Mr. Robert Friedland reports

IVANHOE MINES ISSUES 2024 FIRST QUARTER FINANCIAL RESULTS, AND OVERVIEW OF CONSTRUCTION AND EXPLORATION ACTIVITIES

Ivanhoe Mines Ltd. has released its financial results for the three months ended March 31, 2024. Ivanhoe Mines is a leading Canadian mining company that is advancing its four principal mining and exploration projects in Southern Africa: the expansion of the Kamoa-Kakula copper complex in the Democratic Republic of the Congo (DRC), which is expected to be the third-largest copper mine globally; the phased development of the Platreef palladium, nickel, platinum, rhodium, copper and gold project in South Africa, which is the world's largest undeveloped precious metals project and one of the largest nickel sulphide deposits; the restart of the historic Kipushi zinc-copper-lead-germanium mine in the DRC, which is expected to be one of the largest zinc mines globally; and exploration on Ivanhoe's 2,650-square-kilometre Western Foreland exploration project for new sedimentary copper discoveries, as well as expanding and further defining the high-grade Makoko, Kiala and Kitoko copper discoveries that are adjacent to Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

Ivanhoe Mines founder and executive co-chairman Robert Friedland commented:

"Kamoa-Kakula continues to excel, generating significant EBITDA [earnings before interest, taxes, depreciation and amortization] at consistent margins and maintaining cash costs at the low end of our 2024 forecast. This was achieved despite grid instability during the quarter that impacted copper production. Our management team has acted swiftly and decisively to resolve this issue, by securing 55 megawatts of imported power from neighbouring countries via the Zambian grid, as well as by expanding our on-site backup generation capacity. As a result of this intervention, we have seen a significantly improved start to the second quarter at Kamoa-Kakula.

"Kamoa-Kakula's development milestones are consistently met on budget and ahead of schedule, with the phase 3 mill and mine expansion completed two quarters earlier than planned. Anticipating first ore in the circuit next month, phase 3 will boost annual production to over 600,000 tonnes of copper ... solidifying Kamoa-Kakula as one of the world's leading copper producers. With improved power supply and accelerated phase 3 output, we stand by our annual copper production forecast of between 440,000 to 490,000 tonnes.

"Copper prices have recently reached $10,000 per tonne, signalling an impending supply shortage, which is emphasized by smelter treatment charges for copper concentrate approaching zero in the spot market. Copper producers cannot keep up with the pace of demand for this essential metal, including from advanced technologies such as data centres, which were recently estimated to consume over two million tonnes of copper as soon as 2030 ... added to which is an unseen explosion in demand from the global military complex.

"Given this backdrop, we are looking to accelerate our growth plans at Kamoa-Kakula to produce even more green copper. We are excited by the upcoming results of our engineering for Project 95 -- increasing our metallurgical recoveries to significantly increase production. We are also already looking at the possibility of optimizing our phase 3 plant to increase throughput beyond five Mtpa [million tonnes per annum], and potentially bringing forward the phase 4 concentrator expansion.

"We have the most incredible resource endowment at Kamoa-Kakula, including our high-grade, mechanized underground operations, which are currently producing at around 5 per cent copper head grade, and great potential to expand our underground mining footprint. We are also evaluating in detail the opportunity for world-class open-pit mining on the north of our Kamoa-Kakula mining licence. This remarkable mining complex has the capability to produce at over 20 Mtpa capacity for decades, chasing down the No. 1 copper producer globally. There is much more to come this year at Kamoa-Kakula, without even mentioning the new deposits we are unearthing in the Western Forelands."

Financial highlights:

• Ivanhoe Mines' normalized profit for Q1 2024 was $70-million, compared with a normalized profit of $113-million for Q1 2023. Including a $139-million non-cash loss on the $575-million convertible bond fair valuation, Ivanhoe Mines recorded a loss of $69-million for Q1 2024, compared with a profit of $82-million for Q1 2023. The non-cash loss on the convertible bond resulted from a 26-per-cent appreciation in the Ivanhoe Mines share price to $16.16 (Canadian) during the quarter.
• Ivanhoe Mines' adjusted EBITDA was $126-million for Q1 2024, compared with $172-million for the same period in 2023, which includes an attributable share of EBITDA from Kamoa-Kakula.
• During Q1 2024, Kamoa-Kakula sold 85,155 tonnes of payable copper, recognizing revenue of $618-million, an operating profit of $286-million and quarterly EBITDA of $365-million. The realized copper price for the quarter was $3.82/pound. The current copper price (London Metal Exchange) as of April 29, 2024, is over $10,000/t ($4.54/lb).
• Kamoa-Kakula's cost of sales per pound (lb) of payable copper sold was $1.50/lb for Q1 2024 compared with $1.50/lb and $1.25/lb in Q4 2023 and Q1 2023, respectively. Cash cost (C1) per pound of payable copper produced in Q1 2024 totalled $1.57/lb, toward the lower end of the guidance range of $1.50 to 1.70/lb, and compared with $1.53/lb and $1.42/lb in Q4 2023 and Q1 2023, respectively.
• Ivanhoe Mines has a strong balance sheet with cash and cash equivalents of $411-million on hand as at March 31, 2024, and expects Kamoa-Kakula's phase 1 and phase 2 cash flow and project-level facilities to be sufficient to finance the phase 3 expansion capital cost requirements at current copper prices.
• Concurrent with the quarterly results, Ivanhoe Mines announced the redemption of all its outstanding 2.50 per cent convertible senior notes due 2026. The notes will be redeemed on July 11, 2024, at a price equal to 100 per cent of the principal amount of the notes redeemed plus accrued and unpaid interest. The company will settle any conversions in shares, resulting in up to 79.8 million shares to be issued. Ivanhoe will reduce total debt to below $150-million following redemption of the $575-million convertible notes.

