Mr. Robert Friedland reports

IVANHOE MINES ANNOUNCES UPDATED GREENHOUSE GAS ASSESSMENT CONFIRMING KAMOA-KAKULA COPPER COMPLEX AS THE WORLD'S LOWEST CARBON-EMITTING MAJOR COPPER MINE

Ivanhoe Mines Ltd. has released an updated current and future greenhouse gas (GHG) emissions assessment of the Kamoa-Kakula copper complex. The assessment, conducted by independent consultants Skarn Associates of London, England, and WSP Group of Montreal, Canada, confirms that Kamoa-Kakula is the market-leading major copper producer in terms of GHG emissions. In addition, the assessment highlights the significant reduction in combined scope 1, 2 and 3 GHG emissions intensity following the completion of the direct-to-blister copper smelter expected in Q4 2024.

The company is also pleased to report that the refurbishment of turbine No. 5 at the Inga II hydroelectric facility is approximately 50 per cent complete and is advancing on budget and on schedule. Turbine No. 5 will generate 178 megawatts of clean, hydroelectric power into the Democratic Republic of the Congo (DRC) grid following completion in Q4 2024.

In addition, Ivanhoe Mines has appointed independent consulting firm BDO Global of Zaventem, Belgium, to assist with shaping the company's decarbonization strategy and pathway to net-zero emissions.

Ivanhoe Mines' executive co-chair, Robert Friedland, commented:

"The world is waking up to the fact that copper is the undisputed metal of electrification, with even conservative forecasts predicting that demand will double in size by 2035, based on massive requirements from renewable energy generation, grid-scale transmission and storage infrastructure, and the electrification of mass transportation.

"We have said it before -- there will absolutely be no energy transition to net zero without a transformational increase in the amount of primary copper produced by the mining industry. However, the inhabitants of our planet are also demanding that mining companies work to limit greenhouse gas emissions and safeguard the environment. The achievements at Kamoa-Kakula demonstrate that mining can indeed be reinvented to sustainably provide the metal that we so desperately need, without compounding the problem of global warming and in harmony with our employees, local communities, government partners and stakeholders.

"Kamoa-Kakula is proof that the Democratic Republic of the Congo will be the future of low-carbon copper production, with its unique high-grade mineral endowment, exceptional hydropower potential and rapidly improving infrastructure, such as the Lobito corridor."

Kamoa-Kakula copper complex is the world's lowest carbon-emitting major copper mine on a scope 1 and 2 basis

The updated GHG emissions assessment recently completed by Skarn Associates and WSP Group confirms that in 2022 Kamoa-Kakula produced among the lowest carbon emissions per unit of copper in the world, and the lowest of any major copper mine.

This is partially due to the incredibly high-grade orebodies at Kamoa-Kakula with ore milled at an average grade of 5.5 per cent in 2022, roughly 10 times higher than the estimated average copper head grade globally of 0.6 per cent.

It is also a function of the DRC grid being among the world's cleanest, with 99.5 per cent of grid power generated from hydroelectricity, according to the U.S. Energy Information Administration. This includes investments in hydropower generation that Kamoa Copper has made in partnership with DRC state utility Societe Nationale d'Electricite (SNEL), such as the completed 78 MW Mwadingusha hydroelectric facility and the continuing work at Turbine No. 5 of the Inga II hydroelectric facility.

On a scope 1 and 2 basis (reported from ore to mine gate), Kamoa-Kakula's GHG emissions intensity in 2022 was 0.16 equivalent tonne of carbon dioxide per tonne of contained copper produced (CO2-e/t Cu). This comfortably ranks Kamoa-Kakula almost at the bottom of the scope 1 and 2 GHG emissions curve.

Phase 3 direct-to-blister flash copper smelter will be one of the world's largest copper smelters and also one of the greenest

Kamoa-Kakula's continuing phase 3 expansion, which is on schedule to be completed in Q4 2024, consists of a new five-million-tonne-per-annum (Mtpa) underground mine and concentrator at Kamoa, an on-site direct-to-blister flash copper smelter, as well as the refurbishment of Turbine No. 5 at the Inga II hydroelectric power station.

