Ivanhoe Mines issues 2023 first quarter financial results, and overview of construction and exploration activities

May 3, 2023

Ivanhoe Mines issues 2023 first quarter financial results, and overview of construction and exploration activities ■ Kamoa-Kakula sold 86,777 tonnes of payable copper during the quarter and recognized record revenue of $689 million, as well as record EBITDA of $452 million ■ Ivanhoe Mines recorded Q1 2023 profit of $82 million, net of $31 million non-cash loss on the convertible bond fair valuation ■ Kamoa-Kakula produced 93,603 tonnes of copper in Q1 2023, including a record 34,915 tonnes of copper in March, following debottlenecking program completed ahead of schedule ■ Kamoa-Kakula’s quarterly cost of sales total $1.25 per lb. of payable copper; C1 cash costs of $1.42 per lb. towards the lower end of guidance ■ Kamoa-Kakula’s Phase 3 expansion on track for Q4 2024; boosting copper production to a ten-year average of 620,000 tonnes per annum, at C1 cash cost of $1.22/lb.

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Ivanhoe Mines commences optimization work on installing hoisting capacity in Shaft 3 at the Tier-One Platreef palladium, nickel, platinum, rhodium, copper and gold mine in South Africa

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Ivanhoe Mines agrees off-take terms with Gécamines and Glencore for 100% of Kipushi's zinc concentrate, together with US$250 million facility

JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) President Marna Cloete and Chief Financial Officer David van Heerden are pleased to present the company’s financial results for the three months ended March 31, 2023. Ivanhoe Mines is a leading Canadian mining company that is advancing its four principal mining and exploration projects in Southern Africa: the Phase 3 expansion of the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC) that commenced commercial operations in July 2021; the construction of the Platreef palladium, nickel, platinum, rhodium, copper and gold project in South Africa, scheduled for first production in the third quarter of 2024; the restart of the historic Kipushi zinc-copper-lead-germanium mine in the DRC, also scheduled for first production in the third quarter of 2024; and the exploration for new copper discoveries on Ivanhoe’s 2,407-square-kilometre Western Foreland exploration project, which is adjacent to Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $82 million for Q1 2023, compared to a

profit of $22 million for the same period in 2022. The profit in the quarter is net of a $31 million non-cash loss on the fair value adjustment of the embedded derivative financial liability of the convertible bond, resulting predominantly from a 14% increase in the share price from C$10.70 per share to C$12.21 per share at quarter end. The profit includes Ivanhoe Mines’ share of profit and finance income from the Kamoa-Kakula joint venture of $130 million for Q1 2023.

• Adjusted Q1 2023 EBITDA for the Ivanhoe Mines group of $168 million,

compared to $145 million for the same period in 2022, and $162 million for Q4 2022, which includes an attributable share of EBITDA from Kamoa-Kakula.

• During Q1 2023, Kamoa-Kakula sold 86,777 tonnes of payable copper and

recognized record revenue of $689 million, with an operating profit of $416 million and record quarterly EBITDA of $452 million.

• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was

$1.25/lb. for Q1 2023 compared with $1.08/lb. and $1.08/lb. in Q4 2022 and Q1 2022, respectively. Cash costs (C1) per pound of payable copper produced in Q1 2023 totalled $1.42/lb., compared to $1.42/lb. and $1.21/lb. in Q4 2022 and Q1 2022, respectively.

• Ivanhoe Mines has a strong balance sheet with cash and cash equivalents of

$497 million on hand as at March 31, 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.

• Off-take and financing terms agreed with Gécamines and Glencore to return

Ivanhoe’s ultra-high-grade Kipushi Mine to production in Q3 2024; off-take term sheet for 100% of Kipushi’s zinc concentrate, together with a $250-million facility to finance construction.

OPERATIONAL HIGHLIGHTS

• Kamoa-Kakula produced 93,603 tonnes of copper in Q1 2023, including a

record 34,915 tonnes of copper in March 2023, following the completion of the debottlenecking program in late February 2023, ahead of schedule and on- budget.

