Long-Term Mining Right for Ivanhoe Mines' Platreef Project Approved by South Africa's Department of Mineral Resources

Long-Term Mining Right for Ivanhoe Mines' Platreef Project Approved by South 
Africa's Department of Mineral Resources 
FOR: Ivanhoe Mines Ltd. 
JUNE 2, 2014 
Long-Term Mining Right for Ivanhoe Mines' Platreef Project Approved by
South Africa's Department of Mineral Resources 
JOHANNESBURG, SOUTH AFRICA--(Marketwired - June 2, 2014) - Robert Friedland,
Executive Chairman, and Lars-Eric Johansson, Chief Executive Officer of Ivanhoe
Mines (TSX:IVN), announced today that the South African government's
Department of Mineral Resources has approved Ivanhoe's application for a
long-term mining right covering the development of platinum-group elements,
nickel, copper and gold resources at the company's Platreef Project on the
Northern Limb of the Bushveld Igneous Complex in South Africa's Limpopo
The Department of Mineral Resources notified Ivanhoe Mines on Friday, May 30,
that Platreef's mining right had been granted. Ivanhoe now has the right
to mine and process all platinum group metals, nickel, copper, gold and certain
associated metals and minerals from the Platreef Project mining area, subject
to the company complying with the terms on which the mining right was granted -
including the requisite environmental management program becoming effective,
which is expected in due course. It also is expected that the mining right,
when executed, will be for an initial period of up to 30 years and will be
renewable for an unlimited number of consecutive periods each of up to 30
"The awarding of this mining right is hugely significant not only for
Ivanhoe Mines but for South Africa's mining industry as a whole and is a
culmination of Ivanhoe's exploration on the Bushveld for the past 16
years," said Mr. Friedland. 
He noted that the company launched a deep-drilling program in 2007 that
produced the "transformational" Flatreef Deposit, Platreef's
most remarkable discovery, which is projected to become Africa's
lowest-cost producer of platinum-group metals. 
"Ivanhoe now has the green light from the South African government to
build a pre-eminent mine that will create thousands of new direct and indirect
jobs and contribute to socio-economic development in the Mokopane region and
"We are looking forward to building and bringing our Platreef mine into
production in partnership with local communities, entrepreneurs, employees and
the government - stakeholders that share our commitment to responsible and
responsive mining." 
Mr. Friedland hailed the cooperation between officials of the Department of
Mineral Resources (DMR) and other national and provincial government offices,
local community representatives and members of Ivanhoe's project team who
helped shape the Broad-Based Black Economic Empowerment (B-BBEE) initiative
that has been designed to deliver significant benefits for its participants,
particularly the residents in the local communities. 
"The thorough, year-long examination of our mining-right application
provided opportunities for the Ivanhoe team to present firm details of our
undertakings and to share expectations of the extent of the economic and social
benefits to be realized through the development of our discoveries.
Platreef's creation of jobs and attraction of new capital investment will
help to enhance South Africa's role as one of the world's leading
mineral producing and processing nations." 
Mr. Johansson said Ivanhoe would pursue its phased approach to the development
of the Platreef Project that was announced in the independent, preliminary
economic assessment released in March 2014. 
The approval of the mining-right application followed an intensive review and
engagement between representatives of Ivanhoe and the DMR which finalized
details of Ivanhoe's corporate programs covering the required social,
labour, environmental management and mining commitments. 
Mr. Johansson expressed Ivanhoe's appreciation for the hard work and
dedication of officials at the DMR to ensure that the Platreef mining-right
application was thoroughly reviewed and approved prior to the expiration of the
company's prospecting right on May 31. 
"This inspires confidence in South Africa's regulatory framework and
shows the government's commitment to growing the South African mining
industry," said Mr. Johansson. 
