Copper ore grading 8% currently being mined and stockpiled at the Kakula Mine, with underground development approximately 4.4 kilometres ahead of schedule

May 13, 2020

Copper ore grading 8% currently being mined and stockpiled at the Kakula Mine, with underground development approximately 4.4 kilometres ahead of schedule

Early implementation of extraordinary COVID-19 prevention measures has allowed development of the flagship Kakula Copper Mine in D.R. Congo to continue uninterrupted; initial production on track for third quarter of 2021

Management and corporate optimization targets company- wide cash savings of up to US$75 million to strengthen the current treasury of approximately US$600 million

Ivanhoe issues first quarter financial results and review of mine construction progress and exploration activities

TORONTO, CANADA ‒ Ivanhoe Mines (	TSX: IVN; OTCQX: IVPAF	) today
announced its financial results for the quarter ended March 31, 2020. Ivanhoe
Mines is a Canadian mining company advancing its three mining projects in
Southern Africa: the Kamoa-Kakula copper discovery in the Democratic
Republic of Congo (DRC); the Platreef palladium-platinum-nickel-copper-gold-
rhodium discovery in South Africa; and the extensive upgrading of the
historic Kipushi zinc-copper-lead-germanium mine, also in the DRC.
The company also is exploring for new copper discoveries on its wholly-
owned Western Foreland exploration licences, adjacent to the Kamoa-Kakula
mining licence. All figures are in U.S. dollars unless otherwise stated.

HIGHLIGHTS

• Development of the Kakula Copper Mine, the first of multiple, planned

mining areas at the Kamoa-Kakula Project, is making excellent progress. The first underground access drives intersected Kakula’s initial high-grade ore zone (+8% copper) in April. Ivanhoe and its joint-venture partner Zijin Mining are advancing rapidly on construction of the 3.8 million-tonne-per- annum (Mtpa) processing plant and other surface infrastructure. Initial copper concentrate production is scheduled for the third quarter of 2021.

• In parallel with the construction of the Kakula Copper Mine, the

independent Kakula definitive feasibility study (DFS) and an updated Integrated Development Plan for the entire Kamoa-Kakula mining complex also remain on schedule for Q3 2020. The Kakula DFS will provide a high level of accuracy for the project economics for Kakula’s initial phase of mine development, as most construction contracts and orders for significant capital items have been placed at fixed prices. The Integrated Development Plan will include details on the planned expansion phases for the entire Kamoa-Kakula mining complex.

• In early March, Ivanhoe in conjunction with its joint-venture partners

implemented strict quarantine and lock-down procedures to ensure the well-being of its employees and mitigate the impact of COVID-19 on its operations. The Kamoa-Kakula minesite has been locked down and all key personnel are on site; as a result, mine development at Kamoa-Kakula has continued uninterrupted. Mine development work at the Platreef Project was temporarily suspended in late March in compliance with the country- wide lock down imposed by the South African Government. Operations at Platreef resumed in late April with reduced staffing levels and stringent safety protocols. Mine development operations at Kipushi remain temporarily suspended in order to reduce the risk to the workforce and local communities.

• Also in early March, following the guidelines outlined by the World Health

Organization, the company appointed a task team with overall responsibility for COVID-19 response planning. Ivanhoe’s response team is led by Dr. Nicolette Du Plessis, a specialist in Pediatric Infectious Diseases and a Professor at the University of Pretoria, and includes specialist doctors, paramedics, nurses, as well as counsel from several external, world-leading epidemiologists.

• On March 11, 2020, the company announced that it had promoted its Chief

Financial Officer, Marna Cloete, to the position of President, in addition to her role as Chief Financial Officer. The company’s new Executive Committee, led by Marna Cloete, President and CFO, includes Dr. Patricia Makhesha, Executive Vice President, Sustainability & Special Projects;

Matthieu Bos, Executive Vice President, Africa; Peter Zhou, Executive Vice President, China; and Pierre Joubert, who was recently promoted to Executive Vice President, Technical Services.

• Ivanhoe is in a strong financial position with cash and cash equivalents of

$603 million at the end of March 2020 and no significant debt.

