Kamoa-Kakula Copper Discovery continues remarkable growth of global significance in the copper world New drill results extend length of Kakula Discovery to at least 12 kilometres and confirm continuity of high-grade copper in the saddle area between the Kakula Mineral Resource

September 11, 2017

Kamoa-Kakula Copper Discovery continues remarkable growth

of global significance in the copper world

New drill results extend length of Kakula Discovery

to at least 12 kilometres and confirm continuity of high-grade

copper in the saddle area between the Kakula Mineral Resource

and the Kakula West Discovery

New Kakula resource estimate based on the entire current

strike length expected by the end of 2017; discovery remains open

for significant expansion

Kakula West Discovery rapidly developing into a potential new

high-grade mining area with similar grades to Kakula

Several holes in Kakula West have discovered massive

copper-rich areas of between 20 and 50 metres thick

14 drill rigs continue to operate at Kamoa-Kakula

Phased mine development options of up to 18 million tonnes

per year being assessed

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

IVPAF) Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric

Johansson today announced assay results from another 43 holes as part of the ongoing

2017 drilling campaign at the company’s Tier One Kamoa-Kakula Copper Project, near

the mining centre of Kolwezi in the Democratic Republic of Congo (DRC).

Exploration drilling at Kakula West, located on the western end of the currently defined

high-grade, essentially flat-lying Kakula mineralized trend that now extends at least 12

kilometres (Figure 1), has confirmed a significant area of mineralization with

characteristics and grades similar to the high-grade Kakula Mineral Resource area

located to the east.

An area of two kilometres by one kilometre already has been drilled off at Kakula West on

an approximate 300-metre grid pattern, while the drilling in the “saddle” area between

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Kakula West and Kakula is rapidly being in-filled in preparation for an updated resource

estimate for the Kakula Discovery expected by the end of this year.

The Kakula Discovery continues to remain open along a westerly-southeasterly strike.

Based on recent drilling results at Kakula, and given the impressive continuity of the

high-grade mineralization seen to date, Ivanhoe’s geologists expect that by this October

drilling will have expanded the delineated strike extent of the area encompassing

Indicated and Inferred Mineral Resources by approximately 60%, and that the Kakula and

Kakula West deposits will form a continuous mineral resource area.

“We’re looking forward to providing our shareholders and all Kamoa-Kakula

stakeholders with another substantial resource expansion for the coming holiday

season,” said Mr. Friedland.

“Kamoa-Kakula already is independently ranked as the fifth-largest copper deposit in the

world. Seeing the unprecedented rate of growth of high-grade copper resources since

drilling began at Kakula in May 2016, I am confident now that soon it will be among the

top three.

“The remarkable consistency of the ultra-high-grade copper mineralization at the Kakula

Discovery is unlike anything geologists have ever seen in the DRC’s Copperbelt. The

discovery remains open in virtually all directions, so the real question is, how much

bigger and better is Kakula going to get?” Mr. Friedland added.

Kakula West confirmed as significant new copper discovery and a potential

new high-grade mining area

Exploration results at Kakula West confirm a significant, high-grade copper discovery. A

total of 17,500 metres of drilling in 31 holes has been completed since the May 2017

resource update; assays have been received for 20 holes. Drilling results now have

defined a high-grade mineralized zone with a width of at least 1.0 kilometre and a strike

extent of more than 2.9 kilometres.

Results from drill holes in the saddle area between Kakula West and the Kakula resource

area also have returned extremely significant values, confirming the continuity of the

Kakula high-grade zone between the two areas. A complete list of assays for the new drill

holes is contained in Table 1.

Significant new drilling intercepts at Kakula West and the saddle area include:

 DD1160, drilled on northern side of Kakula West, intersected 8.69 metres (true width)

of 4.23% copper at a 3.0% copper cut-off, beginning at a downhole depth of 580.00

metres; 11.59 metres (true width) of 3.85% copper at a 2.5% copper cut-off; 21.25

metres (true width) of 3.20% copper at a 2% copper cut-off; and 49.01 metres (true

width) of 2.38% copper at a 1% copper cut-off.

