Ivanhoe Mines announces the Makoko Copper Discovery on its 100%-owned Western Foreland exploration licences near Kamoa-Kakula in the Democratic Republic of Congo Makoko is Ivanhoe’s third major copper discovery in the DRC

October 1, 2018

Ivanhoe Mines announces the Makoko Copper Discovery

on its 100%-owned Western Foreland exploration licences

near Kamoa-Kakula in the Democratic Republic of Congo

Makoko is Ivanhoe’s third major copper discovery in the DRC

Makoko high-grade copper shows characteristics identical

to the tier-one Kamoa-Kakula Discoveries

Makoko has been drilled over an area measuring 4.5 kilometres

by 1.5 kilometres and remains open

Drilling continuing on other Western Foreland targets

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

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

has made an important new discovery of high-grade copper on its 100%-owned Western

Foreland licences, west of the Kamoa-Kakula mining licence in the Democratic Republic of

Congo (DRC).

Ivanhoe holds an extensive land package, totalling approximately 700 square kilometres, of

prospective, 100%-owned exploration licences in the Western Foreland area. Ivanhoe began

exploration drilling on the licences in the third quarter of 2017. To date, the company has drilled

more than 50 holes, the great majority of which have been in the Makoko Discovery area.

Makoko is the first of multiple high-potential target areas identified by Ivanhoe’s exploration

team to be tested by drilling. An initial, independent resource estimate for the Makoko Copper

Discovery is expected in the current financial quarter. In addition, Ivanhoe recently began

exploration drilling on other targets identified in the Western Foreland area to test for high-

grade copper.

Selected drill holes at the Makoko Discovery include:

• DD004 (the Makoko discovery hole) intersected 3.94 metres (true width) of 5.46% copper,

at a 2.0% copper cut-off, and 3.94 metres (true width) of 5.46% copper at a 1.0% copper

cut-off, from a downhole depth of 306 metres.

• DD010 intersected 3.21 metres (true width) of 6.78% copper, at a 2.0% copper cut-off, and

3.95 metres (true width) of 5.81% copper at a 1.0% copper cut-off, from a downhole depth

of 441 metres.

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• DD017 intersected 3.19 metres (true width) of 6.49% copper at a 2.0% copper cut-off, and

4.64 metres (true width) of 4.88% copper, at a 1.0% copper cut-off, from a downhole

depth of 471.7 metres.

• DD025 intersected 3.00 metres (true width) of 7.61% copper at a 2.0% copper cut-off, and

3.00 metres (true width) of 7.61% copper, at a 1.0% copper cut-off, from a downhole

depth of 406 metres.

• DD046 intersected 7.44 metres (true width) of 7.81% copper at a 2.0% copper cut-off, and

9.39 metres (true width) of 6.51% copper, at a 1.0% copper cut-off, from a downhole

depth of 523.51 metres.

Table 1 on page 13 contains a complete list of assay results, at 1% and 2% copper cut-offs, for

the drill holes completed to date at Makoko.

“This latest discovery at Makoko validates our exploration model for the geologic features

controlling the high-grade copper mineralization in the region,” said Mr. Friedland. “This model

reflects the accumulation of in-depth, proprietary geological insights gained by Ivanhoe's

exploration team during nearly two decades of exploring in the region.

“Given the early drilling success at Makoko, we are highly confident that we have the secret

blueprint for additional exploration successes in the Western Foreland area in 2019 and beyond.

“We are in the privileged position of owning 100% of a massive exploration land package with

outstanding geological potential next door to our Kamoa and Kakula discoveries. Kamoa-

Kakula already has been independently established as the world’s fourth-largest copper project

and still is growing. It has copper grades that are the highest, by a wide margin, of the world’s

top 10 copper deposits,” Mr. Friedland added.

“While some investors are focused on short-term issues such as the DRC Mining Code

revisions and the upcoming presidential election, Ivanhoe’s philosophy is to think big and think

long term. Our geological team has done an outstanding job of executing our strategy to

continue to add shareholder and stakeholder value by keeping the drill bits turning and

delivering spectacular exploration results.

