Ivanhoe Mines issues financial results and review of operations for the third quarter of 2017 Development of twin declines starts at Kakula Discovery to provide access to high-grade copper resources Pre-feasibility study underway for a first-phase

November 9, 2017

Ivanhoe Mines issues financial results and review of operations for the third quarter of 2017

Development of twin declines starts at Kakula Discovery to provide access to high-grade copper resources

Pre-feasibility study underway for a first-phase six-million-tonne-per-year mine at Kakula

New Kamoa-Kakula preliminary economic assessment of two mines, with projected, combined production of 12 million tonnes per year expected by the end of this year

Potential phased mine developments of up to 18 million tonnes per year also being assessed for Kamoa-Kakula

Drilling at Kamoa-Kakula continues with 14 drill rigs focused on expanding and upgrading copper resources, and testing new targets

TORONTO, CANADA ‒ Ivanhoe Mines (	TSX: IVN; OTCQX: IVPAF	) today announced its
financial results for the third quarter ended September 30, 2017. All figures are in U.S. dollars
unless otherwise stated.
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
projects in Southern Africa: 1) Mine development at the Platreef platinum-group metals,
nickel, copper and gold discovery on the Northern Limb of South Africa’s Bushveld Complex;
2) mine development and exploration at the Tier One Kamoa-Kakula copper discovery on the
Central African Copperbelt in the Democratic Republic of Congo; and 3) upgrading at the
historic, high-grade Kipushi zinc-copper-silver-germanium mine, also on the DRC’s
Copperbelt.

HIGHLIGHTS

• The comprehensive drilling program at the Kamoa-Kakula copper project continued

during the third quarter. Ten rigs are focused on expanding and upgrading copper resources at the Kakula Discovery; four rigs are testing other targets on the 400-square- kilometre Kamoa-Kakula mining licence.

• A new mineral resource estimate for the entire Kakula Discovery based on the current,

delineated strike extent of least 12 kilometres is expected around the end of this year. The new evaluation will expand the May 2017 estimate and include an initial resource estimate for the Kakula West Discovery and the saddle area between the existing Kakula Mineral Resource area and the Kakula West Discovery.

• On May 17, 2017, a mineral resource estimate for the then-defined 7.7-kilometre strike

length of the Kakula Discovery contained Indicated Mineral Resources of 116 million tonnes at 6.09% copper, plus Inferred Resources of 12 million tonnes at 4.45% copper, at a 3% cut-off. The combined Indicated Mineral Resources at both the Kamoa and Kakula discoveries in the May 2017 estimate totalled one billion tonnes at 3.02% copper, plus another 191 million tonnes of Inferred Resources at 2.37% copper, at a 1.4% cut-off.

• The May 2017 Kakula estimate established the Kamoa-Kakula Project in the ranks of the

five largest copper deposits in the world. The project’s copper grades are the highest, by a wide margin, of the world’s top 10 copper deposits. Both the original Kamoa Discovery and the subsequent Kakula Discovery continue to remain open for significant expansion.

• Ivanhoe holds an extensive, 100%-owned exploration land position in the Western

Foreland region, just to the west of the Kamoa-Kakula Mining Licence, which is highly prospective for Kamoa-Kakula-type copper discoveries. Ivanhoe’s DRC exploration team began an initial, $4 million exploration program on the Western Foreland exploration licences in August.

• Underground development at Kamoa’s Kansoko Mine, consisting of service and

conveyor declines, was completed in September 2017. The high-grade Kansoko Sud copper mineralization was reached and approximately 13,500 tonnes of development ore was stockpiled at surface. Various development options for Kansoko are being assessed in conjunction with the ongoing mine development activities at Kakula.

• On October 26, 2017, the surface box cut at the Kakula Discovery was completed.

Development of twin underground declines, similar to those at the Kansoko Mine, will begin in the middle of this month. The first blast for the declines is scheduled for mid- November 2017.

• OreWin Pty. Ltd., of Australia, is nearing completion of a follow-up preliminary economic

assessment (PEA) for the development of the Kakula and Kamoa deposits. It is expected that the increased resource base at Kakula will support a mine capacity of approximately six million tonnes per annum (Mtpa). The capacity of the Kansoko Mine also is expected to be six Mtpa, giving the two mines in the revised PEA a projected, peak mine production of approximately 12 Mtpa from the presently delineated Kamoa and Kakula deposits.

