Exceptional grades and widths of mineralization confirmed

June 20, 2016

Exceptional grades and widths of mineralization confirmed by initial assay results from expanded drilling program at Ivanhoe Mines’ Tier One Kakula Discovery on the Kamoa Copper Project

Copper intercepts include 8.86 metres (true width) of 6.56% and 10.23 metres (true width) of 6.18%, at a 2.5% copper cut-off

Twin declines for access to Kamoa’s planned initial mining area at Kansoko Sud progressing ahead of schedule

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Robert Friedland, Executive Chairman of

Ivanhoe Mines (TSX: IVN), and Lars-Eric Johansson, Chief Executive Officer, today announced assay results from the first six holes of the 2016 drilling campaign at the Kakula Discovery on the company’s Tier One Kamoa Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo. Kamoa is a joint venture between Ivanhoe Mines and Zijin Mining.

The primary objective of the current drilling program is to confirm and expand a thick, flat-lying, bottom-loaded zone of very high-grade copper mineralization at the southern part of the Kakula Discovery area (see Figure 1) that has the potential to have a significant, positive impact on the Kamoa Project’s future development plans.

Highlights of the latest drill results, which confirm the exceptional grades and shallow, flat-lying geometry of the Kakula mineralized zone that were identified by previous Ivanhoe drilling, include:

• DD998 intersected 11.82 metres (true width) of 4.06% copper at a 2.5% copper cut off, 11.82

metres (true width) of 4.06% copper at a 2% copper cut off and 13.79 metres (true width) of 3.68% copper at a 1% copper cut-off.

• DD999 intersected 8.86 metres (true width) of 6.56% copper at a 2.5% copper cut-off, 11.62

metres (true width) of 5.52% copper at a 2% copper cut-off and 13.65 metres (true width) of 4.93% copper at a 1% copper cut-off.

• DD1002 intersected 6.42 metres (true width) of 5.70% copper at a 2.5% copper cut-off, 14.68

metres (true width) of 3.71% copper at a 2% copper cut-off and 32.55 metres (true width) of 2.49% copper at a 1% copper cut-off.

• DD1003 intersected 10.23 metres (true width) of 6.18% copper at a 2.5% copper cut-off,

10.23 metres (true width) of 6.18% copper at a 2% copper cut-off and 18.71 metres (true width) of 3.88% copper at a 1% copper cut-off.

“These initial results are consistent with our earlier drill intercepts in this remarkable discovery made by the Ivanhoe Mines geological team and confirm the consistent, high-grade nature of the Kakula copper mineralization,” said Mr. Friedland.

“The bottom-loaded nature of the nearly flat-lying, stratabound chalcocite and bornite mineralization at Kakula offers the potential for selective, mechanized underground mining at significantly higher copper grades than other large-scale mining projects.”

Kakula’s drilling program is now fully mobilized with seven rigs operational in the field and two rigs on standby. The planned 25,000 metres of drilling are scheduled to be completed later this year. Initial interpretation of the drilling confirms the shallow, flat-lying geometry of the target stratigraphy and the presence of mineralization with typical Kakula characteristics. Figure 4 shows the structure contours of depth below surface of the top of the Mwashia sandstone, which marks the approximate footwall of mineralization.

The 60-square-kilometre Kakula exploration area is approximately 10 kilometres southwest of the Kamoa Project’s planned initial mining area at Kansoko Sud.

Ongoing drilling results with pending assays confirm Kakula as a shallow, nearly flat, consistent zone of high-grade copper mineralization

In addition to the six holes for which assays results have been reported in this release, an additional 14 drill holes in the Kakula area have completed drilling and ICP-OES assay results are pending.

Of particular significance is hole DD1011 — a 450-metre, step-out hole south-east from DD996, which intercepted 9.96 metres (true width) of 6.61% copper in 2015, at a 2.5% copper cut-off. DD1011 intersected comparable stratigraphy and associated chalcocite mineralization to DD996. DD1011 intersected intense, fine-grained chalcocite mineralization within the basal siltstone from a depth of 423.35 metres to 427.45 metres below surface, followed by 0.36 metres of diamictite, before intersecting Mwashia sandstone at a depth of 427.81 metres to the end of hole. Niton XRF results on pulverized core from DD1011 confirm the visual presence of significant copper mineralization and indicate comparable grades and thicknesses to the drill holes in the center of the high-grade zone, such as DD996.

