Ivanhoe Mines: Kamoa-Kakula Produced 133,000 mt of Copper in Q1, Kipushi Set a Record with 43,000 mt of Zinc Production

According to Ivanhoe Mines, Robert Friedland, Executive Co-Chairman, Weibao Hao, Co-Chairman, and Marna Cloete, President and CEO, announced the company's Q1 2025 production results, as well as the significant increase in imported hydropower supply to Kamoa-Kakula in recent weeks, which has significantly boosted copper production and advanced the commissioning of the newly built copper smelter on-site. In mid-March, the imported hydropower capacity was increased by 20 MW to 70 MW. Over the past few weeks, the imported hydropower volume has doubled, and it is expected to further increase to 100 MW soon. Kamoa-Kakula achieved record copper production in the last two weeks of March, with annualized production exceeding the 2025 production guidance target. The mine's outstanding achievements are also attributed to the strong operational performance of the new Phase III beneficiation plant, which set new records in ore processing and copper production, surpassing the designed capacity. Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, commented, "Despite recent global market volatility and panic sentiment leading to declines in stock markets worldwide, Ivanhoe Mines' financial position remains robust, generating strong cash flow. Meanwhile, Kamoa-Kakula is one of the lowest-cost copper mines in the industry, giving us a competitive edge. The modernized one-step copper smelter is expected to further reduce operating costs once it reaches full production this year. The project produces 99.7% copper anode, reducing transportation costs per unit of copper by more than half, significantly lowering C1 cash costs, and generating revenue from the sale of by-product sulphuric acid. Currently, there is a huge demand for sulphuric acid in the DRC." "Fortunately, the power supply difficulties caused by capacity expansion at Kamoa-Kakula are now behind us. We have successfully increased imported hydropower capacity and will soon import a second batch of hydropower from the Southern African Power Pool. We have implemented a long-term energy management plan to ensure our energy mix meets future needs as we move towards becoming one of the world's top large-scale copper producers." "We are fully prepared to officially launch the Kamoa-Kakula smelter, which will be one of the largest and most technologically advanced smelters in the world. Once operational, in addition to exporting copper concentrates, we will also export the most environmentally friendly copper anode required for the global energy transition. Facing the intergenerational issue of copper supply shortages, we will responsibly mine and supply this critical metal to the global market using our own assets, talent, and infrastructure." Kamoa-Kakula Quarterly Production Summary: Kamoa-Kakula produced 133,000 mt of copper in Q1 2025, nearing historical production records, especially in the last two weeks of March, when annualized capacity exceeded 630,000 mt of copper. In Q1 2025, the Phase I, II, and III beneficiation plants processed a record 3.72 million mt of ore, setting a new daily record of 52,000 mt of ore processed at the end of March. The strong performance in Q1 was mainly due to initiatives implemented early in the quarter to continuously supply higher-grade ore to the Phase III plant. The Phase III plant processed a record 1.51 million mt of ore in the quarter, equivalent to an annualized copper processing capacity of 6.1 million mt, more than 20% above the Phase III plant's designed capacity of 5 million mt/year. Despite multiple maintenance shutdowns in the first half of March, the Phase I and II plants maintained excellent performance throughout the quarter. The Phase I, II, and III plants at Kamoa-Kakula averaged daily copper production of 1,509 mt in March, equivalent to an annualized capacity of 550,000 mt of copper. After completing maintenance on the Phase I and II plants, the average daily copper production in the last 14 days of March increased to 1,732 mt, equivalent to an annualized capacity of over 630,000 mt of copper, significantly above the 2025 production guidance range. On March 28, 2025, a record daily copper production of 1,919 mt was achieved. Kamoa-Kakula's annual production guidance target (520,000 - 580,000 mt of copper) remains unchanged. In mid-March, imported power capacity was increased to 70 MW; it is expected to further expand to 100 MW soon. In March, the Phase I, II, and III plants required an average of 130-140 MW of power for combined operations. At the beginning of the month, Kamoa-Kakula added 50 MW