VISION

Ivanhoe Australia's vision is to build a substantial Australian based company focusing on the exploration, and development of major copper, gold and uranium deposits. In the short term, Ivanhoe Australia's strategy is firmly focussed on fully exploiting the potential of its highly prospective Cloncurry Project in north west Queensland.

STRATEGY

The Company's growth strategy has 4 key elements:

I. Conduct extensive exploration for large iron-oxide-copper-gold (IOCG) and copper dominant orebodies

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

There are approximately 220 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, other copper dominated orebodies and uranium deposits.

II. Pursue Early Development of Previously Defined Prospects

Near surface secondary copper targets will 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. The most advanced of these targets is the Mount Dore secondary copper deposit.

Ongoing studies will be conducted into development options for the recently defined much larger mineralised system at the Mount Elliott deposit. Studies are also planned to review options for mining and treatment of the remaining resources on the Starra Line deposits.

III. Confirm Previously Identified Uranium Potential

Ivanhoe Australia's third 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.

IV. Pursue Corporate Initiatives

Ivanhoe Australia will also 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 including joint ventures and strategic corporate transactions.