Agreement also was reached on acceptable terms for a B-BBEE participation
structure that were progressively refined and optimized to ensure that the
resulting partnership would deliver long-term benefits to local communities and
entrepreneurs, as well as to Platreef's employees. In terms of
Platreef's mining right, the B-BBEE partners will own a combined 26% of
the Platreef Project. Additional details of the B-BBEE participation structure
will be released in the near future. 
Ivanhoe's present 90% ownership of the Platreef Project will be reduced to
64% after the 26% stake in the project is conferred on the B-BBEE entity. The
remaining 10% will continue to be owned by a Japanese consortium of Itochu
Corporation; ITC Platinum Development Ltd., an Itochu affiliate; Japan Oil, Gas
and Metals National Corporation; and Japan Gas Corporation. The Japanese
consortium's 10% interest in the Platreef Project was acquired in two
tranches for a total investment of $290 million; the remaining proceeds of the
investment are continuing to fund development work on the project. 
The scientific and technical information in this news release has been reviewed
and approved by Stephen Torr, P.Geo., Ivanhoe Mines' Vice President,
Project Geology and Evaluation, a Qualified Person under the terms of National
Instrument 43-101. Mr. Torr has verified the technical data disclosed in this
news release. 
Cautionary statement on forward-looking information 
This news release contains "forward-looking statements" or
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Such statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements or information. Such statements can be identified by
the use of words such as "may", "would", "could",
"will", "intend", "expect", "believe",
"plan", "anticipate", "estimate",
"scheduled", "forecast", "predict" and other
similar terminology, or state that certain actions, events or results
"may", "could", "would", "might" or
"will" be taken, occur or be achieved. These statements reflect the
company's current expectations regarding future events, performance and
results and speak only as of the date of this news release. 
Specific statements contained in this news release that constitute
forward-looking statements or information include, but are not limited to, the
implementation of the Broad-Based Black Economic Empowerment structure for the
Platreef Project; and the phased approach to the development of the Platreef
With respect to forward-looking statements or information contained in this
news release, in making such statements or providing such information, the
company has made assumptions including upon the accuracy of the estimation of
mineral resources; that studies of estimated mine life and production rates at
the Platreef Project will provide results that support anticipated development
and extraction activities; that the company will be able to obtain additional
financing on satisfactory terms; that infrastructure anticipated to be
developed or operated by third parties, including electrical generation and
transmission capacity, will be developed and/or operated as currently
anticipated; that laws, rules and regulations are fairly and impartially
observed and enforced; that the market prices for relevant commodities remain
at levels that justify development and/or operation of the Platreef Project;
that parties to contracts perform as contracted, and that the company will be
able to successfully negotiate land access with holders of surface rights. 
A number of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements, including without
limitation, the factors discussed in the company's Annual Information
Form, as well as unexpected changes in laws, rules or regulations, or their
enforcement by applicable authorities; changes in commodity prices; the failure
of parties to contracts with the company to perform as agreed; social or labour
unrest; or litigation or court or regulatory proceedings. 
Although the forward-looking statements contained in this news release are
based upon what management of the company believes are reasonable factors and
assumptions, the company cannot assure readers that actual results will be
consistent with these forward-looking statements. The company's actual
results could differ materially from those anticipated in these forward-looking
statements, as a result of, among others, those factors noted above and those
listed in the Annual Information Form under the heading "Risk
Factors". Accordingly, readers should not place undue reliance on
forward-looking information. These forward-looking statements are made as of
the date of this news release and are expressly qualified in their entirety by
this cautionary statement. Subject to applicable Canadian securities laws, the
company assumes no obligation to update or revise the forward-looking
statements contained herein to reflect events or circumstances occurring after
the date of this news release. 
Ivanhoe Mines Ltd. - Investors
Bill Trenaman
Ivanhoe Mines Ltd. - Media
North America:
Bob Williamson
South Africa:
Jeremy Michaels
INDUSTRY:  Manufacturing and Production - Mining and Metals 
-0- Jun/02/2014 11:30 GMT
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