Ivanhoe Mines issues second quarter 2024 financial results, and review of construction and exploration activities

July 31, 2024

Ivanhoe Mines issues second quarter 2024 financial results, and review of construction and exploration activities ■ Ivanhoe Mines announces quarterly profit of $67 million and record quarterly normalized profit of $115 million, driven by income from the Kamoa-Kakula joint venture of $90 million ■ Ivanhoe Mines reports record Adjusted EBITDA of $203 million for Q2 2024, compared with $126 million for Q1 2024 ■ Kamoa-Kakula Copper Complex sold 95,900 tonnes of payable copper in Q2 2024 and recognized record quarterly revenue of $817 million and record EBITDA of $547 million ■ Kamoa-Kakula’s quarterly cost of sales total $1.53 per lb. of payable copper; C1 cash costs of $1.52 per lb. at the lower end of guidance ■ Kamoa-Kakula’s Phase 3 concentrator expansion completed ahead of schedule, boosting annualized production to approx. 600,000 tonnes copper

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Smelter project over 85% advanced and on schedule for construction completion by the end of 2024

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On July 28, Kamoa-Kakula produced a daily record of 1,614 tonnes of copper, following 16,703 tonnes of ore milled at the Phase 3 concentrator, exceeding nameplate by 19% ■

Kipushi concentrator completed ahead of schedule, with ramp- up to steady-state operations underway during Q3

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 and six months ended June 30, 2024. Ivanhoe Mines is a leading Canadian mining company developing and operating its four principal mining and exploration projects in Southern Africa: expanding production at the world-class Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC); ramping-up the ultra-high- grade Kipushi zinc-copper-lead-germanium mine in the DRC; building the tier-one Platreef palladium, rhodium, nickel, platinum, copper and gold development in South Africa; as well as exploring and advancing the expansive exploration licenses of Ivanhoe’s Western Forelands project, which currently hosts the Makoko, Kitoko, and Kiala copper discoveries near Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

Watch a July 2024 video highlighting Ivanhoe Mines’ financial results, as well as construction and exploration activities:

https://vimeo.com/991739402/081b7ace0b?share=copy

FINANCIAL HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $67 million for Q2 2024 compared with a

profit of $87 million for Q2 2023. Ivanhoe Mines’ normalized profit for Q2 2024 was $115 million, compared with a normalized profit of $114 million for Q2 2023. Normalized profit for the quarter excludes the non-cash loss on the fair valuation of the embedded derivative component of the $575 million convertible bond and the non-cash finance costs due to the early redemption of the convertible notes. All convertible notes still outstanding at end of June were redeemed after quarter end.

• Kamoa-Kakula sold 95,900 tonnes of payable copper during Q2 2024,

recognizing record revenue of $817 million, record operating profit of $463 million, and record quarterly EBITDA of $547 million.

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

$1.53/lb. for Q2 2024 compared with $1.50/lb. and $1.24/lb. in Q1 2024 and Q2 2023, respectively. Cash cost (C1) per pound of payable copper produced in Q2 2024 totaled $1.52/lb., which is at the lower end of the guidance range of $1.50 to $1.70/lb., compared with $1.57/lb. and $1.41/lb. achieved in Q1 2024 and Q2 2023, respectively.

• Ivanhoe Mines’ Adjusted EBITDA was $203 million for Q2 2024, compared with

$172 million for the same period in 2023, including an attributable EBITDA share from Kamoa-Kakula.

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

$246 million on hand as at June 30, 2024, with little debt at the corporate level following the redemption of the convertible notes. Ivanhoe expects cash flow from Kamoa-Kakula’s Phase 1, 2, and 3 operations, as well as project level financing facilities to be sufficient to fund outstanding capital cost requirements at current copper prices, which are largely related to the completion of the smelter complex and associated ramp-up activities.