• In light of the successful step-out drilling at Kakula West, as well as the potential to find

additional resources in high-priority targets located in the untested parts of the Kamoa- Kakula Project area, the Kamoa-Kakula development plans will be reassessed and amended as the project moves forward. Phased mine development options totalling up to 18 million tonnes per year are being assessed.

• Orewin also is preparing a pre-feasibility study for a six-million-tonne-per-year, phase

one mine at Kakula. Given the ultra-high-grade copper mineralization at Kakula, the initial development focus at Kamoa-Kakula is on fast-tracking advancement of the Kakula Mine.

• On November 1, 2017, Ivanhoe announced that sinking of Platreef’s Shaft 1 had reached a

depth of more than 500 metres below surface and development of the first of four planned shaft stations – the 450-metre-level substation – had been completed. Shaft 1 is expected to reach the top of the Flatreef mineralized zone, at a depth of 783 metres, in the third quarter of 2018. Sinking of the shaft will continue to a planned final depth of 980 metres.

• Early-works surface construction for Platreef’s Shaft 2 began last May with initial curtain

grouting around the box cut. Further work includes the excavation of a surface box cut to a depth of approximately 29 metres and construction of the concrete hitch for the 103- metre-tall concrete headgear (headframe) that will house the shaft’s permanent hoisting facilities and support the shaft collar. The early-works construction is expected to be completed in the fourth quarter of next year.

• Ivanhoe is focused on advancing the Platreef Project along its critical path. The continued

development of shafts 1 and 2 will provide access to the Flatreef Deposit and help to ensure that the project is able to meet the scheduled, first-phase start-up of the underground mine and concentrator by 2022.

• On July 31, 2017, Ivanhoe announced the positive results of an independent, definitive

feasibility study for the planned first phase of its Platreef platinum-group metals, nickel, copper and gold mine in South Africa. The study envisages an initial annual throughput rate of four million tonnes a year, producing 476,000 ounces of platinum, palladium, rhodium and gold (3PE+Au), plus 33 million pounds of nickel and copper.

• The Platreef Mine is projected to be Africa’s lowest-cost producer of platinum-group

metals, with a cash cost of $351 per ounce of 3PE+Au, net of by-products, including sustaining capital cost. There is good potential for relatively quick and capital-efficient expansion to six and eight million tonnes a year, and beyond, using start-up infrastructure.

• Ivanhoe has appointed five leading mine-financing institutions as Initial Mandated Lead

Arrangers to arrange debt financing for the development of the Platreef Mine. They are: KfW IPEX-Bank, a German government-owned institution; Swedish Export Credit Corporation; Export Development Canada; Nedbank Limited (acting through its Corporate and Investment Banking division); and Societe Generale Corporate & Investment Banking. Expressions of interest have been received for approximately $900 million of the targeted $1 billion project financing.

• The Platreef Project financing process is progressing, with technical and environmental

due diligence now underway. Discussions are underway on the financing of the broad- based, black economic empowerment (B-BBEE) structure. Strategic discussions regarding the Platreef Project also are continuing with significant global mining companies and investors.

• On October 30, 2017, Ivanhoe announced that that the company has agreed to rebuild 34

kilometres of track to connect the Kipushi Mine with the DRC national railway at Munama, south of the mining capital of Lubumbashi. The Kipushi-Munama spur line, which has been inactive since 2011, will be rebuilt under terms of a memorandum of understanding (MOU) signed by Ivanhoe Mines and the DRC’s state-owned railway company, Société Nationale des Chemins de Fer du Congo (SNCC).The DRC national railway is a key part of the international rail corridor that links the DRC Copperbelt to major seaports at Durban and Richards Bay in South Africa, Dar es Salaam in Tanzania and Lobito in Angola.

• A pre-feasibility study for the redevelopment of the Kipushi zinc-copper-germanium-lead-

silver mine is being prepared by OreWin. The comprehensive new study is expected to be issued before the end of this year. It will update and refine Ivanhoe’s May 2016 preliminary economic assessment of Kipushi’s proposed redevelopment.

