Ivanhoe Mines and Gécamines sign new agreement to return the ultra-high-grade Kipushi Mine in the DRC to production

February 14, 2022

Ivanhoe Mines and Gécamines sign new agreement to return the ultra-high-grade Kipushi Mine in the DRC to production ■ Kipushi 2022 feasibility study highlights outstanding economic results from planned rebirth of the historic Kipushi Mine, with two-year development timeline ■ Kipushi will be the world's highest-grade major zinc mine, with average grade of 36.4% zinc over the first five years ■ Life-of-mine average annual zinc production of 240,000 tonnes with C1 cash costs of US$0.65/lb of payable zinc ■ After-tax NPV8% of US$941 million and IRR of 41%, based on long-term zinc price of US$1.20/lb, with pre- production capital cost of US$382 million ■ After-tax NPV8% of US$2.3 billion and IRR of 73% at current spot zinc price of approximately US$1.67/lb ■ Kipushi to be fully powered by clean hydroelectricity, aligning with Ivanhoe’s vision to produce “green metals” ■ Feasibility study based only on zinc-rich resources, including the renowned Big Zinc Zone; significant potential upside from copper-and silver-rich orebodies with future exploration

KIPUSHI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete, together with Alphonse Kaputo Kalubi (Chairman) and Bester-Hilaire Ntambwe Ngoy Kabongo (CEO) of Gécamines, DRC’s state-owned mining company, are pleased to announce that Kipushi Holding, an Ivanhoe Mines wholly-owned subsidiary, and Gécamines have signed a new agreement to return the ultra-high- grade Kipushi Mine back to commercial production. Kipushi will be the world's highest-grade major zinc mine, with average grade of 36.4% zinc over the first five years of production.

Watch a new video showcasing Kipushi’s planned transformation into the world's highest-grade major zinc mine:

https://vimeo.com/676846621/282541f745

The new agreement sets out the commercial terms that will form the basis of a new Kipushi joint-venture agreement establishing a robust framework for the mutually beneficial operation of the Kipushi Mine for years to come, and is subject to execution of definitive documentation.

“We are convinced that Kipushi's new partnership around the Big Zinc will be a benchmark for a successful combination of expertise, resources, a unique asset

Bester-Hilaire Ntambwe Ngoy Kabongo added: “We are excited to move our longstanding partnership with Ivanhoe Mines into a new phase that will deliver significant long-term benefits to all parties. Ivanhoe Mines has been a key partner in the Kipushi Project for over a decade and we appreciate their continued commitment to the project. We are confident in Ivanhoe Mines’ technical and financial capabilities to operate the Big Zinc and trust that we can jointly develop the project in a sustainable, responsible and value adding manner for its stakeholders, such as neighbouring communities. Gécamines sees in it the opportunity for an improved exploitation of the Big Zinc, the development of an integrated economic fabric and the imbedding of skills in the Haut-Katanga province.”

“The new agreement with Gécamines is a testament to the great perseverance, ingenuity and patience of Ivanhoe’s team, working alongside our partners in the Democratic Republic of Congo,” Mr. Friedland said. “On behalf of Ivanhoe Mines’

Board, I would like to thank our team, led by our President Marna Cloete, who have helped us arrive at this historic day.

“The outstanding performance by the Kamoa Copper team in delivering the first phases of the Kamoa-Kakula Mine, ahead of schedule and on budget, undoubtedly helped expedite the new agreement, as it showcases our strong development capabilities and industry-leading community initiatives to our partner Gécamines and the Congolese government.

“The new agreement now allows us to responsibly, efficiently and expeditiously develop Kipushi into an ultra-high-grade zinc producer, with outstanding potential to find more zinc, copper, germanium and silver resources – paving the way to fulfilling its promise of significant, long-lasting, economic and social benefits for the Congolese people.

“The past few years have been a significant challenge for us all, including the loyal men and women preparing Kipushi’s underground workings for a resumption of production. Together, we have faced the global impact of the COVID-19 pandemic and we have emerged stronger than ever. Now we have a clear line of sight on having our three tier-one, cornerstone mining assets enter commercial production.”

(L-R) Olivier Binyingo (Ivanhoe Mines Vice President Public Affairs DRC), Marna Cloete (Ivanhoe Mines President), Alphonse Kaputo Kalubi (Chairman of Gécamines), and Louis Watum (General Manager, Kipushi Corporation) discussing the Kipushi partnership during a recent visit to the Kamoa-Kakula mining complex.

Gécamines’ Chairman Alphonse Kaputo Kalubi (left) “operating” a piece of heavy equipment at Kamoa-Kakula’s state-of-the-art training centre.

The re-birth of a mining legend; Kipushi is a significant past producer of copper, zinc, germanium and precious metals

The Kipushi copper-zinc-germanium-silver mine in the DRC Copperbelt is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located less than one kilometre from the Zambian border.

Kipushi has a long and storied history as a major producer of copper and zinc. Built and then operated by Union Minière for 42 years, Kipushi began mining a reported 18% copper deposit from a surface open pit in 1924. It was the world’s richest copper mine at the time. The Kipushi Mine then transitioned to become Africa’s richest underground copper, zinc and germanium mine. State-owned Gécamines gained control of Kipushi in 1967 and operated the mine until 1993, when it was placed on care and maintenance due to a combination of economic and political factors.