of hydropower supply from within the DRC, while importing 50 MW from abroad, with the remaining power supplemented by on-site backup diesel generators, which have a total installed capacity of up to 160 MW. The company signed an agreement in March to import power from Mozambique via the Southern African Power Pool, increasing the total power imported from Zambia by 40% to 70 MW. Kamoa-Kakula's operations team expects to introduce a second batch of imported power in the coming days, further expanding imported power to 100 MW. The increased hydropower capacity has strengthened the confidence of Kamoa-Kakula's management team to complete commissioning and officially start the smelter. The smelter is expected to require 45 MW of power initially, gradually increasing to the designed capacity of 70 MW once operational. Wet commissioning of the Inga II hydropower station's Unit 5 (178 MW) is expected to begin in Q3 2025, with Kamoa-Kakula receiving 50 MW of hydropower from Inga II via the DRC's national grid, gradually increasing to 178 MW after grid upgrades are completed in 2026. The smelter is undergoing commissioning and is expected to start firing the furnace in May, with the first batch of copper anode produced in July. Kamoa-Kakula's 500,000 mt/year one-step copper smelter has begun commissioning and is expected to start operations next month. The initial furnace firing process will take about six weeks, after which the first batch of copper concentrate will be fed, with copper anode production expected to begin in July. By the end of 2025, the smelter is expected to reach about 80% of its designed capacity. As previously announced, it is expected that 20,000 - 30,000 mt of copper concentrate will be stored in the smelter's raw material warehouse before the smelter becomes operational. As of the end of the quarter, Kamoa-Kakula had approximately 48,000 mt of copper inventory pending sale, an increase from the 30,000 mt of copper inventory at the end of 2024. Over the past three months, about 20,000 mt of copper inventory has been added pending sale, as a new batch of concentrate is being stored before the smelter starts operations. The remaining copper concentrate is being processed at the Lualaba Copper Smelter for sale. Once the Kamoa-Kakula Copper Smelter reaches full production, it is expected to maintain 17,000 mt of copper in the smelting process. Most of the ore processed by the Phase III plant comes from underground mines. Kamoa and Kansoko continue to strengthen underground development, opening up enough ore reserves for 18 months of main stope operations. This will provide flexibility for underground mining teams. A similar strategy is being employed at the Kakula underground mine. The Kamoa and Kakula ore bodies have gentle dips, allowing for in-vein development even in lower-grade sections. The underground development at the Kamoa mine is expected to be completed in Q4 2025, at which point the head grade of ore processed by the Phase III plant will increase to over 3%. The "Project 95" initiative aims to increase the overall copper recovery rate of Kamoa-Kakula's Phase I and II plants from the designed 87% to 95%, with a capital expenditure of approximately $180 million, adding an additional 30,000 mt of copper production annually, with an expected capital intensity of about $6,000/mt of copper. Kamoa-Kakula's "Project 95" is progressing well, currently 25% complete, and is scheduled to be completed in Q1 2026. A power purchase agreement has been signed to build a 30 MW PV plant with battery storage at the Kamoa-Kakula mine. Kamoa Copper has signed a power purchase agreement with Cross Boundary Energy ("CBE") in Nairobi, Kenya, to build a 220 MW PV plant and a 123 MVA/526 MWh battery energy storage system (BESS), providing an additional 3,030 MW of environmentally friendly power for Kamoa-Kakula's operations. The PV plant will be funded, owned, and operated by CBE, with the power exclusively purchased by Kamoa Copper. Compared to the on-site backup diesel generators, the PV plant and BESS will reduce carbon emissions by up to 79,000 mt of CO2 equivalent annually. The initial 30 MW PV plant is expected to begin construction in Q3 2025, taking 12 months. Kamoa-Kakula plans to further expand the on-site PV plant to 120 MW, gradually replacing the on-site backup diesel generators. Kipushi achieved a record zinc production of 43,000 mt in Q1 2025, with production ramp-up continuing in Q2. In Q1 2025, the Kipushi beneficiation plant processed a record 151,000 mt of ore, with an average head grade of 32.5%, and produced a record 43,000 mt of zinc concentrate, with a zinc concentrate grade of over 53%. The