Turquoise Hill Resources Announces Financial Results and Review of Operations for the First Quarter of 2013

Turquoise Hill Resources Announces Financial Results and Review of Operations 
for the First Quarter of 2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/13 -- Turquoise
Hill Resources (TSX:TRQ)(NYSE:TRQ)(NASDAQ:TRQ) today announced its
financial results for the quarter ended March 31, 2013. All figures
are in US dollars unless otherwise stated.  
HIGHLIGHTS 


 
--  Construction of the Oyu Tolgoi open-pit mine and concentrator complex
    was complete at the end of Q1'13 and mine infrastructure was
    substantially complete.
      
--  As commissioning at Oyu Tolgoi progressed during Q1'13, concentrator
    production rates have progressively increased and have recently achieved
    daily run rates of up to 60% of capacity.
      
--  By the end of June 2013, it is anticipated that the concentrator will be
    consistently running at production rates of 70% of nameplate capacity
    and shipments of concentrate will have begun.
      
--  During Q1'13, underground lateral development at Hugo North advanced an
    additional 1,319 metres and construction of Shaft #2 reached 82% of its
    final depth. Sinking activity for Shaft #5 commenced in April 2013.
      
--  Turquoise Hill and Rio Tinto continue to have productive discussions
    with the Government of Mongolia and all parties have agreed to ongoing
    talks with a goal of resolving matters in the near term.
      
--  Oyu Tolgoi project financing timetable is well advanced with the signing
    of final documents expected by the end of Q2'13.
      
--  As at April 30, 2013, Oyu Tolgoi had approximately 11,750 employees -
    89% Mongolian nationals - and is on track to meet its 90% Mongolian
    workforce commitment.
      
--  SouthGobi resumed operations on March 22, 2013 and expects to produce
    3.2 million tonnes of semi-soft coking coal in 2013.
      
--  During Q1'13, Ivanhoe Australia's Osborne copper-gold complex milled
    approximately 255,000 tonnes of ore and produced approximately 14,700
    dry metric tonnes of concentrate.
      
--  Turquoise Hill's consolidated cash position was $580.6 million at March
    31, 2013 and approximately $361.4 million at May 13, 2013. 

 
Commenting on first quarter results, Kay Priestly, Turquoise Hill
Chief Executive Officer, said, "Full-scale operations at Oyu Tolgoi
are on the near-term horizon. Commissioning at Oyu Tolgoi continues
to progress with the concentrator recently achieving daily run rates
of up to 60% of capacity. By the end of June 2013, we expect
production rates at the concentrator to be consistently running at
70% of capacity and to have started shipping concentrate.
Additionally, the project financing timetable is well advanced and we
anticipate the signing of final documents by the end of the second
quarter 2013." 
FINANCIAL RESULTS 
In Q1'13, Turquoise Hill recorded a net loss of $50.7 million ($0.05
per share), compared to a net loss of $80.6 million ($0.10 per share)
in Q1'12, which was a decrease of $29.9 million. Results for Q1'13
included $44.0 million in revenue; $8.2 million in interest income; a
$0.7 million change in the fair value of SouthGobi's embedded
derivatives and $31.2 million of net loss attributable to
non-controlling interests. These amounts were offset by $68.8 million
in cost of sales; $18.1 million in exploration and evaluation
expenses; $14.6 million in other operating expenses; $15.8 million in
general and administrative expenses; $5.0 million in interest
expense; $1.9 million in foreign exchange losses and a $1.3 million
share of loss of significantly influenced investees.  
Turquoise Hill's cash position, on a consolidated basis at March 31,
2013, was $580.6 million. As at May 13, 2013, Turquoise Hill's
consolidated cash position was approximately $361.4 million. 
OYU TOLGOI COPPER-GOLD MINE  
Construction of the Oyu Tolgoi open-pit mine and concentrator
complete at the end of Q1'13 
At the end of Q1'13, construction of the Oyu Tolgoi open-pit mine and
concentrator complex was complete, and mine infrastructure was
substantially complete. Total capital invested in the initial
development and construction of the Oyu Tolgoi mine to March 31, 2013
was approximately $6.0 billion. The final cost for the initial
development and construction is expected to be approximately $6.2
billion, excluding foreign-exchange exposures. 
During Q1'13, additions to property, plant and equipment for the Oyu
Tolgoi mine totalled $225.2 million (Q1'12: $608.0 million), which
included development costs. 
Major updates for Q1'13 and plans for Q2'13 include the following: 


 
--  On January 31, 2013, the Oyu Tolgoi mine produced its first copper-gold
    concentrate. This comes following the processing of first ore through
    the concentrator in early January 2013.
      