• Continuing strategic discussions concerning Ivanhoe Mines and its projects are ongoing

with several significant mining companies and investors across Asia, Europe, Africa and elsewhere. Several investors that have expressed interest have no material limit on the provision of capital. There can be no assurance that the company will pursue any transaction or that a transaction, if pursued, will be completed.

• Ivanhoe Mines’ three projects achieved a combined 8.2 million work hours free of lost-

time injuries (LTIF) by the end of Q3 2017. Ivanhoe had recorded 457,807 LTIF hours at Platreef, 51,230 hours at Kipushi and more than 7.7 million hours at Kamoa-Kakula to the end of Q3 2017.

Principal projects and review of activities

1. Platreef Project

64%-owned by Ivanhoe Mines South Africa

The Platreef Project is owned by Ivanplats (Pty) Ltd., which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with a total of approximately 150,000 people, project employees and local entrepreneurs. In January 2017, Ivanplats reconfirmed its Level 3 status in its third verification assessment on a B-BBEE scorecard. A Japanese consortium of ITOCHU Corporation; Japan Oil, Gas and Metals National Corporation and Japan Gas Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million.

The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous Complex, approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane in Limpopo Province.

On the Northern Limb, platinum-group-metals mineralization is hosted primarily within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe’s Platreef Project, within the Platreef’s southern sector, is comprised of three contiguous properties: Turfspruit, Macalacaskop and Rietfontein. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of mining operations and properties.

Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties, which form part of the company’s mining right.

Positive independent, definitive feasibility study for Platreef’s first-phase development; Platreef projected to be Africa’s lowest-cost producer of platinum-group metals

On July 31, 2017, Ivanhoe Mines announced the positive results of an independent, definitive feasibility study (DFS) for the planned first phase of the Platreef Project’s platinum-group metals, nickel, copper and gold mine in South Africa.

The independent Platreef DFS covers the first phase of development that would include construction of a state-of-the-art underground mine, concentrator and other associated infrastructure to support initial production of concentrate by 2022. As Phase 1 is being developed and commissioned, there would be opportunities to refine the timing and scope of subsequent phases of expanded production.

Highlights include:

• Indicated Mineral Resources contain an estimated 41.9 million ounces of platinum, palladium, rhodium and gold with an additional 52.8 million ounces of platinum, palladium, rhodium and gold in Inferred Resources.
• Increased Mineral Reserves containing 17.6 million ounces of platinum, palladium, rhodium and gold – an increase of 13% – following stope optimization and mine sequencing work.
• Development of a large, safe, mechanized, underground mine with an initial four Mtpa concentrator and associated infrastructure.
• Planned initial average annual production rate of 476,000 ounces (oz.) of platinum, palladium, rhodium and gold (3PE+Au), plus 21 million pounds of nickel and 13 million pounds of copper.
• Estimated pre-production capital requirement of approximately $1.5 billion, at a ZAR:USD exchange rate of 13 to 1.
• Platreef would rank at the bottom of the cash-cost curve, at an estimated $351 per ounce of 3PE+Au produced, net of by-products and including sustaining capital costs, and $326 per ounce before sustaining capital costs.
• After-tax Net Present Value (NPV) of $916 million, at an 8% discount rate.
• After-tax Internal Rate of Return (IRR) of 14.2%.

The study was prepared for Ivanhoe Mines by principal consultant DRA Global, with economic analysis led by OreWin, and specialized sub-consultants including Amec Foster Wheeler E&C Services Inc. (Amec Foster Wheeler), Stantec Consulting, Murray & Roberts Cementation, SRK Consulting, Golder Associates and Digby Wells Environmental.

Health and safety at Platreef

By the end of September 2017, the Platreef Project reached a total of 7,987,271 hours and 457,807 lost time injury-free (LTIF) hours worked in terms of South Africa’s Mines Health and Safety Act and Occupational Health and Safety Act. The Platreef Project continues to strive toward its workplace objective of an environment that causes zero harm to employees, contractors, sub-contractors and consultants.

