute, which is expected in the fourth quarter.

Installation of the first of the two ball mills has commenced at the phase 3 concentrator site, with flotation cell installation also under way. The first lots of cone crushers, flotation cells, vibrating screens, concentrate filters, cyclone cluster, compressor and pump mechanical equipment packages are now on site or expected to be delivered to site imminently.

The main access tunnels (drives) between the Kamoa 1 and Kansoko declines for the phase 3 development now are connected (holed) in the centre of the deposit, a major achievement and milestone for the project team and the underground mining crews as it opens the mine's footprint for ventilation and marks entry into higher-grade ore from both sides of the deposit.

Smelter project over 50 per cent complete and on target for commissioning in the fourth quarter of 2024

The smelter project is now approximately 58 per cent complete and is on target for commissioning in the fourth quarter of 2024.

Civil construction work is well advanced, with all major foundations for equipment and buildings completed. Most of the structural steel and equipment are now being manufactured. The main mechanical and electrical construction contractors are mobilized. Mechanical erection has started for the direct-to-blister flash furnace and electric slag-cleaning furnace and gas cleaning system. Approximately, 2,000 construction workers are now working at the smelter site and this is expected to peak at 3,000 in December this year.

The Kamoa-Kakula smelter is designed to utilize direct-to-blister flash smelting technology supplied by Metso Outotec of Espoo, Finland, and to meet the world-leading International Finance Corporation's (IFC) emissions standards.

Kamoa-Kakula's phase 3 expansion includes the refurbishment of turbine No. 5 at the Inga 2 hydroelectric power station. The turbine will supply an additional 178 megawatts of clean hydroelectric power to the national grid, which is sufficient to meet the power requirements of the phase 3 concentrator and the DBF flash smelter, as well as provide spare capacity for future expansions. The 99.7-per-cent pure blister anode copper produced from Kamoa-Kakula's smelter is expected to be one of the lowest carbon dioxide emitters in the world per tonne of copper produced.

The smelter will have a processing capacity of approximately 1.2 million tonnes per annum of dry concentrate feed and is designed to run on a blend of concentrate produced from the Kakula (phase 1 and 2) and Kamoa (phase 3 and future phase 4) concentrators. Under the Kamoa-Kakula 2023 integrated development plan, the smelter is projected to accommodate approximately 80 per cent of Kamoa-Kakula's total concentrate production. Kamoa-Kakula will also continue to toll-treat concentrates under a 10-year agreement with the Lualaba copper smelter (LCS), located approximately 50 kilometres from Kamoa-Kakula near the town of Kolwezi. Deliveries to LCS are expected to account for approximately 150,000 tonnes of copper concentrate annually.

As a byproduct, the smelter will also produce in the region of 650,000 tonnes to 800,000 tonnes per year of high-strength sulphuric acid. There is a strong demand for sulphuric acid in the DRC, as it is used to recover copper from oxide ores via the SX-EW (solvent extraction and electrowinning) process.

Upon commencement of phase 3 production, the Kamoa-Kakula copper complex will have a processing capacity of 14.2 million tonnes per annum. As a result, the copper production capacity will increase to approximately 650,000 tonnes per annum. This production rate will position the Kamoa-Kakula copper complex as the third-largest copper mining operation in the world.

Ivanhoe Mines to issue Q3 2023 financial results and host conference call for investors on Nov. 6, 2023

Ivanhoe Mines will report its Q3 2023 financial results and a detailed update on its operations before market open on Nov. 6, 2023.

The company will hold an investor conference call to discuss the Q3 2023 financial results at 10:30 a.m. ET (7:30 a.m. PT/4:30 p.m. Johannesburg) on the same day. The conference call will conclude with a question-and-answer (Q&A) session. Media are invited to attend on a listen-only basis.

View the webcast on-line.

Analysts are invited to join by phone for the Q&A.

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

After issuance, the financial statements, and management's discussion and analysis, will be available at the company's website and SEDAR.

Qualified persons

Disclosures 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 National Instrument 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines' executive vice-president of projects. Mr. Amos has verified the technical data disclosed in this news release.

Other disclosures of a scientific or technical nature regarding the stockpiles in this news release have been reviewed and approved by George Gilchrist, who is considered, by virtue of his education, experience and professional association, a qualified person under the terms of NI 43-101. Mr. Gilchrist is not considered independent under NI 43-101 as he is the vice-president of resources for Ivanhoe Mines. Mr. Gilchrist has verified the other technical data regarding the surface stockpiles disclosed in this news release.

Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the Kamoa-Kakula project, which is available on the company's website and under the company's SEDAR profile.

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 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.

Ivanhoe Mines also is exploring for new copper discoveries across its approximately 2,400 square kilometres of 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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