Source: Ivanhoe Mines                        Date: 17 March, 2011

Ivanhoe Mines and BHP Billiton Ltd. have discovered a new zone of shallow copper-molybdenum-gold mineralization approximately 10 km north of the Oyu Tolgoi copper-gold mining complex currently under construction in southern Mongolia. The discovery, known as Ulaan Khud North, extends the known strike length of the Oyu Tolgoi mineralized system by an additional three km to the north, to more than 23 km. Less than half of the 23-km-long mineralized trend at Oyu Tolgoi has been extensively drill-tested to date.

"The Ulaan Khud North discovery reinforces our longstanding belief that with continued exploration there is excellent potential to discover new porphyry deposits, rich in copper and gold, which are associated with the world-class Oyu Tolgoi mineralized trend," said Mr. Robert Friedland, Executive Chairman and Chief Executive Officer of Ivanhoe Mines.

Ulaan Khud North is located on a 19,625-hectare exploration license that is part of Ivanhoe's joint-venture partnership with BHP Billiton, which was formed in 2005. BHP has earned a 50% interest in the joint venture by spending USD8 million in exploration costs and conducting an airborne survey over the Oyu Tolgoi area.

The Pre-Mining Agreement for the property specifies that Ivanhoe and BHP Billiton have three years to conduct additional exploration, complete an environmental impact study, prepare a final feasibility study and gain approval for the design for the project.