--  In Q1'13, a total of 24.5 million tonnes of material was moved from the
    open pit, 8.5 million tonnes of ore was moved to the stockpile and
    approximately 875,000 tonnes of ore was delivered to the crusher. During
    Q1'13, approximately 525,000 tonnes of ore was processed by the
    concentrator.
      
--  Oyu Tolgoi continues to commission the concentrator. Production rates
    have progressively increased and have recently achieved daily run rates
    of up to 60% of nameplate capacity. It is anticipated that the
    concentrator will be consistently running at production rates of 70% of
    nameplate capacity and begin shipments of concentrate by the end of June
    2013, subject to the resolution of the issues being discussed with the
    Government of Mongolia.
      
--  Underground lateral development at the Hugo North Deposit continued and
    1,319 metres were achieved during Q1'13. As at March 31, 2013, the total
    distance excavated was approximately 13.7 kilometres.
      
--  Construction of Shaft #2 continued during Q1'13. The depth of the shaft
    is now 1,081 metres below surface, 82% of its final 1,319 metre depth.
      
--  Sinking activity for Shaft #5 commenced in April 2013. Shaft #5 will
    provide primary ventilation for underground operations and is expected
    to have a final depth of approximately 1,200 metres.
      
--  Construction of infrastructure was behind schedule at the end of Q1'13
    due to slower progress in the building of the Oyu Tolgoi-Gashuun Sukhait
    road to the Mongolia-China border and the diversion of the Undai River,
    which began in December 2012. Road work was suspended for the winter,
    however the transportation of concentrate to the border is not expected
    to be impacted.
      
--  Long-term sales contracts have been signed for 75% of the Oyu Tolgoi
    mine's concentrate production in the first three years, while 50% of
    concentrate production is contracted for ten years (subject to
    renewals). In addition to the signed contracts, in principle commitments
    have been made at international terms for up to 25% of the concentrate
    available for export. These commitments range from three to ten years
    and are subject to the conclusion of detailed sales contracts. 

