Ivanhoe Australia is building a substantial Australian-based resources company focused on the exploration and development of its portfolio of mineral projects to build a series of operating mines within a mining-friendly, politically-safe, operating environment.

Ivanhoe Australia has assembled a significant package of Mineral Resources in the highly mineralised Cloncurry district, near Mount Isa, Queensland. The nature of the geological systems indicates potential metal production could be both multifaceted and long term. Exploration success so far has revealed a portfolio of copper, molybdenum, rhenium and gold Mineral Resources.

Ivanhoe Australia has a strong development pipeline, with four main projects and other potential development opportunities. The key development project is Merlin, which is the highest-grade molybdenum and rhenium project in the world. Significant progress has been made to bring the Merlin Project closer to production with commencement of the Merlin decline in late 2010 and preparation of the prefeasibility study. Development studies are also underway on the Copper-Gold business, Mount Elliott and Mount Dore.

The strategic acquisition of the Osborne Copper and Gold Complex in September 2010 will be key to transforming Ivanhoe Australia into a significant base metal producer. The Osborne Complex is located approximately 50 kilometres south of Mount Dore and is propose to be connected by a haul road to enable the efficient transportation of ore from Merlin and other resources located adjacent to the road. Development of the Osborne and Kulthor underground resources has started with copper and gold production planned to commence in Q1 2012 with ore processed through the Osborne Complex.

Exploration prospectivity on Ivanhoe's wholly owned and JV tenements in the Cloncurry region and on its JV tenements in the Tennant Creek Mineral Field, NT, Australia, remains very high.