Kamoa-Kakula Phase 2 Expansion Now 70% Complete, on Track for Early Start-up in Q2 2022

Record copper production in November tops 18,270 tonnes, bringing year-to-date production to more than 87,000 tonnes as at November 30, 2021

Earthworks commenced for a new box cut to access Phase 3 mining areas; Phase 3 concentrator targeted by end of 2024

Engineering for Kamoa Copper’s direct-to-blister smelter underway; long-lead items for smelter to be ordered in Q2 2022

Mining crews deliver a record 548,000 tonnes of ore grading 5.46% copper in November, including 362,000 tonnes grading 6.60% copper from the centre of the Kakula Mine

Record mining production in November increases surface stockpiles to 3.92 million tonnes grading 4.64% copper, containing more than 181,000 tonnes of copper

Kolwezi, Democratic Republic of Congo (December 9, 2021) –  Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced that Kamoa-Kakula’s Phase 2, 3.8 million-tonne-per-annum (Mtpa) concentrator plant now is approximately 70% complete and is well on track to begin operations in Q2 2022.

As the Phase 1, 3.8-Mtpa concentrator plant is operating at steady-state design capacity, further production updates will be provided only on a quarterly basis. Ivanhoe’s 2021 production guidance for contained copper in concentrate produced from Kamoa-Kakula’s Phase 1 concentrator is 92,500 to 100,000 tonnes. The higher guidance numbers are reinforced by an excellent production performance in November, which saw a record 18,270 tonnes of copper in concentrate produced, bringing year-to-date output to more than 87,000 tonnes as at November 30, 2021. The figures are on a 100%-project basis and metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.

Watch the latest video showcasing the expansion work underway at the Kamoa Copper Complex: https://vimeo.com/654809393/8ca99b13e3

Kamoa-Kakula’s 2021 copper production to the end of the year, as well as guidance for 2022 copper production, cost of sales and cash costs, including the start of Phase 2 operations, will be provided in January 2022.

357,000 tonnes of ore were milled in November at an average feed grade of 6.18% copper, exceeding the monthly design run rate of 316,667 tonnes by more than 12%.

Copper flotation recoveries averaged 85.4% in November. The Phase 1, steady-state design copper recovery is approximately 86%, depending on ore feed grade.

Chart 1: Cumulative tonnes of copper produced May 2021 to November 30, 2021.

Construction of the second 3.8-Mtpa concentrator plant (Phase 2) continues to progress ahead of plan. Engineering, procurement and fabrication activities all are effectively complete. The main construction focus remains on the completion of structural steel erection and installation of platework, equipment and piping (SMPP). Electrical, control and instrumentation (EC&I) installation is advancing well, with numerous areas already handed over from the SMPP contractors to the EC&I contractors.

Both of the Phase 2 ball mills have been lifted into position and the girth gears installed. Installation of the lube system and pinion drive currently is underway. The final piece of major equipment for the Phase 2 concentrator plant, the high pressure grinding rolls (HPGR), has been lifted into position.

Electrical cable installation is advancing according to schedule. All the structural steel and platework, as well as the bulk of the piping, has been delivered to site. The last deliveries of piping are expected to arrive by mid-December. More than 580 truckloads of Phase 2 construction equipment and materials already have been delivered to site.

During November, the project’s construction team achieved 14.0 million fatality-free hours worked. This milestone underscores the strict safety culture of the Kamoa Copper construction team and contractors.

During its routine mass testing for new arrivals at the mine site, Kamoa Copper has recently identified a small number of COVID-19 infections. Any positive cases were quickly identified, isolated and treated, with cross contamination kept to a minimum, and there is no impact on operations. Kamoa also continues to focus intensively on rolling out vaccinations across the workforce and local communities. Maintaining this high standard of risk management remains a daily focus to prevent future cases.

Dr. Albert Odimboleko holding vials of Moderna and Pfizer vaccines used to vaccinate Kamoa Copper’s employees, contractors and local citizens.

Kamoa-Kakula’s adjacent Phase 1 and 2 concentrator plants.

Kamoa-Kakula’s Phase 1 (on the left) and Phase 2 ball mills.

Fitters Ren Xaioqi (left) and Lui Guang Jin cleaning the girth gear on the Phase 2 ball mills.

Installing the base plate for Phase 2’s high pressure grinding rolls (HPGR).

The Phase 2 HPGR being lifted into place.

One of two Phase 2 HPGR motors being lifted into place.

Crews lifting a section of piping into place for the Phase 2 concentrator.

Installation of new piping for the Phase 2 flotation cells is progressing quickly.

Laetitia Kyungu, a safety officer with T3 Projects DRC, at the Phase 2 plant. T3 Projects, a leading electrical contractor, has been providing electrical, control and instrumentation installation services for Kamoa-Kakula’s first two phases.