Pre-shift safety meeting with members of the shaft-sinking team

Construction of first shaft station in Shaft 1 completed

Shaft 1, with an internal diameter of 7.25 metres, will provide access to the Flatreef Deposit and enable the initial underground development to take place during the development of Shaft 2. Ultimately, Shaft 1 will become the primary ventilation intake shaft during the project’s four-milliontonne-per-annum production case. The average sinking rate is between 40 to 50 metres a month. The shaft includes a 300-millimetre-thick, concrete-lined shaft wall.

The main sinking phase is expected to reach its projected, final depth of 980 metres below surface in 2019. Shaft stations to provide access to horizontal mine workings for personnel, materials, pump stations and services will be developed at depths of 450 metres, 750 metres, 850 metres and 950 metres. The permanent sinking phase, which started in July 2016, had reached a depth of 480 metres on September 30, 2017. The first off-shaft lateral development on the 450-metre-level, which will serve as an intermediate water pumping and shaft cable-termination station, was successfully completed in September. The next off-shaft lateral development will be on the 750-metre-level and will serve as the first mine working level.

Members of Platreef’s shaft-sinking team in Shaft 1 at a depth of 500 metres below surface, more than halfway to the planned final depth of 980 metres

Shaft 2 early-works construction underway

Shaft 2, to be located approximately 100 metres northeast of Shaft 1, will have an internal diameter of 10 metres, will be lined with concrete and sunk to a planned, final depth of more than 1,100 metres below surface. It will be equipped with two 40-tonne rock-hoisting skips with a capacity to hoist a total of six million tonnes of ore per year – the single largest hoisting capacity at any mine in Africa.

The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation. The early-works for Shaft 2 include the excavation of a surface box cut to a depth of approximately 29 metres below surface and the construction of the concrete hitch (foundation) for the 103-metre-tall concrete headgear (headframe) that will house the shaft’s permanent hoisting facilities and support the shaft collar. The box cut is expected to take approximately 12 months to complete.

Drill-rig crew members during early-works surface construction at Shaft 2, located approximately 100 metres northeast of Shaft 1

Underground mining to use highly productive mechanized methods

The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Primary access to the mining zones will be by way of Shaft 2 and secondary access to the mine will be via Shaft 1. During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production.

Planned mining methods will use highly productive, mechanized methods, including long-hole stoping and drift-and-fill. Each method will utilize cemented backfill for maximum ore extraction. The ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface.

The current mine plan has been improved over the 2015 PFS mine plan by optimizing stope design, employing a declining Net Smelter Return (NSR) strategy and targeting higher-grade zones early in the mine life. This strategy has increased the grade profile by 23% on a 3PE+Au basis in the first 10 years of operation and 10% over the life of the mine.

Shaft 2 engineered to allow for future expansion options

Shaft 2 has been engineered with a crushing and hoisting capacity of six Mtpa. This will allow a relatively quick and capital-efficient first expansion of the Platreef Project to six Mtpa by increasing underground development and commissioning a third, two-Mtpa processing module and associated surface infrastructure as required.

A further expansion to more than eight Mtpa would entail converting Shaft 1 from a ventilation shaft into a hoisting shaft. This would require additional ventilation exhaust raises, as well as a further increase of underground development, commissioning of a fourth, two-Mtpa processing module and associated surface infrastructure, as described in the Platreef preliminary economic assessment (PEA) as Phase 2 of the project.

Preliminary expressions of interest received for approximately $900 million of the targeted $1 billion Platreef project financing

On July 19, 2017, Ivanhoe Mines announced the appointment of another two leading, mine-financing institutions — KfW IPEX-Bank, a German government-owned institution, and the Swedish Export Credit Corporation (SEK) — as Initial Mandated Lead Arrangers (IMLAs) to arrange debt financing for the ongoing development of the Platreef Mine.

KfW IPEX-Bank and SEK joined the three initial IMLAs — Export Development Canada, Nedbank Limited (acting through its Corporate and Investment Banking division) and Societe Generale Corporate & Investment Banking — that were appointed earlier this year.

