Mr. Robert Friedland reports

IVANHOE ELECTRIC UPDATES ACTIVITIES AT ITS FLAGSHIP SANTA CRUZ PROJECT IN ARIZONA

Ivanhoe Electric Inc. has provided an update on its flagship Santa Cruz copper project in Arizona.

Ivanhoe Electric acquired the Santa Cruz project in mid-2021 after several years of negotiation. Copper mineralization on the property was originally discovered over 50 years ago, with the Santa Cruz, Texaco and Park Salyer high-grade copper deposits identified beneath gravel cover.

A validation drill program completed in late 2021 on the Santa Cruz deposit allowed calculation and disclosure of a current mineral resource estimate in accordance with S-K 1300 and National Instrument 43-101. With seven drill rigs currently active on the deposit, an 85,000-metre program of resource infill, geotechnical, hydrological and metallurgical drilling is now well under way to assess options for underground mine development. These deposits remain open for further expansion. A significant proportion of the copper occurs as readily leachable secondary copper minerals.

Chairman and chief executive officer Robert Friedland commented: "Ivanhoe Electric's vision is for a green, low-impact, underground mine with minimal surface expression, powered by solar energy and with vanadium-redox battery storage provided by Ivanhoe Electric's 90-per-cent-owned private subsidiary, VRB Energy. Apart from producing ultralow-emissions copper that will contribute to American supply chain independence, we also can see opportunities for a multiuse project hosting other commercial and industrial activity together with renewable power generation opportunities.

"While the Santa Cruz deposit is already the second-largest undeveloped copper deposit in the lower 48, we believe that there is significant potential to expand the deposit, to add new resources at Texaco and Park Salyer, and to identify new zones of mineralization.

"Very recently, we completed a proprietary Typhoon deep-penetration induced polarization and resistivity survey over a 26.5-square-kilometre (6,500-acre) area to identify extensions to known deposits and new zones of mineralization. Data processing is under way by Ivanhoe Electric's 94-per-cent-owned private subsidiary Computational Geosciences of Vancouver, Canada, and results will be announced when available. Extensive exploration drilling will test the anomalies identified by Typhoon.

"Ivanhoe Electric has the opportunity to reinvent American mining with green, clean copper production from a world-scale deposit, located in the heart of Arizona, the copper state."

Located in the heart of the copper state

The Santa Cruz copper project is in the prolific copper mining state of Arizona, an approximately one-hour drive south of Phoenix, 11 kilometres west of the city of Casa Grande and in proximity to numerous major copper mines. Arizona has produced approximately 10 per cent of all copper ever mined and is rated within the top-five best mining jurisdictions in the world according to the Fraser Institute. Since 1980, Arizona has produced more than 35 million tonnes of copper, which are approximately 65 per cent of total U.S. copper production.

The Santa Cruz project is located within a mineral deposit corridor running between the Ajo and Globe Miami copper mines. This is a fundamental geological feature, which is estimated to control approximately 35 per cent of all known copper resources in Arizona.

Ivanhoe Electric's Santa Cruz project covers 78 square kilometres (19,300 acres), including 28 square kilometres (6,900 acres) of private land, 31 square kilometres (7,700 acres) of Arizona state mineral exploration permits and 238 unpatented claims over 19 square kilometres.

Copper mineralization at the Santa Cruz project was originally identified more than 50 years ago after reports of copper minerals from agricultural water wells. Following a staking rush involving several different major mining companies, the Santa Cruz, Texaco and Park Salyer deposits were discovered concealed beneath gravel cover, but were not closed off by drilling. All three deposits lie on private land.

While the largest of the three bodies of mineralization is the Santa Cruz deposit, the three deposits may originally have been part of one or more Laramide-age porphyry copper systems subsequently dismembered by basin-and-range extensional faulting.

Santa Cruz is the largest mineralized zone in the cluster.

During this postmineral faulting, the Santa Cruz deposit experienced significant supergene copper enrichment. This is a geological process in which copper in a deposit is moved by groundwater from its original site of formation and is then redeposited into much higher-grade accumulations. At Santa Cruz, these accumulations include the oxide minerals chrysocolla and atacamite, and the copper-rich sulphide mineral chalcocite. In other Arizona copper mines, these minerals are amenable to copper recovery using solution extraction and electrowinning methods (SX/EW) to produce copper cathode on site.

The Santa Cruz deposit is the second-largest undeveloped copper deposit in America's lower 48 states and the largest on private land

After acquiring the Santa Cruz project in mid-2021, Ivanhoe Electric completed a four-hole diamond drilling program totalling 3,601 metres on the Santa Cruz deposit to verify widths and grades of mineralization reported in the approximately 100,000 metres of historical drilling.

