Kamoa Copper awards China Nerin Engineering contract for direct-to-blister copper smelter

November 18, 2021

Kamoa Copper awards China Nerin Engineering contract for

direct-to-blister copper smelter

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500-ktpa smelter to be the largest copper smelter in Africa, and

one of the world’s largest single-line smelters

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Metso Outotec’s state-of-the-art, environmentally-friendly

smelter technology aligned with Kamoa-Kakula’s goal of

producing the world’s ‘greenest copper’

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO & NANCHANG, CHINA – Ivanhoe

Mines (TSX: IVN; OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles”

Sun are pleased to announce that Kamoa Copper has awarded China Nerin

Engineering Co., Ltd. (Nerin) of Jiangxi, China, with the basic engineering

contract for the planned, direct-to-blister flash smelter at the Kamoa-Kakula

Copper Complex that will incorporate leading-edge technology supplied by Metso

Outotec of Espoo, Finland, and have a nameplate capacity of 500,000 tonnes a

year of approximately 99%-pure blister copper.

The contract was signed earlier today by Mark Farren, CEO of Kamoa Copper,

and Wu Runhua, General Manager of Nerin, at a virtual ceremony held at the

Kamoa-Kakula Mine and Nanchang City. Jinghe Chen, Chairman of Zijin Mining;

Zhang Xiaobo, Chairman of Nerin; along with Mr. Friedland and Mr. Sun, joined

the signing ceremony to offer their congratulations and support for this important

project milestone.

The planned Kamoa-Kakula smelter is to be built adjacent to the Phase 1 and

Phase 2 concentrator plants, and is designed to use technology supplied by

Metso Outotec and to meet the International Finance Corporation’s (IFC)

emissions standards. The smelter has been sized to process the majority of the

copper concentrate forecast to be produced by Kamoa-Kakula’s Phase 1, Phase 2

and Phase 3 concentrators. With a nameplate capacity of 500,000 tonnes per

annum of blister copper, it is projected to be one of the largest, single-line blister-

copper flash smelters in the world, and the largest in Africa.

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Kamoa Copper’s executive team members at the virtual signing ceremony.

(L-R, seated): Ben Munanga, Chairman; Mark Farren, CEO; and Rochelle De

Villiers, Co-CFO. (L-R standing) Zhilin Li, Deputy General Manager; Annebel

Oosthuizen, Executive, Finance; Xuelin Cai (Minty), Co-CFO; and Yong

Chen, COO.

Nerin is an international engineering company with more than 60 years of

experience in smelter engineering and construction projects globally. Nerin

actively promotes the advancement of smelting technology through its own

research and development, and establishing various partnerships with global

industry peers, including Metso Outotec.

Since its inception in 1957, Nerin has undertaken more than 4,000 engineering

and construction projects in 60 countries, including numerous large-scale, flash

smelting projects, which comprise approximately 47% of the world’s current

flash-smelting capacity. Notable projects include the upgrading of Rio Tinto’s

Kennecott smelter in Salt Lake City, Utah, United States, and the upgrading and

expansion of Glencore’s PASAR smelter and refinery in Isabel, Leyte Philippines.

Nerin’s exceptional capabilities in flash-smelting technology, combined with its

significant experience in the DRC (including the Lualaba Copper Smelter near

Kolwezi that is treating approximately one-third of Kamoa-Kakula’s current

concentrate output, and Tenke Fungurume’s copper hydrometallurgical plant) will

help ensure a smooth execution of the planned smelter at Kamoa-Kakula.

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The smelter is expected to be built concurrently with the project’s Phase 3 mine

and concentrator expansion, and the upgrading of turbine 5 at the Inga II

hydropower complex. The additional 162 megawatts of renewable electricity from

the Inga II upgrading project will be needed to power the Phase 3 expansion and

on-site smelter.

The next stages in the smelter project development will be the completion of

basic engineering, which is expected to take approximately seven months, and

the ordering of the long-lead equipment, followed by earthworks which are

expected to commence in Q2 2022. The awarding of the Engineering,

Procurement and Construction Management (EPCM) contract is expected to

occur shortly after the commencement of the earthworks.