 
Discussions with the Government of Mongolia  
Turquoise Hill and its majority shareholder Rio Tinto plc (Rio Tinto)
continue to have productive discussions with the Government of
Mongolia on a range of issues related to the implementation of the
Investment Agreement, including project development and costs, the
operating budget, project financing, management fees and governance.
While progress on these issues has been made, all parties have agreed
to continue discussions with a goal of resolving the issues in the
near term. The Oyu Tolgoi Board of Directors has approved continued
funding to progress the project as discussions with the Government of
Mongolia proceed.  
Project financing timetable well advanced with signing of final
documents expected by the end of Q2'13 
Turquoise Hill and Rio Tinto have been actively engaged with lenders
to finalize the project financing plan and term sheet with the aim of
raising approximately $4 billion. Turquoise Hill, Rio Tinto and the
lenders have agreed to a debt ceiling above the expected $4 billion
in funding, which will allow for future financial flexibility. 
In January 2013, a variety of international banks conducted a site
visit to the Oyu Tolgoi mine. In late February 2013, the boards of
the European Bank of Reconstruction and Development (EBRD) and the
International Finance Corporation (IFC) approved their respective
participation in project financing. On April 17, 2013, Rio Tinto
signed commitment letters with 15 global banks that locked in pricing
and terms. In addition to the approval of the EBRD and the IFC, the
Oyu Tolgoi project financing has been conditionally approved by the
boards of Export Development Canada, Australian Export Finance and
Insurance Corporation, and Export-Import Bank of the United States. 
The signing of binding documents is expected by the end of June 2013.
Project financing is subject to the approval of the Oyu Tolgoi Board
of Directors, which includes representatives from the Government of
Mongolia. 
Oyu Tolgoi on track to meet its 90% Mongolian workforce commitment 
Employment at Oyu Tolgoi continues to focus on utilizing Mongolian
men and women whose skills are being developed, and who are receiving
training throughout the construction phase. As at April 30, 2013, Oyu
Tolgoi employed approximately 11,750 people; 89% (approximately
10,490) are Mongolian nationals.  
Oyu Tolgoi has committed more than $126 million in funding over five
years for education and training programs in Mongolia. The majority
of the projects and initiatives under this funding are targeting the
building of a Mongolian talent pipeline for the future. 
Development and exploration drilling continued in Q1'13  
At Hugo North Lift #1, 5,602 metres of infill drilling were
completed. The drilling is designed to bring the first seven years of
production into the measured resource confidence category and is
continuing into Q2'13.  
During Q1'13, exploration drilling continued at the Oyu Tolgoi mine
and approximately 2,000 metres of surface diamond drilling was
completed by one drill rig. Surface exploration included
approximately 900 metres of drilling on the Oyu Tolgoi mining licence
and approximately 1,000 metres of drilling on Entree Gold's Javkhlant
mining licence. The reduced drilling is a result of a change in
emphasis in 2013 to data compilation, 3D modelling and interpretation
to generate the next series of prioritized exploration targets.  
Validation of the Heruga datasets is complete and updating of the
Heruga geology model is underway. A new resource estimate is being
developed to incorporate the Heruga North resource potential. 
SOUTHGOBI RESOURCES 
Sales and operations at SouthGobi's Ovoot Tolgoi coal mine 
Operations at the Ovoot Tolgoi mine resumed on March 22, 2013, and
SouthGobi plans to produce 3.2 million tonnes of semi-soft coking
coal in 2013. Although operations at the Ovoot Tolgoi mine have
resumed, SouthGobi continues to minimize uncommitted capital
expenditures and exploration expenditures in order to preserve its
financial resources.  
As a result of the continued weakness of SouthGobi's share price,
Turquoise Hill conducted an impairment analysis whereby the carrying
values of its property, plant and equipment related to the Ovoot
Tolgoi mine were assessed. The analysis did not result in the
identification of impairment. The estimates and assumptions
incorporated in the impairment analysis are subject to certain risks
and uncertainties which may materially affect the future net cash
flows expected to be generated. 
In Q1'13, SouthGobi recorded revenue of $3.3 million compared to
$40.2 million in Q1'12. In Q1'13, SouthGobi sold approximately 80,000
tonnes of coal at an average realized selling price of $45.02 per
tonne compared to sales of approximately 840,000 tonnes of coal at an
average realized selling price of $56.79 per tonne in Q1'12. In
Q1'13, SouthGobi generated revenue through the sale of existing coal
stockpiles. In Q1'13, SouthGobi's sales volume and average realized
selling price were negatively impacted by the continued softness of
the inland China coking coal markets closest to SouthGobi's
operations. Market participants continue to deplete their existing
stockpiles on the Mongolian and Chinese sides of the Shivee
Khuren-Ceke crossing at the Mongolia-China border, and this movement
provides some indication of future sales once the remaining
stockpiles are depleted in Q2'13. However, this situation has
adversely impacted SouthGobi's ability to sign new contracts to date. 
Cost of sales was $22.1 million in Q1'13, compared to $30.4 million
in Q1'12. In Q1'13, cost of sales included $16.4 million of idled
mine costs due to the curtailment of mining activities at Ovoot
Tolgoi, compared to $nil in Q1'12. Cost of sales is comprised of the
direct cash costs of product sold, mine administration cash costs of
product sold, idled mine costs, inventory impairments, equipment
depreciation, depletion of mineral properties and share-based
compensation expense. The decrease in cost of sales from Q1'12,
excluding idled mine costs, was primarily due to lower sales volumes. 
Coal processing infrastructure  
In February 2012, SouthGobi successfully commissioned the dry-coal
handling facility (DCHF) at the Ovoot Tolgoi mine. The DCHF has the