• In April, Ivanhoe announced cost-reduction initiatives to generate cash

savings of up to $75 million through 2021, including reducing discretionary spending at the company’s projects, lowering general and administrative costs, voluntary salary reduction for senior management, and deferral of certain exploration activities. The savings will be directed towards developing the Kakula Mine to commercial production on schedule and on budget.

• Underground development at the Kakula Copper Mine continues to

advance ahead of schedule and more than 14.4 kilometres of underground development now has been completed ─ 4.4 kilometres ahead of plan. The pace of development is expected to continue to accelerate as additional mining crews are mobilized.

• In April, crews at Kakula began mining ore in areas with a grade of greater

than 8% copper. This ore is being stockpiled on a dedicated high-grade surface stockpile, which is forecast to contain 105,000 tonnes grading 5.95% copper by the end of May, 2020. Kakula’s medium-grade ore stockpile is forecast to contain an additional 250,000 tonnes at 3.01% copper. The high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper.

• Construction of Kakula’s processing plant is progressing well with more

than 9,000 cubic metres of concrete poured. Fabrication of structural steel, processing plant components, and the ball mills is underway. Long- lead-time items for the processing plant have started to arrive on site, and the ball mills are scheduled for arrival in mid-2020.

• Refurbishment of six turbines at the Mwadingusha hydro-electric power

plant and associated 220-kilovolt infrastructure, to supply the Kakula Mine with clean hydropower, is progressing. Four turbines are expected to be operational by December 2020, and the remaining two in Q1 2021. The refurbished plant is projected to deliver approximately 72 megawatts of power to the national grid.

• On February 5, 2020, an updated independently verified Indicated Mineral

Resource increased the combined Kamoa-Kakula Project Indicated Mineral Resource to 423 million tonnes grading 4.68% copper, at a 3% cut-off. The combined Kamoa-Kakula Project Indicated Mineral Resource now stands at 1.4 billion tonnes grading 2.7% copper, at a 1% cut-off.

• The initial Indicated Mineral Resource estimate for the Kamoa North

Bonanza Zone includes 1.5 million tonnes grading 10.7% copper, at a 5% cut-off. Drilling in the first quarter continued to target additional resources in the vicinity of the ultra-high-grade Bonanza Zone and the Far North Zone. Given the shallow depth, remarkable thickness and massive copper sulphide mineralization discovered within the Kamoa North Bonanza Zone, Kamoa-Kakula’s engineers are evaluating potential opportunities to accelerate the development of this discovery.

• The controlling east-west striking structure, thought to be responsible for

the massive copper sulphide mineralization in the Kamoa North Bonanza Zone, is visible as a lineament on airborne magnetic images and can be traced over a distance of up to 20 kilometres. It trends west onto the adjacent Western Foreland exploration licences that are 100%-owned by Ivanhoe Mines. Ivanhoe now controls more than 2,500 square kilometres of highly-prospective land holdings in the vicinity of the Kamoa-Kakula mining licence.

• Drilling also has confirmed the extension of the Kamoa North high-grade

copper structure for at least 800 metres in the Kiala Discovery area, part of Ivanhoe’s 100%-owned Western Foreland licences that adjoin the Kamoa- Kakula mining licence to the north.

• At the Platreef mine development project in South Africa, the project’s first

shaft (Shaft 1) has been sunk to a depth of more than 975 metres below surface. Completion of the shaft to a final depth of approximately 1,000 metres is planned for Q3 2020.

• Ivanhoe is investigating a phased development production plan for the

Platreef Project. The plan would target significantly lower initial capital, to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 definitive feasibility study (DFS). Concurrently, Ivanhoe is updating the Platreef Project’s 2017 DFS to take into account development schedule advancement since 2017 when the DFS was completed, updated costs and refreshed metal prices and foreign exchange assumptions.

• At the end of March 2020, Kamoa-Kakula had reached 2.01 million work

hours free of a lost-time injury; Platreef had reached 528,416 work hours free of a lost-time injury; and Kipushi had reached 2.27 million work hours free of a lost-time injury.

COVID-19 Response Initiatives

In early April, Ivanhoe provided further details on the rigorous protective measures it has implemented to protect the health and well-being of its employees, contractors and local communities while ensuring business continuity at the Kamoa-Kakula Project.

