Source: The Toronto Star, Ivanhoe Mines Ltd.                 Date: 01 October, 2010

Ivanhoe Mines shares soared on Tuesday after it had announced a “remarkable” kilometer-long gold and copper find at Oyu Tolgoi. “There could be there than originally thought, and that’s providing a lot of excitement out there,” said John Hughes, mining analyst at Desjardins Securities in Toronto.

“While Oyu Tolgoi already is one of the world’s largest deposits of gold and copper, (the find) is consistent with our long-held view that the Oyu Tolgoi mineralized system contains significantly more gold and copper than we have delineated to date. We are particularly pleased to see this outstanding intersection right where the advanced technology, induced-polarization section indicated it would be found," Ivanhoe executive chairman Robert Friedland said in a statement. The area of the find, previously known as the New Discovery Zone, now has been renamed Heruga North. Heruga means “supreme happiness”.

The legendary promoter and company founder announced that the Canadian firm has found an almost one-kilometer-long section of nearly continuous mineralization at what is already considered to be one of the top three copper and gold mines in the world. “To intercept almost one kilometer of copper and gold mineralization in a new drill hole is a remarkable development, considering that we already have drilled more than 1,650 holes totaling almost 900 kilometers at the project during the past 10 years,” Friedland added.

The drill hole intercepted 112 meters grading 1.36 grams of gold per ton and 0.34 per cent copper. And individual two-meter samples near the bottom of the hole returned gold assays of 10 grams per ton -- among the highest gold grades ever drilled at Oyu Tolgoi.

“This is definitely rare,” noted Hughes. “There’s not much in the world that could compare to that kind of tonnage. It’s re-confirmation that there is a lot of material there to be mined, and Canada has a toe-hold there. This is certainly very good news.”

The mine is scheduled to begin initial production by late 2012. Oyu Tolgoi is forecast to produce 1.2 billion pounds of copper and 650,000 ounces of gold annually in its first 10 years. The mine is expected to cost USD4.6 billion to build.

Mr. Friedland said that the discovery allows for considerable flexibility in future development phases at Oyu Tolgoi. "It's possible that Heruga and Heruga North eventually could be developed together as one of the world's largest underground gold mines."