capacity to process nine million tonnes of run-of-mine (ROM) coal per
year. The DCHF includes a 300-tonne-capacity dump hopper, which
receives ROM coal from the Ovoot Tolgoi mine and feeds a coal rotary
breaker that sizes the coal to a maximum of 50 millimetres and
rejects oversize ash. The DCHF is anticipated to reduce screening
costs and improve yield recoveries. SouthGobi has received all
permits to operate the DCHF. However, the 2013 mine plan considers
only limited utilization of the DCHF at the latter end of 2013 due to
higher quality coals being mined that likely will not require
processing through the DCHF and can be sold raw or processed directly
through the wet washing facility.  
SouthGobi has an agreement with Ejinaqi Jinda Coal Industry Co. Ltd
(Ejin Jinda) to toll-wash coals from the Ovoot Tolgoi mine. Ejin
Jinda's wet washing facility is located in China approximately 10
kilometres from the Mongolia-China border crossing and approximately
50 kilometres from the Ovoot Tolgoi mine. Primarily, medium and
higher-ash coals with only basic processing through Ovoot Tolgoi's
onsite DCHF will be transported from the Ovoot Tolgoi mine to the
facility. Based on preliminary studies, SouthGobi expects that the
washed coal generally will meet semi-soft coking coal specifications.
SouthGobi expects to commence wet washing coals in the second half of
2013.  
Governmental, regulatory and internal investigations  
SouthGobi is subject to continuing investigations by the Mongolian
Independent Authority Against Corruption (IAAC) and the State
Investigation Office (SIA) in the Republic of Mongolia regarding
allegations against SouthGobi and some of its employees involving
possible breaches of Mongolian laws, including anti-corruption and
taxation laws. Certain of those allegations (including allegations of
bribery, money laundering and tax evasion) have been the subject of
public statements and Mongolian media reports, both prior to and in
connection with the recent trial and conviction of the former
Chairman and the former director of the Geology, Mining and Cadastral
Department of the MRAM, and others. SouthGobi was not a party to that
case. SouthGobi understands that the court's decision is the subject
of an appeal. 
Through SouthGobi's Audit Committee (comprised solely of independent
directors), SouthGobi is conducting an internal investigation into
possible breaches of law, internal corporate policies and codes of
conduct arising from the allegations that have been raised.  
Pending the completion of the various investigations, SouthGobi,
through its Board of Directors and new management, has taken a number
of steps to focus on ongoing compliance by employees with all
applicable laws, internal corporate policies and codes of conduct,
and with SouthGobi's disclosure controls and procedures and internal
controls over financial reporting. 
IVANHOE AUSTRALIA 
Ivanhoe Australia recognized revenue of $40.7 million during Q1'13
(Q1'12: $nil) from two shipments of concentrate and one of dore and
incurred exploration and evaluation expenses of $8.3 million (Q1'12
$42.1 million). The Q1'13 reduction in expenditure from Q1'12 was a
result of cost savings identified by the strategic review released in
August 2012. 
Osborne copper-gold operation  
During Q1'13, Ivanhoe Australia mined 260,439 tonnes of ore from the
Osborne copper-gold operation's three underground mines - Kulthor,
Osborne and Starra 276. In 2013, Ivanhoe Australia expects to mine
between 1.4 million and 1.6 million tonnes of ore from these three
mines.  
Ivanhoe Australia completed the development of the Starra 276
underground mine in February 2013 and successfully commenced
production at Starra 276 in mid-March 2013. Mining at Starra 276 will
continue to ramp up until a full production rate of approximately
650,000 tonnes per year is reached, which is expected to occur during
Q2'13. The haul road linking the Starra 276 mine to the Osborne
processing facility was completed in early 2013 to enable transport
of Starra 276 ore to the processing plant. 
In Q1'13, the Osborne copper-gold operation milled 254,639 tonnes of
ore. Recovery rates averaged 88.1% for copper and 69.5% for gold, and
the plant produced 14,709 dry metric tonnes of concentrate containing
3,461 tonnes of copper. Gold production, in both concentrate and
dore, totalled 4,817 ounces.  
Merlin Molybdenum-Rhenium Project 
Work continued during Q1'13 on the value engineering program, which
is expected to be finalized in Q2'13. The value engineering program
is aiming to enhance the Merlin project's economics.  
Metallurgical testwork aimed at increasing the concentrate grade has
been completed with the work demonstrating that the grade can be
lifted from 30%, as detailed in the 2012 feasibility study, to over
40%. Concentrate of this quality allows consideration of reducing
capital costs associated with the roaster. 
Mining optimization studies have shown that the production rate can
be lifted to 550,000 tonnes per year, an increase of 10% over the
feasibility study rate, with a corresponding increase in metal
production and reduction in operating costs. Initial indications are
that the project will have a positive net present value under
forecast long-term molybdenum and rhenium prices. It is expected that
Phase 1 of the value engineering program will support continuation of
further optimization work planned to lead ultimately to the output of
a revised feasibility study.  
KYZYL GOLD PROJECT 
On February 13, 2013, Turquoise Hill announced that it had signed a
binding agreement with Sumeru Gold BV for the sale of Turquoise
Hill's 50% interest in Altynalmas for total cash consideration of
$300 million. Completion of the proposed transaction is subject to
customary closing conditions, including regulatory approvals from the
Republic of Kazakhstan's competent authorities. The transaction is
expected to close in Q2'13. 
QUALIFIED PERSON 
Disclosure of a scientific or technical nature in this MD&A in
respect of the Oyu Tolgoi mine was prepared under the supervision of
Kendall Cole-Rae, B.Sc (Geology), an employee of Rio Tinto,
registered member of the Society for Mining, Metallurgy and
Exploration (SME #4138633) and a "qualified person" as that term is
defined in NI 43-101. 