Over a span of 69 years, Kipushi produced a total of 6.6 million tonnes of zinc and 4.0 million tonnes of copper from 60 million tonnes of ore grading 11% zinc and approximately 7% copper. It also produced 278 tonnes of germanium and 12,673 tonnes of lead between 1956 and 1978. There is no formal record of the production of precious metals as the concentrate was shipped to Belgium and the recovery of precious metals remained undisclosed during the colonial era; however, drilling by Ivanhoe Mines has encountered significant silver values within Kipushi’s current zinc- and copper-rich deposits.

Germanium is a strategic metal used today in electronic devices, flat-panel display screens, light-emitting diodes, night vision devices, optical fiber, optical lens systems, and solar power arrays.

Most of Kipushi’s historical production was from the Fault Zone, a steeply- dipping ore body rich in copper and zinc that initially was mined as an open pit. The Fault Zone extends to a depth of at least 1,800 metres below surface, along the intersection of a fault in carbonaceous dolomites (see Figure 3).

Before Kipushi was idled, Gécamines discovered the Big Zinc deposit at a depth of approximately 1,250 metres below surface and adjacent to the producing Fault Zone (see Figure 3). The Big Zinc Deposit has not been mined and is the initial target for production as outlined in the new feasibility study.

Since acquiring its interest in the Kipushi Mine in 2011, Ivanhoe’s drilling campaigns have upgraded and expanded the mine’s zinc-rich Measured and Indicated Mineral Resources to an estimated 11.78 million tonnes grading 35.34% zinc, 0.80% copper, 23 grams/tonne (g/t) silver and 64 g/t germanium, at a 7% zinc cut-off, containing 9.2 billion pounds of zinc, 8.7 million ounces of silver and 24.4 million ounces of germanium (see Table 1).

In addition, Ivanhoe’s drilling expanded Kipushi’s copper-rich Measured and Indicated Mineral Resources to an additional 2.29 million tonnes at grades of 4.03% copper, 2.85% zinc, 21 g/t silver and 19 g/t germanium, at a 1.5% copper cut-off – containing 144 million pounds of copper (see Table 1).

In 1924, Kipushi began mining 18% copper from a surface open pit, before transitioning to Africa’s richest underground copper and zinc mine. This picture shows the Kipushi open pit in November 1928.

Picture of the headframes for Kipushi shafts 1, 2 and 3, and the Kipushi concentrator in February 1966.

Kipushi’s geology team in 2016 showing a drill intersection in the Big Zinc Deposit of 44.8% zinc over 340 metres, still one of the world’s highest- grade drill holes.

Core from hole KPU008 drilled in 2014 in Kipushi’s Série Récurrente Zone – 11.2 metres of 17% copper and 89.6 g/t silver, highlighting the potential to discover additional zones of copper- and silver-rich mineralization.

Kipushi feasibility study issued, heralding the planned re-start of the historic mine, with a two-year development timeline and exceptional economic results

Ivanhoe Mines today announced the positive findings of an independent, feasibility study for the planned resumption of commercial production at Kipushi.

The Kipushi 2022 Feasibility Study (2022 FS) builds on the results of the pre- feasibility study (PFS) published by Ivanhoe Mines in January 2018. The redevelopment of Kipushi is based on a two-year construction timeline, which utilizes the significant existing surface and underground infrastructure to allow for substantially lower capital costs than comparable development projects. The estimated pre-production capital cost, including contingency, is US$382 million.

The 2022 FS focuses on the mining of Kipushi’s zinc-rich Big Zinc and Southern Zinc zones, with an estimated 11.8 million tonnes of Measured and Indicated Mineral Resources grading 35.3% zinc. Kipushi’s exceptional zinc grade is more than twice that of the world’s next-highest-grade zinc project, according to Wood Mackenzie, a leading, international industry research and consulting group (see Figure 2).

The 2022 FS does not include any of the copper-rich mineral resources delineated to date and assumes that revenue is attributable to zinc only, with no by-product credits.

The 2022 FS envisages the recommencement of underground mining operations, and the construction of a new concentrator facility on surface with annual processing capacity of 800,000 tonnes of ore, producing on average 240,000 tonnes of zinc contained in concentrate.

Concurrent with the release of the 2022 FS, Ivanhoe is finalizing Kipushi’s development and financing plan, together with its partner Gécamines. The Kipushi Mine is operated by Kipushi Corporation (KICO), a joint venture between Ivanhoe Mines wholly owned subsidiary, Kipushi Holding, and Gécamines, the DRC’s state-owned mining company.

The 2022 FS was independently prepared on a 100%-project basis by OreWin Pty. Ltd., MSA Group (Pty.) Ltd., SRK Consulting (Pty) Ltd. and METC Engineering. A National Instrument 43-101 technical report will be filed on SEDAR at www.sedar.com and on the Ivanhoe Mines website at www.ivanhoemines.com within 45 days of the issuance of this news release.