• Kamoa-Kakula’s Phase 1 and 2 concentrators have continued to perform

strongly, achieving a daily mill throughput record of over 29,000 tonnes, and also achieving recoveries in excess of 88% during March and April, significantly higher than the design rate of 86%.

• Construction for Platreef’s Phase 1 concentrator is advancing well and is on

track for first production in Q3 2024. The Shaft 2 headgear concrete structure is complete to a height of approximately 79 metres. Shaft 2’s overall height will be approximately 100 metres above ground, including the steel structure housing the main winders.

• Ivanhoe initiated an optimization study at Platreef to potentially accelerate

production from the Phase 2 expansion. The study will consider the implications of converting the 5.1-metre-diameter ventilation shaft (Shaft 3), which is under construction, to a production shaft with the capability to hoist.

• Surface construction activities and underground development of the Big Zinc

orebody at Kipushi are advancing ahead of schedule, with first concentrate production expected in Q3 2024.

• Ivanhoe continues its expansive copper exploration program on its Western

Foreland licences that cover approximately 2,407 square kilometres adjacent to Kamoa-Kakula. Diamond drilling commenced in early January with a single contractor rig, which was increased to three rigs by the end of March, together with an Ivanhoe Land Cruiser mounted diamond drill rig. A total of 4,883 meters of diamond core was drilled during the quarter, which was wet season.

• Ivanhoe Mines published its sixth annual Sustainability Report, underscoring

the company’s ongoing commitment to “mining with a greater purpose” and its pursuit to be a global leader in responsible mining. Please visit www.ivanhoemines.com to view the report.

Watch a Q1 2023 video of operations and construction activities at Kamoa-Kakula: https://vimeo.com/823071306/8b676323fb

Read Ivanhoe’s First Quarter 2023 Sustainability Update:

https://bit.ly/40XMxeC

Q1 2023 conference call for investors

Ivanhoe Mines will hold an investor conference call to discuss its Q1 2023 financial results at 10:30 a.m. Eastern time / 7:30 a.m. Pacific time on Wednesday, May 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/i6yyz97g

Analysts are invited to join by phone for the Q&A using the following link: https://register.vevent.com/register/BI639b8647ae7c4cf6802991597dd26b68

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.sedar.com.

Principal projects and review of activities

1. Kamoa-Kakula Copper Complex

39.6%-owned by Ivanhoe Mines Democratic Republic of Congo

The Kamoa-Kakula Copper Complex operated as the Kamoa Holding joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the world’s third-largest copper deposit by international mining consultant Wood Mackenzie in 2027. The project is approximately 25 kilometres southwest of the town of Kolwezi and about 270 kilometres west of Lubumbashi. Kamoa-Kakula Copper Complex’s Phase 1 concentrator began producing copper in May 2021 and achieved commercial production on July 1, 2021. The Phase 2 concentrator, which doubled nameplate production capacity, was commissioned in April 2022.

Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining and a 1% share interest in Kamoa Holding to privately owned Crystal River in December 2015. Kamoa Holding holds an 80% interest in the project. Ivanhoe and Zijin Mining each hold an indirect 39.6% interest in Kamoa-Kakula, Crystal River holds an indirect 0.8% interest, and the DRC government holds a direct 20% interest. Kamoa- Kakula’s employee workforce is currently 97% Congolese.

Aerial view of Kamoa-Kakula’s Copper Complex, which is now operating at a recently increased processing capacity of 9.2 million tonnes per annum, and production capacity of up to 450,000 tonnes of copper per annum.

Kamoa-Kakula summary of operating and financial data

Cost of sales per pound ($ per lb.)

1.25 1.08 1.05 1.15 1.08

Cash cost (C1) ($ per lb.)

($’000)

Remeasurement of contract receivables 29,594 53,473 (110,031) (205,248) 52,142

($’000)

Sales revenue after remeasurement 689,123 673,470 460,473 494,133 519,595

($’000)

EBITDA ($’000)

452,422 451,371 254,423 286,313 399,391

EBITDA margin (% of sales revenue) 66% 67% 55% 58% 77%

All figures in the above tables are on a 100%-project basis. Metal reported in concentrate is before refining losses or deductions associated with smelter terms. This MD&A includes “EBITDA”, “Adjusted EBITDA”, “EBITDA margin” and “Cash costs (C1)” which are non-GAAP financial performance measures. For a detailed description of each of the non-GAAP financial performance measures used herein and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the non- GAAP Financial Performance Measures section in the MD&A .

