Ivanhoe Mines has listed some noteworthy provisions of the approved investment agreement and shareholders’ agreement that have now come into full effect.

• Mongolia’s state-owned company, Erdenes, will acquire a 34% interest in the Oyu Tolgoi Project within 14 days of the approved agreement taking effect.

• Ivanhoe Mines will arrange financing for the construction of Oyu Tolgoi within two years of the agreement taking effect. Production must begin within five years of financing being secured.

• Ivanhoe Mines will fund the construction of the project through loans and equity obtained during the construction and initial production periods. It will receive loan repayments, redemption of equity, dividends and interest at a rate of 9.9% adjusted to the U.S. CPI.

• Erdenes is entitled to nominate three directors and Ivanhoe Mines will nominate six directors to the nine-member board of directors of OT LLC.

• Ivanhoe Mines will nominate the management team that will be responsible for Oyu Tolgoi’s core operations. Management services payments will be received, based on capital and operating costs, through the construction period and after production begins.

• The Government has the option to purchase an additional equity interest of 16% of OT LLC, at an agreed upon fair-market value, one year after the expiry of the initial 30-year term of the Investment Agreement and following the start of the permitted 20-year extension. If exercised, this additional equity interest would give the Government a total maximum interest of 50% of OT LLC for the remainder of the Oyu Tolgoi Project’s operational life. Ivanhoe Mines would continue to hold management rights over the project and hold a deciding vote at board and shareholder meetings.