All verification samples from within the deposit were assayed using sequential copper analysis for total copper, acid-soluble copper and cyanide-soluble copper, and were also analyzed for molybdenum and other elements. Geology and alteration logs were also compared with the historical holes.

Based on the excellent correlation between the verification and historical holes, independent consulting engineer Nordmin Engineering Ltd. completed a current mineral resource estimate for the Santa Cruz deposit in accordance with the definitions for mineral resources in S-K 1300 and using the 2014 CIM (Canadian Institute of Mining, Metallurgy and Petroleum) Definition Standard for Mineral Resources and Mineral Reserves and 2019 CIM Best Practice Guidelines.

An attractive feature of the Santa Cruz mineral resource estimate is the amount of metal at higher cut-off grades. This higher-grade material tends to be in the acid- and cyanide-soluble categories, potentially allowing for lower-cost, lower-energy and lower-water-consuming processing methods. At a 0.39-per-cent-copper-cut-off grade, the resource contains 2.5 million tonnes of copper in the indicated category with an average grade of 0.9 per cent copper, and 2.3 million tonnes of copper in the inferred category with an average grade of 0.9 per cent copper. However, when a 1-per-cent-copper-cut-off grade is applied, Santa Cruz maintains nearly 60 per cent of its contained metal, with 1.4 million tonnes of copper in the indicated category at an average grade of 1.7 per cent copper and 1.4 million tonnes of copper in the inferred category at an average grade of 1.9 per cent copper.

The Santa Cruz deposit compares favourably with other large-scale U.S. copper projects (contained copper in millions of tonnes).

Mineralization at the Santa Cruz deposit can be divided into three main domains:

• Supergene oxide mineralization forms the uppermost zone of mineralization and is dominated by chrysocolla (a copper oxide that is 34 per cent copper by weight) and atacamite (a copper chloride that is 60 per cent copper by weight).
• Supergene sulphide mineralization underlies the supergene oxide zone and is composed primarily of chalcocite (80 per cent copper by weight), with accessory chalcopyrite and pyrite that were incompletely replaced by chalcocite.
• Hypogene sulphide mineralization underlies the supergene sulphide zone and consists of chalcopyrite (35 per cent copper by weight), pyrite, molybdenite, and minor bornite and covellite, hosted within porphyry-style phyllic alteration. Intensity of mineralization is highest around Laramide-age dike intrusions that cut the mineralized Proterozoic-age Oracle granite country rock.

A fourth mineralization domain, exotic oxide mineralization, is of more limited known occurrence and forms very high-grade mineralization in paleo-valleys at the contact of the mineralized bedrock and the overlying gravel cover. This mineralization formed in basal gravels through precipitation of copper dissolved in migrating groundwater. These zones represent important areas for exploration as they can be spectacularly high grade, as demonstrated by Ivanhoe Electric drill hole SCC-005, which intersected 24 metres of 7.0 per cent copper, as part of a larger intercept of 57 metres of 3.5 per cent copper. Full drill results can be found at the Ivanhoe Electric website.

Seven drills are currently operating to infill and expand the Santa Cruz deposit. The 75,000-metre infill drilling program is more than 50 per cent complete, with 36,637 metres completed by the end of June, 2022. Ivanhoe Electric will seek and provide updated independent mineral resource estimate calculations after the completion of the current drilling program.

Program emphasis is on the larger, higher-grade portions of the deposit, which appear to have sufficient dimensions to support various bulk underground mining methods. While many sample assays are still pending, mineralization encountered to date is consistent with Ivanhoe Electric's expectations.

Additional program objectives include: stepout drilling outside of the current resource footprint to test areas where mineralization remains open; obtaining large-diameter drill core for geotechnical and metallurgical testwork, including material for the continuing environmental and hydrogeological work programs; and geotechnical drilling on potential ramp and shaft access locations.

The Texaco copper discovery is the second-largest body of mineralization known at the Santa Cruz project

The Texaco copper discovery is located 3.5 km northeast of the Santa Cruz deposit. Historical and Ivanhoe Electric drilling have confirmed that the deposit remains open, that supergene copper mineralization is sulphide dominated and that there are indications of underlying high-grade hypogene mineralization.

High-grade Ivanhoe Electric drill intercepts include 73 metres of 2.2 per cent copper, within 100 metres of 1.7 per cent copper from drill hole SCC-019; and 43 metres of 1.3 per cent copper, within 318 metres of 0.9 per cent copper from drill hole SCC-017. Full drill results can be found at the Ivanhoe Electric website.

The Texaco zone is sparsely drilled relative to the Santa Cruz deposit. Significant additional drilling is required to better understand the potential of this large discovery area. A program of validation and expansion drilling to support an initial mineral resource estimate for Texaco is planned for later this year.

