Ivanhoe Mines Ltd T.IVN

RE:Platreef

[guarantor1]

Nov 15
Platreef Project (majority owned by Ivanhoe Mines, the "Platreef Streams")

• Location: Located approximately 280 kilometres ("km") north-east of Johannesburg, in the Limpopo province of South Africa
• Streamed Metals:
  • Under the Platreef Project gold stream agreement, Wheaton International will be entitled to purchase 62.5% of the payable gold until a total of 218,750 ounces ("oz") of gold has been delivered to Wheaton International under the gold stream1, at which point Wheaton International will be entitled to purchase 50% of the payable gold production until a total of 428,300 oz of gold has been delivered to Wheaton International under the gold stream, at which point Wheaton International will be entitled to purchase 3.125% of the payable gold production if certain conditions are met.
  • In addition, under the Platreef Project palladium and platinum streams agreement, Wheaton International will purchase 5.25% of the payable palladium and platinum until a total of 350,000 oz of combined palladium and platinum have been received, at which point the stream will be reduced to 3.0% of the payable palladium and platinum production until 485,115 oz have been delivered, at which point the stream will be reduced to 0.1% of the payable palladium and platinum production if certain conditions are met.
• Production Profile2: Attributable production is forecast to average over 13,000 oz of gold and 8,500 oz of each of palladium and platinum per year for the first ten years of production, increasing to over 24,000 oz of gold and 13,500 oz of each palladium and platinum per year for the following ten years of production.  
• Production Payments:
  • Under the Platreef Project gold stream agreement, Wheaton International will make ongoing payments for the gold ounces delivered equal to $100/oz until a total of 428,300 oz of gold have been delivered under the gold stream, increasing to 80% of the spot price of gold thereafter.
  • Under the Platreef Project palladium and platinum streams agreement, Wheaton International will make ongoing payments for the palladium and platinum ounces delivered equal to 30% of the respective spot prices until 485,115 combined ounces have been received, increasing to 80% of the spot price of palladium and platinum thereafter.
• Incremental Reserves and Resources2:
  • The addition of the Platreef gold stream will increase Wheaton's total estimated Proven and Probable gold reserves by 0.67 million ounces ("Moz"), Measured and Indicated gold resources by 0.07 Moz, and Inferred gold resources by 0.13 Moz.
  • The addition of the Platreef palladium stream will increase Wheaton's total estimated Proven and Probable palladium reserves by 0.35 Moz, Measured and Indicated palladium resources by 0.01 Moz, and Inferred palladium resources by 0.02 Moz.
  • The addition of the Platreef platinum stream will increase Wheaton's total estimated Proven and Probable platinum reserves by 0.34 Moz, Measured and Indicated platinum resources by 0.01 Moz, and Inferred platinum resources by 0.02 Moz.
• Other Considerations:
  • The Platreef Project is fully permitted and currently under construction, with commercial production expected in Q4 2024.
  • Sustainability Considerations:
    • Ivanhoe signed an offtake agreement with the Mogalakwena Local Municipality (MLM) to provide local, treated water to supply the bulk water needed for Platreef's construction and operations. Recycling locally treated water is a cost-effective and sustainable approach to securing water for the mine's production.
    • In conformance with South Africa's mining laws, the ownership structure at the Platreef Project includes a 26% interest transferred to a B-BBEE special purpose vehicle, comprised of 3% local non-managerial employees, 3% local entrepreneurs and 20% in a trust established for the benefit of the 20 communities that surround the Platreef Project area (The Bonega Communities Trust).
    • The site has secured options to use electricity generated from renewable energy and liquefied natural gas, providing a reliable source of energy with fewer carbon dioxide emissions than South Africa's coal-fired national electrical grid.
  • The Platreef Streams provide certain corporate guarantees and security over assets of the Platreef Project until certain conditions are met.