John Macken, President and Chief
Executive Officer of Ivanhoe Mines, has said that with the ramp-up to full
construction now well under way, the Oyutolgoi workforce has been increased to its current total of
3,100 men and women. Production of copper and gold from Oyu Tolgoi is expected
by 2013.

The 2010 Oyu Tolgoi Integrated Development Plan (IDP-10) estimated that the
initial capital cost required to achieve production from the open-pit mine on
the Southern Oyu deposits is USD4.6 billion. This amount includes USD1.1
billion to be spent advancing underground development at the Hugo North Deposit
in preparation for the start of block-cave mining following the start of
production from the open pit. Options to finance the remainder of the estimated
capital costs include, but are not limited to, additional potential debt,
equity offerings, a credit facility, the sale of subsidiaries, equity
investments, project financing and/or various corporate transactions.

Last month, Ivanhoe signed a joint mandate letter with the European Bank for
Reconstruction and Development (EBRD) and the World Bank Group“s International Finance Corporation (IFC) for
evaluation of a major financing package for the construction Oyu Tolgoi. The
company has also received expressions of interest from export credit agencies
to provide up to USD500 million in direct project debt financing.