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Ivanhoe Mines comments on share price

Company Commentary

August 14, 2017

Ivanhoe Mines comments on share price

VANCOUVER, CANADA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) announced today that

the company is not aware of any specific reason that might be contributing to the recent

decline in the company’s share price. Ivanhoe Mines is making excellent progress at its three

mine development projects: Kamoa-Kakula, Kipushi and Platreef.

While geopolitical tensions have been making news headlines, business and investment media

also have reported recent, significant gains in US$ pricing for copper, zinc and platinum-group

metals. The depreciation of local currencies in the current risk-off environment means that

some of Ivanhoe’s exploration and development costs also have been declining in equivalent

US-dollar values. In South Africa, the majority of Ivanhoe’s costs to develop its Platreef Mine

are being incurred in South African rand. Ivanhoe believes that these circumstances provide

an excellent opportunity to deepen the company’s commitment to its tier-one mining assets.

Ivanhoe is not aware of any inherent reason in the events to justify a decline in its share price.

The drilling program at the Kamoa-Kakula Project, with 14 rigs, is continuing to expand and

upgrade the high-grade Kakula mineralized trend. Drill intercepts rich in chalcocite and bornite

continue to be returned at Kakula West and in the saddle area between the Kakula Mineral

Resource area and the Kakula West discovery area. Drilling now has more than doubled the

strike length of the Kakula West copper-rich mineralized system to approximately 2.9

kilometres, and also continued the extension of the high-grade Kakula mineralized system to

more than 12 kilometres.

Ivanhoe expects to issue a comprehensive drilling update for the Kakula Copper Discovery in

early September, which will include assays received since the May 2017 resource estimate. An

updated Mineral Resource estimate for the entire 12-kilometre-long Kakula mineralized system

that has been defined to date, including the Kakula West Discovery, is expected before the

end of the year.

Ivanhoe recently began drill testing of two of the nine high-priority, new target areas at the

Kamoa-Kakula Project: Kamoa Ouest (West) and Makalu/Kakula NE. Ivanhoe also has

initiated a US$4 million exploration program on its 100%-owned exploration land position in the

Western Foreland region, just to the west of the Kamoa-Kakula mining licence, which is highly

prospective for Kamoa-Kakula-type copper discoveries. Results from both exploration

programs will be made available as they are received.

About Ivanhoe Mines

Ivanhoe Mines is advancing its three principal projects in Southern Africa: Mine development

at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South

Africa’s Bushveld Complex; mine development and exploration at the Kamoa-Kakula copper

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project on the Central African Copperbelt in the DRC; and upgrading at the historic, high-grade

Kipushi zinc-copper-silver-germanium mine, also on the DRC’s Copperbelt. For details, visit

www.ivanhoemines.com.

Information contacts

Investors

Bill Trenaman +1.604.331.9834

Media

North America: Bob Williamson +1.604.512.4856

South Africa: Jeremy Michaels +27.82.772.1122

Website www.ivanhoemines.com

Forward-looking statements

Certain statements in this release constitute “forward-looking statements” or “forward-looking

information” within the meaning of applicable securities laws. Such statements and information involve

known and unknown risks, uncertainties and other factors that may cause the actual results,

performance or achievements of the company, its projects, or industry results, to be materially different

from any future results, performance or achievements expressed or implied by such forward-looking

statements or information. Such statements can be identified by the use of words such as “may”,

“would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”,

“forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”,

“could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the

company’s current expectations regarding future events, performance and results and speak only as of

the date of this release.

Such statements include without limitation, the timing and results of: (i) Ivanhoe’s expectation to issue a

comprehensive drilling update for the Kakula Discovery in early September, which will include assays

received since the May 2017 resource estimate; and (ii) Ivanhoe’s expectation to issue an updated

Mineral Resource estimate for the entire 12-kilometre-long Kakula mineralized system defined to date,

including the Kakula West Discovery, before the end of the year.

Forward-looking statements and information involve significant risks and uncertainties, should not be

read as guarantees of future performance or results and will not necessarily be accurate indicators of

whether or not such results will be achieved. A number of factors could cause actual results to differ

materially from the results discussed in the forward-looking statements or information, including, but not

limited to, the factors discussed below and under “Risk Factors”, as well as unexpected changes in

laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to

contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices;

and the failure of exploration programs or studies to deliver anticipated results or results that would

justify and support continued exploration, studies, development or operations.

Although the forward-looking statements contained in this release are based upon what management of

the company believes are reasonable assumptions, the company cannot assure investors that actual

results will be consistent with these forward-looking statements. These forward-looking statements are

made as of the date of this release and are expressly qualified in their entirety by this cautionary

statement. Subject to applicable securities laws, the company does not assume any obligation to

update or revise the forward-looking statements contained herein to reflect events or circumstances

occurring after the date of this release.

The company’s actual results could differ materially from those anticipated in these forward-looking

statements as a result of the factors set forth in the “Risk Factors” section of the company’s Q2 2017

MD&A and its most recent Annual Information Form.