The five IMLAs will make best efforts to arrange a total debt financing of up to $1 billion for the development of Platreef’s first-phase, four-Mtpa mine. Preliminary expressions of interest now have been received for approximately $900 million of the targeted $1 billion project financing. Negotiation of a term sheet is ongoing. In addition, preliminary discussions have commenced with leading financial institutions around the financing of the contribution by the black economic empowerment partners to the development capital.

Metallurgical test work and processing methods

Metallurgical test work has focused on maximizing recovery of platinum-group metals (PGM) and base metals, mainly nickel, while producing an acceptably high-grade concentrate suitable for further processing and/or sale to a third party. The three main geo-metallurgical units and composites tested produced smelter-grade final concentrates of approximately 85 g/t PGM+Au at acceptable PGM recoveries.

Test work also has shown that the material is amenable to treatment by conventional flotation without the need for mainstream or concentrate ultrafine re-grinding. Extensive bench-scale test work comprising of open-circuit and locked-cycled flotation testing, comminution testing, mineralogical characterization, dewatering and rheological characterization was performed at Mintek in South Africa, an internationally accredited metallurgical testing facility and laboratory.

Comminution and flotation test work has indicated that the optimum grind for beneficiation is 80% passing 75 micrometres. Platreef ore is classified as being ‘hard’ to ‘very hard’ and thus not suitable for semi-autogenous grinding; a multi-stage crushing and ball-milling circuit has been selected as the preferred size-reduction route.

Improved flotation performance has been achieved using high-chrome grinding media as opposed to carbon-steel media. The inclusion of a split-cleaner flotation-circuit configuration, in which the fastfloating fraction is treated in a cleaner circuit separate from the medium- and slow-floating fractions, resulted in improved PGM, copper and nickel recoveries and concentrate grades.

A two-phased development approach was used for the DFS flow-sheet design. The selected flow sheet comprises a common four-Mtpa, three-stage crushing circuit that feeds crushed material to two parallel milling-flotation modules, each with a nominal capacity of two Mtpa. Flotation is followed by a common concentrate thickening, concentrate filtration, tailings disposal and tailings-handling facility.

Bulk water and electricity supply

The Olifants River Water Resource Development Project (ORWRDP) is designed to deliver water to the Eastern and Northern limbs of South Africa’s Bushveld Complex. The project consists of the new De Hoop Dam, the raised wall of the Flag Boshielo Dam and related pipeline infrastructure that ultimately is expected to deliver water to Pruissen, southeast of the Northern Limb. The Pruissen Pipeline Project is expected to be developed to deliver water onward from Pruissen to the municipalities, communities and mining projects on the Northern Limb. Ivanhoe Mines is a member of the ORWRDP’s Joint Water Forum.

The Platreef Project’s water requirement for the first phase of development is projected to peak at approximately 7.5 million litres per day, which is expected to be supplied by the water network. Ivanhoe also is investigating various alternative sources of bulk water, including an allocation of bulk grey-water from a local source.

The Platreef Project’s electrical power requirement for the phase one, four-Mtpa, underground mine, concentrator and associated infrastructure has been estimated at approximately 100 million voltamperes. An agreement has been reached with Eskom, the South African public electricity utility, for the supply of phase-one power. Ivanhoe chose a self-build option for permanent power that will enable Ivanhoe to manage the construction of the distribution lines from Eskom’s Burutho substation to the Platreef Mine. The self-build and electrical supply agreements are being formulated.

2. Kipushi Project

68%-owned by Ivanhoe Mines Democratic Republic of Congo

The Kipushi copper-zinc-germanium-silver mine in the DRC is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located on the Central African Copperbelt, approximately 250 kilometres southeast of the Kamoa-Kakula Project and less than one kilometre from the Zambian border. Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the state-owned mining company, La Générale des Carrières et des Mines (Gécamines).

Health, safety and community development

The Kipushi Project achieved a total of 51,230 work hours free of lost-time injuries by September 30, 2017. One lost-time injury occurred in September 2017.

The Fionet Know for Sure initiative to improve malaria diagnostics and treatment expanded to 300 Deki Readers installed in 252 medical service providers in Haut-Katanga and Lualaba provinces in Southern DRC, which host Ivanhoe’s Kipushi and Kamoa-Kakula projects.