• At Kamoa-Kakula, joint venture company Kamoa Copper drew a further $200

million during the quarter under a term finance facility with ABSA of Johannesburg, South Africa, Africa Finance Corporation (AFC) of Lagos, Nigeria, Rawbank of Kinshasa, DRC, and FirstBank of Lagos, Nigeria. The new funding facilities will be used to fund both the Phase 3 expansion of Kamoa- Kakula and expanded working capital, as well as future growth, such as Project 95. This brings total Kamoa-Kakula joint-venture in-country term loans and working capital facilities to $800 million, at attractive interest rates of less than 9%.

• At Kipushi, Trafigura and CITIC Metal, off-takers for approximately two thirds

of the zinc concentrate production, have each provided a loan facility to Kipushi Corporation (KICO) for $60 million over the five-year term of the off- take contract, at a rate of interest SOFR, plus 6%. Both these loan facilities were drawn in July 2024. A bank facility has also been signed and drawn with domestic lender FirstBank DRC for $50 million at SOFR plus 4.5%.

OPERATIONAL HIGHLIGHTS

• Quarterly production of 100,812 tonnes of copper in concentrate was achieved

at Kamoa-Kakula for Q2 2024, compared with 86,203 tonnes in Q1 2024 and 103,786 tonnes in Q2 2023.

• Over the first six months of 2024, Kamoa-Kakula produced a total of 187,015

tonnes of copper in concentrate. With the ramp-up to steady state of the Phase 3 concentrator expected to be complete in August 2024, boosting annual copper production capacity to over 600,000 tonnes, Kamoa-Kakula’s 2024 production guidance is maintained at between 440,000 – 490,000 tonnes of copper.

• Kamoa-Kakula's Phase 1 and 2 concentrators milled 2.29 million tonnes of ore

during the second quarter at an average feed grade of 5.04% copper, benefitting from improved power availability including imported power via the Zambian interconnector, which is now up to 65 megawatts (MW). On-site back- up power generation capacity has been increased to 135 MW with commissioning nearing completion.

• First ore into Kamoa-Kakula’s Phase 3 concentrator was achieved on May 26,

2024, up to two quarters ahead of the originally announced schedule, with first concentrate reported on June 10, 2024. The Phase 3 concentrator produced 1,100 tonnes of copper in concentrate for the remainder of June.

• After quarter end, Kamoa-Kakula’s Phase 1, 2 and 3 concentrators achieved a

daily production record of 1,614 tonnes of copper. The record consisted of 306 tonnes of copper from the Phase 3 concentrator, in addition to 1,308 tonnes from Phase 1 and 2. Phase 3 also achieved a daily milling record 16,703 tonnes of ore, exceeding nameplate capacity of 5 million tonnes per annum (Mtpa) by 19%.

• Kamoa-Kakula's 500,000-tonne-per-annum on-site, direct-to-blister copper

smelter and the refurbishment of Turbine #5 at the Inga II hydroelectric facility are advancing on schedule. Construction completion of the smelter is expected by the end of 2024, and Turbine #5 by Q1 2025.

• Basic engineering of “Project 95” at Kamoa-Kakula is now complete, with

engineering contractor tendering and early procurement activities now underway. A capital cost of $198 million is estimated for concentrator modifications, plus $102 million in capital costs brought forward for a new tailings storage cell. Increased recovery to 95% is expected to boost average annualized copper production by up to 30,000 tonnes from the Phase 1 and 2 concentrators. Project execution is expected to take 18 months.

• First feed of ore into the Kipushi concentrator from the surface run-of-mine

(ROM) stockpiles was achieved on May 31, 2024, marking the completion of construction ahead of schedule. The first batch of zinc concentrate production was achieved two weeks later, on June 14, 2024. Ramp-up of the Kipushi concentrator to steady-state production is expected in September.

• Kipushi’s 2024 production guidance is between 100,000 – 140,000 tonnes of

zinc in concentrate.

• Basic engineering has already commenced on de-bottlenecking initiatives of

the Kipushi concentrator, to target a 20% increase in processing capacity to 960,000 tonnes of ore per annum. The de-bottlenecking program is expected to take approximately nine months, based on the availability of long-lead order equipment.

• Kipushi will be the lowest greenhouse gas emitter per tonne of zinc produced.