 
SELECTED QUARTERLY DATA                                                     
                                                   Quarter Ended            
                                        ------------------------------------
($ in millions of dollars, except per     Mar-31   Dec-31   Sep-30   Jun-30 
 share information)                         2013     2012     2012     2012 
----------------------------------------------------------------------------
Revenue                                  $  44.0  $  41.6  $  23.8  $  28.2 
Cost of sales                              (68.8)   (70.8)   (57.2)   (49.7)
Exploration, evaluation and other                                           
 operating expenses                        (32.7)  (131.7)   (55.3)   (65.1)
General and administrative                 (15.8)   (23.7)   (18.3)   (81.0)
Financing costs                                -        -        -   (164.4)
Foreign exchange (losses) gains             (1.9)    (7.9)    13.9     (8.7)
Change in fair value of derivative             -        -    176.2     18.5 
Change in fair value of embedded                                            
 derivatives                                 0.7      0.6     12.9     26.8 
                                                                            
Net (loss) income from continuing                                           
 operations attributable to parent         (50.7)  (182.4)   114.3   (285.9)
Loss from discontinued operations                                           
 attributable to parent                        -        -        -        - 
----------------------------------------------------------------------------
Net (loss) income attributable to parent   (50.7)  (182.4)   114.3   (285.9)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic (loss) income per share                                               
 attributable to parent                                                     
  Continuing operations                  $ (0.05) $ (0.18) $  0.12  $ (0.35)
  Discontinued operations                $  0.00  $  0.00  $  0.00  $  0.00 
----------------------------------------------------------------------------
  Total                                  $ (0.05) $ (0.18) $  0.12  $ (0.35)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Diluted (loss) income per share                                             
 attributable to parent                                                     
  Continuing operations                  $ (0.05) $ (0.18) $  0.12  $ (0.35)
  Discontinued operations                $  0.00  $  0.00  $  0.00  $  0.00 
----------------------------------------------------------------------------
  Total                                  $ (0.05) $ (0.18) $  0.12  $ (0.35)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                          Mar-31   Dec-31   Sep-30   Jun-30 
                                            2012     2011     2011     2011 
----------------------------------------------------------------------------
Revenue                                  $  40.2  $  51.0  $  60.5  $  47.3 
Cost of sales                              (30.4)   (60.8)   (54.0)   (49.7)
Exploration, evaluation and other                                           
 operating expenses                        (76.8)   (88.2)   (79.6)   (68.6)
General and administrative                 (31.5)   (34.6)   (21.4)   (19.5)
Foreign exchange gains (losses)              9.9     13.3    (35.6)     2.3 
Change in fair value of embedded                                            
 derivatives                                (0.8)    10.8     62.1     70.4 
Gain on settlement of note receivable          -        -    103.0        - 
                                                                            
