Source: Ivanhoe Mines                 Date: 01 July, 2010

Rio Tinto has increased its ownership in Ivanhoe Mines to approximately 29.6% after exercising its Series A warrants four months ahead of schedule, providing Ivanhoe Mines with USD393.1 million for development and construction of the Oyu Tolgoi complex. The warrants entitled Rio Tinto to acquire 46.03 million Ivanhoe Mines common shares at a price of USD8.54 per share.

"Rio Tinto's early exercise of its warrants is an important step toward securing the financing and funding for Oyu Tolgoi as we move into the first summer of full-scale, site-wide work under the 2010 construction budget," Mr. Robert Friedland, Executive Chairman of Ivanhoe Mines, said. With the receipt of the USD393.1 million from Rio Tinto, Ivanhoe Mines' current consolidated cash position is approximately USD1.53 billion, of which USD774 million is solely available for use by Ivanhoe Mines, primarily for advancing the construction schedule at Oyu Tolgoi.

Mr. John Macken, President and Chief Executive Officer of Ivanhoe, said that Rio Tinto's past and potential future investments in Ivanhoe now total approximately USD2.5 billion.