Source: Reuters                      Date: 24 June, 2011

Rio Tinto said on Tuesday it would raise its stake in Ivanhoe Mines to 46.5 percent from 42 percent after exercising outstanding warrants, a move that will allow it to name an extra board member. The warrants entitle Rio to acquire 55.1 million shares in Ivanhoe at USD9.10 each, for a total cost of USD502 million. Ivanhoe is developing the Oyu Tolgoi project with Rio. The project is 66 percent owned by Ivanhoe, with the remainder owned by the Mongolian government.

Rio Tinto can increase its ownership in Ivanhoe further to 49 percent on or before 18 January 2012 by exercising options. "Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe," Rio said.