Kamoa Copper achieves record quarterly production of 55,602 tonnes of copper in Q1 2022, with a record 19,605 tonnes of copper produced in March

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April 11, 2022

Kamoa Copper achieves record quarterly production of 55,602

tonnes of copper in Q1 2022, with a record 19,605 tonnes of

copper produced in March

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New daily production record of 1,202 tonnes copper produced on

April 8

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Phase 2 concentrator declared commercial production on April 7;

Kamoa Copper to increase annualized copper production to more

than 400,000 tonnes

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First copper production from Kamoa-Kakula’s Phase 3, including

copper metal from on-site flash smelter, expected in Q4 2024

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Ivanhoe Mines to issue Q1 2022 financial results and host

conference call for investors on May 10

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

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

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

new quarterly production record in the first quarter of 2022, with 55,602 tonnes of

copper in concentrate produced. Kamoa Copper milled 1.08 million ore tonnes during

the quarter at an average feed grade of 5.91% copper.

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

successfully declared commercial production on April 7, 2022. In addition, Kamoa-

Kakula set a new daily production record on April 8, 2022, with 25,126 tonnes milled and

1,202 tonnes of copper produced.

Management now expects that the early commissioning of the Phase 2 concentrator

plant will enable Kamoa Copper to reach the upper end of its 2022 copper production

guidance of 290,000 to 340,000 tonnes.

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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 concentrator plant is a mirror image of

the Phase 1 plant, with a design throughput of 475 dry tonnes per hour, or 3.8 million

tonnes of ore per year. Over the last six months, the Phase 1 plant has consistently

exceeded design ore throughput by approximately 10% to 15%.

During the first 17 days of production, Phase 2 regularly exceeded its design

throughput capacity, and continues to perform at similar throughput and recovery rates

as the Phase 1 concentrator.

Kamoa-Kakula’s Phase 1 and Phase 2 concentrator plants now are both in

commercial production. Kamoa Copper will increase its annualized copper

production rate to more than 400,000 tonnes from this month forward.

Mark Farren, Kamoa Copper’s CEO, commented: “The Phase 2 concentrator has been

successfully commissioned in record time. We can expect to see a doubling of copper

output for the remainder of this year, as well as further increases into 2023 as the de-

bottlenecking program is executed. It has been wonderful to see how quickly Phase 2

reached commercial production, as our team leveraged prior learnings and experience

from Phase 1.

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“Our project team’s focus now will be firmly on Phase 3 execution. We intend to deliver

the Phase 3 project once again on time, and on budget. Phase 3 is targeting first

production by Q4 2024. We are proud of what our people have achieved in a very short

space of time – and are equally determined to reach the next milestones along a similar

trajectory.”

Mr. Friedland added: “We must again commend the operations team at Kamoa Copper

for their consistent ability to exceed all expectations. Over the past three years, Ivanhoe

Mines and its partners have continued to demonstrate an ability to deliver world-scale

mining development projects ahead of schedule, and on budget … a real-world unicorn

in this industry. In under three years, we fully expect Kamoa-Kakula to become the

world’s second-largest global copper producing complex. Details will be announced

later this year with the release of the Phase 3 Pre-Feasibility Study in the third quarter.

“It is certainly an exciting time to be a shareholder and employee of Ivanhoe Mines, as

we embark on a period of unprecedented growth to emerge as the world's next major,

diversified mining company, in close partnership with our local communities.

“The global markets are experiencing a historic, long-term, and acute shortage of the

vital metals we require to achieve the electrification and decarbonization of the world

economy. London Metal Exchange stocks of its six main metals (copper, aluminum,

zinc, lead, tin, and nickel) are at their collective lowest level since at least 1997 … and

senior management at Ivanhoe Mines sees ourselves as an integral part of the solution

by providing the metals the world urgently needs for electrification … together with our

joint venture partner, Zijin Mining, we are resolved to expedite future expansion phases

at Kamoa-Kakula to generate stable, profitable growth and provide lasting economic

and social benefits for the Congolese nation and people.”

