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Kamoa-Kakula Phase 1 concentrator mills approximately 320,000 tonnes of ore grading 6.0% copper in September, exceeding steady-state design throughput

Drill Results

September 30, 2021

Kamoa-Kakula Phase 1 concentrator mills approximately 320,000

tonnes of ore grading 6.0% copper in September, exceeding

steady-state design throughput

■

A record 16,010 tonnes of copper produced in the month ended

September 20

■

More than 46,750 tonnes of copper produced year-to-date to

September 20

■

2021 production guidance range for copper in concentrate raised

to 85,000 to 95,000 tonnes

■

Floated concentrate grade improved to 55.7% copper; average

plant flotation recovery increased to 85.1%; both nearing

nameplate design

■

Phase 2 concentrator construction now more than 50% complete

■

Mining crews delivered 384,000 tonnes of ore grading 5.58%

copper in September, including 141,000 tonnes grading 7.32%

copper from the centre of the Kakula Mine

■

Surface ore stockpiles continue to grow; now hold 3.66 million

tonnes grading 4.73% copper, containing more than 173,000

tonnes of copper

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

IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced that ramp-up of

Kamoa-Kakula’s Phase 1, 3.8 million-tonne-per-annum (Mtpa) concentrator plant

continues to advance ahead of schedule, with 319,795 tonnes of ore milled in

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September, exceeding the monthly design run rate of 316,667 tonnes at an average feed

grade of 6.0% copper.

A total of 16,010 tonnes of copper in concentrate were produced (filtered product) and a

total of 16,503 tonnes floated in the reporting month ended September 20th – Kamoa

Copper’s fourth full month of production – establishing a new monthly record and

nearing the Phase 1 target output of 16,666 tonnes per month, or 200,000 tonnes per

annum. The difference between filtered and floated copper is approximately 500 tonnes

in inventory in the concentrate thickener and the filter feed tank.

The average floated concentrate copper grade in September improved to 55.7%, up from

approximately 48% in August. A total of 46,764 tonnes of copper in concentrate had

been produced year-to-date as of September 20, 2021, for delivery to either the Lualaba

Copper Smelter near Kolwezi, or to international markets.

Copper flotation recoveries improved to an average of 85.1% during September, up from

an average of 83% during August. The Phase 1, steady-state-design copper recovery is

approximately 86%, depending on ore feed grade.

A daily record copper recovery of 88.3% was achieved on September 12th and a daily

floated copper production of 721 tonnes was achieved on September 15th. Subsequent

to the reporting period, a daily milling record of 12,596 tonnes and a daily crushing

record of 14,778 tonnes were achieved on September 27th.

Chart 1: Cumulative tonnes of copper produced May 2021 to September 20, 2021.

The August total has been adjusted to reflect cumulative copper produced to

August 20, 2021 (the new monthly reporting cut-off date).

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Mark Farren, Kamoa Copper’s CEO, commented on September’s operating

performance: “The Kamoa-Kakula team has worked tirelessly to bring the Phase 1

concentrator to steady-state performance. We are very pleased with the September

results, where we exceeded steady-state design parameters for ore throughput and

were close to achieving steady-state design copper recovery and monthly copper

production.

“There are a number of additional adjustments being incorporated into the Phase 1

processing circuit, which will enable the concentrator to achieve better results in the

next quarter. These adjustments, which also will be incorporated into the Phase 2

processing circuit, should position us to achieve 2021 copper production in the upper

end of our previous guidance of 80,000 to 95,000 tonnes. This gives us the confidence

to raise the range to 85,000 to 95,000 tonnes.

“Mining production was steady at 384,000 tonnes produced from the Kakula and

Kansoko mines. The mining teams now are well established and are able to consistently

outperform our internal budget. We have established a solid base of skilled and

motivated Congolese workers, who no doubt will carry us through the ramp-up of Phase

2 and subsequent expansions of our mining footprint. It also is encouraging to note that

the Phase 2 concentrator construction remains solidly ahead of schedule and on

budget.”

Ivanhoe’s production guidance for contained copper in concentrate at Kamoa-Kakula in

2021 has been raised to 85,000 to 95,000 tonnes. The figures are on a 100%-project

basis and metal reported in concentrate is prior to refining losses or deductions

associated with smelter terms. The guidance assumes ramp-up continues in line with

published technical disclosures.

Performance guarantee tests were successfully completed on the Phase 1 concentrator

plant during the first three days of September. The performance tests involved a 72-

hour continuous run at steady-state design, or above, ore throughput and grind.

Kamoa-Kakula is fast tracking the commissioning of an additional concentrate filter,

which has been installed alongside the Phase 1 filter, to be able to take advantage of

copper feed grades and milling rates in excess of design parameters. The additional

concentrate filter is expected to be fully operational in early October 2021, enabling the

Phase 1 concentrator to produce more copper than its design capacity of approximately

200,000 tonnes per year.

Watch a new video showcasing the ramp-up of copper production at

Kamoa-Kakula and the production of blister copper at the local Lualaba

Copper Smelter: https://vimeo.com/618907781/0e2fd0ca11

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Phase 2 concentrator plant overall construction more than 50% complete,

with the current focus on structural steel, mechanical, piping and platework

(SMPP) erection and installation

Construction of the second 3.8-Mtpa concentrator plant (Phase 2) is progressing well,

with the overall project more than 50% complete; engineering and procurement

activities are effectively complete with fabrication at 86% complete. Civil construction

works also are effectively complete, with the focus now on erection of structural steel

and the installation of platework and equipment. A 400-tonne crane (the largest in the

DRC) has arrived on site and has been used to lift the tailings thickener rake into

position. The crane also will shortly be used to install the ball mills, the ball mill shells,

girth gear and ball mill ends, all of which are on site.

The bulk of the 2,193 tonnes of structural steel and the 570 tonnes of platework is on

site and the bulk of the 18,644 metres of piping is en route to site. The six-kilometre

tailings return water piping has been delivered to site and installation is nearing

completion. More than 418 truckloads of Phase 2 construction equipment and materials

already have been delivered to site and another 49 truckloads are en-route. The Phase 2

concentrator remains on track for completion in Q3 2022.

Commissioning of the Phase 1 backfill is advancing well with C4 (hot commissioning)

activities. More than 7,250 cubic metres of paste backfill have been pumped to an

underground trial stope in the Kakula Mine.

The two time-lapsed videos below highlight Kamoa-Kakula’s Phase 2 construction

efforts, including lifting the ball mills, flotation cells and the tailings thickener.

Video 1: https://vimeo.com/616144971/c0c90f41cf

Video 2: https://vimeo.com/616147092/a718a29b98

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Installation of the Phase 2 ball mills is advancing quickly.

The first six flotation cells for the Phase 2 concentrator have been installed, with

installation of the Phase 2 ball mills underway in the background.

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Members of the construction team with a section of a Phase 2 ball mill shell.

Lifting the Phase 2 secondary screen pan feeder into place.

7

Mechanic Kabuanga Clement installing a safety railing inside the Phase 2 high-

pressure-grinding-rolls (HPGR) stockpile tunnel.

Nadege Santos, Construction Secretary (left), and Doralie Kona, Construction

Engineer in training, at the Phase 2 concentrator plant.

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A 3D rendering of the Phase 2 flotation cells under construction alongside the

Phase 1 flotation cells. The picture below shows current construction progress

of the Phase 2 cells, which is 52% complete.