Turbine No. 5 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, the smelter, as well as provide spare capacity for the DRC grid and future expansions.

The new direct-to-blister flash copper smelter is projected to be one of the largest, single-line copper flash smelters in the world, and the largest in Africa. The smelter will have a nameplate production capacity is 500,000 tonnes per annum of over 99 per cent pure blister copper anodes.

The 100-hectare smelter complex is under construction adjacent to the operating phase 1 and phase 2 concentrator plants. The smelter has been designed to incorporate leading-edge direct-to-blister technology supplied by Metso Outotec of Espoo, Finland, and will meet the International Finance Corp.'s (IFC) emissions standards.

The smelter will have a processing capacity of approximately 1.2 Mtpa of dry concentrate feed and is designed to run on a blend of concentrate produced from the adjacent phase 1 and 2 concentrators at Kakula and the phase 3 (and future phase 4) concentrators at Kamoa, located approximately 10 kilometres away.

According to the assessment completed by Skarn Associates and WSP Group, the smelter will have one of the world's lowest scope 1 and 2 GHG emission intensities. The smelter is estimated to produce 0.36 CO2-e/t Cu. Out of the approximately 100 copper smelters analyzed globally, the smelter is estimated to rank fourth lowest in terms of GHG emissions.

Smelter investment will reduce Kamoa-Kakula carbon emissions per unit of refined copper (scope 1, 2 and 3) by an additional 46 per cent

On the basis of scope 1, 2 and 3 (partial) emissions, including downstream emissions beyond the mine gate to produce London Metal Exchange-grade refined metal, Skarn Associates and WSP Group estimate that Kamoa-Kakula's GHG emissions intensity in 2022 was 2.42 CO2-e/t Cu. Following the completion of the phase 3 expansion and the smelter, the emissions intensity of Kamoa-Kakula on a scope 1, 2 and 3 basis is estimated to almost halve to 1.31 CO2-e/t Cu. Industry peer data compiled by Skarn Associates rank the Kamoa-Kakula copper complex comfortably within the bottom decile of the GHG emissions intensities on a scope 1, 2 and 3 basis.

The significant reduction in GHG emissions is due to the improvement in scope 3 emissions from the on-site smelter. This is partially due to the smelter being inherently lower in GHG emissions intensity compared with typical smelters currently used. The most significant impact is in terms of the transportation of a higher-grade copper anode, instead of shipping copper concentrate.

Currently, copper concentrate of approximately 50 per cent copper (excluding moisture) is trucked up to 3,000 kilometres to the ports of Durban, South Africa, Dar es Salaam, Tanzania, and Walvis Bay, Namibia, where it is exported to the international markets to be smelted. Following the completion of the Kamoa-Kakula copper smelter, copper will be transported to port in the form of 99.7 per cent pure copper anodes. Therefore, transporting anode with over double the contained copper content, compared with concentrate, requires under half the number of trucks per unit of copper.

In addition, sulphur dioxide off-gas generated from the smelting process is captured to produce high-strength sulphuric acid. This byproduct will be sold in liquid form domestically within the DRC Copperbelt. This significantly benefits the GHG emissions of local mining operations that consume sulphuric acid to leach copper from oxide ores. These operations are located between 20 and 60 kilometres away the Kamoa-Kakula. Ninety-five per cent of the sulphuric acid used in the DRC is generated from energy-intensive sulphur furnaces that burn sulphur powder that is imported from as far as the port of Durban, approximately 3,000 km away. Purchasing high-strength sulphuric acid domestically provides these local mining operations with significant GHG emissions savings, due to the proximity of the smelter and the method by which the acid is generated.

Further emissions reduction possible in the supply chain from the Lobito corridor

To support the further reduction of downstream (scope 3) GHG emissions, Kamoa-Kakula is working with its offtake partners. This includes targeting low-emission copper refineries, where commercially feasible, as well as supporting lower-carbon-intensive logistics routes, such as the Lobito railway corridor.

