Ivanhoe Australia completes A$125 million IPO.Ivanhoe Mines’...

Ivanhoe Australia completes A$125 million IPO.

Ivanhoe Mines’ 80%-owned subsidiary begins trading
on Australian Stock Exchange August 6 under symbol “IVA”.

Ivanhoe Australia focused on development of iron-oxide
copper-gold discoveries in historic Mount Isa-Cloncurry
mining district.

MELBOURNE, AUSTRALIA – Ivanhoe Mines’ Executive Chairman Robert Friedland today announced the successful completion of subsidiary Ivanhoe Australia’s A$125 million initial
public offering.

Ivanhoe Australia, which remains 80%-owned by Canada-based parent Ivanhoe Mines, will begin trading on the Australian Stock Exchange tomorrow (August 6) under the symbol IVA.

The Ivanhoe Australia IPO, which closed August 1, sold 62.5 million shares at A$2 each. The company’s initial market capitalization is A$625 million. Ivanhoe Australia previously was 100%-owned by Ivanhoe Mines.

The offering, which was heavily supported by investors in Australia, the United States, Canada and Asia, has raised capital for the ongoing exploration and development of
Ivanhoe Australia’s extensive tenements that cover 2,250 square kilometres in the Mount Isa-Cloncurry mineral district in northwest Queensland – one of the world’s richest mineralproducing regions.

Ivanhoe Australia’s current focus is on the preparation of development studies for its ironoxide copper-gold (IOCG) discoveries at three key projects: Mount Elliott, Mount Dore and the Starra Line. A high-grade IOCG zone has been delineated at the Mount Elliott Project within a major, bulk-minable copper-gold system. An infill-drilling program at the Mount Dore project is delineating a large oxide-copper resource suitable for heap-leach, solvent
extraction-electrowinning processing – as well as testing deeper, polymetallic and coppergold sulfide mineralization. Re-evaluation of the previous copper-gold mines on the Starra Line is underway. Independent, 43-101-compliant estimates of the mineral resources identified to date at the three projects are expected to be completed in the near future.

Significant uranium potential also has been identified in the company’s northern and central
tenements, consistent with the results of previous operators, including Rio Tinto.
“With the majority of the proceeds from the initial public offering earmarked for exploration
and development over the next two years, Ivanhoe Australia now has the dedicated
financial resources it requires to move on with the discovery and development assessment
processes and to expand its deep-drilling exploration program to probe beyond the limits of
previously discovered resources,” Mr. Friedland said.
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Mr. Friedland, who also is Chairman of Ivanhoe Australia, said investors were enthusiastic
about the company’s potential to become a significant copper, gold and uranium producer
in a district that also has significant additional potential for zinc, silver and cobalt. “The
Mount Isa-Cloncurry district of Queensland is one of the great mineral storehouses of the
world and will become one of the most important suppliers to China’s emergence as the
world’s fastest growing manufacturing hub.”
Ivanhoe Mines will receive a total of A$38.4 million from Ivanhoe Australia as partial
repayment of an inter-company loan and full repayment of a loan to acquire shares in Exco
Resources. Ivanhoe Australia currently owns 19.9% of Exco, an Australian company that
holds exploration tenements in the Cloncurry district totalling 4,100 square kilometres –
including 560 square kilometres that are covered by an 80% earn-in joint-venture
agreement with Ivanhoe Australia.
Ivanhoe Mines shares are listed on the Toronto, New York and NASDAQ stock exchanges
under the symbol IVN.