In response to government-imposed travel restrictions and emergency protocols introduced worldwide, strict quarantine and lock-down procedures have been implemented at all three of the company’s projects ─ Kamoa-Kakula, Platreef and Kipushi ─ to prevent the corona virus from spreading to the minesites. To date, no COVID-19 cases have been discovered at Ivanhoe’s projects.

At Kamoa-Kakula, the minesite has been locked down and all key personnel are on site. The supply of food and critical equipment continues under strict delivery protocols. At present, more than 3,450 employees and contractors are based at the minesite, which ensures operational continuity and minimizes the impact on the development schedule.

Platreef temporarily suspended its shaft-sinking operations in compliance with the country-wide lock down imposed by the South African Government on March 26th. In late April, mine development operations resumed at Platreef with reduced staffing levels and strict COVID-19 preventative procedures. Mine development operations at Kipushi are temporarily suspended to reduce the risk to the workforce and local communities.

Following the guidelines outlined by the World Health Organization, the company appointed a task team from senior management with overall responsibility for COVID-19 response planning. The team is led by Dr. Nicolette Du Plessis, a specialist in Pediatric Infectious Diseases and a Professor at the University of Pretoria, and includes specialist doctors, paramedics, nurses, as well as counsel from several external, world-leading epidemiologists. Dr. Du Plessis is president of the Southern African Society of Pediatric Infectious Diseases and president-elect of the Federation of Infectious Diseases Societies of Southern Africa.

The task team, together with its Kamoa-Kakula Project medical response team and its medical service provider, Medical Support Solutions of the United Kingdom, has access to some of the best advice from medical experts from around the globe and has implemented key procedures across the business to ensure minimal disruption to operations.

In response to the COVID-19 pandemic, Ivanhoe postpones its annual general meeting of shareholders and the date for sending out the company’s executive compensation disclosure

Due to restrictions on public gatherings enacted by both the Federal and Provincial governments in Canada in response to the COVID-19 pandemic and to help protect the health and well-being of its shareholders, colleagues, communities and other stakeholders, Ivanhoe has made the decision to postpone its annual and special meeting (AGM) of shareholders to a date no later than the end of September 2020.

As the COVID-19 situation evolves and advice from government and medical authorities is updated, Ivanhoe will set the new AGM date and file a notice of meeting and record date on SEDAR (www.sedar.com).

Given the postponement of the company’s AGM, Ivanhoe also intends to postpone the date when it will send shareholders the management information circular for the annual general meeting, which includes the company’s executive compensation disclosure. The company is relying on BC Instrument 51-516 ─ Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials ─ published on May 1, 2020, that is providing public companies with temporary blanket relief from certain filing and delivery requirements related to the sending of materials for annual general meetings.

Once a new AGM date is determined, Ivanhoe will provide shareholders	with the
same disclosure documents they would normally receive ahead of an annual
meeting, including the

applicable legislation.

Principal projects and review of activities

1. Kamoa-Kakula Project

39.6%-owned by Ivanhoe Mines Democratic Republic of Congo

The Kamoa-Kakula Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the world’s fourth largest copper deposit by international mining consultant Wood Mackenzie. The project is approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi.

Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining in December 2015 for an aggregate consideration of $412 million. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River for $8.32 million - which Crystal River will pay through a non-interestbearing, 10-year promissory note. Since the conclusion of the Zijin transaction in December 2015, each shareholder has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in Kamoa Holding.

A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012 for no consideration, pursuant to the 2002 DRC mining code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding holds an 80% interest in the project.

Members of Kamoa-Kakula’s development team at Kakula’s growing high- grade ore stockpile.

(L-R) Magloire Kashiba (Production Manager), Jinha Numbi (Surveyor Assistant), Nadege Muzala (Explosive Master), Joel Maweji (Surveyor), Daniel Jila (Data Clerk), Dorcas Tabitha (JMMC Explosive Master), Amisi Mwanana (Safety Officer), Didier Masengo (Senior Mine Geologist), Haram Kazadi (Ventilation observer), Wivine Mutango (Ventilation Observer Assistant), Reagan Ngandu (Surveyor Assistant) and Pontien Kalala (Mine Overseer).