As announced on Aug. 16, 2023, Kamoa-Kakula plans to commence trial shipments along the Lobito railway corridor in Q4 2023. The new Lobito railway corridor is a significantly shorter and more direct route to a seaport than the current export routes.

On completion of the trial shipments, Kamoa-Kakula will be able to estimate the GHG emissions savings from using this route, compared with the current trucking routes.

Refurbishment of hydropower at Inga II approximately 50 per cent complete and on schedule for Q4 2024 completion

The refurbishment of Turbine No. 5 at the Inga II hydroelectric facility is approximately 50 per cent complete and advancing on schedule, and well within budget, for completion in Q4 2024.

Originally built in the 1980s, the Inga II hydroelectric facility consists of eight turbines with a total generation capacity of 1.4 gigawatts. However, the facility currently operates at approximately 50-per-cent utilization, with Turbine No. 5 having been non-operational since 2018.

Kamoa Copper has been working with state-owned power utility Societe Nationale d'Electricite (SNEL) since 2016 to finance and manage the refurbishment of the Mwadingusha hydroelectric facility, as well as more recently, the refurbishment of Turbine No. 5 at the Inga II hydroelectric facility. The refurbishment of SNEL's Mwadingusha was completed in September, 2021, and has been generating 78 MW of power into the DRC grid since. Through a power purchase agreement with SNEL, Kamoa-Kakula is supplied with the hydroelectric power generated from both refurbished hydroelectric facilities.

The Turbine No. 5 refurbishment project consists of the removal and replacement of all the original mechanical and electrical turbine equipment. Engineering studies were completed in early 2022, with dismantling works commencing at the end of 2022. Year to date, the old turbine, transformers, alternators and all associated control equipment have been successfully dismantled and removed, as well as all replacement equipment has been ordered.

All long-lead order equipment packages, consisting of the transformers, the turbine and the alternator, have been fabricated and shipped, and are expected to be delivered to site by year-end. In addition, other major equipment packages, including the turbine runner, turbine shaft and stator frame, have also been fabricated and shipped, with their arrival expected on site by the end of November, 2023. All that remains to be delivered are the alternator rotor poles and the water intake main gate, which are both expected to arrive early in the new year.

In addition, the refurbishment of the powerhouse gantry crane is expected to be completed imminently, which will be used to lower the new equipment into place. All contractors are mobilized on site and are ready to commence assembly works in January, 2024. Following wet commissioning and synchronization to the grid in Q4 2024, the fully refurbished Turbine No. 5 is expected to generate 178 MW of hydroelectric power to the DRC grid.

Ivanhoe Mines initiates work on group decarbonization strategy and pathway to net-zero emissions

Ivanhoe is committed to becoming a global leader in the supply of critical resources required to transition to a low-carbon, renewable future. The company is therefore taking a pro-active response to climate change by developing its projects in a sustainable, environmentally and socially responsible manner.

In line with this approach, Ivanhoe has appointed BDO, a globally recognized, independent advisory firm, to assist with the development of Ivanhoe's long-term decarbonization strategy and net-zero road map. In addition, BDO will support detailed climate scenario analysis, to highlight the risks to and from Ivanhoe Mines' business due to climatic change.

The recently completed GHG analysis at Kamoa-Kakula, currently the company's only operational project, will form part of the Ivanhoe's carbon baseline. From this work, an investigation will be made into where decarbonization is possible on an activity-by-activity basis.

The decarbonization of activities will then inform the carbon target-setting and net-zero options. Where decarbonization will not be possible, carbon credits may be used to offset the remaining GHG emissions to reach net zero. It is imperative that any carbon credits purchased originate from projects aligned with Ivanhoe's values and community-driven objectives.

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 2 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 is also exploring for new copper discoveries across its approximately 2,400 square km of 80-to-100-per-cent-owned exploration licences in the Western Foreland, which are located adjacent to, or in close proximity to, the Kamoa-Kakula copper complex in the DRC.

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