Update DRC Projects:

KAMOA & KIPUSHI – production under

constraining environment

Katanga Mining Week

October 2015

Current constraints in DRC for mining

investments

1. Current downturn in mining cycle

2. Presidential election scheduled in 2016

3. New Mining Code

4. Bureaucracy and business climate

5. Splitting of provinces

6. Power supply & infrastructure

Copper in 2015 and Beyond……..

3

Reuters: “Is 2015 the beginning of the end for Africa’s China-led boom?”

Glencore: Suspends production at KCC (DRC) and Mopani (Zambia)

CNMC: Zambia threatens to suspend mine license on output halt

ARM: Writes of R784M on Lubambe mine in Zambia

Vedanta: Sends 133 workers on paid leave at KCM during operational review

Codelco: To cut top positions in response to weak copper prices

Macquarie: Global copper use decreased by 3% in H1-2015, compared to H1-2014

Copper in 2015 and Beyond……..

Copper is always and will remain a metal on which

civilizations, new technologies and cities are built.

As long as the world’s population continues to grow and

urbanize……and as long as the world is powered by electricity,

the demand for copper in wiring, cables, electrical machines

and the like will continue increasing in the long term.

2018

$US 3.00 / lb

$US 6,600 / t

Copper in 2015 and Beyond……..

Ivanhoe Mines – 20 Years in Africa

KAMOA DRC Exploration

D.R. Congo

95%-owned *

Copper

South Africa

64%-owned **

PGE-gold-

nickel-copper

D.R. Congo

68%-owned

Zinc-copper

100%-owned

Base metals

Key

Development project

Exploration project

Office

KIPUSHI

PLATREEF

Corporate Information

Trading

symbol TSX:IVN

Share,

options &

warrants (1)

Common Shares: 779

million

Options: 29 million

Warrants: 115 million

Cash

position US$175 million

Top 5 Major

Shareholders

Robert Friedland

Zijin Mining

Ontario Teachers Pension

Plan

Fidelity

Wellington

*KAMOA: Subject to offer by Ivanhoe to sell a further

15% interest to the DRC on commercial terms.

**PLATREEF: Ivanhoe’s 90% interest has been

reduced to 64% after a 26% stake was conferred on the

B-BBEE entity.

Katanga Province in the DRC:

Well Established Copper Mining Jurisdiction

Katanga Province is one of the world’s most significant copper producing regions

DRAFT

Kamoa The world’s largest

high-grade copper

discovery

Kamoa: The Story So Far

5 years of drilling to define a world-class high-grade copper deposit

• MOU with SNEL extended to a 3rd power plant

• Updated PEA includes current mineral resource estimate of 19.7 Mt (Ind) and 4.5 Mt (Inf.) of contained Cu (1)

• Box cut completed

• Partnership with Zijin Mining

• Construction of 2 declines to commence

• Exploitation licences awarded

• Initial PEA includes mineral resource estimate of 9.2 Mt (Ind) and 12.5 Mt (Inf.) of contained Cu (1)

• MOU signed with DRC national electricity co. (SNEL) for rehabilitation of 2 power plants

• Core drilling recognizes laterally extensive stratiform copper mineralization, now known as Kamoa

Ivanhoe acquires exploration permits 2003

2006

• RC drilling begins

267,125 m of drilling completed to date

Kamoa deposit to scale over London

23 kilometres 1. Resources are reported using a total Cu cut-off grade of 1% Cu.

2011

2012

2013

2014

&

2015

2008

19.7

13.8

6.34.6

2.91.4 1.0 0.8 0.8 0.8

4.5

5.4

2.5

3.6

0.6

0.20.4 0.4 0.5

Kamoa TenkeFungurume

KOV KonkolaDeep

Kamoto Kinsevere Sepon Las Cruces Kinsenda Zyryanovsk

World’s Largest High-Grade Copper Discovery

Kamoa ranks as the world’s largest copper discovery with grade >2.5% Cu

2.7%

2.0%

2.5%

1.9%

5.4%

3.6%

4.4%

4.1%

4.6%

5.0%

3.2%

2.4%

2.5%

1.0%

5.4%

1.1%

5.1%

5.3%

2.7%

n/a

M&I Cu

Grade (%)