quarter saw multiple production records, including producing 3,827 mt of zinc in one week and 743 mt of zinc in 24 hours, equivalent to annualized capacities of 200,000 mt and 270,000 mt of zinc, respectively. Kipushi Quarterly Production Summary: With annualized production approaching the 2025 guidance range of 180,000 - 240,000 mt of zinc, the Kipushi beneficiation plant will continue to ramp up production in Q2. Since the beginning of 2025, the plant's average recovery rate has been about 88%, with a zinc concentrate grade of about 53%. The plant achieved ramp-up to full production at the end of February, reaching the designed capacity of 2,000 mt of ore processed per day. Production and plant recovery rates are expected to further improve in the coming months. Kipushi's annual production guidance target (180,000 - 240,000 mt of copper) remains unchanged. Kipushi is on track to complete its expansion plan by the end of Q3 2025, aiming to achieve a zinc production capacity of 250,000 mt/year. The US government reaffirmed its commitment to funding the Lobito Atlantic Railway Company. The US Embassy in Angola issued a statement on March 28, 2025, reaffirming its commitment to funding the Lobito Atlantic Railway Company, which Ivanhoe Mines welcomed. US Ambassador James Story made the statement during his visit to Angola. Ambassador Story and his delegation visited key projects, including the Lobito Port mineral terminal. Ambassador Story stated that the Lobito Corridor is "open for business," and this critical strategic transportation and trade route investment by the US is essential to fully unlock the potential of Angola, Zambia, and the DRC. The U.S. International Development Finance Corporation will invest $553 million in the Lobito Atlantic Railway Company to improve, operate, and maintain Angola's Lobito Railway and mineral port, "to strengthen US strategic interests by securing critical transportation networks and preventing strategic competitors from monopolizing the market." Embassy press release details: https://ao.usembassy.gov/ambassador-james-story-to-visit-the-lobito-corridor-promoting-mutual-prosperity-through-infrastructure-development-and-commercial-activity/ The Lobito Atlantic Railway Company plans to increase its annualized transport capacity from 160,000 mt/year in 2025 to 2 million mt/year by 2030.During the trial operation period from 2025 to date, the average travel time from Kolwezi to Lobito has been 6 to 8 days, while truck transportation by land to Durban, South Africa, or Dar es Salaam, Tanzania, takes from 20 to 25 days. With the gradual increase in carrying capacity, the travel cycle is expected to be further shortened, and the railway company aims to reduce the westward journey to 3.5 to 4 days. From the end of 2023 to date, a total of 28,000 mt of copper concentrates have been transported from Kamoa-Kakula via the Lobito Corridor. In 2025, the export of copper products from Kamoa-Kakula via the Lobito Corridor may increase to 60,000 mt, which is more cost-effective compared to the current land transportation by trucks. Ivanhoe Mines will release its Q1 2025 financial report after the market closes on April 30, 2025, and will hold an investor conference call on May 1. Ivanhoe Mines will announce its Q1 2025 financial results and detailed project progress after the market closes on Wednesday, April 30, 2025. The company will hold an investor conference call on Thursday, May 1, 2025, to discuss the Q1 financial results, with details to be announced later. A webcast recording of the conference call and related presentation materials will be available on the Ivanhoe Mines website: www.ivanhoemines.com. After the release of the Q1 financial report, the financial statements and management's discussion and analysis will be available on www.ivanhoemines.com and www.sedarplus.ca. About Ivanhoe Mines: Ivanhoe Mines is a Canadian mining company advancing its three flagship projects in Southern Africa: the Kamoa-Kakula copper mine in the Democratic Republic of Congo, the Kipushi high-grade zinc-copper-germanium-silver polymetallic mine also in the Democratic Republic of Congo, and the Platreef palladium-nickel-platinum-rhodium-copper-gold mine project in South Africa. Meanwhile, Ivanhoe Mines is exploring for new copper resources within the promising Western Foreland exploration licenses, which Ivanhoe holds 60-100% interests in and covers an area five times that of the adjacent Kamoa-Kakula copper mine. Ivanhoe is searching for new sedimentary copper resources and plans to expand and delineate the high-grade copper resources of its next major development projects, Makoko, Kiala, and Kitoko.