Oyu Tolgoi LLC

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The proposed project (the “Project”) is a $12 billion investment to develop a copper and gold mine at Oyu Tolgoi in the Southern Gobi region, Mongolia. The Project owner and developer is a Mongolian company, Oyu Tolgoi LLC (the “Company”) indirectly owned 66% by Ivanhoe Mines Ltd (“Ivanhoe”), a Canadian public company listed on the Toronto Stock Exchange and 34% by Erdenes Oyu Tolgoi LLC, a Mongolian State owned company. The deposit, which was acquired by Ivanhoe from BHP Billiton in 2000, consists of a near surface (Southern Oyu) copper/gold orebody together with a high grade deposit (Hugo North) suitable for underground mining discovered in 2002. With resources of almost 80 billion pounds of copper and 45 million ounces of gold, Oyu Tolgoi is one of the world’s largest known copper/gold deposits. The Project is being developed in phases starting with construction of a copper concentrator and associated infrastructure to support production of 100,000 tonnes per day of ore, to be sourced predominantly from the Southern Oyu open pit mine development. In parallel underground infrastructure and mine development is ongoing for the Hugo North deposit. Commercial operations from the initial open pit mining development are expected to start in mid-2013. Underground production from Hugo North is expected to commence in 2016. A potential expansion of concentrator capacity (subject to required regulatory approvals and the identification and permitting of additional water resources) to 160,000 tonnes per day of ore, is currently being studied. Mine output, in the form of copper concentrate, will be trucked along a dedicated new road to the China border, to reach the Company’s primary target market of Chinese copper smelters. Power for the initial years of operations will be sourced from China, to be replaced by an on-site captive coal fired plant, which is currently in the advanced planning phase, with initial earth site work expected to start in Spring 2013.