Ivanhoe Mines issues third quarter 2023 financial results, and review of construction and exploration activities

November 6, 2023

Ivanhoe Mines issues third quarter 2023 financial results, and review of construction and exploration activities ■ Kamoa-Kakula Copper Complex sold 96,509 tonnes of payable copper in Q3 2023, recognized quarterly revenue of $695 million and EBITDA of $423 million ■ Ivanhoe Mines adjusted EBITDA of $152 million for Q3 2023, compared with $85 million for Q3 2022 ■ Ivanhoe Mines recorded a quarterly profit of $108 million, driven by income from the Kamoa-Kakula joint venture of $121 million ■ Kamoa-Kakula’s quarterly cost of sales total $1.34 per lb. of payable copper; C1 cash costs of $1.46 per lb. ■ Kamoa-Kakula year-to-date production of 301,336 tonnes and C1 cash cost of $1.43 per lb., in line with guidance ■ Phase 3 concentrator project is 62% complete and ahead of schedule for production in Q3 2024 ■ Quarterly production record achieved despite intermittent grid instability; phased roll-out of backup power and grid improvements advanced

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Kipushi concentrator ahead of schedule for first production in Q2 2024, with the overall project approximately 62% complete ■

Maiden resource on Makoko and Kiala discoveries, and Western Foreland exploration updates, expected shortly

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 nine months ended September 30, 2023. Ivanhoe Mines is a leading Canadian mining company developing and operating its four principal mining and exploration projects in Southern Africa: expanding operations at the world-class Kamoa-Kakula Copper Complex (Kamoa-Kakula) in the Democratic Republic of Congo (DRC); building the tier-one Platreef palladium, nickel, platinum, rhodium, copper and gold development in South Africa; restarting the historic, ultra-high-grade Kipushi zinc-copper-lead-germanium mine in the DRC; as well as exploring the expansive exploration licences of Ivanhoe’s Western Foreland for copper discoveries adjacent to Kamoa-Kakula. All figures are in U.S. dollars unless otherwise stated.

Watch an November 2023 video highlighting Ivanhoe Mines’

construction and exploration activities:

https://vimeo.com/881367280/2c1e2c4872?share=copy

Ivanhoe Founder and Executive Co-Chairman Robert Friedland commented:

“Kamoa-Kakula continues its industry-leading development and operating performance with copper production and costs remaining solidly within our annual guidance ranges … an increasing rarity in our business, where many of our peers are being plagued by cost over-runs and production shortfalls. With the Phase 3 concentrator expansion now well ahead of schedule, our teams are striving to further expedite copper production ramp-up into the second half of 2024, en route to becoming the world’s third-largest, lowest- carbon emitting copper complex by 2027.

“And this is only the beginning for a copper district with a multi-generational lifespan that will benefit the Congolese people, our partners, and our shareholders for many decades to come. We are particularly excited to provide, very soon, updates on our extensive exploration activities across Ivanhoe’s district-scale Western Foreland Exploration Project surrounding our 400-square-kilometre Kamoa-Kakula mining licenses. The Western Forelands, soon to be serviced by the new Lobito railway corridor, is without a doubt the best copper hunting ground on our planet. As we will soon demonstrate, there are vast opportunities to further expand high- grade, ultra-low-emissions copper production across this tier-one copper- mineralized basin, endowed with the world's best copper deposits.

“Finally, our track record of operational excellence is continuing with the successful development of the Kipushi zinc-copper-silver mine, which is well ahead of schedule. Kipushi will also be powered by the Congo’s green hydropower grid. With the Platreef PGM-nickel-copper mine in South Africa also on track for production next year, Ivanhoe Mines has two additional world-class ore bodies spanning many critical strategic minerals, including zinc, platinum, palladium, nickel, rhodium, copper, and potentially gallium and germanium.”

FINANCIAL HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $108 million for Q3 2023, which includes a

$12 million non-cash gain on the $575 million convertible bond fair valuation, compared with a profit of $87 million for Q2 2023. The profit in the quarter includes Ivanhoe Mines’ share of profit and finance income from the Kamoa- Kakula joint venture of $121 million for Q3 2023.

• Kamoa-Kakula sold 96,509 tonnes of payable copper during Q3 2023,

recognizing revenue of $695 million, an operating profit of $373 million and quarterly EBITDA of $423 million.

• Copper in concentrate held in inventory at Kamoa-Kakula at quarter end

increased to more than 3,000 tonnes. In addition, approximately 48,000 dry metric tonnes of concentrate were sent for tolling at the local smelter in Q3, with copper in work in progress at the end of the quarter exceeding 7,000 tonnes. Excess inventory is expected to be sold in the fourth quarter.

