Ivanhoe Mines issues second quarter 2022 financial results, and review of mine construction and exploration activities

NOTE TO READER - The press release of Ivanhoe Mines Ltd. dated August 15, 2022 (the “Press Release”) has been re-filed on SEDAR. The previously filed press release had a typographical error on page 43 with respect to the capital expenditure table for the Kamoa-Kakula Mining Complex - Phase 3 and smelter early works. This press release replaces the previously filed Press Release.

August 15, 2022

Ivanhoe Mines issues second quarter 2022 financial results, and review of mine construction and exploration activities ■ Ivanhoe Mines reports record profit of $351.5 million for Q2 2022 ■ Kamoa-Kakula Mining Complex in the Democratic Republic of Congo sold record 85,794 tonnes of payable copper and recognized revenue of $494.1 million in Q2 2022 ■ Kamoa Copper’s cost of sales total $1.15 per pound of payable copper during the second quarter, with C1 cash costs of $1.42 per pound ■ Over the first half of 2022, Kamoa-Kakula milled approximately three million tonnes at 5.59% copper, and produced 142,916 tonnes of copper ■ Kamoa-Kakula produced record 32,877 tonnes of copper in July for an annualized production rate of 387,100 tonnes of copper ■ Platreef underground mining advancing well, with more than 200 metres of lateral development completed during the quarter

JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF)

President Marna Cloete and Chief Financial Officer David van Heerden are pleased to announce the financial results for the three and six months ended June 30, 2022.

Ivanhoe Mines is a leading Canadian mining company developing and expanding its four principal mining and exploration projects in Southern Africa: the Kamoa-Kakula Mining Complex in the Democratic Republic of Congo (DRC), which commenced commercial production in July 2021; the Platreef palladium, rhodium, nickel, platinum, copper and gold discovery in South Africa; the historic Kipushi zinc-copper-lead- germanium mine in the DRC; and the expansive exploration program for new copper discoveries on Ivanhoe’s Western Foreland exploration licences, near Kamoa-Kakula.

All figures are in U.S. dollars unless otherwise stated.

HIGHLIGHTS

• Ivanhoe Mines recorded a profit of $351.5 million for Q2 2022, compared to a loss

of $108.6 million for the same period in 2021. The profit in the quarter includes Ivanhoe Mines’ share of profit and finance income from the Kamoa-Kakula joint venture of $84.6 million.

• Kamoa-Kakula set a new quarterly production record during the period, with 87,314

tonnes of copper in concentrate produced. Commercial production from the Phase 2 concentrator was declared on April 7, 2022.

• Ivanhoe Mines increases the lower end of its 2022 production guidance range for

Kamoa-Kakula to between 310,000 and 340,000 tonnes of copper in concentrate following the early commissioning of the Phase 2 expansion.

• Kamoa-Kakula’s cost of sales per pound (lb.) of payable copper sold was $1.15/lb.

for Q2 2022, while cash costs (C1) per pound of payable copper produced totalled $1.42/lb., compared to $1.21/lb. and $1.28/lb. in Q1 2022 and Q4 2021 respectively.

• Ivanhoe Mines reiterates its C1 cash cost guidance for Kamoa-Kakula of $1.20/lb. to

$1.40/lb. for the calendar year 2022. C1 cash costs over the first six months of 2022 total $1.34/lb.

• During Q2 2022, Kamoa Copper sold 85,794 tonnes of payable copper and

recognized revenue of $494.1 million, with an operating profit of $253.1 million and an EBITDA of $286.3 million.

• Kamoa Copper mined 1.66 million tonnes of ore grading 5.57% copper in Q2 2022,

including 0.78 million tonnes grading 6.74% copper from the Kakula Mine’s high- grade centre.

• Over the first half of 2022, Kamoa Copper milled approximately three million tonnes

of ore at an average feed grade of 5.59% copper, and produced 142,916 tonnes of copper in concentrate.

• After the end of Q2, Kamoa Copper set another new monthly production record,

with 32,877 tonnes of copper produced in July, equivalent to an annualized production rate of 387,100 tonnes.

• Kamoa Copper’s de-bottlenecking program is progressing to schedule. The

program will increase the combined design processing capacity of the Phase 1 and Phase 2 concentrators to approximately 9.2 million tonnes of ore per annum. Copper production from Kamoa-Kakula’s first two phases is projected to reach approximately 450,000 tonnes per annum by Q2 2023.

• Basic engineering design for Kamoa Copper’s Phase 3, 5.0-million-tonne-per-

annum concentrator is nearing completion with engineering and procurement activities underway. During June, orders were placed for the following long-lead items: ball mills, concentrate filters, cone crushers and flotation cells. The earthworks contract also has been placed.