Hole 1011 is highly significant as it confirms the flat-lying, thick, high-grade Kakula mineralized zone encountered in the drill holes reported to date extends at least 450 metres further to the south. The high-grade zone remains open to the south and drilling will continue to test the extent of the mineralized zone in this direction.

Ivanhoe conducts Niton XRF analyses routinely as part of its sample preparation and analysis. Sawn drill core is sampled on nominal 1-metre intervals, and then the sawn core is crushed to nominal 2 mm using jaw crushers. A quarter split (500 grams to 1,000 grams) is pulverized to >90% -75 μm, using LM2 puck and bowl pulverizes. The remaining coarse reject material is retained. A 60-gram split is sent for ICP assay and a 15-gram split is used for used for pXRF. The pXRF split is placed in a powder cup and covered with film prior to analysis. Ivanhoe inserts blanks and standards into the Niton pXRF sample stream in the same way it does for its assays, with a 5% insertion rate for standards and blanks. Ivanhoe monitors the pXRF results for accuracy and precision, although results are used for indicative purposes only.

Figure 1. Kamoa Project map shows the planned initial mining area at Kansoko Sud and the adjacent Kakula exploration area.

Kakula Discovery area showing drill holes DD1021 and DD1020 in progress.

Drill hole DD1021

Drill hole DD1020

Figure 2. Kakula infill drill hole location plan.

Kakula-style mineralization — consistently bottom-loaded and chalcocite dominant

The recent results confirm that mineralization at Kakula is consistently bottom-loaded, with grades increasing downhole toward the contact between the host Grand Conglomerate and the underlying Mwashia sandstone. The highest copper grades are associated with a siltstone/sandstone unit occurring within the Grand Conglomerate, approximately one metre above the top of Mwashia sandstone contact (see Figure 7 for a section across the Kakula Discovery area).

Mineralization displays vertical mineral zonation from chalcopyrite to bornite to chalcocite, with the highest grades associated with the siltstone unit consistently characterized by chalcocite dominant mineralization (See Figure 3 for a strip log showing typical Kakula-style mineralization).

Figure 3. DKMC_DD997 strip log showing typical Kakula-style mineralization.

The consistent nature of Kakula mineralization supports the creation of selective mineralized zones at cut-offs up to 2.5% and 3% copper. The recent results are shown at various cut-offs in tables 2 and 3, while the accumulation of metal and thickness at 1% and 2.5% cut-offs are shown in figures 5 and 6.

Table 1. Assay composites from newly released Kakula drill holes at copper cut-offs of 1% and 2%.

Table 2. Assay composites from newly released Kakula drill holes at copper cut-offs of 2.5% and 3%.

Note * If a composite cannot be made at a certain cut-off, the best composite at approximately 3.0 metres is shown.

Figure 4. Structure contours showing the depth below surface of the bottom of the stratabound copper mineralization at Kakula.

Figure 5. Grade-thickness contours from current results at a 1% cut-off.

Figure 6. Grade-thickness contours from current results at a 2.5% cut-off.

Figure 7. Cross-section of Kakula Discovery area, showing true thicknesses of drill intercepts at a 2.0% copper cut-off.

Kamoa underground development advancing ahead of plan

Underground development at Kamoa is progressing ahead of plan and within budgeted costs. The twin declines at Kansoko Sud each have advanced more than 30 metres since the first excavation blast occurred on May 12. Development of the mine is designed to reach the high- grade copper mineralization during the first quarter of 2017.

The Kansoko Sud initial mining footprint contains high-grade intercepts of up to 7.04% copper and a potential mining thickness of more than 15 metres. The mineralized horizon is expected to be intersected by the declines at approximately 150 metres vertically below surface, where initial mining operations will commence.

Byrnecut Underground Congo SARL is the contractor for the development of the declines.

Preparations underway for another excavation blast in the service decline.

Commenting on the achievements to date, Louis Watum, Kamoa Copper’s General Manager, said, “We’re delighted with the progress being made at Kakula.

“The underground mining ramp-up is on the critical path of our project and naturally it is extremely important that we maintain our progress and complete the decline development to enable us to access the Kansoko Sud deposit as quickly as possible. This new, high-grade discovery at Kakula opens further opportunities for us to design and construct Kamoa as one of the world’s greatest copper mines.”

Kamoa box-cut, showing entrances to twin declines (at right) and surface facilities.

Table 3. Collar locations of Kakula drill holes.