VISION

Ivanhoe Australia's vision is to build a substantial Australian based company focusing on the exploration, and development of major copper-gold, molybdenum-rhenium and uranium deposits. In the short term, Ivanhoe Australia's strategy is focussed on fully exploiting the potential of two highly prospective areas of Australia:

• Cloncurry Project in north west Queensland, via the treatment of the Merlin and Little Wizard deposits and copper-gold deposits at the recently purchased Osborne Operation; and
• Tennant Creek Mineral Field in the Northern Territory through continued exploration targeting the discovery of very high grade gold/copper deposits.

STRATEGY

The Company's growth strategy has 5 key elements:

Rapidly complete the integration of the Osborne Operation with the Merlin & Little Wizard molybdenum and rhenium projects.

Merlin, and its ultra high-grade associated deposit -- Little Wizard, have the potential to be the "pathfinder projects" for Ivanhoe Australia, with much of the infrastructure required for these projects to come from the Osborne Operation, purchased from Barrick Gold in September 2010. The accelerated exploitation of these two high-value deposits should maximise the returns and minimise the risks to the Company's shareholders.

Pursue early development of previously defined prospects most particularly copper-gold resources within the Osborne tenements and the previously developed deposits on the Starra Line.

Studies are underway to review options for the mining and treatment of the remaining copper-gold resources at Osborne and from the Starra Line deposits. A study will also be conducted into development options for the recently defined much larger mineralised system at Mount Elliott.

Near surface secondary copper targets will continue to be pursued which offer the potential for early copper production. These targets have the potential for open pit mining and copper production by heap leaching and SXEW treatment of the ore. An advanced target is the Mount Dore secondary-copper deposit.

Conduct extensive exploration for large iron-oxide-copper-gold (IOCG) deposits and other copper/gold/base metal dominant orebodies often associated with molybdenum and rhenium.

Ivanhoe Australia's main exploration objective within the Cloncurry Project is to identify and develop "classic" IOCG hosted orebodies located at depth below subtle surface indications or with distinctive geophysical signatures. The most advanced of these IOCG targets are the partly mined Mount Elliott and Starra Line mineralised systems.

Exploration is also underway to discover sediment hosted Mount Dore style base metal occurrences in the region with associated molybdenum and rhenium.

There are over 200 known targets for copper, gold and uranium in the Cloncurry Project area, many of which have been previously identified by surface exploration and drilling at relatively shallow depths. Ivanhoe Australia intends to conduct a systematic drilling program of these targets with a view to discovering large IOCG orebodies and other copper dominated orebodies.

Confirm Previously Identified Uranium Potential

Ivanhoe Australia's fourth key objective is to identify and explore uranium-dominant targets and deposits which are hosted in the northern parts of the Cloncurry Project. Specifically, the Robert Heg, Elizabeth Anne, Dairy Bore, U2, Great Wall and Currajong uranium prospects will be the initial focus of exploration.

Ivanhoe Australia has conducted some diamond drilling at Robert Heg and plans to expand its drilling program to include all its uranium prospects in the Kuridala area following initial geological and geochemical evaluation of these sites.

Pursue Corporate Initiatives

Ivanhoe Australia will continue to pursue corporate opportunities within Australia, which assist in achieving the Company's growth objectives, including investments in other metals and minerals. Initially, control of additional copper, gold and uranium prospects will be targeted within the Cloncurry region, but the Company expects that the Board will also consider similar opportunities in other regions in Australia including joint ventures and strategic corporate transactions, such as the investment and JV with Emmerson Resources Limited at Tennant Creek where state of the art geophysical techniques are being used to target bonanza grade gold deposits for which this field is renowned.