Health and safety at Kamoa-Kakula

At the end of March 2020, the Kamoa-Kakula Project reached 2,014,404 work hours free of a lost-time injury. A fatality occurred on February 7, 2020 when a contractor's employee passed away due to fat embolism syndrome following a broken bone incurred in a workplace accident on January 21, 2020. The Kamoa-Kakula Project continues to strive toward its workplace objective of zero harm to all employees and contractors. Since the fatality in February a number of additional safety interventions have been implemented.

As part of the company’s the COVID-19 response initiatives, the Kamoa-Kakula minesite has been locked down and strict isolation procedures have been implemented in the event of higher-risk personnel, or potential COVID-19 cases. Ten intensive care units, each equipped with a ventilator, and 20 high-care units will be available to treat potential patients, in addition to a quarantine facility for up to 60 potential patients. The project has procured abundant critical protective supplies for its minesite medical professionals, including surgical gloves and N95 face masks.

Definitive Feasibility Study nearing completion for the Kakula Mine

An independent definitive feasibility study (DFS) for the Kakula Mine is underway with an expected completion date of Q3 2020. At the same time, Ivanhoe expects to issue an updated preliminary economic assessment (PEA) for the expanded Kamoa-Kakula combined production scenarios, incorporating Kansoko, Kakula West and Kamoa North mining areas. The updated PEA will include the updated Mineral Resource estimate for Kamoa North which includes the initial Mineral Resource estimate for the Kamoa North Bonanza Zone. The updated resource estimate technical report was filed under the company’s SEDAR profile at www.sedar.com on March 27, 2020.

The forthcoming Kakula DFS will incorporate detailed design, engineering and procurement, which is largely complete. A separate DFS for an on-site smelter is underway in parallel, and will be incorporated into the integrated Kamoa-Kakula PEA.

Additional mining crews added at Kakula to increase pre-production ore stockpiles and position the mine to accelerate the second phase of development

An expansion in initial plant capacity from 3.0 Mtpa to 3.8 Mtpa is planned, which requires increasing the underground mining crews in 2020 from 11 to 14 to ensure sufficient mining operations to feed the expanded plant throughput. This would have the benefit of producing a larger surface stockpile of ore prior to the scheduled commissioning of the processing plant, as well as accelerating the mine development schedule, providing the opportunity to bring forward the commencement of the second phase of development at Kakula. The second 3.8 Mtpa plant module will be primarily fed from the Kakula Mine at a planned full production mining rate of 6 Mtpa. Further study work will determine the amount of tonnes to be sourced from the Kansoko Mine, or elsewhere, to maximize the full milling capacity of 7.6 Mtpa. Any plans to accelerate the second module of Kakula’s processing plant would be subject to securing the necessary project-level financing and an independent definitive feasibility study on increased production mining rates from 6 Mtpa to 7.6 Mtpa.

(L-R): Fabrice Nkomba (Mining Overseer), Franck Twite (Senior Geologist), Tebogo Gilbert Jacobs (General Foreman), and Richard Ilunga (Senior Geologist) in one of Kakula’s access drives that currently grades more than 8% copper.

Basic engineering design for the expansion from 3.8 Mtpa to 7.6 Mtpa is currently underway. The scope of facilities includes underground expansion at Kakula, the commencement of mining operations at Kansoko, a second 3.8 Mtpa concentrator module at Kakula as well as associated surface infrastructure to support the expansion at the various sites. The basic engineering is expected to be complete by mid-2020.

In April, crews at Kakula began mining and stockpiling ore with an average grade greater than 8% copper. At the end of May, 2020, Kakula’s high-grade, preproduction ore stockpile is forecast to contain 105,000 tonnes grading 5.95% copper. Kakula’s medium-grade ore stockpile is forecast to contain an additional 250,000 tonnes at 3.01% copper. The high-grade stockpile is projected to significantly expand in the coming months as the majority of Kakula’s underground development will be in mining zones grading +5% copper.

Construction of the concrete foundations for the initial 3.8 Mtpa processing plant’s ball mill foundations is nearing completion.

