FALCON GOBI PROJECT

Reconnaissance exploration by Ivanhoe Mines is also underway on various other targets outside the BHPB joint venture area, including the Maanit Ovoo prospect in the Tsagaan Suvarga area.

Announced that the Government of Mongolia completed the transfer of all 35 coal exploration licences held by Ivanhoe Mines in the South Gobi area of Mongolia. All of the material conditions precedent to the closing of Asia Gold’s acquisition of the Ivanhoe Mines Coal Division had been satisfied.

Announced that the joint venture has discovered two large induced polarization (IP) chargeability anomalies north and northwest of the Oyu Tolgoi copper and gold mine development project. The two large anomalies, together with many smaller anomalies, were delineated by Ivanhoe’s Mongolian exploration team that has been conducting a regional geological and geophysical program. Follow-up geological and geophysical program has now completed. Joint venture partner has indicated that a program of detailed geophysics, geology and soil geochemistry is being initiated to define drill targets on the two anomalies.