Net (loss) income from continuing                                           
 operations attributable to parent         (80.6)   (85.8)    16.4      0.6 
Loss from discontinued operations                                           
 attributable to parent                        -        -     (9.1)       - 
----------------------------------------------------------------------------
Net (loss) income attributable to parent   (80.6)   (85.8)     7.3      0.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic (loss) income per share                                               
 attributable to parent                                                     
  Continuing operations                  $ (0.10) $ (0.04) $  0.02  $  0.00 
  Discontinued operations                $  0.00  $  0.00  $ (0.01) $  0.00 
----------------------------------------------------------------------------
  Total                                  $ (0.10) $ (0.04) $  0.01  $  0.00 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Diluted (loss) income per share                                             
 attributable to parent                                                     
  Continuing operations                  $ (0.10) $ (0.04) $  0.02  $  0.00 
  Discontinued operations                $  0.00  $  0.00  $ (0.01) $  0.00 
----------------------------------------------------------------------------
  Total                                  $ (0.10) $ (0.04) $  0.01  $  0.00 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
About Turquoise Hill Resources 
Turquoise Hill Resources (TSX:TRQ)(NYSE:TRQ)(NASDAQ:TRQ), formerly
Ivanhoe Mines, is an international mining company focused on copper,
gold and coal mines in the Asia Pacific region. The company's primary
operation is its 66% interest in the Oyu Tolgoi copper-gold-silver
mine in southern Mongolia. Other assets include a 58% interest in
Mongolian coal miner SouthGobi Resources (TSX:SGQ)(HK:1878); a 57%
interest in copper-gold miner Ivanhoe Australia (TSX:IVA)(ASX:IVA);
and a 50% interest in Altynalmas Gold, a private company developing
the Kyzyl Gold Project in Kazakhstan, which is in the process of
being sold. 
Follow us on Twitter @TurquoiseHillRe 
Forward-looking statements 
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of Turquoise
Hill's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future, constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements are typically identified
by words such as "anticipate," "could," "should," "expect," "seek,"
"may," "intend," "likely," "plan," "estimate," "will," "believe" and
similar expressions suggesting future outcomes or statements
regarding an outlook.  
Forward-looking statements and information are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of the
Company to be materially different from future results, performances
or achievements expressed or implied by such statements or
information. Such statements and information are based on numerous
assumptions regarding present and future business strategies and the
environment in which the Company will operate in the future,
including the price of copper and gold, anticipated costs and ability
to achieve goals. Certain important factors that could cause actual
results, performances or achievements to differ materially from those
in the forward-looking statements and information include, among
others, copper and gold price volatility, discrepancies between
actual and estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), activities by governmental
authorities, currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property.
Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements and information,
there may be other factors that cause actions, events or results not
to be as anticipated, estimated or intended. 
These statements and information include, but are not limited to:
statements respecting anticipated business activities; statements
regarding the Company's outlook for 2013; planned expenditures and
projections regarding the Company's ability to meet its obligations;
anticipated financing arrangements; corporate strategies; proposed
acquisitions and dispositions of assets; discussions with third
parties respecting material agreements; statements about the Oyu
Tolgoi mine's anticipated production; statements concerning the
schedule for carrying out and completing construction of the Oyu
Tolgoi mine; the statement concerning the expected timing of initial
production from the Hugo North block-cave mine; statements related to
the expected final costs for the initial development and construction
of the Oyu Tolgoi mine; the statement that it is anticipated that the
concentrator will be consistently running at production rates of 70%
of nameplate capacity and begin shipments of concentrate by the end
of June 2013; the statement regarding the final depth of Shaft #5;
the statement that the transportation of concentrate to the border is
not expected to be impacted by the suspension of road work for the
winter; the statement regarding the aim of raising $4 billion in
project financing; the statement that the signing of binding project
financing documents is expected by the end of June 2013; the
statement concerning the underground feasibility study's expected
release date in the first half of 2014; the statement that actual
operating data for the Oyu Tolgoi mine is expected to be incorporated
into the feasibility study; the statement that ongoing work being
undertaken on the feasibility study may result in opportunities to