Construction crews dismantling scaffolding used to construct concrete foundations for the processing plant’s rougher flotation cells.

The current estimate of the project’s initial capital costs is approximately $1.3 billion as of January 1, 2019, which assumes commissioning of the first processing plant module in Q3 2021 and includes expanded plant capacity and pre-production ore stockpiles.

The capital costs incurred by the Kamoa-Kakula joint venture in 2019 amounted to $309.1 million, of which $125.2 million was spent on the Kakula declines and mine development. A further capital cost of $80.9 million has been incurred in Q1 2020.

Ivanhoe will fund its share of approximately 40% of the initial capital costs, plus its share of capital associated with the 20% carried interest owned by the Government of the DRC, which will be repaid through future cash flows from the project. Ivanhoe expects that it will continue to have sufficient cash resources or financing options available to cover its share of the initial capital costs.

Kamoa-Kakula Mineral Resources increased again

Ivanhoe announced the completion of an independently-verified, updated Mineral Resource estimate for the Kamoa-Kakula Project on February 5, 2020. The new Mineral Resource estimate is the culmination of an infill drilling program designed to better define higher-grade copper zones within the existing Kamoa Deposit.

At a 1% cut-off, Kamoa’s Indicated Mineral Resources now total 760 million tonnes grading 2.73% copper, containing 45.8 billion pounds of copper. At the same 1% cut-off, Kamoa’s Inferred Mineral Resources now total 235 million tonnes grading 1.70% copper, containing 8.8 billion pounds of copper. At a 3% cut-off, the new Mineral Resource estimate boosts the Kamoa Deposit’s Indicated Mineral Resource tonnages by 15% and contained copper by 15.5%, to a total of 256 million tonnes at a grade of 4.15% copper. At the same 3% cut-off, Kamoa’s Inferred Mineral Resources now total 13 million tonnes at a grade of 3.51% copper.

The entire Kamoa Deposit was updated in the new Mineral Resource estimate. The majority of recent drilling, however, targeted the ultra-high-grade Bonanza Zone at Kamoa North, and an approximated north-south corridor of elevated copper grades in the far north of the mining licence area (the Far North Zone).

The new Kamoa Mineral Resource estimate covers approximately 600 metres of strike length in the deeper western portions of the Bonanza Zone (west of the West Scarp Fault), and 1,500 metres of strike length in the shallower eastern portions of the Bonanza Zone; defined by drill sections spaced 50 metres apart on strike in the central section, and 100 metres apart on strike elsewhere.

At a 1% cut-off, the current, combined Indicated Mineral Resources for the Kamoa- Kakula Project now totals 1.387 billion tonnes grading 2.74% copper, containing 83.7 billion pounds of copper. At the same 1% cut-off, Kamoa-Kakula’s combined Inferred Mineral Resources now total 339 million tonnes grading 1.68% copper, containing 12.5 billion pounds of copper.

At a higher 3% cut-off, the current, combined Indicated Mineral Resources for the Kamoa-Kakula Project now totals 423 million tonnes grading 4.68% copper, containing 43.7 billion pounds of copper. At the same 3% cut-off, Kamoa-Kakula’s combined Inferred Mineral Resources now total 17 million tonnes grading 3.51% copper, containing 1.3 billion pounds of copper.

The new Kamoa Indicated and Inferred Mineral Resource estimate was prepared by George Gilchrist, Ivanhoe Mines’ Vice President, Resources, under the direction of Gordon Seibel, RM SME, of the Wood Group (formerly Amec Foster Wheeler E&C Services Inc.) of Reno, USA, and is reported in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. Mr. Seibel is the Qualified Person for the estimate. The effective date of the estimate is January 30, 2020, and the cut-off date for drill data is January 20, 2020. There has been no change to the Mineral Reserve estimate at Kamoa-Kakula.

More than 14.4 kilometres of underground development now completed as the project tracks towards first production in Q3 2021

A total of 11.8 kilometres of underground development was completed by the end of Q1 2020, which was 3.4 kilometres ahead of plan. A record of 1.7 kilometres advancement was achieved at Kakula in April. As of May 8, more than 14.4