On a Scope 1 and 2 basis (reported from ore to mine gate), Kipushi’s greenhouse gas (GHG) emissions intensity for 2025 is expected to be 0.019 equivalent tonnes of carbon dioxide per tonne of contained zinc produced (t CO2-e / t Zn). This comfortably ranks Kipushi at the bottom of the Scope 1 and 2 GHG emissions curve, according to independent industry experts Skarn Associates.

• Ivanhoe continues its expansive copper exploration program on its Western

Foreland licenses adjacent to Kamoa-Kakula. The company’s 2024 exploration program consists of 70,000 metres of diamond-core drilling, with 39,000 metres completed during H1 2024. Drilling during Q2 2024 was mostly focused on Kitoko and Makoko West. Nine drill rigs were in operation at quarter end.

• Construction of Platreef’s Phase 1 concentrator was completed on schedule

after the quarter's end. Cold commissioning has started, with water being fed through the concentrator. The concentrator will be placed on care and maintenance until H2 2025, as Shaft 1 prioritizes the hoisting of waste from the development required to bring forward the start of Phase 2.

• Work continues on the updated feasibility study to accelerate Platreef’s Phase

2, as well as the preliminary economic assessment of the new Phase 3 expansion. Both studies are expected to be completed in the fourth quarter.

• Construction of Platreef's Shaft 2 headgear now is approximately 60%

complete. Construction activities are advancing well on the installation of 1,124 tonnes of internal structural steel inside Shaft 2’s headgear.

Lebo Ramonyalioa, Instrumentation Engineer, DRA; and, Pieter Schoeman, Instrumentation Engineer, DRA, standing at the newly completed apron feeder in the Kakula North mining area.

Conference call for investors on Wednesday, July 31, 2024

Ivanhoe Mines will hold an investor conference call to discuss the results at 10:30 a.m. Eastern time / 7:30 a.m. Pacific time on July 31, 2024. 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 use the link: https://edge.media-server.com/mmc/p/67hi5owr

Analysts are invited to join by phone for the Q&A using the following link: https://register.vevent.com/register/BIdca605fc67a44c9188026e3aad0c263d

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 condensed consolidated interim financial statements and Management’s Discussion and Analysis will be available at www.ivanhoemines.com and www.sedarplus.ca.

Read Ivanhoe's Second Quarter 2024 Sustainability Review:

For the second quarter, the group achieved an industry- leading combined Lost Time Injury Frequency Rate (LTIFR) of 0.22 per 1,000,000 hours worked and a Total Recordable Injury Frequency Rate (TRIFR) of 0.82 per 1,000,000 hours worked. Regrettably, there was one fatality in the group during the quarter, which occurred at Kamoa-Kakula.

For more information on each project’s health and safety performance, as well as more information on the various sustainability initiatives underway across the group, read Ivanhoe’s Q2 2024 Sustainability Review:

https://www.ivanhoemines.com/wp- content/uploads/Sustainability_review_Q2_2024V5.pdf

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 is operated as the Kamoa Holding joint venture between Ivanhoe Mines and Zijin Mining. The project is approximately 25 kilometres southwest of the town of Kolwezi and about 270 kilometres west of Lubumbashi. Kamoa-Kakula’s Phase 1 concentrator began producing copper in May 2021. The Phase 2 concentrator, completed in April 2022, doubled nameplate production capacity to 400,000 tonnes of copper per annum. A debottlenecking program, completed 10 months later in February 2023, further increased copper production capacity to 450,000 tonnes per annum. The Phase 3 concentrator, completed in June 2024, increased copper production capacity to over 600,000 tonnes per annum, ranking the Kamoa- Kakula Copper Complex as the world’s third-largest copper mining operation by international mining consultant Wood Mackenzie.

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 full-time employee workforce is approximately 5,500 and is over 90% Congolese.