• Earthworks excavation for the Phase 3 direct-to-blister flash smelter is advancing

quickly. In June, purchase orders were placed for the smelter’s slag-cleaning furnace and the anode refining furnaces.

• Ivanhoe Mines has a strong balance sheet with cash and cash equivalents of

$507.1 million as at June 30, 2022, and expects that Kamoa Copper’s operating and expansion capital expenditures on Phase 3 will be funded from copper sales and facilities at Kamoa-Kakula.

• Ivanhoe continues its copper exploration program on its Western Foreland licences

that cover approximately 2,407 square kilometres neighbouring the 400-square- kilometre Kamoa-Kakula mining licences. The extensive 2022 drilling program is well underway, with 39 diamond drill holes totalling 7,539 metres completed during the second quarter.

• Lateral underground mine development on Platreef's 950-metre-level, towards the

location of the first ventilation shaft position, progressed well during the quarter. Over 200-metres of lateral development has been completed since work commenced in April 2022.

• Construction of Platreef’s first solar-power plant is scheduled to commence in Q3

2022, with commissioning expected in 2023. The electricity generated from this power plant will be used for mine development and construction activities, as well as for charging Platreef’s battery-powered underground mining fleet.

• The Platreef 2022 Feasibility Study yields an after-tax NPV8% of $1.7 billion and IRR

of 18.5% at long-term consensus metal prices. Based on spot metal prices at the time of the study (February 23, 2022), the after-tax NPV8% increases to $4.1 billion and the IRR increases to 29%.

• In June 2022, Kipushi and Gécamines approved the development budget for the

Kipushi Project in line with the 2022 Feasibility Study. Ordering of long-lead equipment and other construction activities now has commenced. Financing and offtake discussions are advancing with several interested parties.

• The Kipushi 2022 Feasibility Study yields an after-tax NPV8% of $941 million and

IRR of 40.9% at long-term consensus metal prices. At a zinc price of $1.60/lb. (the current zinc spot price), the after-tax NPV8% increases to $2.0 billion and the IRR increases to 68%.

Watch a July fly-over of mining and construction activities at Kamoa-Kakula: https://vimeo.com/739389126/d7bf137f91

Kamoa Copper undertaking optimization of logistics costs

Due to the early commissioning and highly successful ramp-up of the Phase 2 concentrator during Q2 2022, Kamoa Copper dispatched approximately 177,000 tonnes of copper concentrates, a significant increase on approximately 103,000 tonnes dispatched during Q1 2022.

Copper C1 cash costs per pound of payable copper for Q2 2022 were higher than Q1 2022 largely due to a 42% increase in logistics charges for the transportation of Kamoa- Kakula’s copper products.

The increase in logistics charges for the quarter were impacted by limitations in truck availability caused by the sharp increase in volumes, interrupted port operations at Durban caused by flooding, customs clearing times and border congestion between the DRC and Zambia, as well as higher diesel prices.

However, mine site operating costs are somewhat shielded from higher diesel prices, as site power is provided by the DRC national grid at a rate of approximately 6 cents per kilowatt hour, following the refurbishment of the Mwadingusha hydropower facility under a public-private partnership with Société Nationale d'Électricité (SNEL), the DRC state power utility company.

In addition, the Lualaba Copper Smelter located near Kolwezi, which is expected to treat approximately 150,000 tonnes of copper concentrates from Kamoa-Kakula annually, is undergoing scheduled maintenance that is expected to be completed in early September. Until then, Kamoa Copper’s concentrate production will be wholly transported and exported as copper concentrate (approximately 50% contained copper), without the expected quantity of blister copper (approximately 99% contained copper), thereby temporarily increasing logistics costs.

Kamoa Copper, working alongside its offtake partners, Zijin Mining and CITIC Metal as well as the government of the DRC, is undertaking several initiatives to optimize the transportation of Kamoa Copper’s products.

These activities include working with its offtake partners, logistics service providers and local entrepreneurs to increase regional trucking capacity, improving processes for clearing products for export and opening up alternative export borders between the DRC and Zambia. A second import-export border crossing recently was opened at Sakania, in addition to the existing border at Kasumbalesa, DRC.

Kamoa Copper is also working to increase flexibility to ship from a variety of ports, including Durban in South Africa, Dar es Salaam in Tanzania, Walvis Bay in Namibia and Beira in Mozambique, and longer-term to the port of Lobito in Angola.

A step-change improvement in cash costs of 10% to 20% is anticipated once Kamoa Copper’s on-site 500,000-tonne-per-annum, direct-to-blister flash smelter is commissioned as part of the Phase 3 expansion, expected by the end of 2024. This cash cost reduction is in large part due to the significant decrease in volumes shipped, with approximately 600,000 tonnes of blister copper product shipped (including local toll smelting) instead of approximately 1.3 million tonnes of copper concentrate. In addition, the smelter will generate valuable by-product credits from the sale of sulphuric acid, which is in deficit in the DRC Copperbelt.

