Ivanhoe Australia Completes A$125 Million IPO

MELBOURNE, AUSTRALIA, Aug 05 (MARKET WIRE) --
Ivanhoe Mines' (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) Executive Chairman
Robert Friedland today announced the successful completion of subsidiary
Ivanhoe Australia's A$125 million initial public offering.

Ivanhoe Australia, which remains 80%-owned by Canada-based parent Ivanhoe
Mines, will begin trading on the Australian Stock Exchange tomorrow
(August 6) under the symbol IVA.

The Ivanhoe Australia IPO, which closed August 1, sold 62.5 million
shares at A$2 each. The company's initial market capitalization is A$625
million. Ivanhoe Australia previously was 100%-owned by Ivanhoe Mines.

The offering, which was heavily supported by investors in Australia, the
United States, Canada and Asia, has raised capital for the ongoing
exploration and development of Ivanhoe Australia's extensive tenements
that cover 2,250 square kilometres in the Mount Isa-Cloncurry mineral
district in northwest Queensland - one of the world's richest
mineral-producing regions.

Ivanhoe Australia's current focus is on the preparation of development
studies for its iron-oxide copper-gold (IOCG) discoveries at three key
projects: Mount Elliott, Mount Dore and the Starra Line. A high-grade
IOCG zone has been delineated at the Mount Elliott Project within a
major, bulk-minable copper-gold system. An infill-drilling program at the
Mount Dore project is delineating a large oxide-copper resource suitable
for heap-leach, solvent extraction-electrowinning processing - as well as
testing deeper, polymetallic and copper-gold sulfide mineralization.
Re-evaluation of the previous copper-gold mines on the Starra Line is
underway. Independent, 43-101-compliant estimates of the mineral
resources identified to date at the three projects are expected to be
completed in the near future. Significant uranium potential also has been
identified in the company's northern and central tenements, consistent
with the results of previous operators, including Rio Tinto.

"With the majority of the proceeds from the initial public offering
earmarked for exploration and development over the next two years,
Ivanhoe Australia now has the dedicated financial resources it requires
to move on with the discovery and development assessment processes and to
expand its deep-drilling exploration program to probe beyond the limits
of previously discovered resources," Mr. Friedland said.

Mr. Friedland, who also is Chairman of Ivanhoe Australia, said investors
were enthusiastic about the company's potential to become a significant
copper, gold and uranium producer in a district that also has significant
additional potential for zinc, silver and cobalt. "The Mount
Isa-Cloncurry district of Queensland is one of the great mineral
storehouses of the world and will become one of the most important
suppliers to China's emergence as the world's fastest growing
manufacturing hub."

Ivanhoe Mines will receive a total of A$38.4 million from Ivanhoe
Australia as partial repayment of an inter-company loan and full
repayment of a loan to acquire shares in Exco Resources. Ivanhoe
Australia currently owns 19.9% of Exco, an Australian company that holds
exploration tenements in the Cloncurry district totalling 4,100 square
kilometres - including 560 square kilometres that are covered by an 80%
earn-in joint-venture agreement with Ivanhoe Australia.

Ivanhoe Mines shares are listed on the Toronto, New York and NASDAQ stock
exchanges under the symbol IVN.

Forward-Looking Statements - This news release contains forward-looking
statements. Forward-looking statements are statements that relate to
future events. In some cases, you can identify forward-looking statements
by terminology such as "may", "should", "expects", "plans",
"anticipates", "believes", "estimates", "predicts", "potential" or
"continue," or the negative of these terms, or other comparable
terminology. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors that may cause our, or our
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results, levels
of activity, performance or achievements expressed or implied by these
forward-looking statements. While these forward-looking statements, and
any assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our business,
actual results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future
performance suggested herein. Readers are referred to the sections
entitled "Risk Factors" in Ivanhoe Mines' periodic filings with Canadian
and US Securities Commissions.

Contacts:
Ivanhoe Mines Ltd.
Bill Trenaman
Investor Relations
(604) 688-5755

Ivanhoe Mines Ltd.
Bob Williamson
Media
(604) 688-5755
Website: www.ivanhoemines.com

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