Kamoa-Kakula summary of operating and financial data

Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023

Ore tonnes milled (000’s tonnes)	2,381(1)	2,061	2,133	2,236	2,244
Copper ore grade processed (%)	4.91%(1)	4.80%	4.95%	5.37%	5.21%
Copper recovery (%)	86.7%(1)	87.4%	87.9%	87.2%	87.2%

Copper in concentrate produced

(tonnes)	100,812		86,203		92,215 103,947 103,786
Payable copper sold (tonnes)	95,900		85,155		90,967		96,509 101,526
Cost of sales per pound ($ per lb.)		1.53		1.50		1.50	1.34	1.24
Cash cost (C1) ($ per lb.)		1.52		1.57		1.53	1.46	1.41
Realized copper price ($ per lb.)		4.34		3.82		3.71	3.84	3.79

Sales revenue before remeasurement

($'000) 813,817 612,496 625,983 681,821 729,924

Remeasurement of contract

receivables ($'000) 3,256 5,824 (8,365) 13,014 (27,542)

Sales revenue after remeasurement

($'000) 817,073 618,320 617,618 694,835 702,382

EBITDA ($'000) 547,257 364,893 343,899 423,211 456,628 EBITDA margin (% of sales revenue) 67% 59% 56% 61% 65%

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 release includes “EBITDA”, “Adjusted EBITDA”, “EBITDA margin”, and "cash cost (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 of this release.

(1) Blended figures across the Phase 1, 2, and 3 concentrators, following the commencement of Phase 3 concentrator in June 2024. Excluding Phase 3, the Phase 1 and 2 concentrators milled 2,288,000 tonnes of ore at an average feed grade of 5.04% with an average recovery of 86.9%. No concentrate produced by the Phase 3 concentrator was sold during the quarter.

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

		Q2	Q1	Q4	Q3	Q2
Mining	($ per lb.)	0.45	0.44	0.38	0.41	0.39
Processing	($ per lb.)	0.21	0.23	0.24	0.20	0.19
Logistics charges (delivered to	($ per lb.)	0.48	0.50	0.50	0.46	0.45
TC, RC, smelter charges	($ per lb.)	0.25	0.25	0.26	0.25	0.25
General & Administrative	($ per lb.)	0.13	0.15	0.15	0.14	0.13

Cash cost (C1) per pound of payable copper produced ($ per lb.) 1.52 1.57 1.53 1.46 1.41 Cash cost (C1) is 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 cost is 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 cost excludes royalties, production taxes, and non-routine charges as they are not direct production costs.

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

Improved grid stability experienced during the quarter had a notable improvement on operations, with Kamoa-Kakula’s Phase 1 and 2 concentrators milling 2.3 million tonnes of ore at an average feed grade of 5.04% copper.

Kamoa-Kakula Phase 1, 2, and 3 operations produced 100,812 tonnes of copper in concentrate in Q2 2024

Kamoa-Kakula produced 100,812 tonnes of copper in concentrate in the second quarter of 2024. This includes 99,712 tonnes from the Phase 1 and 2 concentrators and 1,100 tonnes of copper from the Phase 3 concentrator.

Kamoa-Kakula’s Phase 1 and 2 concentrators milled approximately 2.29 million tonnes of ore during the second quarter at an average feed grade of 5.04% copper. Copper flotation recoveries for the quarter averaged 87%.

Kamoa-Kakula’s Phase 3 concentrator was completed up to two quarters ahead of the originally announced schedule and produced its first batch of concentrate on June 10, 2024. The Phase 3 concentrator is undergoing ramp-up to steady-state production, which is expected in August, taking the production capacity of the Kamoa-Kakula Copper Complex to over 600,000 tonnes per annum. Ramp-up activities are progressing as planned and therefore, annual production guidance for Kamoa-Kakula is maintained at between 440,000 and 490,000 tonnes of copper in concentrate for 2024.

As of June 30, 2024, a total of 4.82 million tonnes of ore at an average grade of 3.26% copper is stored in multiple surface ROM stockpiles across the Kamoa-Kakula Copper Complex. This includes 2.31 million tonnes of ore at an average feed grade of 3.72% at Kakula and 2.51 million tonnes of ore at an average grade of 2.85% at Kamoa and Kansoko. The stockpiled ore, from the Kamoa and Kansoko mines, contains over 70,000 tonnes of copper and is being used for the ramp-up of the new Phase 3 concentrator.

