Statement by Ivanhoe Mines' Chairman Robert Friedland

    ULAANBAATAR, Mongolia, July 28 /PRNewswire-FirstCall/ - In what appears
to be becoming an annual event, newspaper reporter Geoffrey York, of the
Toronto-based Globe and Mail, again has ignored the truth and misrepresented
events associated with Ivanhoe's Oyu Tolgoi copper-gold mine development
project in Mongolia's South Gobi region.
    The selective inclusion and omission of information related to the
ongoing review and approval process established by the Mongolian government,
errors of fact and gratuitous innuendo in Mr. York's story published in The
Globe and Mail's Report on Business on July 28 cannot help but misinform and
mislead investors.

    The following examples are based on a preliminary review of The Globe
story:

    -  The Globe account falsely characterizes the Mongolian government's
       appointment of a review committee of independent experts as a "new
       challenge" to Ivanhoe's plans to develop the Oyu Tolgoi mine. The
       World Bank already has completed one review of a model-form stability
       agreement. Ivanhoe would welcome the role of informed advisers. It is
       absurd and alarmist for The Globe to portray this review as a
       "roadblock" that will "impose further delays" in the approval process.

    -  Ivanhoe believes that if the government feels it is necessary to
       obtain independent evaluation of the stability agreement the document
       will be seen to be fair and balanced and conforming with the present
       framework of the law.

    -  I specifically advised Mr. York: "I have been saying for approximately
       two years that we are in a long-term effort to get everything right
       about the project. The project has continued to grow as a living
       organism. We have not yet submitted our Integrated Development Plan to
       the Mongolian Government."

    -  The Globe falsely claimed that I stated in an Ivanhoe news release on
       July 5 that the stability agreement "could be completed by the end of
       the summer." I said no such thing. The Ivanhoe release "noted" that
       Mongolian Prime Minister Elbegdorj had been quoted in a Bloomberg news
       report as stating that the agreement could be finalized by the end of
       summer. The Globe knew the truth, but conveniently ignored the fact
       that the statement was made by Mongolia's Prime Minister, not Ivanhoe.

    -  The Globe knew, and failed to report, that a statement was issued this
       week by the Mongolian government, through its Mineral Resources and
       Petroleum Authority, which declared that the government did not agree
       with a July 22 Dow Jones news report that claimed that a delay in
       concluding a stability agreement would postpone the start of mining at
       Oyu Tolgoi. The Globe had a copy of the MRPAM statement, which said,
       in part, that the Dow Jones report "does not reflect the views of the
       Government of Mongolia, which considers the said Stability Agreement
       to be concluded as a benchmark, model text for all large-scale mining
       projects in Mongolia, and which requires serious and earnest
       consideration in on-going negotiations."

    -  The Globe knew, and failed to report, that the cabinet of the
       Mongolian government two months ago rejected a suggestion that mineral
       royalty rates be sharply increased. Contrary to the Globe report, the
       finance ministry did not submit a draft tax bill.

    -  The Globe falsely suggests that demands for 50% state ownership of Oyu
       Tolgoi and other mining projects were supported by a consequential
       number of members of parliament. The notion of nationalization has no
       credible support in Mongolia today - and it was never even a
       consideration before the government's cabinet.

       Again, The Globe ignored the government statement issued earlier this
       week that said, in part: "The Government of Mongolia views that the
       mining sector plays a primary role in boosting the economic growth of
       the country, and wishes to emphasize that the preservation of a stable
       and predictable legal environment is essential to creating a favorable
       environment to attract foreign direct investment."

    -  The Globe misleadingly claimed that the extent of the copper and gold
       resources at Oyu Tolgoi are a matter of my belief. The truth, ignored
       by the Globe, is that the resources are independently verified by the
       internationally respected AMEC engineering group. AMEC's reports,
       complying with the requirements of National Instrument 43-101, are a
       matter of public record. It is AMEC's findings, based on its detailed
       examination of Ivanhoe's exploration drilling results, which I accept.

    -  The Globe falsely claimed that Ivanhoe is planning to spend
       US$3 billion to "develop" the Oyu Tolgoi mine. The truth, a matter of
       public record, is that the mine will require an initial capital
       investment of approximately $1 billion to put into production. Even
       with overheads, contingencies and associated owners' costs, the figure
       will be only approximately $1.25 billion. It is ridiculous, for
       example, to count $1 billion in sustaining investment projected over
       the 40-year life of the mine as a development cost.

    Information contacts
    Mongolia: Layton Croft 976 9911 3339
    North America: Bob Williamson 1 604 688 5755

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