IVN.TO · 2017-04-10 12:00:00

Assays confirm Kakula West high-grade copper discovery

Drill Results

“

April 10, 20

Kakula W

metres a

Two ne

14 drill

KOLWEZI,

VPAF) Exe

Johansson

DD1124 ha

cut-off, inc

The assay

he compa

Congo (DR

copper min

was drilled

central sec

Mr. Friedla

Kakula We

DD1124 an

shallow, K

Holes DD1

rich minera

kilometres

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plan. Given

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DEMOCR

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RC). The re

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% cut-off

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ntinuing

RATIC REP

hairman R

ced today

d a high-g

6.17-metre

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One Kamo

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on at Kaku

metres wes

akula.

r. Johanss

138 and DD

he strike o

le, chalcoc

DD1144 ha

stem at Ka

eralization

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approxim

initial drill

y emerging

could be in

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tent of the

Kakula W

hole DD

f, includi

es at Ka

ystem at

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g to expa

PUBLIC OF

Robert Frie

that assay

grade inter

e interval o

at Kakula W

oa-Kakula

ther reinfo

ula along t

st of the cu

son also a

D1144, dri

of the mine

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ave further

akula by an

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D1124 in

ing a 6.1

kula We

t Kakula

proximat

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F CONGO

edland and

ys receive

rval of 5.8

of 6.84% c

West is an

copper p

orce the ex

the strike o

urrent lim

announced

lled 400 a

eralized tr

copper min

r extended

nother 800

ered in DD

lling into t

kilometres

ts at Kaku

ar-surface

ed into the

pside of s

zation at K

gh-grade

ntersects

14-metre

est exten

a by anot

tely 11 k

delinea

– Ivanhoe

d Chief Ex

ed for Kak

3% coppe

copper.

nother high

roject in th

xceptional

of the wel

it of resou

d today th

nd 800 me

rend – also

neralizatio

d the overa

0 metres, t

D1138 and

the high-g

to the eas

la West,” s

source of

e early yea

uch a sce

Kakula Wes

e copper

s 5.83%

e interva

nd length

ther 800

kilometre

te the K

e Mines (T

xecutive O

ula West d

er over 8.8

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he Democ

l continuit

l-mineraliz

urce deline

hat two new

etres resp

o have inte

on.

all length

to a total o

d DD1144 i

rade core

st.

said Mr. F

f high-grad

ars of the

nario, we

st.”

r discov

copper

al at 6.84

h of cop

0 metres

Kakula D

TSX: IVN; O

fficer Lars

discovery

6 metres a

opper disc

cratic Repu

ty of high-

zed trend.

eation dril

w step-out

ectively w

ersected r

of the kno

of approxi

is similar t

of the Kak

Friedland.

de copper

Kamoa-Ka

plan to ag

ery

over 8.8

4% copp

pper-rich

iscovery

OTCQX:

s-Eric

hole

at a 2.5%

covery on

ublic of

-grade

DD1124

ling on th

t holes at

west of hol

relatively

own coppe

mately 11

to the

kula

akula min

ggressivel

per

er-

Highlights of Kakula West drilling to date include:

 Assays show that DD1124 intersected 8.86 metres (true width) of 5.83% copper at a

3.0% copper cut-off, beginning at a downhole depth of 428.70 metres; 8.86 metres

(true width) of 5.83% copper at a 2.5% copper cut-off; 16.05 metres (true width) of

4.14% copper at a 2.0% copper cut-off; and 16.05 metres (true width) of 4.14% copper

at a 1.0% copper cut-off. DD1124’s best six-metre intercept was 6.17 metres (true

width) at 6.84% copper. Figure 7 shows a strip log of DD1124 with assay grades and

composites. Table 1 shows assay grades for DD1124 at a range of cut-offs.

 DD1138, drilled 400 metres west of DD1124, intersected a zone of moderate-to-strong

chalcocite mineralization six to seven metres thick, beginning at a downhole depth of

565.5 metres. Mineralization is hosted in a laminated siltstone horizon, typical of

Kakula-style mineralization seen elsewhere at Kakula. The siltstone was separated

from the Roan footwall sandstone by a sandy diamictite unit (see geology log and

pictures of core in Figure 8).

 DD1144, drilled 800 metres west of DD1124, intersected similar geology and

mineralization to DD1138 with approximately ten metres of moderate chalcocite

mineralization, including more strongly mineralized zones starting at a downhole

depth of 502 metres and hosted in a laminated siltstone unit (see geology log and

pictures of core in Figure 9).

Assay results for holes DD1138 and DD1144 are expected in approximately two to three

weeks.

The continuing drilling successes mean that the Kakula Discovery has grown to become

approximately 6.8 kilometres longer than the deposit’s 4.1-kilometre strike length that

was used to calculate the initial Kakula resource estimate in October 2016. A new

resource estimate for the eastern section of Kakula, covering a strike length of

approximately 6.3 kilometres, is expected to be ready in May 2017.