The overall execution timeline will be dictated by the basic engineering, but is

expected to be approximately three years. The expected capital cost is in the

region of US$700 million (100%-basis) for the enlarged smelter, to be financed

with cash flows from Kamoa-Kakula.

An onsite smelting facility has compelling cost and environmental benefits,

including a reduction in the volume of copper concentrate shipped from the mine

by approximately one half or more, and the associated logistics costs, export

taxes and concentrate treatment charges. The smelter also will produce sulphuric

acid as a by-product, creating a new revenue stream for Kamoa Copper.

There is a strong demand and market for sulphuric acid in the DRC to recover

copper from oxide ores. Copper mines in the DRC currently import significant

volumes of sulphur used in sulphur-burning acid plants to produce sulphuric

acid for the treatment of oxide copper ores. The DRC also imports sulphuric acid,

primarily from Zambia.

Kamoa-Kakula currently is producing an extremely high-grade, clean copper

concentrate containing approximately 55% copper and extremely low levels of

arsenic by world standards – approximately 0.01%. Approximately 35% of Kamoa-

Kakula’s Phase 1 concentrate is sent to the local Lualaba smelter for processing

into blister copper ingots – containing approximately 99% copper – while the

remainder is transported via trucks and ships to international smelters for

treatment.

Mark Farren commented: “Today’s signing of the smelter basic engineering

contract with Nerin highlights our commitment to the people of the DRC to derive

more economic benefits from Kamoa-Kakula by maximizing in-country

beneficiation. Achieving the transformative potential of Kamoa-Kakula’s unrivaled

copper resources requires creative thinking that supports the DRC’s priorities of

economic growth and diversification through value-addition, processing and

beneficiation.

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“Nerin is a highly-respected engineering firm with the people and in-country

expertise to deliver a first-rate, on-site smelter that will be among the largest of its

kind in the world. They successfully built the local Lualaba Copper Smelter, to

which we are sending about a third of our current concentrate output.

“After a great deal of due diligence, the partners at Kamoa Copper collectively

agree that the state-of-the-art, environmentally-friendly technology offered by the

Metso Outotec direct-to-blister smelter best suits the unique low-iron, low-

sulphur and ultra-high-grade concentrate produced at Kamoa-Kakula, and aligns

seamlessly with our goal of producing the world’s ‘greenest copper’.

“The Kamoa-Kakula smelter will be powered by clean, renewable hydropower and

will incorporate leading-edge sulphur capture. Shipping 99%-pure blister copper

ingots produced from an on-site smelter, instead of shipping copper concentrate,

will result in a significant reduction in Kamoa-Kakula’s concentrate transportation

costs and Scope 3 emissions.”

Wu Runhua, General Manager of Nerin (seated, centre) and Xiaobo Zhang,

Chairman of Nerin (standing behind Wu Runhua), and other members of

China Nerin Engineering join members of Ivanhoe Mines’ Chinese

representative office at the signing ceremony in Nanchang City, China, with

the Kamoa Copper team on the screen in the background.

(L-R) Kexin Liu (Cathy), Ivanhoe; Tao Feng, Ivanhoe; Chao Zhou (Peter),

Ivanhoe; Wu Runhua, Nerin; Xiaobo Zhang, Nerin; Feng He, Nerin; Hu Hu,

Nerin; and Xiaowei Yang, Nerin.

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A 3D illustration of the planned direct-to-blister flash smelter at the Kamoa-

Kakula Copper Mine that will have a nameplate capacity of 500,000 tonnes

per annum of blister copper.

Aerial view of the Kamoa-Kakula Copper Complex. The planned smelter is

to be built within the area outlined in red, adjacent to the Phase 1 and 2

concentrator plants (in yellow circle). The backfill plant is circled in blue.

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Benefits of the Metso Outotec direct-to-blister smelting technology

Approximately one-half of the world’s primary copper currently is produced using

flash, direct-to-blister smelting technology. Metso Outotec recently signed a

major engineering and technology contract for the delivery of a landmark copper

smelter complex to be built in Gresik, East Java, Indonesia. The project owner is

PT Freeport Indonesia and has a value of EUR 360 million (US$424 million).

The Outotec technology produces high-quality blister copper in a single flash

furnace without the need for separate converting stages or ladle transportation.