“The government of the Democratic Republic of Congo has encouraged investors to continue

their exploration efforts in the DRC. Ivanhoe’s team is the determined and absolute global leader

in exploration technology and success. Our talented and dedicated employees will continue to

help the Congolese people unlock the full potential of their country’s mineral endowment.

“Our continued exploration successes in the DRC will continue to catch the fullest attention of

the mining world,” Mr. Friedland said.

Exploration history and target areas on Ivanhoe’s Western Foreland licences

Exploration on Ivanhoe’s Western Foreland licences began in July 2017, with the construction

of all-season access roads, bridge construction and the development of new camp facilities. In

parallel, Ivanhoe undertook airborne and ground-based geophysical surveys and revisited

previously acquired geophysical and geochemical data sets. The interpretative work led to the

definition of a number of promising exploration targets, of which Makoko was the first to be

tested with drilling.

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The initial discovery hole at Makoko, DD004, was drilled in September 2017. Follow-up and infill

drilling has been ongoing since then. Drilling to date at Makoko has defined a flat-lying, near-

surface stratiform copper deposit, similar to the Kamoa and Kakula deposits. The structure

contour map indicates that the mineralized formation in the Makoko area is within 1,000 metres

of surface (see Figure 1 on page 4). The majority of the drilling to date at Makoko has

intersected the copper-rich zone between 400 metres and 800 metres below surface. Figure 4 on

page 7 shows a three-kilometre section along strike where the flat-lying, copper-rich zone is

between 400 metres and 500 metres below surface.

The mineralized zone at Makoko strikes approximately south-southeast. It has been tested over

a strike length of 4.5 kilometres and a dip extent of between one and two kilometres. Copper

mineralization remains open both along strike and down dip.

The Grand Conglomerate unit (coarse-grained clastic sedimentary rock), the base of which

hosts copper mineralization in the Western Foreland area, underlies the majority of the area

covered by exploration licences held by Ivanhoe, with the base of the unit interpreted to be

generally within 600 metres of surface.

At the nearby Kakula Discovery, the highest copper grades are associated with a siltstone-

sandstone unit occurring within the Grand Conglomerate, located approximately one metre

above the top of the Mwashia sandstone unit. Mineralization at Kakula consistently is bottom

loaded, with grades increasing down-hole toward the contact between the host Grand

Conglomerate and the underlying sandstone unit.

Copper mineralization at the Makoko Discovery similarly is located at the base of the Grand

Conglomerate, just above the contact with the underlying Roan footwall rocks. This location is

consistent with copper mineralization seen in earlier drilling into the Kakula Discovery and

elsewhere in the Western Foreland area.

High-grade copper intersections at Makoko are associated with a rhythmically-banded, fine-

grained siltstone-sandstone unit similar to the siltstone-hosted mineralization at Kakula,

although at Makoko the host package of rocks also includes zones of reworked diamictite. The

siltstone-rich zones appear to have been controlled by the underlying basin architecture at the

time of deposition.

Sulphide copper mineralization generally is fine-grained and shows typical downward vertical

zonation of chalcopyrite to bornite to chalcocite, similar to Kakula. The dominant copper

sulphide mineral at Makoko tends to be bornite.

Makoko Discovery validates Ivanhoe’s proprietary exploration model

The new Makoko Discovery is a result of the integration of airborne and ground-based

geophysical techniques with a proprietary understanding of the structural and basin

architecture controls on mineralization in the Western Foreland area.

This approach has helped guide the ongoing exploration drilling program and also has

identified a number of similar high-value targets on the Western Foreland area that will be drill

tested in 2019 and beyond.

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Figure 1: Detailed map of Makoko Discovery showing structure contours, drill hole collars and section line A-A.

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Figure 2: Makoko Discovery’s selected mineralized zones (SMZ) copper grade at a 2% copper cut-off

and 3-metre minimum width.

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Figure 3: Makoko’s SMZ true thickness at a 2% copper cut-off and 3-metre minimum width.

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Figure 4: Section A-A’: A strike-section along the axis of the Makoko Discovery.

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Figure 5: Downhole assay plots for Makoko drill holes DD004 and DD010.