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Drilling extends strike length of the shallow, thick copper discovery at the Kamoa North Bonanza Zone to at least 550 metres, with an implied strike length of at least 2.7 kilometres New assays return copper grades up to 13.80% over 15.50 metres

Drill Results

July 29, 2019

Drilling extends strike length of the shallow, thick copper

discovery at the Kamoa North Bonanza Zone to at least 550

metres, with an implied strike length of at least 2.7 kilometres

New assays return copper grades up to 13.80% over 15.50 metres

in the central discovery area

Six rigs now drilling at Kamoa North to extend the discovery’s

strike length and fast track a resource estimate

Drilling on Ivanhoe’s 100%-owned Western Foreland licences,

immediately north of the Kamoa-Kakula mining licence,

has discovered the extension of the Kamoa Far North high-grade

shallow copper corridor on Ivanhoe’s wholly-owned licences

for at least 400 metres

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Robert Friedland and Yufeng “Miles”

Sun, Co-Chairmen of Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF), announced today

that the strike length of the shallow, thick, massive copper sulphide mineralization at

the Kamoa North Bonanza Zone that was discovered earlier this year in drill hole

DD1450 (13.05% copper over 22.3 metres (true thickness), at a 2% copper cut-off grade)

on the Kamoa-Kakula mining licence in the Democratic Republic of Congo (DRC) has

been extended by at least another 200 metres along strike to 550 metres, with a width of

up to 60 metres across strike (see Figure 2).

Five rigs are extending and infilling the central and eastern portions of the implied 2.7-

kilometre Kamoa North Bonanza mineralized corridor, and a sixth rig is drilling high-

grade mineralization around holes DD0015 and DD1200 located to the west of the major

north-south trending West Scarp Fault, which down drops the high-grade discovery

zone by approximately 250 metres.

The central and eastern portions of the Kamoa North Bonanza Zone have drilled

thicknesses of between six and 36 metres, and are approximately 170 to 220 metres

below surface, with grades ranging as high as 18.48% copper over 13.6 metres, at both

a 2% and a 3% cut-off grade.

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The Kamoa North Bonanza Zone represents a new style of copper mineralization at

Kamoa-Kakula, where massive to semi-massive chalcopyrite, bornite and chalcocite

have locally replaced pyrite in the Kamoa Pyritic Siltstone (KPS) – a pyritic siltstone that

lies immediately above the basal diamictite unit that typically hosts the copper

mineralization at Kamoa-Kakula.

Assay results for 19 new holes have been received from the Kamoa North Bonanza

Zone (see tables 1 and 2 on pages 13 and 14 for a complete list of assays).

Significant new drilling intercepts from the Kamoa North Bonanza Zone include:

 DD1508 intersected 11.82 metres of 10.41% copper, at a 3% copper cut-off, and 12.82

metres of 9.76% copper, at a 1% and 2% copper cut-off, in semi-massive sulphide

KPS-hosted mineralization, beginning at a downhole depth of 185.0 metres.

 DD1520 intersected 13.49 metres of 13.69% copper, at a 3% copper cut-off, and 28.38

metres of 7.74% copper, at a 2% copper cut-off, in semi-massive sulphide KPS-

hosted mineralization, beginning at a downhole depth of 193.5 metres; and 36.00

metres of 6.45% copper at a 1% cut-off.

 DD1522 intersected 16.24 metres of 13.41% copper, at a 3% copper cut-off, and 25.74

metres of 9.34% copper, at a 2% copper cut-off, in semi-massive sulphide KPS-

hosted mineralization, beginning at a downhole depth of 198.7 metres; and 28.89

metres of 8.49% copper at a 1% cut-off.

 DD1527 intersected 15.50 metres of 13.80% copper, at a 3% copper cut-off, and 26.00

metres of 9.46% copper, at a 2% copper cut-off, in semi-massive sulphide KPS-

hosted mineralization, beginning at a downhole depth of 205.0 metres; and 26.00

metres of 9.46% copper at a 1% cut-off.

 DD1531 intersected 4.37 metres of 12.37% copper, at a 3% copper cut-off, and 5.06

metres of 11.09% copper, at a 2% copper cut-off, in semi-massive sulphide KPS-

hosted mineralization, beginning at a downhole depth of 205.0 metres; and 12.87

metres of 5.35% copper at a 1% cut-off.

Infill drilling in the shallow central core of the Kamoa North Bonanza Zone is focused on

delineating an initial mineral resource estimate.

“Drilling in the core of the Kamoa North Bonanza Zone continues to return extremely

high-grade copper assays over very thick intersections of up to 30 metres, or 100 feet,”

said Mr. Friedland. “Given the shallow depth of the Kamoa North mineralization and the

remarkable copper grades and thicknesses encountered to date, Kamoa-Kakula’s

engineering team already is working on conceptual development plans to access the

ultra-high-grade mineralization.”

