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Kamoa Copper achieves record monthly copper production of 29,800 tonnes

Production Results

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June 6, 2022

Kamoa Copper achieves record monthly copper production of

29,800 tonnes

■

Kamoa-Kakula’s Phase 2 concentrator ramps up to steady state

ahead of schedule

■

Kamoa Copper milled record 660,000 tonnes of ore in May, for a

run rate of 8 million tonnes per year

■

Phase 3 box cut nears completion at the Kamoa 1 and

Kamoa 2 mines

■

Long-lead time items secured for Inga II hydroelectric upgrade;

construction to commence in July

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:

IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun are pleased to announce

today that the Kamoa-Kakula Mining Complex in the Democratic Republic of Congo has

set a new monthly production record in May, with 29,800 tonnes of copper in

concentrate produced.

Kamoa Copper’s record monthly production was achieved despite planned

interruptions during the month. These planned interruptions involved scheduled

maintenance for two days on the Phase 1 plant, including relining of the primary ball

mill; and the successful commissioning of the third Larox filter press from Metso

Outotec of Espoo, Finland, on May 9, which allows Kamoa Copper to leverage the

enhanced ore throughput rates at the front-end of the Phase 1 and Phase 2 plants.

Kamoa-Kakula milled 660,000 tonnes of ore during the month at an average feed grade

of 5.5% copper, currently positioning the Phase 1 and Phase 2 concentrator plants at a

combined annualized processing rate of approximately 8 million tonnes. Average feed

grades are expected to trend toward long-term projections as Phase 2 establishes

steady-state design capacity. Over the last seven months, the Phase 1, 3.8-million-

tonne-per-annum concentrator plant has consistently exceeded design ore throughput

by approximately 10% to 15%.

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The Kamoa-Kakula Phase 2, 3.8 million-tonne-per-annum concentrator plant

successfully declared commercial production on April 7, 2022. First ore was introduced

into the Phase 2 milling circuit on March 21, 2022, and first copper concentrate was

produced approximately four months ahead of the originally announced development

schedule. The Phase 2 plant now is consistently operating at comparable throughputs

and recoveries to the Phase 1 plant.

Kamoa Copper management anticipates that the accelerated ramp-up of the Phase 2

concentrator plant will enable Kamoa-Kakula to deliver in the upper end of its 2022

copper production guidance of 290,000 to 340,000 tonnes.

The existing Phase 1 and 2 concentrators also will be de-bottlenecked and are expected

to be operating at a combined throughput of 9.2 million tonnes of ore per year by the

second quarter of 2023, which will increase Kamoa-Kakula’s annual copper production

to more than 450,000 tonnes. This production rate will rank Kamoa Copper as the

world’s fourth-largest copper producer.

Kamoa-Kakula's Phase 1 and Phase 2 plants milled a record 660,000 tonnes of

ore in May for an annualized run rate of approximately 8 million tonnes per year.

Watch a June video highlighting Kamoa-Kakula’s operations and phased

expansion: https://vimeo.com/717343101/2c3ff0216f

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“Kamoa-Kakula continues to be an industry-leading example of responsible, world-

scale development delivered on budget, and ahead of schedule, a unique

accomplishment for major mining projects,” Mr. Friedland said. “The Kamoa Copper

management team has smashed another milestone with the rapid ramp-up of the Phase

2 plant. We expect the lessons learned to serve us well as we continue to expand

Kamoa-Kakula into one of the world's largest copper mining complexes, while providing

exceptional returns for our shareholders.

“Together with our joint-venture partner, Zijin Mining, and alongside the Congolese

nation, we have resolved to fast-track expansions at the Kamoa-Kakula Mining Complex

to meet a rising world-wide demand for responsibly-produced copper metal. Kamoa

Copper’s accomplishments also demonstrate the great potential and strategic

importance of the Democratic Republic of Congo as we electrify the world economy,

which will require an historic quantity of copper and many other vital metals. Kamoa

Copper is proof that the country's vast mineral and hydropower potential can be

realized to provide long-lasting economic and social benefits for the Congolese

people.”

Figure 1: Monthly Kakula cumulative copper production – total production of

approximately 220,000 tonnes copper from May 2021 to May 31, 2022.