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

$1.34/lb. for Q3 2023 compared with $1.24 and $1.05 in Q2 2023 and Q3 2022, respectively. Cash costs (C1) per pound of payable copper produced during the quarter totaled $1.46/lb., compared to $1.41/lb. and $1.43/lb. in Q2 2023 and Q3 2022, respectively.

• Ivanhoe Mines Adjusted EBITDA was $152 million for Q3 2023, compared with

$85 million for the same period in 2022, and $172 million for Q2 2023, which includes an attributable share of EBITDA from Kamoa-Kakula.

• Since entering Phase 1 commercial production on July 1, 2021, the Kamoa-

Kakula joint venture has generated $2.14 billion of net cash from operating activities, which has funded both the Phase 2 and Phase 3 expansions to date.

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

$303 million on hand as at September 30, 2023. The company expects Kamoa- Kakula’s Phase 1 and Phase 2 cash flow, together with additional local financing facilities that are advancing well, to be sufficient to fund the Phase 3 expansion capital cost requirements at current copper prices.

• Kamoa-Kakula’s full-year cash cost (C1) guidance is unchanged at $1.40 –

$1.50 per pound and full-year production guidance is also maintained at 390,000 to 430,000 tonnes of copper in concentrate.

OPERATIONAL HIGHLIGHTS

• Record quarterly production of 103,947 tonnes of copper in concentrate was

achieved at Kamoa-Kakula for Q3 2023, compared to 103,786 tonnes in Q2 2023 and 97,820 tonnes in Q3 2022.

• Over the first nine months of 2023, Kamoa-Kakula has produced a total of

301,336 tonnes of copper in concentrate, placing it well on track to deliver annual production guidance of between 390,000 – 430,000 tonnes of copper.

• Kamoa-Kakula's Phase 1 and 2 concentrators milled a record 2.24 million

tonnes of ore during the third quarter at an average feed grade of 5.37% copper. This included high-grade, run-of-mine ore from the Kakula Mine, supplemented with ore from the surface stockpiles to achieve throughput higher than original design capacity.

• Kamoa-Kakula's Phase 3 mine and concentrator expansion, 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 for completion in late 2024.

• Kamoa-Kakula completed highly promising preliminary testwork to further

improve copper recoveries at Kamoa-Kakula by liberating copper from the tailings stream. Initial results indicate that with a tailings feed grade of less than 1% copper, approximately 65% of the contained copper can be recovered from the tailings stream, which could increase overall metallurgical recoveries to well over 90%. Basic engineering for the tailings-stream recovery plant is underway and is expected to be complete in Q1 2024.

• Kamoa Copper S.A. signed a memorandum of understanding (MOU) with

Lobito Atlantic International SARL, the consortium awarded the concession for the Lobito Atlantic Rail Corridor. A trial shipment of up to 10,000 tonnes of copper concentrate from Kamoa-Kakula to the port of Lobito, Angola is planned for Q4 2023. Making the Kamoa-Kakula joint venture the first customer for the Lobito Corridor in the modern era.

• Ivanhoe is expanding its copper exploration program on its Western Foreland

licences, which covers approximately 2,407 square kilometres adjacent to

Kamoa-Kakula. Significant drilling has taken place year-to-date, with over 37,500 metres completed, including several new targets identified. An additional $2 million has been added to the remaining budget for 2023 to further advance new targets.

• Ivanhoe is planning to publish a maiden Mineral Resource estimate for its

Makoko and Kiala high-grade copper discoveries in the Western Foreland shortly, as well as an update on more recent drill developments across the 2,407-square-kilometre land package.

• At Platreef, optimization work is underway to identify value-accretive options

for installing hoisting capacity in Shaft 3 (previously named Vent Shaft 1), which has the benefit of de-risking the development and ramp-up of the Phase 1 mine and may be used to accelerate the ramp-up of underground mining activities for Phase 2 in advance of the completion of Shaft 2 – expected in 2027.

• Platreef underground development work is focused on lateral development

towards the high-grade Flatreef orebody on the 750-metre, 850-metre and 950- metre levels. Once the commissioning of underground crusher and loader has been completed, underground development rate is expected to increase to approximately 400 metres per month by year-end.

• Drilling of the pilot drill hole for the reaming of Platreef’s Shaft 2, which

commenced in February 2023, has reached the shaft bottom. Reaming from the 950-metre level is now underway with 38 metres completed. Shaft 2 raisebore reaming is expected to be complete in Q2 2024.