improve the economics through cost reductions and optimizations of
the mine plan; the statement that Oyu Tolgoi plans to complete a
focused and structured review of the feasibility study work to
support future capital approvals; statements concerning the expected
markets and contracts for concentrate produced at the Oyu Tolgoi
mine; the statement that Oyu Tolgoi is on track to meet its
commitment to employing a minimum 90% Mongolian workforce during the
Oyu Tolgoi mine's operations stage; statements regarding the strategy
of the Oyu Tolgoi exploration program; the statement that the DCHF is
anticipated to reduce screening costs and improve yield recoveries;
the statement that the Ovoot Tolgoi 2013 mine plan considers only
limited utilization of the DCHF at the latter end of 2013 due to
higher quality coals being mined that likely will not require
processing through the DCHF and can be sold raw or processed directly
through the wet washing facility; mining plans and production
forecasts for the coal mine at Ovoot Tolgoi, including the statement
concerning the expectation that washed coal generally will meet
semi-soft coking coal specifications; the statement that SouthGobi
expects to commence wet washing coals in the second half of 2013;  
the statement that while the IAAC orders restrict the use of
SouthGobi's in-country funds pending the outcome of the
investigation, they are not expected to have a material impact on
SouthGobi's activities in the short term, although they could create
difficulties for SouthGobi in the medium to long term; the statement
that SouthGobi intends to take all necessary steps to protect its
ability to continue to conduct its business activities in the
ordinary course; the statement that the investigations could result
in one or more Mongolian, Canadian, United States or other
governmental or regulatory agencies taking civil or criminal action
against SouthGobi or any of its affiliates, including the Company, or
any of the current or former employees of the foregoing; the
statement that the likelihood or consequences of such an outcome are
unclear at this time but could include financial or other penalties,
which could be material, and which could have a material adverse
effect on SouthGobi; statements concerning expected 2013 mine
production from the Osborne copper-gold operation's mines; the
statement that the value engineering program is expected to be
finalized in Q2'13; the statement that initial indications are that
the Merlin project will have a positive net present value under
forecast long-term molybdenum and rhenium prices; the statement that
Phase 1 of the value engineering program will support continuation of
further optimization work planned to lead ultimately to the output of
a revised feasibility study; the statement that an update of the
mineral resource model and a review of the geology of the SWAN zone
is expected to be completed during Q2'13; the statement that a
revision of the scoping study is expected to be completed in Q3'13;
the statement that the sale of the Company's interest in Altynalmas
is expected to close in Q2'13; statements regarding the Company's,
SouthGobi's and Ivanhoe Australia's future liquidity; the impact of
amendments to the laws of Mongolia and other countries in which
Turquoise Hill carries on business, particularly with respect to
taxation; statements concerning foreign-exchange rate volatility;
statements concerning global economic expectations and future demand
for commodities; statements regarding the Company's anticipated
production level and production milestones; statements about the
anticipated timing, cost and outcome of plans to continue the
development of non-core projects, and other statements that are not
historical facts. 
All such forward-looking information and statements are based on
certain assumptions and analyses made by Turquoise Hill's management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
These statements, however, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information or statements. Important factors that
could cause actual results to differ from these forward-looking
statements include those described under the heading "Risks and
Uncertainties" elsewhere in the Company's MD&A. The reader is
cautioned not to place undue reliance on forward-looking information
or statements.  
The MD&A also contains references to estimates of mineral reserves
and mineral resources. The estimation of reserves and resources is
inherently uncertain and involves subjective judgments about many
relevant factors. The accuracy of any such estimates is a function of
the quantity and quality of available data, and of the assumptions
made and judgments used in engineering and geological interpretation,
which may prove to be unreliable. There can be no assurance that
these estimates will be accurate or that such mineral reserves and
mineral resources can be mined or processed profitably. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Except as required by law, the Company does not
assume the obligation to revise or update these forward-looking
statements and forward-looking information after the date of this
document or to revise them to reflect the occurrence of future
unanticipated events.
Contacts:
Turquoise Hill Resources Ltd.
Jason Combes
Investors Contact
+1 604 648 3920
jason.combes@turquoisehill.com 
Turquoise Hill Resources Ltd.
Tony Shaffer
Media Contact
+1 604 648 3934
tony.shaffer@turquoisehill.com
www.turquoisehill.com
 
 
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