 DD1163, drilled in the saddle area between Kakula and Kakula West, intersected 5.28

metres (true width) of 9.54% copper at a 3.0% copper cut-off, beginning at a downhole

depth of 724.40 metres; 5.28 metres (true width) of 9.54% copper at a 2.5% copper cut-

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off; 6.16 metres (true width) of 8.49% copper at a 2% copper cut-off; and 7.43 metres

(true width) of 7.32% copper at a 1% copper cut-off.

 DD1171, drilled at the currently defined south-western limit of Kakula West,

intersected 26.05 metres (true width) of 4.37% copper at a 3.0% copper cut-off,

beginning at a downhole depth of 469.50 metres; 26.05 metres (true width) of 4.37%

copper at a 2.5% copper cut-off; 28.37 metres (true width) of 4.20% copper at a 2%

copper cut-off; and 28.74 metres (true width) of 4.16% copper at a 1% copper cut-off.

 DD1177, drilled in the centre of Kakula West, intersected 9.62 metres (true width) of

7.57% copper at a 3.0% copper cut-off, beginning at a downhole depth of 565.10

metres; 9.62 metres (true width) of 7.57% copper at a 2.5% copper cut-off; 10.24

metres (true width) of 7.26% copper at a 2% copper cut-off; and 13.00 metres (true

width) of 6.00% copper at a 1% copper cut-off.

 DD1180, drilled on the currently defined western limit of Kakula West, intersected 5.17

metres (true width) of 5.39% copper at a 3.0% copper cut-off, beginning at a downhole

depth of 492.40 metres; 11.65 metres (true width) of 3.74% copper at a 2.5% copper

cut-off; 15.56 metres (true width) of 3.34% copper at a 2% copper cut-off; and 16.07

metres (true width) of 3.27% copper at a 1% copper cut-off.

Drilling continuing to expand and upgrade the Kakula resource area

Exploration activities since the May 17, 2017, resource update have focused on extending

the resources to the southeast and to the northwest, as well as in-fill drilling on the

inferred and indicated resources areas ahead of the upcoming pre-feasibility study. A

total of 26,700 metres in 44 holes have been completed in the Kakula resource area, of

which assays for 23 holes now have been received.

Significant new drilling intercepts at the Kakula resource area include:

 DD1167, an in-fill hole drilled in the northwest portion of Kakula, intersected 6.16

metres (true width) of 9.20% copper at a 3.0% copper cut-off, beginning at a downhole

depth of 578.00 metres; 6.16 metres (true width) of 9.20% copper at a 2.5% copper cut-

off; 9.48 metres (true width) of 6.77% copper at a 2% copper cut-off; and 12.27 metres

(true width) of 5.54% copper at a 1% copper cut-off.

 DD1182, drilled on the south-western limit of the Kakula resource area, intersected

3.75 metres (true width) of 6.36% copper at a 3.0% copper cut-off, beginning at a

downhole depth of 235.48 metres; 7.47 metres (true width) of 4.56% copper at a 2.5%

copper cut-off; 11.20 metres (true width) of 3.76% copper at a 2% copper cut-off; and

15.87 metres (true width) of 3.13% copper at a 1% copper cut-off.

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Figure 1: Kamoa-Kakula Copper Project geology showing the Kakula resource

area and Kakula West, which is open for significant expansion along

trend to the west.

The new drill results, together with results from holes pending, are expected

to result in a major upgrade and expansion of the Kakula Mineral Resource

Results from ongoing drilling, combined with results from drill holes completed to date,

will form the basis of the planned updated resource estimate. The current exploration

plan should achieve sufficient drilling by October to allow the definition of resources

over an area encompassing the entire strike length of the Kakula Discovery, which now

extends to at least 12 kilometres. This would represent an increase of approximately 60%

in the strike length that will be used to calculate the new resource estimate, as compared

to the 7.7-kilometre strike length covered by Kakula’s May 2017 resource estimate. The

updated resource estimate is expected to be finalized before the end of this year and will

incorporate results from drill holes completed by the end of October.

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At Kakula West, an area of approximately two kilometres by one kilometre already has

been in-fill drilled, and it is intended that this in-filled area will expand to both the west

and east with ongoing drilling. Drilling on a minimum spacing of 800 metres by 300

metres is expected to be completed in the central saddle area in October, which should

be sufficient to delineate Inferred Resources in this area.