Kakula Mine optimization work targeting grades towards 6% copper

Ongoing mining optimization work at the Kakula Mine is targeting improved head grade during the second half of 2022 towards 6% copper. Kamoa Copper is also evaluating additional material handling capacity at Kakula to increase mining rates to feed the de- bottlenecked Phase 1 and 2 processing capacity of 9.2 million tonnes of ore per annum, which will be incorporated into the Phase 3 expansion Pre-Feasibility Study scheduled for the end of the year.

While the near-term expansion of underground infrastructure at Kakula takes place, ore will be drawn periodically from the surface stockpiles to maximize copper production as the Phase 1 and 2 concentrators are currently operating in excess of design capacity. As at the end of June 2022, Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totalled approximately 4.6 million tonnes at an estimated grade of 4.42% copper.

Management anticipates that the early commissioning of the Phase 2 concentrator plant in March 2022, approximately four months ahead of schedule, has enabled Kamoa Copper to increase the lower end of its full year 2022 production guidance from a range of between 290,000 to 340,000 tonnes of copper in concentrate, to between 310,000 and 340,000 tonnes.

Ivanhoe Mines’ President Marna Cloete commented: “Ivanhoe Mines is very well positioned to manage the current commodity-market volatility and industry-wide inflationary pressures, with a strong balance sheet, tier-one, low-cost mining assets, and an experienced management team. Kamoa-Kakula is the fastest-growing, highest- grade major copper complex on the planet, and will be a long-life, cornerstone supplier of critical, high-quality, low-carbon copper metal. We remain extremely confident in copper's mid-to-long term fundamentals as the world navigates the transition to clean energy. The increase in Kamoa Copper’s annual production guidance estimate is a further testament to the excellent work by the mine operations team during the Phase 1 and Phase 2 construction and ramp-up.

We are working closely with our partners to identify opportunities to improve the efficiency of Kamoa-Kakula’s concentrate transport and logistics to mitigate any further cost pressures over the coming quarters. We are confident we can work proactively alongside the government of Democratic Republic of Congo to identify potential infrastructure pathways that improve our trucking and shipping conditions. With respect to Kamoa-Kakula’s on-site costs, these have been largely insulated from the recent inflationary market conditions.”

Ivanhoe Mines to host conference call for investors on August 15

The company will hold an investor conference call to discuss the Q2 2022 financial results at 10:30 a.m. Eastern time / 7:30 a.m. Pacific time on August 15. The conference call dial-in is +1-647-484-0258 or toll free 1-800-289-0720, quote “Ivanhoe Mines Q2 2022 Financial Results” if requested. Media are invited to attend on a listen-only basis.

Link to join the live audio webcast: https://bit.ly/3I7kaCR

An audio webcast recording of the conference call, together with supporting presentation slides, will be available on Ivanhoe Mines’ website at www.ivanhoemines.com.

After issuance, the Financial Statements and Management’s Discussion and Analysis will be available at www.ivanhoemines.com and at www.sedar.com.

Principal projects and review of activities

1. Kamoa-Kakula Mining Complex

39.6%-owned by Ivanhoe Mines Democratic Republic of Congo

The Kamoa-Kakula Mining Complex, operated as the Kamoa Copper 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. Kamoa-Kakula began producing copper in May 2021 and achieved commercial production on July 1, 2021.

Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited (Kamoa Holding) to Zijin Mining and a 1% share interest in Kamoa Holding to privately owned Crystal River in December 2015. Kamoa Holding holds an 80% interest in the project. Since the conclusion of the Zijin transaction, each shareholder has been required to fund expenditures at Kamoa-Kakula in an amount equivalent to its proportionate shareholding interest. Ivanhoe and Zijin Mining each hold an indirect 39.6% interest in Kamoa-Kakula, Crystal River holds an indirect 0.8% interest, and the DRC government holds a direct 20% interest.

Construction of an additional scavenger-cleaner flotation cell at the Phase 1 concentrator, part of the de-bottlenecking program to boost copper production to approximately 450,000 tonnes per annum by Q2 2023.

Health and safety at Kamoa-Kakula

At the end of June 2022, Kamoa-Kakula reached 4,272,520 work hours free of a lost-time injury. Two lost-time injuries occurred underground at the Kakula Mine in Q2 2022. Kamoa Copper continues to strive toward its workplace objective of zero harm to all employees and contractors.

Nursing staff inside the new medical facility at the Kamoa Hospital.

Kamoa-Kakula summary of operating and financial data

C1 cash costs are prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines, but are not measures recognized under IFRS. In calculating the C1 cash cost, the costs are measured on the same basis as the Company's share of profit from the Kamoa Holding joint venture that is contained in the financial statements. C1 cash costs are used by management to evaluate operating performance and includes all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to final port of destination, which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered, finished metal. C1 cash costs exclude royalties and production taxes and non-routine charges as they are not direct production costs.

