Name and Location
Kamoa copper project, Katanga, Democratic Republic of Congo (DRC).

Client
Ivanhoe Mines holds its 95% interest in the project through an indirect subsidiary company, Kamoa Copper. A 5%, nondilutable interest in Kamoa Copper was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the DRC Mining Code.

Ivanhoe has also offered to sell an additional 15% interest to the DRC on commercial terms to be negotiated.

Project Description
The Kamoa project is a very large, stratiform copper deposit, with adjacent prospective exploration areas within the Central African Copperbelt, about 25 km west of the town of Kolwezi and about
270 km west of the provincial capital of Lubumbashi.

As of January 2013, Ivanhoe Mines had discovered indicated mineral resources of 739-million tonnes grading 2.67% copper, containing 43.5-billion pounds of copper, and inferred mineral resources of 227-million tonnes grading 1.96% copper, containing 9.8-billion pounds of copper. A 1% copper cut-off grade and a minimum vertical mining thickness of 3 m were applied in each classification.

Key elements have been established for a new study to encourage the cost-effective development of a mine and processing plant at the Kamoa copper discovery.

Ivanplats is proposing two principal phases of development:
• Phase 1 will target production of high-grade copper mineralisation from shallow, underground resources to yield a high-value concentrate. Initial mill feed will come from Kansoko Sud and will lead into the Centrale area of Kamoa’s gently-dipping mineralised zones, which collectively contain estimated indicated resources of 224-million tonnes, grading 3.85% copper at a 3% copper cutoff and a minimum 3 m vertical mining thickness.
• Phase 2 entails a major expansion of the mine and mill, as well as the construction of a large smelter, supported by the full extent of the Kamoa resources.

Value
Not stated.

Duration
If confirmed by current studies and financial modelling, copper production from Kamoa’s first phase of development could start in 2017, subject to available financing.

Latest Developments
The construction of the boxcut for the first access declines to the planned underground mine is progressing well and they are on schedule to be completed by the end of 2014. This will enable the start of construction of the twin declines designed to intersect the high-grade copper mineralisation in the Kansoko Sud area, about 150 m below surface. Ivanhoe's drilling programme in this area has defined a thick, near-surface zone of high-grade copper mineralisation, where a recent drill hole intercepted 15.7 m (true width) of 7.04% copper at a 1.5% total copper cut-off.

Since assay results were last reported in May 2014, Ivanhoe has received assays for an additional 45 holes from its ongoing resource delineation and exploration programmes. Returned assays covered 30 holes in Kansoko Sud, where detailed infill drilling to a 100 m grid was undertaken during the year, one hole in Kansoko Centrale, one hole in Kansoko Nord, three holes in Makalu and ten holes in the Kakula exploration area.

Meanwhile, in line with the phased approach to project development outlined in the 2013 updated Kamoa preliminary economic assessment, the Kamoa prefeasibility study (PFS) is progressing, based on the planned first phase of the project having an underground mine producing three-million tonnes a year and feeding a concentrator. Development plans will be refined following completion of the PFS.

Work on the PFS design, scheduling and cost estimation of the mine are progressing well. To maximise margins, the target of the early years of mining is the near-surface material in Kansoko Sud and high-grade material in Kansoko Centrale.

Given the favourable geological characteristics of the Kamoa deposit as derived from the December 2012 mineral resource – including its relatively underfomed, continuous mineralisation – it is considered amenable to large-scale, mechanised, room-and-pillar and drift-and-fill mining. The overall dip and geometry of the resource make it conducive to room-and-pillar mining in the shallow portions of the deposit, which will transition to stepped room-and-pillar mining in the steeper sections and to drift-and-fill mining in the deeper sections. These methods are the accepted industry standards for mining deposits such as Kamoa.

Metallurgical testwork for the PFS design of the concentrator is under way at the XPS laboratory in Sudbury, Canada, and the Mintek laboratory in Johannesburg, South Africa. This testwork is being carried out on a composite sample representing the first four years of mining, during which flotation concentrate will be produced and sold. Recent testwork and flowsheet development have resulted in significant improvements in copper recovery (88.3%) and copper concentrate grade (39.0%). Further, very low arsenic levels were reported (0.01%), which could attract a premium.

Drilling of four large-diameter production water boreholes was completed during the third quarter. These will supply clean water to the mine and process plant during construction and operation. Initial indications are that the boreholes will easily supply sufficient water for the first phase of the project.

Key Contracts and Suppliers
Hatch (development study), Mining Company Katanga (construction of boxcut).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ivanplats investor relations, Bill Trenaman, tel +1 604 688 6630 or email billtr@ivancorp.net.