Source:  Ivanhoe Mines                     Date: 01 July, 2010

Mr. 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 Oyu Tolgoi 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.