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Excavation for expanded concentrate thickener capacity; part of the ongoing de-

bottlenecking program that will increase Kamoa-Kakula's total throughput to

approximately 9.2 million tonnes of ore per annum by Q2 2023.

Kamoa Copper well on track to reach upper end of 2022 copper production

guidance with record performance in May

The successful early commissioning and accelerated ramp-up of the Phase 2

concentrator plant positions Kamoa-Kakula to deliver the upper-end of its 2022

production guidance, with approximately 112,570 tonnes of copper in concentrate

produced year to date, and 218,433 tonnes of copper in concentrate produced from May

2021 through May 31, 2022.

In May, Kamoa-Kakula’s record monthly production of 29,800 tonnes of copper in

concentrate produced was achieved despite planned interruptions during the month.

These planned interruptions involved scheduled maintenance for two days on the

Phase 1 plant, including relining of the primary ball mill; and the successful

commissioning of the third Larox filter press from Metso Outotec of Espoo, Finland, on

May 9, which allows Kamoa Copper to leverage the enhanced ore throughput rates at

the front-end of the Phase 1 and Phase 2 plants.

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The monthly throughput rate of 660,000 tonnes of ore positions Kamoa Copper at a

current annualized processing rate of approximately eight million tonnes per annum, or

approximately 9% above nameplate capacity for the Phase 1 and Phase 2 concentrator

plants.

The Phase 1, steady-state-design copper recovery is approximately 86%, depending on

ore feed grade. Phase 2 recovery continues to trend upward, and currently averages

approximately 83%.

Kamoa Copper anticipates the upward trend in production to continue over the near-

term, as Phase 2 drives a production increase to an expected rate of more than 400,000

tonnes copper per year.

A de-bottlenecking program is underway at Kamoa-Kakula to expand the design

processing capacity of the Phase 1 and Phase 2 concentrators by 21%, to a combined

9.2 million tonnes of ore per year. Copper production from Kamoa Copper’s first two

phases is on track to exceed 450,000 tonnes per year by the second quarter of 2023.

Bovic Kilambe, Drill Rig Supervisor; Sun Mingyang, Welder; and Polite

Mnyokemi, Instrument Technician, underground at Kakula South near the

southwest pumping station and water dam.

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The Phase 1 concentrator plant (left), steady-state-design copper recovery is

approximately 86%, depending on ore feed grade, with Phase 2 now

demonstrating comparable recovery rates.

Kamoa Copper’s Projects Construction team celebrates commissioning of

Kamoa-Kakula’s third Larox concentrate filter press.

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Construction on Phase 3 box cut nearing completion at the Kamoa 1 and

Kamoa 2 mines

Engineering and construction work for the Phase 3 expansion, including a new box cut

and twin declines to access new mining areas, are progressing quickly. Kamoa-Kakula's

Phase 3 will consist of two new underground mines known as Kamoa 1 and Kamoa 2,

as well as the initial decline development at Kakula West.

Construction on the new box cut is nearing completion at the Kamoa 1 and Kamoa 2

mines, with decline development well underway to provide access to the main Phase 3

mining areas.

The pre-feasibility study for the Phase 3 expansion is well advanced and expected to be

released in the second half of 2022.

A new, 5-million-tonne-per-annum concentrator plant will be constructed adjacent to the

two new mines at Kamoa. Upon commencement of Phase 3 production, Kamoa Copper

will have a total ore processing capacity greater than 14 million tonnes per annum.

The larger Phase 3 plant is based on the design principles and successful

implementation of Kamoa-Kakula’s Phase 1 and Phase 2 plants. Phase 3 also will be

similarly constructed with the sizing of the front end of the plant (crushing and

screening) designed to accommodate double its initial milling capacity.

Phase 3 is expected to increase copper production capacity to approximately 600,000

tonnes per year by the fourth quarter of 2024, which will position Kamoa Copper as the

world’s third-largest copper mining complex, and the largest copper mining complex on

the African continent.

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Construction progress on the new box cut and twin declines is nearing

completion at the Phase 3 Kamoa 1 and Kamoa 2 mines.

The Kamoa 1 and Kamoa 2 underground mines will supply ore for the Phase 3

expansion, which is expected to boost total annual copper production to 600,000

tonne. A 5-million-tonnes-per-annum plant will be constructed adjacent.