C1 cash cost per pound of payable copper produced can be further broken down as follows:

Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022

C1 cash cost per pound of payable ($ per lb.) 1.42 1.42 1.43 1.42 1.21 copper produced

C1 cash costs are prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines but are not measures recognized under IFRS. In calculating the C1 cash cost, the costs are measured on the same basis as the Company’s share of profit from the Kamoa Holding joint venture that is contained in the financial statements. C1 cash costs are used by management to evaluate operating performance and include all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to the final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered, finished metal. C1 cash costs exclude royalties and production taxes and non-routine charges as they are not direct production costs.

John Katumbwe, Scooptram (LHD) driver, developing the twin decline to the new Kamoa 1 and Kamoa 2 underground mines, which will be the source of copper ore for Kamoa-Kakula’s Phase 3 concentrator. Total copper production from Kamoa-Kakula is expected to increase to 600,000 tonnes per annum in Q4 2024.

Kamoa-Kakula produced 93,603 tonnes of copper in Q1 2023, including a record 34,915 tonnes of copper in March 2023

Kamoa-Kakula’s Phase 1 and 2 concentrators are now regularly operating at the increased processing rate of 9.2 million tonnes per annum (Mtpa), following the completion of the debottlenecking program. The $50-million Phase 1 and 2 concentrator debottlenecking program was completed on budget and ahead of schedule in late February 2023, increasing production capacity up to 450,000 tonnes of copper in concentrate per annum. All figures are on a 100% project basis and metal reported in concentrate is before refining losses or deductions associated with smelter terms.

Following the completion of the debottlenecking program in February, Kamoa-Kakula’s Phase 1 and 2 concentrators had a record-breaking month in March for copper production, including a monthly production record of 34,915 tonnes of copper in concentrate, in addition to a weekly production record of 9,016 tonnes in mid-March, and a daily production record of 1,563 tonnes on March 25, 2023. These records were achieved following two scheduled plant shutdowns during the first quarter to tie in the new debottlenecking equipment. During the month of April, strong concentrator performance continued with a record daily mill throughput achieved of 29,206 tonnes of ore.

Kamoa-Kakula’s Phase 1 and 2 concentrators milled approximately 1.93 million tonnes of ore during the first quarter at an average feed grade of 5.42% copper. This included approximately 255,000 tonnes of ore from the surface stockpiles.

(L-R) Chris Tshibanda, Control Room Supervisor; Linda Malumda, Senior Operator Larox; Rachelle Museka, Mill Operator; Serge Mukembe, Control Room Supervisor at Kamoa-Kakula’s Phase 1 and Phase 2 concentrator facility, which is now operating at a throughput capacity of 9.2 Mtpa following the successful debottlenecking program.

The Phase 1 and Phase 2 concentrators also substantially outperformed design specifications in terms of copper recovery during the months of March and April. Copper recoveries averaged 88% and periodically exceeded 90% over a 24-hour periods. These record recoveries are significantly above Kamoa-Kakula’s nameplate 86% recovery rate.

The record monthly production in March was also achieved despite previously reported instability within the southern DRC grid.

In response to the instability in the southern DRC grid experienced since December 2022, Kamoa-Kakula, together with DRC state-owned power company SNEL, completed a study to tackle the vulnerabilities exposed in the grid network.

Grid stability improved during the month of April, following some initial infrastructure management and maintenance initiatives that SNEL introduced with support from Kamoa Copper. In addition, 60 MW of additional generation capacity from the recently refurbished Nseke hydroelectric power station was introduced into the DRC network. Further initiatives will continue to be implemented over the coming year, benefiting not only the Kamoa-Kakula Copper Complex, but all users of the DRC’s southern grid.