Park Salyer discovery is 2.5 kilometres southwest of the past-producing Sacaton copper mine

The Park Salyer copper discovery is located 2.5 km northeast of the Texaco copper discovery and 2.5 km southwest of the past-producing Sacaton copper mine. Ivanhoe Electric drilling conducted to date has confirmed the presence of mixed oxide and sulphide supergene mineralization at shallow depth and the presence of underlying pyrite-dominated breccia-hosted hypogene copper mineralization.

Opportunities for resource expansion

Ivanhoe Electric recently completed a 26.5-square-kilometre (6,500-acre), 3-D induced polarization and resistivity geophysical survey using its proprietary high-power Typhoon transmitter system. While data are currently being processed by Ivanhoe Electric's 94-per-cent-owned private subsidiary Computational Geosciences, results from orientation Typhoon surveys in early 2022 demonstrated that the Santa Cruz and Texaco deposits could be imaged through the gravel cover, that new anomalies for exploration drilling were identified, and that water in the gravel cover could be mapped.

Ivanhoe Electric expects that the newly completed 3-D survey will identify several untested areas for exploration drilling. There are also profound regional implications for Ivanhoe Electric's ability to discover porphyry copper deposits beneath similar basin-fill gravels in other parts of the basin-and-range province of the western United States when the company uses its proprietary Typhoon technology coupled with its Computational Geosciences geophysical data processing software.

Reinventing mining for the electrification of everything

Corporate social and environmental performance is about protecting the health and well-being of society and the environment. Ivanhoe Electric's ambition is to reinvent mining to result in net-positive social and environmental impacts.

While the Santa Cruz project is located on private, industrially zoned land outside of Casa Grande and approximately 6.5 km (four miles) from the nearest native American community, Ivanhoe Electric acknowledges and respects the ancestral use of the lands on which it operates and has established contact with the native American nations with the closest ancestral links to the project area. Ivanhoe Electric places a high value on establishing and maintaining positive relationships with all stakeholder groups, and is actively working to develop a robust community engagement program and to provide sustainable, long-term benefits for the communities in which it operates.

Given the highly attractive metallurgical characteristics of the Santa Cruz deposit, Ivanhoe Electric believes that any mine development will have low water and energy requirements when compared with other major copper projects. However, Ivanhoe Electric is also aware that it operates in a region currently experiencing water shortages and is committed to developing a water resource strategy that will provide long-term benefits for the region. It is also committed to a solar energy strategy that seeks to lower carbon emissions per unit of copper produced to the greatest extent feasible.

Qualified persons

Disclosures of a scientific or technical nature included in this news release, including the sampling, analytical and technical data underlying the information, have been reviewed, verified and approved by Glen Kuntz, PGeo, and Christopher Seligman, MAusIMM CP (geo), each of whom is a qualified person as defined by Regulation S-K, Subpart 1300, promulgated by the U.S. Securities and Exchange Commission and by Canadian National Instrument 43-101. Each of Mr. Kuntz and Mr. Seligman is an employee of Ivanhoe Electric.

Ivanhoe Electric had prepared an independent technical report summary for the Santa Cruz project prepared under SEC Regulation S-K, Subpart 1300, and an independent technical report prepared under Canadian NI 43-101. Each is available on the company's website and under the company's EDGAR and SEDAR profiles:

• "Technical Report Summary on the Santa Cruz Project, Arizona, USA," prepared by Nordmin with an effective date of June 7, 2022 (S-K 1300 report);
• "NI 43-101 Technical Report and Mineral Resource Estimate for the Santa Cruz Project, Arizona, USA," prepared by Nordmin with an effective date of June 7, 2022.

The technical report summary and technical report include relevant information regarding the assumptions and methods of the mineral resource estimates on the Santa Cruz project cited in this news release, as well as information regarding data verification, exploration procedures, and other matters relevant to the scientific and technical disclosure contained in this news release.

About Ivanhoe Electric Inc.

Ivanhoe Electric is an American technology and mineral exploration company that is reinventing mining for the electrification of everything by combining advanced mineral exploration technologies, renewable energy storage solutions and electric metal projects predominantly located in the United States. Ivanhoe Electric uses its Typhoon transmitter, an accurate and powerful geophysical survey system, together with advanced data analytics provided by its subsidiary, Computational Geosciences, to accelerate and derisk the mineral exploration process, as well as to potentially discover deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. Through its controlling interest in VRB Energy, Ivanhoe Electric also develops and manufactures advanced grid-scale vanadium-redox battery storage systems. Finally, through advancing its portfolio of electric metal projects located primarily in the United States, headlined by the Santa Cruz copper project in Arizona and the Tintic copper-gold project in Utah, as well as projects in Montana, Oregon and North Carolina, Ivanhoe Electric is also well positioned to support American supply chain independence by delivering the critical metals necessary for electrification of the economy.

We seek Safe Harbor.