Ivanhoe Mines : Annual Information Form

Annual Information Form

For the year ended December 31, 2021

March 24, 2022

TABLE OF CONTENTS

FORWARD LOOKING STATEMENTS ............................................................................................. 1

DEFINITIONS AND OTHER INFORMATION ................................................................................. 4

CURRENCY .............................................................................................................................................. 4

DEFINITIONS ............................................................................................................................................ 4

SCIENTIFIC AND TECHNICAL INFORMATION ............................................................................................. 4

CORPORATE STRUCTURE OF THE COMPANY .......................................................................... 6

NAME, ADDRESS AND INCORPORATION ................................................................................................... 6

INTERCORPORATE RELATIONSHIPS .......................................................................................................... 7

GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................... 8

OVERVIEW .............................................................................................................................................. 8

THREE YEAR HISTORY ............................................................................................................................ 8

DESCRIPTION OF THE BUSINESS ................................................................................................ 18

GENERAL .............................................................................................................................................. 18

EMPLOYEES ........................................................................................................................................... 18

FOREIGN OPERATIONS ........................................................................................................................... 18

SOCIAL AND ENVIRONMENTAL POLICIES ............................................................................................... 18

HEALTH & SAFETY AND COVID-19 RESPONSE ..................................................................................... 19

SPECIALIZED SKILLS AND KNOWLEDGE ................................................................................................. 19

COMPETITIVE CONDITIONS .................................................................................................................... 19

OPERATIONS IN THE DRC AND SOUTH AFRICA ...................................................................................... 20

SUBSIDIARY AND JOINT VENTURE OPERATIONS ..................................................................................... 20

EXPERIENCE OF DIRECTORS AND EXECUTIVE OFFICERS IN THE DRC AND SOUTH AFRICA ..................... 21

LOCAL LAWS AND GOVERNMENT RELATIONS ....................................................................................... 23

ENFORCEMENT OF JUDGMENTS .............................................................................................................. 23

KAMOA-KAKULA PROJECT .......................................................................................................... 24

PLATREEF PROJECT ...................................................................................................................... 45

KIPUSHI PROJECT ........................................................................................................................... 68

EXPLORATION ................................................................................................................................. 86

RISK FACTORS ................................................................................................................................. 87

DIVIDENDS AND DISTRIBUTIONS ............................................................................................. 110

DESCRIPTION OF CAPITAL STOCK .......................................................................................... 110

CLASS A SHARES ................................................................................................................................. 110

CLASS B SHARES ................................................................................................................................. 110

PREFERRED SHARES ............................................................................................................................ 111

MARKET FOR SECURITIES ......................................................................................................... 111

MARKET .............................................................................................................................................. 111

TRADING PRICE AND VOLUME OF THE CLASS A SHARES ...................................................................... 111

PRIOR SALES ....................................................................................................................................... 112

DIRECTORS AND EXECUTIVE OFFICERS ................................................................................ 114

CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS .................................................... 117

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CONFLICTS OF INTEREST ...................................................................................................................... 118

LEGAL PROCEEDINGS AND REGULATORY ACTIONS ......................................................... 120

AUDIT COMMITTEE INFORMATION ........................................................................................ 121

AUDIT COMMITTEE CHARTER .............................................................................................................. 121

COMPOSITION OF THE AUDIT COMMITTEE AND INDEPENDENCE ........................................................... 121

RELEVANT EDUCATION AND EXPERIENCE ........................................................................................... 121

AUDIT COMMITTEE OVERSIGHT ........................................................................................................... 121

PRE-APPROVAL POLICIES AND PROCEDURES ....................................................................................... 121

EXTERNAL AUDITOR SERVICE FEES ..................................................................................................... 121

INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ............. 122

TRANSFER AGENTS AND REGISTRARS ................................................................................... 122

MATERIAL CONTRACTS .............................................................................................................. 123

CONSOLIDATED INVESTORS' AGREEMENT AND BEE TRANSACTION .................................................... 123

KIPUSHI JOINT VENTURE AGREEMENT ................................................................................................. 126

SNEL FINANCE AGREEMENT ............................................................................................................... 127

KAMOA HOLDING SHAREHOLDER AND GOVERNANCE AGREEMENT ..................................................... 128

KAMOA HOLDING SHARE TRANSFER AGREEMENT ............................................................................... 129

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT WITH CITIC METAL AFRICA ..................... 130

INVESTOR RIGHTS AGREEMENT WITH ZIJIN ......................................................................................... 131

HPX CONVERTIBLE LOAN FACILITY AGREEMENT ............................................................................... 131

ZIJIN LINE OF CREDIT .......................................................................................................................... 131

US$575 MILLION CONVERTIBLE NOTES OFFERING .............................................................................. 132

PLATREEF STREAM FINANCING AGREEMENTS ..................................................................................... 133

INTERESTS OF EXPERTS ............................................................................................................. 134

ADDITIONAL INFORMATION ..................................................................................................... 135

SCHEDULE "A" ............................................................................................................................... 136

SCHEDULE "B" ............................................................................................................................... 147

FORWARD LOOKING STATEMENTS

Certain statements in this annual information form ("AIF") constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Ivanhoe Mines Ltd. ("Ivanhoe" or the "Company"), or any of its mineral projects, or industry results, to be materially different from any future results, expectations, performance or achievements expressed or implied by such forward-looking statements or forward-looking 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 AIF.