After the quarter ended on July 28, the combined Phase 1, 2, and 3 operations achieved a daily production record of 1,614 tonnes of copper in concentrate. The record included 306 tonnes of copper from the Phase 3 concentrator, which milled a record 16,703 tonnes of ore over the 24 hours. The Phase 3 milling record was approximately 19% above the nameplate processing capacity of 5 million tonnes per annum.

Kamoa Copper continues to work closely with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL), to deliver solutions for the identified causes of instability experienced across the southern DRC’s grid infrastructure since late 2022. The project work, which is budgeted at up to $200 million and funded by Kamoa Holding, commenced in March 2024 and is expected to be completed in H2 2025. The funding is assigned to increasing transmission capacity and improving the reliability of the grid.

The project work consists of grid infrastructure upgrades, such as an increase in grid capacity between the Inga II dam and Kolwezi, a new harmonic filter at the Inga Converter Station, as well as a new static compensator at the Kolwezi Converter Station. In addition, various smaller initiatives have been identified to strengthen the transmission capability and improve the long-term stability of the southern grid. This includes the restringing of powerlines in the southern grid and repairs to the direct current (DC) infrastructure. In addition to this, Ivanhoe Mines Energy is working with SNEL to put in place maintenance contracts to maintain key generation capacity and transmission infrastructure.

Kamoa-Kakula's Phase 3 concentrator was completed up to two quarters ahead of the originally announced schedule and is expected to ramp-up to steady state in August 2024. Phase 3 increases total annual production to over 600,000 tonnes of copper.

Imported power via Zambia Interconnector increased to 65 MW, significantly improving grid stability and Kamoa-Kakula’s copper production

During the second quarter, grid-supplied power to Kamoa-Kakula was supplemented by 55 MW of imported power from Zambia and Mozambique, via the Zambian interconnector. Kamoa-Kakula’s executive team is targeting that imported power will increase by up to a further 20 MW by the end of the third quarter. Imported power as at July 30 has increased to 65 MW. Subject to capacity availability in the first half of 2025, imported power is then expected to increase to 100 MW.

Other power-generating projects have been initiated to de-risk the current and future operations over the short to medium term, while the grid infrastructure upgrades are completed.

Kamoa Copper’s engineering team is currently expanding its on-site backup generation capacity to ensure there is on-site redundancy for the current Phase 1, 2, and 3 operations.

On-site backup-power generator capacity is scheduled to increase, via a phased rollout, to a total of over 200 MW in time for the completion of the direct-to-blister copper smelter in early 2025, as shown in Figure 1. The generator farm sites are being built adjacent to the Phase 1 and 2 concentrators, and smelter at Kakula, as well as adjacent to the Phase 3 concentrator at Kamoa.

An additional 72 MW of new generators were delivered to site in July, increasing the onsite generation capacity to 135 MW. Installation of the new generators is complete, with commissioning expected to be completed in early August.

As shown in Figure 1, the power requirement for Phase 3 will be 45 MW once fully ramped up to steady state from August 2024. In addition, the smelter will require a further 75 MW of power once fully ramped up to steady state.

Figure 1. Kamoa-Kakula’s power demand profile versus the projected phased rollout of on-site, back-up generation capacity and imported grid power, supplementing existing domestically-supplied power by SNEL (MW).

Phase 1, 2 and 3, plus smelter demand (2025)

Phase 1, 2 & 3 demand (from Aug 2024)

Phase 1 & 2 demand (from May 2024)

-- Jan '24 Apr '24 Jul '24 Oct '24 Jan '25

Back-up generation capacity Imported grid power

Construction of the Phase 3 concentrator plant and associated infrastructure complete, with production ramp-up underway

First ore to Kamoa-Kakula’s Phase 3 concentrator was achieved on May 26, 2024, up to two quarters ahead of the originally announced schedule, with first concentrate reported on June 10, 2024. The new 5-Mtpa Phase 3 concentrator is located adjacent to the Kamoa underground mines, approximately 10 kilometres north of the Phase 1 and 2 concentrators located above the Kakula underground mine. Since June 10, 2024, the Phase 3 concentrator has produced 1,100 tonnes of copper in concentrate.