• Platreef’s Phase 1 is approximately 63% complete and on schedule for first

production in Q3 2024, with all major civil structures nearing completion and the fabrication of the long-lead order mechanical equipment items progressing as planned.

• At Kipushi, construction of the 800,000 tonnes-per-annum concentrator is

approximately 67% complete and ahead of schedule for commissioning in Q2 2024.

• Kipushi's underground development continues to progress at approximately

20% ahead of schedule, with 2,744 metres of lateral development completed since September 2022. The underground development rate is expected to increase by 50%to approximately 450 metres per month by year-end.

• Stoping (mining) of Kipushi’s ultra-high-grade Big Zinc orebody is expected to

commence this month. Stoping will start on a trail mining basis to complete the training of the underground mining crews in preparation for the commencement of commercial operations in the new year.

The first group of 96 employees at Kamoa-Kakula’s smelter complex were received at the Kansoko Training Centre for induction. Construction of the 500,000-tonne-per-annum smelter is on track for completion in Q4 2024.

Conference call for investors on Monday, November 6, 2023

Ivanhoe Mines will hold an investor conference call to discuss its 2023 third- quarter financial results at 3:30 p.m. London time / 10:30 a.m. Eastern time / 7:30 a.m. Pacific time on Monday, November 6. 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/u8g4fpa4

Analysts are invited to join by phone for the Q&A using the following link: https://register.vevent.com/register/BI2f4b12f6a4054637be40addfc4467dad

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.sedarplus.ca.

Read Ivanhoe's Q3 2023 Sustainability Update:

https://www.ivanhoemines.com/wp- content/uploads/Sustainability_review_Q3_2023_Final.pdf

DRC President, His Excellency Félix Tshisekedi, alongside Ivanhoe Mines’ President Marna Cloete, cuts the ribbon to mark the formal opening of the newly constructed Kamoa Centre of Excellence in October 2023. Following the opening ceremony, the President met with the inaugural class, which was enrolled in September.

Principal projects and review of activities

1. Kamoa-Kakula Copper Complex

39.6%-owned by Ivanhoe Mines Democratic Republic of Congo

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022

Ore tonnes milled (000’s tonnes)	2,236	2,244	1,930	2,006	2,082
Copper ore grade processed (%)	5.37%(2)	5.21%	5.42%	5.40%	5.60%
Copper recovery (%)	87.2%	87.2%	87.1%	86.1%	85.9%
Copper in concentrate produced	103,947 103,786 93,603			92,761	97,820

(tonnes)

Payable copper sold (tonnes)	96,509	101,526 86,777		92,208	93,812
Cost of sales per pound ($ per lb.)	1.34	1.24	1.25	1.08	1.05
Cash cost (C1) ($ per lb.)	1.46	1.41	1.42	1.42	1.43
Realized copper price ($ per lb.)	3.84	3.79	4.04	3.54	3.50

Sales revenue before 681,821 729,924 659,529 619,997 570,504

remeasurement ($'000)

Remeasurement of contract 13,014 (27,542) 29,594 53,473 (110,031)

receivables ($'000)

Sales revenue after remeasurement 694,835 702,382 689,123 673,470 460,473

($'000)

EBITDA ($'000)⁽¹⁾ 423,211 456,628 457,311 452,089 251,086 EBITDA margin (% of sales revenue) 61% 65% 66% 67% 55%

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 news release includes “EBITDA”, “Adjusted EBITDA”, “EBITDA margin”, normalized profit 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 of the company’s MD&A for the three and nine months ended September 30, 2023, starting on page 45.

(1) Unrealized foreign exchange losses have been excluded from EBITDA in the current and prior periods presented, as the company believes that including the unrealized foreign exchange gains and losses does not give a valuable indication of the mine’s ability to generate liquidity by producing operating cash flow to fund its working capital needs, service debt obligations, fund capital expenditures and distribute cash to its shareholders.

(2) Previously disclosed as 5.55% on October 4, 2023, but amended following metallurgical reconciliation.

The Kamoa-Kakula Copper Complex is approximately 25 kilometres southwest of the town of Kolwezi and about 270 kilometres west of Lubumbashi in the DRC Copperbelt. Kamoa-Kakula’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. Kamoa- Kakula is independently ranked by international mining consultant Wood Mackenzie to become the world’s third-largest copper mining operation in 2027, following the completion of the ongoing Phase 3 expansion. Kamoa-Kakula’s employee workforce is currently 97% Congolese.