In response to the unprecedented exploration success at Kakula, Ivanhoe Mines and Zijin

Mining are continuing with the accelerated exploration program. Fourteen rigs are drilling

on the Kamoa-Kakula project area: 11 in the Kakula Discovery area; one drilling in the

Kamoa Nord target area; one drilling to the south of Kakula exploring the Mulamena

target; and one conducting sterilization drilling in areas planned for mine infrastructure

development.

Of the 11 rigs drilling at the Kakula Discovery, five are conducting exploration and in-fill

drilling at Kakula West; three are drilling in the saddle area between the Kakula resource

area and Kakula West; two are conducting in-fill drilling in the Kakula resource area; and

one is continuing to test the southeastern extension of the Kakula mineralized trend.

More than 80,000 metres of drilling have been completed at Kamoa-Kakula to date in

2017, including a number of the new target areas, several of which have returned

encouraging initial results. Additional, follow-up drilling is planned for these target areas

as drills become available.

The May 2017 Kakula Mineral Resource estimate was prepared by Ivanhoe Mines under

the direction of Dr. Harry Parker and Gordon Seibel, both RM SME, of Amec Foster

Wheeler, of Reno, Nevada, in accordance with the 2014 CIM Definition Standards for

Mineral Resources and Mineral Reserves.

Highlights of the May 2017 updated resource estimate include:

 Indicated Mineral Resources total 349 million tonnes at a grade of 3.23% copper,

containing 24.9 billion pounds of copper at a 1% copper cut-off. At a 2% copper cut-

off, Indicated Mineral Resources total 210 million tonnes at a 4.41% copper grade,

containing 20.4 billion pounds of copper. At a higher cut-off of 3% copper, Indicated

Mineral Resources total 116 million tonnes at a grade of 6.09% copper, containing

15.6 billion pounds of copper.

 Inferred Mineral Resources total 59 million tonnes at a grade of 2.26% copper,

containing 3.0 billion pounds of copper at a 1% copper cut-off. At a 2% copper cut-off,

Inferred Mineral Resources total 27 million tonnes at a 3.19% copper grade,

containing 1.9 billion pounds of copper. At a higher cut-off of 3% copper, Inferred

Mineral Resources total 12 million tonnes at a grade of 4.45% copper, containing 1.1

billion pounds of copper.

 The average true thickness of the selective mineralized zone (SMZ) at a 1% cut-off is

12.0 metres in the Indicated Mineral Resources area and 6.4 metres in the Inferred

Mineral Resources area. At a higher 3% cut-off, the average true thickness of the SMZ

is 5.3 metres in the Indicated Mineral Resources area and 3.9 metres in the Inferred

Mineral Resources area.

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 The combined Kamoa-Kakula Indicated Mineral Resources total approximately one

billion tonnes grading 3.02% copper, containing 66 billion pounds of copper, plus

another 191 million tonnes of Inferred Resources at 2.37% copper, at a 1.4% copper

cut-off grade.

Figure 2. Kamoa-Kakula, among the world’s largest copper deposits by contained

copper, also has the highest copper grades by a wide margin.

Source: Wood Mackenzie

*Note: Selected based on contained copper (Measured & Indicated Mineral Resources, inclusive of Mineral

Reserves, and Inferred Mineral Resources), ranked on contained copper in Measured and Indicated resources

(2017).

Kakula and Kakula West copper mineralization is consistently high grade

and bottom-loaded

Copper mineralization at Kakula and Kakula West is consistently bottom-loaded and will

support the construction of SMZ composites at cut-offs up to at least 3% copper. The

lateral consistency of mineralization at these higher cut-offs presents significant

opportunities for mine planning, with large areas of the resource having chalcocite-rich

mineralization with average grades in excess of 6% when using the 3% SMZ.

Below are strip logs for five of the drill holes reported in this release: DD1163, on the

eastern edge of Kakula West; DD1171, on the southwestern edge of Kakula West;

DD1160, on the northern side of Kakula West; DD1167, on the northwest portion of the

Kakula resource area; and DD1182, on the southwestern limit of the Kakula resource

area.

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