Deki Readers provide automated readings of rapid diagnostic tests to remove the human-error factor and avoid prescription of unnecessary medication. The data are uploaded to a cloud server for analysis by the Ministry of Health in planning malaria-control measures. There were more than 24,000 patient encounters in Q3 2017 where Deki Readers provided diagnostic testing; only approximately 14% of Kipushi Project employees who were symptomatic tested positive for malaria.

A representative of the Know for Sure initiative, holding a Deki Reader used to conduct rapid diagnostic testing for malaria, explains to children how to get access to testing for themselves and their parents.

At the request of the Kipushi municipal authority, and in conjunction with the Haut-Katanga Office of Roads and Drainage (Office des Voires et Drainage) and La Commission Nationale de Prévention Routière (CNPR), additional speed bumps and signs have been installed on paved roads in the municipal areas in an effort to reduce traffic accidents.

Underground drilling program includes metallurgy, infill and resource expansion drilling

Ivanhoe initiated a second phase of underground drilling at Kipushi in April 2017. The planned drilling program totalled 6,500 metres in 41 drill holes and included metallurgy, resource infill and expansion and exploration drilling. As of September 30, 2017, 36 holes and 7,812 metres had been completed. The program has been increased to approximately 9,500 metres as result of exploration success and now is scheduled to be completed in Q4 2017.

Resource drilling initially focused on the Southern Zinc to confirm and expand the resource area and to upgrade it into an Indicated Mineral Resource. In Q3, drilling continued to extend the vertical limit of the Southern Zinc and targeted the area between the Southern Zinc and the Big Zinc, attempting to connect these two zones. Drilling also tested the eastern extent of the Série Récurrente.

Drilling is continuing with two rigs, one with the Southern Zinc expansion and the other with the Série Récurrente exploration. Ivanhoe intends to update the Kipushi Mineral Resource estimate early in Q1 2018.

A member of the Titan drilling team operating a drill rig underground at Kipushi

Project development and infrastructure upgrading

The Kipushi Mine, which had been placed on care and maintenance in 1993, flooded in early 2011 due to a lack of pump maintenance over an extended period. At its peak, water reached 851 metres below the surface. Ivanhoe restored access to the mine’s principal haulage level at 1,150 metres below surface in December 2013. Since then, crews have been upgrading underground infrastructure to permanently stabilize the water levels.

Since completion of the 2014/2015 drilling program, water levels have been lowered to the bottom of Shaft 5, which is planned to be the mine’s main production shaft. The shaft is eight metres in diameter, 1,240 metres deep and approximately 1.5 kilometres from the planned main mining area. It provides the primary access to the lower levels of the mine, including the Big Zinc Deposit, through the 1,150-metre haulage level and underground ramp decline.

Welding at the Kipushi Mine’s Shaft 5 pumping station in preparation for a resumption of production

Pre-feasibility study for Kipushi nearing completion

In September 2016, Ivanhoe began a pre-feasibility study (PFS) on the Kipushi Project that will further refine the optimal development scenario for the existing underground mine. Orewin, of Australia, has been appointed the main engineering firm for the preparation of the PFS. Golder Associates, MDM, SRK, DRA, Murray & Roberts and Grindrod also have been engaged to complete various aspects of the study.

The PFS will refine the positive PEA for the redevelopment of the Kipushi Project that was announced on May 2, 2016. The comprehensive new study is expected to be issued before the end of this year. Highlights of the 2016 PEA, prepared by OreWin and the MSA Group, include:

• After-tax net present value at an 8% real discount rate is $533 million.
• After-tax real internal rate of return is 30.9%.
• After-tax project payback period is 2.2 years.
• Leveraging existing surface and underground infrastructure significantly lowers the redevelopment capital compared to a greenfield development project, as well as the time required to reinstate production.
• Life-of-mine average planned zinc concentrate production of 530,000 dry tonnes per annum – with a concentrate grade of 53% zinc – is expected to rank Kipushi, once in production, among the world’s major zinc mines.
• Life-of-mine average cash cost of $0.54/lb. of zinc is expected to rank Kipushi, once in production, in the bottom quartile of the cash-cost curve for zinc producers globally.