The Kamoa-Kakula Copper Complex is operated as the Kamoa Holding joint venture between Ivanhoe Mines and Zijin Mining. 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 summary of operating and financial data

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

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022

Mining	($ per lb.) 0.41	0.39	0.41	0.40	0.41
Processing	($ per lb.) 0.20	0.19	0.19	0.16	0.12
Logistics charges (delivered to ($ per lb.) 0.46		0.45	0.46	0.50	0.56

China)

Treatment, refining and smelter ($ per lb.) 0.25 0.25 0.23 0.23 0.21 charges General and administrative ($ per lb.) 0.14 0.13 0.13 0.13 0.13 expenditure

C1 cash cost per pound of ($ per lb.) 1.46 1.41 1.42 1.42 1.43 payable 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, 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.

Construction of Kamoa-Kakula's Phase 3 concentrator project is 56% complete and now ahead of schedule for completion expected in Q3 2024, including installation of the flotation cells (front) and ball mills (rear).

Kamoa-Kakula produced a record 103,947 tonnes of copper in Q3 2023

Kamoa-Kakula’s Phase 1 and 2 concentrators have consistently operated at a steadystate throughput rate of 9.2 million tonnes per annum (Mtpa) following the ahead-ofschedule completion of the debottlenecking program during the first quarter of 2023 and have regularly surpassed this throughput rate during the second and third quarter. 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.

The Kamoa-Kakula Phase 1 and Phase 2 concentrators continued to perform strongly in the third quarter, breaking several records including the quarterly production of 103,947 tonnes of copper in concentrate. Kamoa-Kakula's Phase 1 and 2 concentrators milled a record 2.24 million tonnes of ore during the third quarter at an average feed grade of 5.37% copper. This included high-grade, run-of-mine ore from the Kakula Mine, supplemented with ore from the surface stockpiles to achieve throughput in excess of original design capacity. Copper recoveries for the quarter averaged 87.2%.

While the ongoing expansion of underground infrastructure at the Kakula mine continues, ore is drawn down as required from surface stockpiles to maximize copper production.

Kamoa-Kakula’s year-to-date production is 301,336 tonnes of copper in concentrate, which includes the ramp-up following the completion of the debottlenecking program in February 2023. The 2023 annual production guidance for Kamoa-Kakula is maintained at between 390,000 to 430,000 tonnes of copper in concentrate.

For July, Kamoa-Kakula’s Phase 1 and 2 concentrators milled 0.6 million tonnes of ore at an average feed grade of 5.8% copper and recoveries of 88.0%, producing 35,636 tonnes, just short of a monthly record.

The quarterly production record at Kamoa-Kakula was achieved despite continued intermittent grid instability.

Since late Q4 2022, Kamoa Copper has been working alongside DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL), to identify the causes of instability across the southern DRC’s grid infrastructure to assist with delivering longlasting solutions. Kamoa Copper has identified a series of upgrades and has outlined a project plan to deliver the improvements. Mobilization of resources is underway, with vendor selection and equipment procurement having commenced.

Concurrently, Kamoa Copper’s engineering team are working towards insulating Kamoa-Kakula from future instability by expanding on-site backup generation capacity, as well as sourcing additional power imported from the Zambian grid, with negotiations nearing completion for initial provision of 30 MW.

Over the next 12-18 months, on-site backup-power generation capacity will increase via a phased rollout. The current installed on-site backup-power generation capacity is approximately 48 megawatts (MW). Delivery of a further 30 MW in backup generation capacity, sufficient to power Kamoa-Kakula’s entire Phase 1 and 2 operations in the event of grid disruptions, will commence later this year and be fully commissioned in the first quarter of 2024. Over 130 MW of further backup generation capacity has been ordered and is expected to be installed in 2024, in time for the completion of the Phase 3 concentrator and smelter that are currently under construction.

Discussions are advancing to secure up to 100 MW of additional power via the Zambian grid interconnector.

Draw-down of surface ore stockpiles at Kakula continues as required. 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.

Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled approximately 4.1 million tonnes at an estimated grade of 3.6% copper as of the end of September 2023 and contained more than 144,000 tonnes of copper. The operation mined 2.2 million tonnes of ore grading 5.6% copper in Q3 2023, which was comprised of 2.0 million tonnes grading 5.4% copper from the Kakula mine, including 1 million tonnes grading 7.1% copper from the mine’s high-grade centre.

The 2023 Kipaji group kicked off their “High Flyer Management Development Program” in late October. Kamoa's Kipaji program offers courses that focus on leadership.

Construction of the Phase 3 concentrator plant and associated infrastructure advancing ahead of schedule

Kamoa-Kakula’s ongoing Phase 3 concentrator expansion now is expected to be commissioned in Q3 2024 and includes a new 5-Mtpa plant 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, but 30% 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 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 also leveraging prior operational and maintenance experience.

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. See Figure 1.