Inferred Cu

Grade (%)

Source: Wood Mackenzie

Note: Measured and Indicated Resources, inclusive of Mineral Reserves, and Inferred Mineral Resources, for top ten global deposits with grades >2.5% Cu

Inferred resources (Mt)

Measured & Indicated resources (Mt)

25.0

19.7

17.014.7 14.3

12.5

8.7

7.5

7.1 6.7

6.3

4.5 7.6

8.5 10.1

2.7

6.8

1.7

3.8

--

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Pebble(USA)

Kamoa(DRC)

Udokan(Russia)

CobrePanama

Reko Diq(Pakistan)

Tampakan(PHI)

El Pachon(ARG)

El Arco(Mexico)

Wafi Golpu(PNG)

Frieda River(PNG)

Co

pp

er G

rad

e (%

)

Co

nta

ine

d C

op

pe

r (M

t)

Among the World’s Largest Undeveloped

Copper Deposits

Source: Wood Mackenzie

Note: Measured and Indicated Resources, inclusive of Mineral Reserves, and Inferred Mineral Resources, for top ten global undeveloped copper deposits

Inferred resources and average grade

Measured & Indicated resources and average grade Kamoa 2.7% average copper grade

(at 1% cut-off)

Video – Kamoa Ore Body

Kamoa discovery team receiving the 2015 Thayer Lindsley award for discovery of

the year from the Prospectors & Developers Association of Canada (PDAC)

Thayer Lindsey “Discovery of the year” Award

Source: November 2013 PEA – AMEC

Note: Resources have an effective date of December 10, 2012

NI 43-101 Mineral Resource

Cut-off Tonnage Grade Contained

Copper

(% Cu) (Mt) (% Cu) (Mt)

Indicated

3.00% 224 3.85% 8.6

2.00% 550 3.04% 16.7

1.00% 739 2.67% 19.7

Inferred

3.00% 19 3.40% 0.6

2.00% 93 2.64% 2.5

1.00% 227 1.96% 4.5

Newly discovered, very large stratiform copper deposit

with adjacent prospective exploration areas

First Major Copperbelt Discovery since early 1900s

Resource Location

Note: Resources reported using a total cut-off grade of 1% Cu and a minimum vertical thickness of 3m

• Presence of pyritic siltstone (KPS) above the

mineralisation prevents the formation of oxide species

• Supergene zone is a sulphide zone

Mineral Zonation

Kansoko Sud Box Cut - Aerial view

Box Cut Depth: 35m

Two 6x6m declines

Kansoko Sud Box cut

Amenable to Mechanized Mining

Source: Company filings

Kamoa Phased Approach to Development 065 111 159

237 034 068

134 166 200

149 134 103

220 236 254

188 200 121

140 153 152

000 000 000

-

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

20132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035

FIRST

CONCENTRATE

PRODUCTION

Pre-Production Capital (1):

$1,402M

FIRST BLISTER

PRODUCTION

CONSTRUCTION PHASE I

PHASE II

103ktpa Contained

Copper in Concentrate

307ktpa Contained

Blister Copper

AVERAGE COPPER GRADE: 2.9%

AVERAGE COPPER

GRADE: 4.0%

Phase II Phase I

Mining (ktpa)

--

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

--

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2047

Mill Throughput (Mt) Grade (% Cu)

AVERAGE COPPER GRADE: 4.0%

AVERAGE COPPER GRADE: 2.9%

Preliminary Economic Assessment (Nov. 2013)