Watch an April 2022 video highlighting Kamoa-Kakula’s Phase 1 and Phase

2 concentrator plants during Q1 2022:

https://vimeo.com/697952554/758c582d48

Watch a March 2022 virtual site tour of Kamoa-Kakula from the CRU World

Copper Conference: https://vimeo.com/697969450/70ff48b986

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Kamoa-Kakula set a fresh daily production record of 1,202 tonnes copper on

April 8, 2022. During the first 17 days of production, the Phase 2 plant regularly

exceeded its design throughput capacity.

Installation of Kamoa-Kakula's third Larox Filter press from Metso Outotec of

Espoo, Finland. (L-R) Ma Ying Hua, Bench Worker; Huang Ya Wen, Welder; Gaby

Kabeya, Plumber; Yang Hui Ming, Bench Worker.

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Details of the Phase 2 concentrator commercial ramp-up

In late March 2022, the Company announced that the Kamoa-Kakula Mine’s Phase 2

concentrator plant began hot commissioning significantly ahead of schedule. First ore

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

concentrate produced approximately four months ahead of the originally announced

development schedule.

Commercial production from the Phase 2 concentrator was declared on April 7, 2022.

During the first 17 days of production, Phase 2 regularly exceeded its design

throughput capacity. On April 8, 2022, Kamoa-Kakula set a new daily milling throughput

record of 25,126 tonnes.

Kamoa Copper’s previously announced de-bottlenecking program also is progressing

on schedule. The program will see Kamoa-Kakula increase the combined design

processing capacity of the Phase 1 and Phase 2 concentrator plants by approximately

21%, to 9.2 million tonnes per annum, up from 7.6 million tonnes per annum.

Once completed, the de-bottlenecking program will enable the copper production from

Kamoa-Kakula’s first two phases to exceed 450,000 tonnes per year by Q2 2023,

positioning Kamoa Copper as the world’s fourth largest copper producer.

Updated Pre-Feasibility Study for Phase 3 scheduled for Q3 2022; Phase 3

production scheduled for late 2024

The Pre-Feasibility Study for the Phase 3 expansion is well advanced and expected to

be announced during the third quarter of this year. Kamoa-Kakula's Phase 3 will consist

of two new mines known as Kamoa 1 and Kamoa 2, as well as the initial decline

development at Kakula West. A new, larger concentrator plant will also be established

adjacent to the two new mines at Kamoa. The associated power and surface

infrastructure for Phase 3 will be designed to support future expansions.

In addition, Phase 3 includes a 500,000-tonne-per-annum, direct-to-blister flash smelter

to produce approximately 99% copper metal, and the replacement of turbine 5 at the

Inga 2 hydroelectric power station. The turbine replacement will supply additional clean

hydro-electric power for the Phase 3 expansion and smelter.

Phase 3 is achieving solid progress, with detailed design, budgeting and engineering

well advanced. Construction progress on the new box cut and twin decline excavations

remain on track at the Kamoa 1 and Kamoa 2 mines.

Phase 3 is expected to begin production by the end of 2024.

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Excavation work, pictured as at April 2022, is advancing quickly at Kamoa-

Kakula’s new box cut for the twin declines that will provide access to the Phase 3

mining areas.

Kamoa-Kakula’s enlarged concentrate storage warehouse to accommodate

Phase 1 and Phase 2 production volumes.

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Richardo Kanjiri (left) and Timothy Mutandwa, nozzlemen with Kongo River

Construction of Lubumbashi, Democratic Republic of Congo, at the box-cut site

preparing for guniting, the process of spraying a mix or mortar or concrete to a

surface.

Martha Sentle, Control and Instrumentation (C&I) Engineer, at her workstation in

the control room for Kamoa-Kakula's Phase 2 process optimization.

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Location of the direct-to-blister flash furnace in the new smelter plant for Kamoa-

Kakula's Phase 3. (L-R) Qingyue Wang, Interpreter; Changdong Liu, Kamoa

Technical Executive, Smelting; Abraham Li, Kamoa Deputy General Manager;

David Mitchell, Kamoa Senior Project Manager, Smelter; Ugeshan Naidoo, Kamoa

Area Project Manager, Smelter Infrastructure; Jimmy Chen, Kamoa Construction

Coordinator.

Photo from the first blast at the Kamoa 1 and 2 box cut, which occurred in early

April. The Phase 3 expansion is targeting first production in Q4 2024.