C1 cash cost per pound of payable copper produced can be further broken down as follows:

Q2 2022 Q1 2022 Q4 2021 Q3 2021

C1 cash cost per pound of payable ($ per lb.) 1.42 1.21 1.28 1.37 copper produced

All figures in the above tables are on a 100%-project basis. Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms. This release includes EBITDA, “EBITDA margin” and "Cash costs (C1) per pound" which are non-GAAP financial performance measures. For a detailed description of each of the non-GAAP financial performance measures used herein, and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the Non- GAAP Financial Performance Measures section of the Q2 2022 MD&A.

Record quarterly production of 87,314 tonnes of copper in Q2 2022

In late March 2022, Ivanhoe Mines announced that Kamoa-Kakula’s Phase 2 concentrator plant began hot commissioning significantly ahead of schedule. First ore was introduced into the Phase 2 milling circuit on March 21, 2022, and first copper concentrate was produced approximately four months ahead of the originally announced development schedule.

Commercial production from the Phase 2 concentrator was declared on April 7, 2022, while steady state production was achieved at the end of May 2022. During June 2022, copper recoveries were averaging more than 86%, with feed grades averaging approximately 5.5% copper.

Kamoa-Kakula set a new quarterly production record in the second quarter of 2022 with 87,314 tonnes of copper in concentrate produced, up from 55,602 tonnes of copper in concentrate produced in Q1 2022 and 54,481 tonnes of copper in concentrate produced in the fourth quarter of 2021. A total of 1.95 million ore tonnes were milled during the second quarter of 2022 at an average feed grade of 5.44% copper.

Over the first half of 2022, Kamoa-Kakula milled approximately three million tonnes of ore at an average feed grade of 5.59% copper, and produced 142,916 tonnes of copper in concentrate.

Phase 1 and Phase 2 debottlenecking project to boost throughput to 9.2 million tonnes of ore per year remains on schedule

Kamoa Copper’s previously announced de-bottlenecking program is also progressing on schedule to increase the combined design processing capacity of the Phase 1 and Phase 2 concentrator plants to approximately 9.2 million tonnes per annum (from 7.6 million tonnes per annum).

After successfully commissioning and operating the Phase 1 and 2 concentrators, the Kamoa- Kakula team identified several relatively minor modifications that are expected to increase ore throughput from the current design of 475 tonnes per hour to approximately 580 tonnes per hour. These modifications include increasing the diameter of several pipes, replacing several motors and pumps with larger ones and installing additional flotation, concentrate-thickening, concentrate-filtration and tailings-disposal capacity. Detailed planning is underway to maximize the use of planned maintenance shutdowns of the concentrators for the installation of the new debottlenecking equipment, which is expected to take place later this year.

Once completed in the second quarter of 2023, the de-bottlenecking program will enable the copper production from Kamoa-Kakula’s first two phases to reach approximately 450,000 tonnes per annum, positioning Kamoa Copper as the world’s fourth largest copper producer.

Construction is advancing well on the additional tailings thickener at Kamoa- Kakula's Phase 1 and Phase 2 concentrator plants as part of the de-bottlenecking program.

Civil works are also advancing well for the planned installation of a fourth Larox filter press at Kamoa-Kakula's concentrate warehouse.

Safety Officer Franck Katende inspects construction of additional scavenger cleaner flotation capacity at the Phase 1 and Phase 2 concentrator plants.

Phase 3 Pre-Feasibility Study nearing completion

The Pre-Feasibility Study for the Phase 3 expansion is expected to be announced towards the end of this year. Kamoa-Kakula's Phase 3 will consist of two new underground mines, known as Kamoa 1 and Kamoa 2. A new, 5-million-tonne-per-annum concentrator plant will also be established adjacent to the two new mines at Kamoa. In addition, Kamoa-Kakula’s Phase 3 expansion includes a 500,000-tonne-per-annum, direct-to-blister flash smelter to produce approximately 99% copper metal, and the replacement of Turbine #5 at the Inga II hydroelectric power station. The turbine replacement will supply an additional 178-megawatts (MW) of clean hydroelectric power to the national grid.

Figure 1: Kamoa-Kakula’s base-case, pro-forma Phase 3 copper production (after de-bottlenecking of Phase 1 and 2 is complete) relative to the world’s projected top 10 producing mines in 2022 by payable copper production.

Source: company filings, Wood Mackenzie (April 2022). Note: Kamoa-Kakula production of 600 kt copper in concentrate is based on expected Phase 1, 2 and 3 steady state production, following debottlenecking of both Phase 1 and 2 concentrators, and commercial ramp-up of the Phase 3 concentrator.