Phase I Phase II LOM

Products: Cu conc. Blister Cu

Mining Rate: 3 Mtpa 11-15 Mtpa

Payable Cu: 103 ktpa 306 ktpa (1) 277 ktpa

Cash Cost: (2) $1.76 / lb $1.15 / lb $1.19 / lb

Capital Costs: $1.4 bn $3.5 bn $7.6 bn

Site Operating

Costs: $18.9 bn

Income Tax $7.9 bn

Mine Life: Yr 1-5 Yr 5-30 30 yrs

After-Tax

NPV8%

$3.00 / lb Cu $2.6 bn

$3.50 / lb Cu $4.2 bn

Illustrative Development Scenario

Phase I Phase II

Construction

of Phase 1

103 ktpa Cu in concentrate 306 ktpa contained blister copper

Source: Kamoa PEA

Note: The Preliminary Economic Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied

to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the projected results of the Preliminary Economic Assessment will be realized. Mineral Resources are

not Mineral Reserves and do not have demonstrated economic viability

1. Blister copper phase average payable copper production, excluding year 5.

2. Life of mine average cash cost after acid credits (before credits: US$1.38 / lb Cu).

Scaleable, long life project as PEA only mines ~33% of current resources

Mine to be developed in two phases

■ Lowers pre-production capital expenditure

■ Provides early cash flow to partially fund future expansions

PEA Operating Plan

0

100

200

300

400

500

0 10 000 20 000 30 000

Cas

h C

ost

(C

1)

Low Cash Costs 065 111 159

237 034 068

134 166 200

149 134 103

220 236 254

188 200 121

140 153 152

000 000 000

2014E C1 Cash Cost (1)

Paid Metal (MMlbs)

Kamoa LOM Average:

US$1.19/lb

c/lb

Source: Wood Mackenzie Note: 1. C1 composite cash costs that reflect the direct cash costs of producing paid metal incorporating mining, processing and offsite realization costs, having made appropriate allowance for the co-product revenue streams.

First quartile cash costs

UNIT OPERATING COSTS $ / lb Payable Copper

LOM AVG CONC.PHASE BLISTER PHASE

Mine Site Cash Cost 1.05 0.85 1.07

Realisation 0.34 0.91 0.30

Total Cash Costs Before Credits 1.38 1.76 1.37

Acid Credits (0.20) - (0.21)

Total Cash Costs After Credits 1.19 1.76 1.15

Kamoa : power & logistic infrastructure • Key agreement signed with state power utility SNEL to

refurbish three existing hydroelectric power plants

• Combined capacity of more than 200 MW targeted for the Mwadingusha, Koni and Nzilo power plants after refurbishment

• Ivanhoe’s entitlement of up to 100 MW from the refurbishment of Mwadingusha and Koni is believed to be sufficient power for Phase I

• Under the SNEL Finance Agreement, Ivanhoe would provide an initial loan of US$141 million to fund the Mwadingusha and Koni work

• An EPCM contractor has commenced the implementation of the project

• Kamoa, located just 25 km west of Kolwezi, is a greenfield project with easy access to local infrastructure:

– Well connected to recently refurbished roads from Kolwezi to Lubumbashi and Zambia

– 20 km away from power lines of the national electrical grid

– 16 km away from the main railway line from Lubumbashi to the Angolan port of Lobito

– Railway between Lobito and the DRC town of Dilolo recently refurbished

– 417 km long portion from Dilolo to Kolwezi/Kamoa requires refurbishment

Operational railway

Railway to be upgraded

Proposed railway

Road used for commodity exports

Hydroelectric power plants

Kamoa project

Mwadingush

a

Koni Luanda

Dondo

Lobito

(international seaport) Luena

Luau Dilolo

Kolwezi

Route to

South Africa

Lubumbashi

Lusaka

Chingola

Namibe

Benguela

0 250

Kilometres ZAMBIA

ANGOLA

DEMOCRATIC

REPUBLIC OF

CONGO

KAMOA

Existing Rail, Road and Power

Infrastructure

South

Atlantic

Ocean

Nzilo

1

Mwadingusha Dam,

Katanga

Electrified Railway Line,

Katanga

Regional Infrastructure

Luano

Dem Rep of Congo

Karavia - Luano Tx line: 144 Km; 220 kV

1750 km

Karavia

500 kV DC

1120 MW 500 MW

500 MW

Inga

Kolwezi

Western network

Southern network

Key Power and Logistic Infrastructure

The two economic pools of the DRC have interconnected electrical networks and significant hydro power generation potential.

