From Earlier: Chalco and Ivanhoe Mines Note Status Of SouthGobi Resources

Aluminum Corporation of China Limited and Ivanhoe Mines Ltd.

make reference to the announcement made by SouthGobi Resources Ltd. on 16 April, 2012 regarding an announcement in a press conference by the Mineral Resources Authority of Mongolia of a proposed request to suspend exploration and mining activity on certain licenses pertaining to SouthGobi's Ovoot Tolgoi Mine. It was mentioned that MRAM had stated that the move is in relation to the proposed proportional takeover bid contemplated by the lock-up agreement between Ivanhoe and Chalco, dated as of 1 April, 2012. Although the proposed partial bid is compliant with all the relevant laws and regulations of jurisdictions concerned, SouthGobi, Ivanhoe and Chalco have been advised by the Government of Mongolia that it is considering the introduction of new foreign investment legislation to allow it to assess investments. In this context, the parties understand that amongst the key issues to be considered by Government of Mongolia include the establishment of fair transfer pricing and taxation regimes with foreign investors. The parties also understand that the Government of Mongolia will look to model the legislation from precedents in other major jurisdictions. Ivanhoe and Chalco have also noted certain statements made by various Mongolian stakeholders recently since the announcement of the proposed partial offer and would like to express their commitment to cooperate with and assist the MRAM and the Government of Mongolia in any future processes that they may have.