Specific statements in this AIF that constitute forward-looking statements or forward-looking information include, but are not limited to: (i) statements regarding production guidance of between 290,000 and 340,000 tonnes of contained copper in concentrate for 2022 from the Kamoa-Kakula Mine; (ii) statements regarding cash cost guidance of between US$1.20 to US$1.40 per pound for 2022 from the Kamoa-Kakula Mine; (iii) the estimated net present value, internal rate of return and expected steady-state production of the Kamoa-Kakula Mine disclosed herein; (iv) the option for an integrated, 19-Mtpa, multi-stage development, beginning with initial production from the Kakula Mine, to be followed by subsequent, separate underground mining operations at the nearby Kansoko, Kakula West and Kamoa North mines;

• (v) the start-up of the Phase 3 concentrator at the Kamoa-Kakula Mine is expected by the end of 2024;

• (vi) the upgrading of turbine 5 at the Inga II hydropower complex and that it is expected to produce 162 MW of renewable hydropower; (vii) statements that the Phase 1 mine at the Platreef Project is advancing towards first production in Q3 2024; (viii) statements that Shaft 2 commissioning at the Platreef Project is expected in 2027; (ix) Phase 2 annual forecast production at the Platreef Project is more than 590,000 ounces of palladium, platinum, rhodium and gold, plus more than 40 million pounds of nickel and copper; (x) that the Platreef Project is to have a cash cost of US$514 per ounce 3PE + AU; (xi) two 2.2 Mtpa concentrator modules are to be built at the Platreef Project; (xii) steady state production at the Platreef Project in Phase 2 is 5.2 Mtpa; (xiii) the re-commencement of construction of the Masodi Waste Water Treatment is expected to begin in Q3 2022; (xiv) Platreef is projected to become one of the world's largest and lowest-cost producers of palladium, platinum, rhodium, nickel, copper and gold; (xv) the potential for the re-establishment of underground mining operations at the Kipushi Project; (xvi) statements regarding successful commencement of commercial production would establish Kipushi as the world's highest-grade major zinc mine; (xvii) statements regarding Kipushi having an after-tax NPV of US$941 million;

• (xviii) statements regarding pre-production capital estimated at US$382 million at the Kipushi Project;

• (xix) statements regarding future mine production at the Kipushi Project including life-of-mine average annual zinc production of 240,000 tonnes with C1 cash costs of US$0.65/lb of payable zinc; (xx) statements that the Kipushi is expected to rank, once in production, in the second quartile of the 2022 cash cost curve for zinc producers globally; (xxi) the availability and development of water and electricity projects for the Kamoa-Kakula Mine, Kipushi Project, and Platreef Project; (xxii) the commencement of development and/or mining operations at any Project, including the timing of any such commencement; (xxiii) metallurgical testwork, concentrator design, proposed mining plans and methods, mine production rates, mine life, metal recoveries and future estimated cash flow at the Kamoa-Kakula, Platreef and Kipushi Projects; (xxiv) statements regarding future commodity prices, including commodity price assumptions underlying study work; (xxv) the planned amount and timing, as well as the degree of success of, any future exploration program (including in the Western Foreland Exploration Project) including drilling programs, including the potential addition of Mineral Resources and the potential to upgrade exploration targets to Mineral Resources as a result of such exploration and drilling programs; (xxvi) the prospective receipt of permits, licences or approvals at any Project, including those necessary to

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commence development or mining operations; and (xxvii) expected activities or results of exploration, development or mining operations at any Project.

As well, all of the results of the feasibility study for the Kakula copper mine, the Kakula-Kansoko 2020 pre-feasibility study and the updated and expanded Kamoa-Kakula Project preliminary economic assessment, the Platreef 2022 feasibility study, and the Kipushi 2022 feasibility study, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects.

With respect to forward-looking statements or forward-looking information contained in this AIF, in making such statements or providing such information, the Company has made assumptions regarding, among other things: (i) the accuracy of the estimation of Mineral Resources and Mineral Reserves; (ii)

that exploration activities and studies will provide results that support anticipated development and extraction activities; (iii) that studies of estimated mine life and production rates at the Projects, with the exception of the Western Foreland Exploration Project, will provide results that support anticipated development and extraction activities; (iv) that the Company or its joint venture partners, as required, will be able to obtain additional financing on satisfactory terms, including financing necessary to advance the development of any Project; (v) 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; (vi) that laws, rules and regulations are fairly and impartially observed and enforced; (vii) that the market prices for relevant commodities remain at levels that justify development and/or operation of a Project; (viii) that joint venture partners at the Kamoa-Kakula Mine, the Platreef Project and the Kipushi

Project comply with, and fulfill, all terms and conditions of joint venture and other agreements entered into with the Company that are required to be fulfilled by such joint venture partners; (ix) that the

Company will be able to successfully negotiate land access with holders of surface rights at the Platreef Project; (x) that the Company will be able to obtain, maintain, renew or extend required permits; (xi) that there are no unexpected adverse changes in laws, regulations, or administrative policies affecting any of the Projects, or in the enforcement thereof, and (xii) that war, civil strife, disease (including pandemics), terrorism and/or insurrection do not impact, impair, delay or suspend the Company's exploration activities or development plans or activities.

Furthermore, with respect to this specific forward-looking information concerning the operation and development of the Kamoa-Kakula Mine, Platreef Project and Kipushi Project, the Company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development and that equipment and facilities operate as designed and anticipated; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xvi) changes in project scope or design; (xvii) recoveries, mining rates and grade; (xviii) political factors; (xviii) water inflow into the mine and its potential effect on mining operations, and (xix) the consistency and availability of electric power.

This AIF also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.