Figure 1: World’s 10 major zinc mines, showing estimated annual zinc production and zinc head grades (ranked by production, 2020).

600 35

Contained zinc production (kt)

Ore milled head grade Zn (%)

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Source: Wood Mackenzie; January 2022. Note: Wood Mackenzie compared the Kipushi Project’s life-ofmine average annual zinc production and zinc head grade of 240,000 tonnes and 31.9%, respectively, against production and zinc head grades estimated in 2020.

2022 FS re-affirms Kipushi’s outstanding economics

“The feasibility study is the latest validation that Kipushi has the resources to become one of the world’s largest and lowest-cost zinc producers based on the Big Zinc Zone alone.” said Ms. Cloete.

“Discussions are continuing with prospective financing providers to support our advance toward a new era of production at Kipushi. We’ve made major progress in upgrading the mine’s underground infrastructure, and now have a clear path to a resumption of production from this incredibly rich orebody.

“Since acquiring our interest in the Kipushi Mine in 2011, our team has worked hard to prepare the mine for a resumption of commercial operations,” she added. “During that time, we’ve seen zinc prices rally from under US$1.00 to well over US$1.70 per pound. We’re confident that the long-term supply and demand fundamentals would support a strong zinc price for a long time to come.”

Mr. Friedland commented: “We look forward to Kipushi joining the ranks of the world’s largest zinc producers. Zinc, with its key attributes of essentiality, durability, versatility and recyclability, is well positioned as a metal of choice for a modern, sustainable society.

“In addition to being a critical metal in the galvanizing process to protect steel from corrosion, zinc is an essential micronutrient that strengthens the immune system and is crucial for healthy growth and brain development. Zinc also is an essential ingredient for plant life and now is widely used as fertilizer.”

Elvis Mugombe, a member of Kipushi’s dedicated team of employees, is looking forward to a resumption of commercial production.

Kipushi’s Shaft 5 headframe. Shaft 5’s main personnel and material winder, as well as the rock hoisting winder, have been upgraded and modernized to meet global industry standards and safety criteria.

Patrick Mwanza Wa Kabongo operating the modern, new hoist at Kipushi’s main production shaft (Shaft 5).

2022 FS HIGHLIGHTS

Summary of 2022 FS results for the Kipushi Mine:

• The 2022 FS evaluates the development of an 800-ktpa underground mine

and concentrator, with an increased resource base compared to the PFS, extending the mine life to 14 years.

• Existing surface and underground infrastructure allow for significantly

lower capital costs than comparable development projects, with the principal development activity being the construction of a conventional concentrator facility and new supporting infrastructure on surface in a two- year timeline.

• Pre-production capital costs, including contingency, estimated at US$382

million.

• Life-of-mine average zinc production of 240,000 tonnes per annum, with a

zinc grade of 32%, is expected to rank Kipushi among the world’s major zinc mines (Figure 1), once in production, with the highest grade by some margin.

• Life-of-mine average C1 cash cost of US$0.65/lb of zinc is expected to rank

Kipushi, once in production, in the second quartile of the cash cost curve for zinc producers globally (Figure 11).

• At a long-term zinc price of US$1.20/lb, the after-tax net present value (NPV)

at an 8% real discount rate is US$941 million, with an after-tax real internal rate of return (IRR) of 40.9% and project payback period of 2.3 years.

• At the spot zinc price of approximately US$1.67/lb (February 11, 2022), the

after-tax NPV8% increased to US$2,286 million with an after-tax real IRR of 73.5% and project payback period of 1.4 years.

Highlights of the new agreement between Kipushi Holding, Gécamines and KICO:

• Kipushi Holding, 100%-owned by Ivanhoe Mines, will transfer 6% of the

share capital and voting rights in KICO to Gécamines, after which Kipushi Holding and Gécamines will hold 62% and 38%, respectively.

• From January 25, 2027, 5% of the share capital and voting rights in KICO

shall be transferred from Kipushi Holding to Gécamines, after which Kipushi Holding and Gécamines will hold 57% and 43%, respectively.

• In the event that, after the 6% and 5% transfers, part of KICO’s share capital

is required to be transferred to the State or to any third party pursuant to an applicable legal or regulatory provision, Gécamines shall transfer the number of KICO shares required, and Kipushi Holding shall retain 57% ownership in KICO.

• Once a minimum of the current proven and probable reserves and up to 12

million tonnes has been mined and processed, an additional 37% of the share capital and voting rights in KICO shall be transferred from Kipushi Holding to Gécamines, after which Kipushi Holding and Gécamines will hold 20% and 80%, respectively.

• A new supervisory board and executive committee will be established with

appropriate shareholder representation.

• New initiatives will be implemented focusing on the development of

Congolese employees, including individual development, the identification of future leaders, succession planning and the promotion of gender equality across the workforce.

• A framework for tendering for the offtake of zinc concentrates produced by

the Kipushi Mine has been established, which includes Gécamines’ participation.

• Kipushi Holding will continue to fund KICO with the shareholder loan and/or

procure financing from third parties for the development of the project. The