A new, independent Integrated Development Plan confirms
that Ivanhoe Mines” Oyutolgoi Project in southern Mongolia has the mineral resources
to become one of the world”s top three copper-gold producers and an industry
model of responsible, environmentally-sound mineral development, Ivanhoe”s
Executive Chairman Robert Friedland and President and Chief Executive Officer
John Macken have said.

The new plan, IDP-10, is a comprehensive update of the
original 2005 Integrated Development Plan and supports Ivanhoe Mines”
commitment to advance Oyutolgoi into full construction, with production of
copper and gold expected to begin in 2013.

The Oyutolgoi development blueprint contains the first
published declaration of underground reserves for the planned Hugo Dummett
block-cave mine. It also presents the results of extensive studies of two
complementary development scenarios:

1.         A Reserve
Case, based only on Proven & Probable Mineral Reserves established to this
point in time, which would sustain mining for a projected 27 years.

2. A Life-of-Mine Sensitivity Case, which adds to the
Reserve Case a large base of resources identified through exploration to date
but currently classified only to the level of Inferred Resources under Canada“s
internationally recognized definitions standards. Inferred mineral resources
are considered too speculative geologically to have the economic considerations
applied to them that would allow them to be categorized as mineral reserves,
and there is no certainty that the Life-of-Mine Sensitivity Case will be realized.
The IDP-10 estimates that the Life-of-Mine Sensitivity Case would sustain
mining at Oyutolgoi for a projected 59 years. Part of the ongoing exploration
program at Oyutolgoi is directed at upgrading Inferred Resources to higher
classifications, as has been progressively accomplished during the past nine
years of exploration and discovery at the project.

In both cases, the average production at Oyutolgoi over
the first ten years would exceed 544,000 tons of copper and 650,000 ounces of
gold.

“Ivanhoe Mines believes that these results will continue
to improve and that Oyutolgoi will stand tall with established giants like
Grasberg and Escondida in the pantheon of the world”s greatest mines,”
Friedland has saia.  “The tremendous
increase in gold production spotlighted in this latest plan is especially
significant in light of the current expectations for the price of gold. “