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Additional assays received from 11 holes drilled along the 10-kilometre

Kamoa Far North high-grade copper corridor, with grades ranging

up to 9.37% copper over 6.46 metres

Assay results also have been received for the final 11 drill holes completed in the

Kamoa Far North Area. The results confirm earlier visual and portable Niton (X-ray

fluorescence or XRF) estimates that the high-grade mineralized trend that had been

defined over a distance of 10 kilometres in the Kamoa North region has been traced to

the northern boundary of the Kamoa-Kakula mining licence. More than 29,000 metres

have been drilled so far this year on the Kamoa-Kakula mining licence, and an

additional 26,000 metres currently are planned.

Highlights of recent Kamoa Far North drilling include:

• DD1482 intersected 6.46 metres (true thickness) of 9.37% copper, at a 3% copper

cut-off, and 8.31 metres (true thickness) of 7.84% copper, at a 1% and 2% copper

cut-off beginning at a downhole depth of 250.0 metres.

• DD1492 intersected 10.36 metres (true thickness) of 6.99% copper, at a 3% and 2%

copper cut-off, and 11.16 metres (true thickness) of 6.59% copper, at a 1% copper

cut-off, beginning at a downhole depth of 226.9 metres.

• DD1502 intersected 9.56 metres (true thickness) of 5.59% copper, at a 3%, 2% and

1% copper cut-off, beginning at a downhole depth of 262.0 metres.

• DD1517 intersected 3.10 metres (true thickness) of 6.62% copper, at a 3%, 2% and

1% copper cut-off, beginning at a downhole depth of 325.38 metres.

Drilling has discovered at least 400 metres of shallow, copper -rich

mineralization on Ivanhoe’s 100%-owned Western Foreland licence, along

strike of the 10-kilometre Kamoa Far North high-grade copper corridor

Drilling on Ivanhoe’s 100%-owned Western Foreland licences, immediately north of the

northern border of the Kamoa-Kakula mining licence, has confirmed the extension of

the Kamoa Far North high-grade trend onto Ivanhoe’s licences for at least 400 metres.

Two east-west section lines located at 200 metres and 400 metres north of the Kamoa-

Kakula mining licence have been drill tested at 100-metre intervals. Visually strong

copper mineralization has been intersected in a single hole on both section lines. The

copper mineralization intersected is consistent in downhole depth and stratigraphic

location with the copper mineralization intercepted in the Kamoa Far North high-grade

trend.

Six holes have been completed in this new discovery area and assays are pending.

Ivanhoe also is continuing exploration drilling, ground geophysics and airborne

geophysics on other DRC exploration targets.

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Discovery of KPS-hosted mineralization at Kamoa North opens the door

to multiple exploration opportunities at Kamoa-Kakula and the adjoining

Western Foreland ground

The ultra-high copper grades intercepted to date in the Kamoa North Bonanza Zone are

believed to be the result of the controlling east-west growth fault structure having

allowed oxidized, copper-rich brines to bypass the lower redox interface at the Roan-

Nguba contact that is the typical mineralized horizon at Kamoa-Kakula. Instead, the

copper-rich brines accessed the overlying, highly-sulphidic and reduced KPS, resulting

in a new, upper mineralized zone hosted in the KPS and characterized by the bonanza-

grade copper found in the vicinity of hole DD1450.

The growth fault structure is characterized by a wide zone of sub-parallel, low-angle,

fault planes dipping at approximately 40 degrees to the south through the KPS (see

Figure 4). Replacement of pyrite in the vicinity of these fault planes, as a result of a

combination of cross-stratal and stratabound fluid flow, has resulted in mineralization

that transects the KPS from top in the north to bottom in the south.

Pyrite is an excellent reductant, and consequently in many places the pyrite has been

completely replaced by chalcopyrite, bornite and chalcocite (see figures 5 and 6). The

copper content of chalcopyrite is approximately 35%, while the copper content of

bornite is approximately 63% and is nearly 80% for chalcocite.

The Kamoa North Bonanza Zone remains open along a westerly-easterly strike for a

considerable distance. An east-west lineament, thought to represent the controlling

growth structure, can be traced in aeromagnetic data for up to 20 kilometres, across the

western side of the Kamoa-Kakula mining licence and onto Ivanhoe’s adjoining, 100%-

owned Western Foreland exploration licences (see Figure 2).

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Figure 1: Kamoa-Kakula mining licence, showing the Kamoa North Bonanza

and Kamoa Far North zones, the new Kamoa Far North extension discovery

on Ivanhoe’s 100%-owned exploration licences, and the planned mines at Kakula

and Kansoko.

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Figure 2: Location plan map of the Kamoa North Bonanza Zone.

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Figure 3: Plan view of Kamoa North Bonanza Zone drill-hole collars and

interpreted high-grade corridor (drill intercepts shown at a 2% copper cut-off).

Drill intersections for the Kamoa North Bonanza Zone holes in this release are reported

as drilled thicknesses pending more detailed drilling and analysis; however, preliminary

interpretation of drill sections indicates that the majority of drill holes transected the

zone at approximately perpendicular angles (see Figure 4 below for an illustration).

Figure 4 shows the diamictite layer (in white) that is the typical mineralized horizon at

Kamoa and Kakula, as well as the overlying KPS siltstone layer (in yellow) that hosts the

Kamoa North Bonanza Zone mineralization.

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Figure 4: Section views through the Kamoa North Bonanza Zone.