Mr. Robert Friedland reports

IVANHOE MINES' EXPORTS COMMENCE FROM KAMOA-KAKULA COPPER COMPLEX ALONG LOBITO ATLANTIC RAIL CORRIDOR

The first shipment of copper concentrate from Ivanhoe Mines Ltd.'s Kamoa-Kakula copper complex has arrived by rail at the Atlantic Ocean port of Lobito, in Angola. The first shipment is a part of the trial tonnage under the memorandum of understanding (MOU) signed between Lobito Atlantic International SARL (LAI or the consortium) and Kamoa Copper SA on Aug. 18, 2023.

The rail line, linking the Democratic Republic of the Congo (DRC) copper belt to the port of Lobito in Angola, is known as the Lobito Atlantic Railway Corridor. The rail line extends 1,289 kilometres east, from the port of Lobito to the Angola-DRC border town of Luau. The line then extends 450 kilometres east into the DRC, on the Societe Nationale des Chemins de fer du Congo (SNCC) rail network, to Kolwezi. The line passes within five kilometres of the Kamoa-Kakula copper complex licence boundary and through the Western Foreland exploration project.

The previously announced trial shipment is for the transportation of up to 10,000 tonnes of copper concentrate from Kamoa-Kakula's phase 1 and phase 2 concentrators, along the Lobito corridor. Information will be gathered from the trial shipment on greenhouse gas (GHG) savings, transit times, operating costs and other factors.

An initial shipment of approximately 1,110 tonnes of Kamoa-Kakula's copper concentrate was loaded on rail wagons at the Impala Terminals warehouse in Kolwezi and departed west along the Lobito corridor on Dec. 23, 2023. The shipment arrived at the port of Lobito eight days later on Dec. 31, 2023.

Currently, Kamoa-Kakula trucks its copper concentrates by road across sub-Saharan Africa to the ports of Durban in South Africa and Dar es Salaam in Tanzania, as well as Beira in Mozambique and Walvis Bay in Namibia. In 2023, approximately 90 per cent of Kamoa-Kakula's concentrates were shipped to international customers from the ports of Durban and Dar es Salaam, where an average round trip takes between approximately 40 and 50 days. The distance from Kamoa-Kakula to the port of Lobito is approximately half that compared with the port of Durban, and transportation by rail is both quicker and significantly less energy intensive.

Once fully active, the Lobito Atlantic Railway Corridor is expected to significantly improve the logistics costs and reduce the Scope 3 emissions carbon footprint of Kamoa-Kakula copper exports. The development of Ivanhoe's current and future copper discoveries within the Western Foreland basin will also greatly benefit from the Lobito corridor.

Ivanhoe Mines founder and executive co-chairman Robert Friedland commented: "Our first trial shipment is an important milestone on the path to creating a new supply chain linking the central African copper belt to world markets. Establishing a reliable, modern rail link to the port of Lobito in Angola will have transformational benefits for the people of the Democratic Republic of the Congo, Angola and Zambia. Steel wheels going downhill on steel rails, from over 3,000 feet elevation at Kamoa-Kakula down to sea level at Lobito, will lower the cost and carbon footprint associated with producing and exporting our 99.7 per cent copper blister anodes across the copper belt. Further improvements are possible through the use of technology, such as battery-electric locomotives recently launched by Wabtec Corp. of Pittsburgh, Pa., which are capable of generating electricity as they go downhill.

"Lower logistical costs unlocked by the Lobito corridor together with our hydroelectric development projects in the DRC, with over 98 per cent of electricity in the country already being generated by cheap, green hydropower, equate to lower cut-off grades and increase the amount of economically recoverable copper in the region. This infrastructure investment is even more important for projects like the Western Foreland, following the recent high-grade and open-ended Kitoko copper discovery and our Makoko-Kiala mineral resources, as we significantly increase exploration and development activities across this vast copper basin in search of our next world-class copper discovery. The world desperately needs the ultragreen copper metal that Ivanhoe Mines produces in the DRC."

LAI is a consortium, which has a 30-year concession for railway services and supports logistics on the Lobito corridor, comprising leading global commodities trading group Trafigura Pte. Ltd., Mota-Engil Engenharia e construcao Africa SA and Vecturis SA. The consortium has committed to invest $455-million (U.S.) in Angola and up to a further $100-million (U.S.) in the DRC on the improvement of the Lobito corridor's rail infrastructure, capacity and safety, including rolling stock consisting of over 1,500 wagons and 35 locomotives. There is also potential for additional investment in the future as the opportunity is explored to further extend the Lobito corridor into Zambia.

The Lobito corridor will also reduce pressure on the DRC's other logistics corridors, and dramatically reduce the cost of exporting and importing into the DRC copper belt. DRC, Angola and Zambia will benefit from accelerated social and economic development as a direct consequence of the support the Lobito corridor is receiving from the United States and European governments.

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 Democratic Republic of the Congo; the construction of the Tier 1 Platreef palladium-rhodium-platinum-nickel-copper-gold project in South Africa; and the restart of the historical, 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 80-per-cent-to-100-per-cent-owned licences, as well as on the 247 square kilometres of newly acquired joint venture licences, in the Western Foreland located adjacent to the Kamoa-Kakula copper complex in the DRC.

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