Road and Rail Infrastructure for Kamoa

Luanda

Dondo

Lobito (international seaport)

Luena

Luau Dilolo

Kolwezi

Route to South Africa

Lubumbashi

Lusaka

Chingola

Namibe

Benguela

0 250

Kilometres

ZAMBIA

ANGOLA

DEMOCRATIC REPUBLIC OF THE

CONGO

KAMOA

South Atlantic Ocean

Phase II to Lobito

Menongue

Ndola

Operational Railway

Railway to be Upgraded

Proposed Railway

Road Used for Commodity Exports

International Border

417 km from Dilolo to Kolwezi to be refurbished

Phase I to Durban

Phase I : 3 options: - By road Kamoa – Lubumbashi – Sakania – Ndola – Durban, South Africa

- By road Kamoa – Ndola & by rail Ndola – Durban, South Africa

- By rail Kamoa – Durban, South Africa

Phase II : By rail Kamoa – Lobito, Angola once the final section from Dilolo to Kolwezi is refurbished

500 km trucking distance to railway at

Ndola

New rail line from Lobito to Luena (976 km); current capacity of 4 Mtpa

Kipushi high grade

Zinc-Copper Project

Democratic Republic

of the Congo

Infrastructure, Big Zinc & Kipushi Fault Zone

850

900

950

1000

1050

1100

1150

1200

1250

1300

1350

Me

tre

s b

elo

w g

rou

nd

leve

lKipushi Mine - Long Term Water Level

MR

C a

pp

oin

ted

by

KR

IL D

ece

mb

er

20

10

Iva

np

lats

en

ters

Kic

o J

V N

ov

em

be

r 2

01

1

Kic

o C

on

soli

da

tio

n 1

7 A

pri

l 20

13

1210m Main P5 pump station

1150m Haulage Level

1272m Drill Drift

Cascades

Shaft #5

Kipushi infrastructure maintenance & upgrade

Kipushi infrastructure maintenance & upgrade

Kipushi underground: Core drilling rig at 1272m

Ivanhoe Mines Community Outreach

Maize, vegetables, honey, poultry, conservation

400 participants; 340 ha maize

More than 90 % Employees from local communities

(<20km)

Ivanhoe Mines Social Performance

Ivanhoe Mines social licence earned through proactive engagement with local

communities and firm commitments to the environment and sustainability

Source: Company filings

Community members receive training in

agricultural skills

Ivanhoe Mines Supports Local Communities

■ Ivanhoe Mines contributes to

Community Development by

supporting the DRC Government

led Local Development Plans

■ Roll out of ground breaking Fionet

program designed to have a

massive impact on Malaria in the

DRC.

■ At Kipushi Ivanhoe maintains the

Kipushi power and water

distribution networks, established a

relationship with local businesses

for concrete aggregates and fresh

produce and has rehabilitated the

Kipushi radio station

■ Support provided to traditional

ceremonies

■ Ivanhoe is committed to support

the Presidential fund

Educating host communities about

the construction of the box cut Local women in sewing skills

development programme

Local woman trained and employed as

agricultural community developer

Aerial View of the Kamoa Box-Cut

Kamoa – Muvunda Chefferie

More than 20,000m underground drilling program at Kipushi Mine

Secondary school students training in Kipushi Mine workshop

Malaria Control Program

Kamoa Sustainable Livelihood Programme

Learners at newly constructed Kaponda school in Kamoa

Ivanhoe Mines Environmental Performance

Ivanhoe Mines social licence earned through proactive engagement with local

communities and firm commitments to the environment and sustainability

Source: Company filings

Educating host communities about

the construction of the box cut

Ivanhoe Mines adopts the best recognized environmental, health and safety management practices

Reforestation program. Establishment of a nursery and

collection of native seedlings. Monitoring: air-quality water vibration Radiation noise. Site rehabilitation. Environmental mitigation hierarchy

to manage impacts. Biodiversity studies.

Ascolepis metallorum

Thank You!