The Kamoa-Kakula Project, a joint venture between Ivanhoe Mines, Zijin Mining and the

DRC government, is near the mining centre of Kolwezi on the Central African Copperbelt

in the DRC.

14 drill rigs rapidly expanding the Kakula Discovery; testing to begin soon on

high-priority satellite drill targets

Fourteen rigs are drilling at Kakula. Three rigs are extending the Kakula West discovery

area; one is working in the far southeastern area of Kakula; six are extending resources

at the northwestern extent of the inferred resource area; two are drilling infill holes close

to the centre of Kakula; and two are drilling wedge holes for metallurgical testwork in the

Kakula Indicated Resource area (see figures 1 and 2). More than 69,000 metres have been

drilled at Kakula since May 2016. The Kakula Discovery remains open along a westerly-

southeasterly strike (see Figure 2).

Mr. Friedland said that rigs will be reallocated to Kakula West and other high-priority

exploration targets elsewhere on the approximately 400-square-kilometre Kamoa-Kakula

Project once the resource delineation drilling is completed at the eastern section of the

Kakula Deposit.

“With the approaching onset of the dry season in the DRC, we also will have the ability to

move the rigs to exploration targets that were not accessible during the rainy season. We

believe there is excellent geological potential to make other Kakula-type discoveries in

the area,” he added.

Strategic discussions continuing with potential partners

Mr. Friedland also noted that strategic discussions concerning Ivanhoe Mines and its

projects are continuing with several significant mining companies and investors across

Asia, Europe, Africa and elsewhere. Several investors that have expressed interest have

no material limit on the provision of capital. There can be no assurance that the company

will pursue any transaction or that a transaction, if pursued, will be completed.

Given the substantial increase in investor interest following the remarkable growth of the

Kakula Discovery, the company has increased the frequency of organized visits for

investors and banking analysts to its three mine development projects, including the

massive exploration program at Kakula.

Mr. Johansson said it is important for analysts and investors to gain a first-hand

understanding of the progress being made at all of Ivanhoe’s projects and the scale of

the Kakula Discovery. A group of analysts completed a visit last week; the next

scheduled visit to the sites is May 18 to 21. Ivanhoe and Zijin Mining will host a one-day

tour of the Kamoa-Kakula Project on June 22 for some of the delegates to the DRC Mining

Conference in Lubumbashi.

Figure 1.

Kamoa-K

and Infe

current t

Kakula m

rred Reso

target are

ining lice

ources at

eas and lo

ence, sho

t a 2% cop

ocation of

wing cop

pper cut-o

f Kakula W

pper grade

off, untes

West Disc

e of Indic

sted areas

covery.

cated

Figure 2.

Drilling

hole DD

the wes

step-ou

map of th

D1124 at K

stern-mos

ut holes, D

he Kakula

Kakula W

st Kakula

DD1138 a

a Discove

West, more

resource

nd DD114

ery, show

e than thr

e hole, an

44.

wing locat

ree kilome

nd the two

tions of d

etres awa

o new 400

iscovery

ay from

0-metre

Figure 3. V

Figure 4. V

View to w

Discovery

and the tw

View to w

west from

y, showin

wo new 4

west, show

above th

ng locatio

400-metre

wing two

he current

ons of dis

e step-out

drilling r

t northwe

scovery h

t holes, D

rigs at the

estern lim

ole DD11

DD1138 an

e Kakula D

mit of the K

24 at Kak

nd DD114

Discovery

Kakula

kula West

44.

Figure

5. Section a

to date an

long the axis

nd composite

s on the Kak

es at a 3.0%

kula Deposit

copper cut-o

on the sectio

off.

on A - A’- A’’

’ - B showing

g drilling com

mpleted

Figure 6. K

Exploration

well-minera

northeast o

cut-off, from

cut-off. This

west-southw

metre thick

Kakula W

including

and DD11

n drilling is

alized zone

of DD1124.

m a downho

s hole may

west, altho

siltstone u

West drillin

g discove

144.

ongoing ov

e. Assays w

DD1117 i

ole depth o

y define the

ough it is im

unit, sugge

ng map s

ry hole D

ver a wide

were receiv

ntersected

of 491.18 m

e northern

mportant th

sting the p

showing c

DD1124 an

area at Ka

ved for a se

d 2.94 metr

metres, and

edge of the

hat minerali

prospectivit

completed

nd step-o

akula West

econd hole

res (true wi

d 3.61 met

e strong co

ization in D

ty of this no

d and pla

ut holes D

t to establis

e, DD1117,

idth) of 2.9

tres of 2.60

opper mine

DD1117 is

orthern zon

nned hole

DD1138

sh the geom

, drilled 500

5% copper

0% copper,

eralization a

associated

ne remains

es,

metry of th

0 metres

r, at a 3.0%

, at a 1.0%

as it trends

d with a 17-

s high.

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