Kamoa-Kakula is also planning to protect operations from potential future grid instability with significantly increased on-site power generation capacity. The current installed backup generation capacity on-site is approximately 32 MW. Over time there is a plan to increase this to over 200 MW in a phased roll-out to achieve sufficient redundancy to meet the total power requirement for Phases 1, 2 and 3, excluding the smelter in situations where extended supply interruptions may occur.

(L-R) Johan Prinsloo, Mine Overseer, and Thabo Kgaladi, Foreman, inspecting newly-installed panels at the new Kamoa 1 underground substation.

In the roll-out plan, an additional 11 MW is expected to be commissioned in Q2 2023 with a further 49 MW planned to be delivered to site towards the end of 2023. Study work is underway on further options for additional on-site backup power capacity, including renewable options, such as solar and hydro, together with battery storage.

Discussions are well advanced to secure up to an additional 100 MW of power from Copperbelt Energy Corporation (CEC) of Zambia, via the DRC-Zambia interconnector. An agreement is expected to be in place shortly.

Draw-down of surface ore stockpiles at Kakula continues as required; stockpiles hold approximately 4.2 million tonnes grading 3.9% copper, containing more than 161,000 tonnes of copper

Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled approximately 4.2 million tonnes at an estimated grade of 3.9% copper as of the end of March 2023. Excluding any stockpile material, during Q1 2023 the operation mined 2.02 million tonnes of ore from the Kakula and Kansoko mines, grading 5.2% copper. This comprised of 1.83 million tonnes of ore grading 5.6% copper from the Kakula Mine, including 0.75 million tonnes grading 6.7% copper from the mine’s high-grade centre.

While the ongoing expansion of underground infrastructure at the Kakula mine takes place, ore will be drawn as required from the stockpile to maximize copper production.

Civil construction for the Phase 3 concentrator plant and associated infrastructure is well advanced

Kamoa-Kakula’s ongoing Phase 3 expansion is expected to be commissioned in Q4 2024 and includes a new 5.0-million-tonne-per-annum (Mtpa) concentrator at Kamoa, which is approximately 10 kilometres north of the Phase 1 and 2 concentrators.

The process design of the Phase 3 concentrator is very similar to that of the Phase 1 and 2 concentrators, only larger. The front end of the concentrator (stockpile, crushing and screening) is being built to a capacity of 10 Mtpa, double the required capacity for Phase 3, in anticipation of the future Phase 4 expansion. This follows the same construction approach as that of Phase 1 and Phase 2. The bulk of the equipment is the same or similar to that installed in the Phase 1 and 2 concentrators, resulting in a commonality of spare parts, while leveraging prior operational and maintenance experience.

Detailed design is nearing completion and procurement activities are advancing on schedule with all major equipment ordered and the first steel erection expected around June 2023. Earthworks are essentially complete and civil construction is well-advanced. The structural steel, piping and plate work (SMPP) construction contract is expected to be rewarded shortly.

Erection of Kamoa-Kakula's Phase 3 high-pressure grinding rolls (HPGR) building is well underway.

Civil construction on the foundation for Kamoa-Kakula's Phase 3 flotation cells is also advancing well.

Following the commissioning of Phase 3, Kamoa-Kakula will have a total design processing capacity of 14.2 Mtpa. The completion of Phase 3 is expected to increase annualized copper production to an average of approximately 620,000 tonnes per

year over the next ten years, which will position Kamoa Copper as the world’s third-largest copper mining complex in 2027, and the largest copper mine on the African continent.

Kamoa 1 underground mining crew installing geotechnical support to the roof of an advancing development drive. The mining crews developing the new Kamoa 1 and 2 mines, as part of the Phase 3 expansion, recently achieved 365 lost-time-injury-free days.

Construction of the twin declines to the Kamoa 1 and Kamoa 2 underground mines and excavation to access the Phase 3 mining areas is advancing well. The Kamoa 1 and Kamoa 2 mines share a single box cut with a twin service-and-conveyor decline. Over 2,000 metres of development across both declines has been completed to date and access to the Kamoa 2 mine has been achieved. Underground mining activities are expected to commence at Kamoa 1 in late 2023 and Kamoa 2 in 2025, which will both involve the same mechanized drift-and-fill mining methods used at the Kakula Mine.