The process and equipment have undergone continuous development over the

last 70 years, which has led to one of the safest, most environmentally-friendly,

and most reliable smelting processes for treating high-grade copper

concentrates.

Summary of direct-to-blister smelting key features:

 Often the most profitable process option for concentrates containing more

than 30% copper.

 Results in high copper recovery.

 Requires no converting process.

 Low capital and maintenance costs.

 Integrated controls with continuous process.

 High sulphur recovery due to single, continuous, stable gas stream,

leading to minimum emissions to the environment.

 Low capital and operational costs for sulphuric acid plant.

A Metso Outotec direct-to-blister flash smelter furnace in operation.

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Kakula is projected to be the world’s highest-grade major copper mine, with an

initial mining rate of 3.8 million tonnes per annum (Mtpa) at an estimated, average

feed grade of more than 6.0% copper over the first five years of operations, and

5.9% copper over the initial 10 years of operations. Phase 1 is expected to

produce approximately 200,000 tonnes of copper per year, while the Phase 2

expansion is forecast to increase production to approximately 400,000 tonnes of

copper annually. Kamoa Copper is on track to complete the Phase 2 expansion in

Q2 2022.

Based on independent benchmarking, the project’s phased expansion scenario to

19 Mtpa would position Kamoa-Kakula as the world’s second-largest copper

mining complex, with peak annual copper production of more than 800,000

tonnes.

The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines

(39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the

Government of the Democratic Republic of Congo (20%). A 2020 independent

audit of Kamoa-Kakula's greenhouse gas intensity metrics performed by Hatch

Ltd. of Mississauga, Canada, confirmed that the project will be among the world's

lowest greenhouse gas emitters per unit of copper produced.

Qualified Persons

Disclosures of a scientific or technical nature regarding development scenarios

at the Kamoa-Kakula Project in this news release have been reviewed and

approved by Steve Amos, who is considered, by virtue of his education,

experience and professional association, a Qualified Person under the terms of NI

43-101. Mr. Amos is not considered independent under NI 43-101 as he is Kamoa

Copper’s Head of Projects. Mr. Amos has verified the technical data disclosed in

this news release.

Ivanhoe has prepared an independent, NI 43-101-compliant technical report for

the Kamoa-Kakula Project, which is available on the company’s website and

under the company’s SEDAR profile at www.sedar.com:

 Kamoa-Kakula Integrated Development Plan 2020 dated October 13, 2020,

prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA Global,

Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D Centre

Ltd., Outotec Oyj, Paterson and Cooke, Stantec Consulting International

LLC, SRK Consulting Inc., and Wood plc.

The technical report includes relevant information regarding the assumptions,

parameters and methods of the mineral resource estimates on the Kamoa-Kakula

Project cited in this news release, as well as information regarding data

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verification, exploration procedures and other matters relevant to the scientific

and technical disclosure contained in this news release.

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company focused on advancing its three

principal projects in Southern Africa: the development of major new, mechanized,

underground mines at the Kamoa-Kakula copper discoveries in the Democratic

Republic of Congo and at the Platreef palladium-rhodium-platinum-nickel-copper-

gold discovery in South Africa; and the extensive redevelopment and upgrading

of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic

Republic of Congo.

Kamoa-Kakula began producing copper concentrates in May 2021 and, through

phased expansions, is positioned to become one of the world's largest copper

producers. Kamoa-Kakula is being powered by clean, renewable hydro-generated

electricity and is projected to be among the world’s lowest greenhouse gas

emitters per unit of metal produced. Ivanhoe Mines has pledged to achieve net-

zero operational greenhouse gas emissions (Scope 1 and 2) at the Kamoa-Kakula

Copper Mine. Ivanhoe also is exploring for new copper discoveries on its Western

Foreland exploration licences in the Democratic Republic of Congo, near the

Kamoa-Kakula Project.

Information contacts

Investors: Bill Trenaman +1.604.331.9834 / Media: Matthew Keevil +1.604.558.1034

Kamoa Copper: Ben Munanga +243.972.995.117

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) all statements regarding

the planned Kamoa-Kakula smelter; (ii) statements regarding the completion of basic

engineering is expected to take approximately seven months; (iii) statements regarding the

ordering of the long-lead equipment, followed by earthworks which are expected to commence