Operational highlights:

• Kamoa-Kakula produced 86,203 tonnes of copper in Q1 2024, with annual production guidance maintained at between 440,000 and 490,000 tonnes of copper in concentrate. Production during the quarter was impacted by instability within the DRC power grid.
• Since mid-March, 15 megawatts (MW) of imported power has been supplied to Kamoa-Kakula from the neighbouring Zambian grid. The imported power has significantly improved the stability of Kamoa-Kakula's operations, with production in April, a 30-day month, expected to be approximately 32,000 tonnes of copper in concentrate. Kamoa-Kakula also recently signed an agreement to secure an additional 40 MW of imported power sourced from Mozambique from tomorrow, May 1. Mozambique's electrical generation capacity is 77 per cent supplied by hydroelectricity.
• Precommissioning of the Kamoa-Kakula phase 3 concentrator, with a nameplate capacity of five million tonnes per annum (Mtpa), is under way. First ore is due to be fed imminently, over six months ahead of the initial schedule. Construction of the direct-to-blister smelter is over 80 per cent complete and on track for the end of 2024.
• Basic engineering on Project 95 is under way and is expected to be completed in Q2 2024. Ivanhoe's previously announced Project 95 is an initiative to increase the overall metallurgical copper recovery rate of Kamoa-Kakula's operations from the current nameplate rate of 87 per cent up to approximately 95 per cent.
• Kamoa-Kakula signed a term sheet outlining the key terms for a reserved capacity agreement for the transportation of up to 240,000 tonnes of copper products along the Lobito corridor from 2025.
• Kamoa-Kakula completed the first 10,000-tonne trial shipment of copper concentrate along the Lobito corridor, as per the memorandum of understanding (MOU) announced on Aug. 18, 2023. Shipments continue under the second 10,000-tonne trial, as per the term sheet as announced on Feb. 7, 2024.
• At Kipushi, construction of the new concentrator is ahead of schedule with precommissioning activities now under way. To date, approximately 260,000 tonnes of ore are stockpiled on surface near the Kipushi concentrator. First feed of ore into the concentrator is expected in June.
• At Platreef, an updated independent feasibility study (FS) on an optimized development plan for phase 2 is planned to be completed and published in the fourth quarter of 2024. The optimized development plan accelerates the development of phase 2 at a total processing capacity of four Mtpa by equipping Shaft No. 3 for hoisting.
• In addition, a preliminary economic assessment (PEA) on a phase 3 expansion is expected to be completed at the same time, increasing Platreef's processing capacity up to approximately 10 Mtpa. Phase 3 is anticipated to rank Platreef as one of the world's largest and lowest-cost platinum group metal, nickel, copper and gold producers.
• Diamond drilling on the 2,650-square-kilometre Western Foreland exploration project has been focused on Kitoko, Makoko West and Makoko East, with between five and eight drill rigs operating during the quarter. A total of 16,861 metres of diamond core have been drilled in 18 completed holes to date.
• Ivanhoe Mines published its seventh annual sustainability report, underscoring the company's continuing commitment to mining with a greater purpose and its pursuit to be a global leader in responsible mining. Please visit Ivanhoe Mines' website to view the report.

Q1 2024 conference call for investors

Ivanhoe Mines will hold an investor conference call to discuss its Q1 2024 financial results at 10:30 a.m. Eastern Time/7:30 a.m. Pacific Time on Tuesday, April 30. The conference call will conclude with a question-and-answer (Q&A) session. Media are invited to attend on a listen-only basis.

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 condensed consolidated interim financial statements and management's discussion and analysis will be available on Ivanhoe Mines's website and SEDAR+.

Selected quarterly financial information

The attached 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.

Disclosure of technical information

Disclosures of a scientific or technical nature in this release regarding the Kamoa-Kakula copper complex, the Platreef project and the Kipushi project 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 the executive vice-president, projects, at Ivanhoe Mines. Mr. Amos has verified the technical data related to the foregoing disclosed in this press release.

Disclosures of a scientific or technical nature regarding the Western Foreland Exploration project in this press release have been reviewed and approved by Tim Williams, who is considered, by virtue of his education, experience and professional association, a qualified person under the terms of NI 43-101. Mr. Williams is not considered independent under NI 43-101 as he is the vice-president, geosciences, at Ivanhoe Mines. Mr. Williams has verified the technical data regarding the Western Foreland exploration project disclosed in this press release.

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

These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef project, the Kipushi project and the Kamoa-Kakula copper complex cited in this press release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this press release in respect of the Platreef project, Kipushi project and Kamoa-Kakula copper complex.

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