Mr. Eric Finlayson reports

IVANHOE ELECTRIC UPDATES SANTA CRUZ COPPER PROJECT IN ARIZONA

Ivanhoe Electric Inc. has provided an update on drilling operations and exploration activities at the Santa Cruz copper project located west of Casa Grande, Ariz.

Chairman and chief executive officer Robert Friedland and president Eric Finlayson commented: "Our industry-leading geologists and engineers are building a wealth of knowledge from the ongoing drilling program at the Santa Cruz copper project. We are excited by the rapid progress we've experienced at Santa Cruz, which is leading to an updated mineral resource statement for the project expected in January, 2023."

Glen Kuntz, chief technical and innovation officer, commented: "We have had a busy and successful first 12 months at Santa Cruz. The technical teams have published an initial mineral resource estimate while managing a multirig drill program, completing numerous trade-off studies and carrying out the technical studies required to support a future preliminary economic assessment."

Graham Boyd, vice-president of U.S. projects, commented: "Our expert geological team is encouraged by the spectacular blues and greens of the high-grade oxide and exotic copper zones. We believe that the Santa Cruz deposit could be one slice of a larger porphyry copper system. With our Typhoon results, we have started testing new anomalies for additional copper discoveries."

Andy Russell, Santa Cruz consulting project director, commented: "Based on our work to date, we expect to complete a preliminary economic assessment on the Santa Cruz deposit in the first half of 2023. The initial project economics could improve further as we continue to explore and understand the other areas, including Texaco and East Ridge."

Santa Cruz drill program employing up to eight drill rigs

Up to eight drill rigs are working 24 hours a day to collect resource infill, geotechnical, hydrological and metallurgical information required to assess potential mine development options at the Santa Cruz project. The company has completed 23,945 metres of infill drilling and 7,792 metres of drilling to support studies on underground mine access, utilizing a large and experienced on-site crew of over 40 employees and 76 contractors.

A recent highlight of the infill drilling program is from hole SCC-084, which intersected over 250 metres of impressive oxide and exotic copper mineralization. Although pending assays, this hole demonstrates the potential for identifying new zones of oxide and exotic copper mineralization.

Prior to sampling drill core for assays, holes receive detailed geotechnical evaluation using rock quality designation. Logging of whole core and mapping of structural features use downhole acoustic televiewer surveys. These data are essential for understanding the engineering characteristics of the rocks influencing potential mine design.

As a result of the detailed geotechnical work being performed on the core samples and the industry-wide backlogs at assay laboratories, the company has experienced some delays in the receipt of assay results. Approximately 5,000 drill samples are currently being processed at two laboratories: Skyline Assayers & Laboratories in Tucson, Ariz., and Societe Generale de Surveillance SA in Vancouver, B.C., Canada. The company expects to receive assay results in the coming weeks.

SGS is constructing a sample preparation facility in Tempe, Ariz., to support the Santa Cruz project. This important facility, located a 45-minute drive from the project, should be operating by mid-November and will significantly improve assay sample process times.

The company has installed vibrating wire piezometers in selected holes to monitor the movement of groundwater in the cover gravels and bedrock. Hydraulic testing is also under way. This work is important for assessing the water content of different rock types and determining potential dewatering requirements.

In early October, the Santa Cruz project introduced on-site scanning of drill core, utilizing cutting-edge technology developed by GeologicAI of Calgary, Alta., Canada. The system utilizes several components, including: light detection and ranging (lidar) scanning, X-ray fluorescence (XRF) chemical analysis, hyperspectral analysis for mineral identification, high-resolution core photography, and geotechnical data collection and analysis tools.

Once fully deployed, this sophisticated system will allow a two- to three-day turnaround time for preliminary geochemical data. The system and the produced data will assist with the prioritization of samples for both assaying and the decision-making process on subsequent drill holes.

Updated mineral resource estimate and preliminary economic assessment under way

Results from the evaluation drill program will be used to support an updated mineral resource estimate for the Santa Cruz project expected in January, 2023. The updated mineral resource estimate will update the existing Santa Cruz deposit resource and will include initial estimates for the Texaco and East Ridge deposit areas.

Mining and metallurgical processing trade-off studies aimed at optimizing the initial economic analysis of the project are under way in support of the preliminary economic assessment for the Santa Cruz project. The initial PEA will cover only the Santa Cruz deposit area and is scheduled for completion in second quarter 2023.

Through the trade-off studies, the company is resolving access alternatives, production rates, processing methods, copper cut-off grades, mining sequences and material-handling systems. Its engineering teams have reviewed an initial 26 scenarios, which have been reduced to seven optimized potential underground development scenarios for further study.

The company is also completing environmental baseline studies, including hydrology and geochemistry testwork, to support future applications for the aquifer protection permit to the Arizona Department of Environmental Quality and the dewatering permit to the Arizona Department of Water Resources.

To date, 23,996 metres of exploration drilling on new areas have been completed. This includes the initial four-hole verification drill program conducted on the Santa Cruz copper deposit in 2021.

Based on results from the 26.5-square-kilometre Typhoon survey completed in July, with preliminary results disclosed on Sept. 15, 2022, three drill rigs were reassigned from the Santa Cruz copper deposit evaluation drilling program to test five major chargeability targets that are potentially indicative of new zones of sulphide mineralization. A major new exploration discovery could alter the development options being studied for the coming PEA.

Drilling at the East Ridge Typhoon target commenced in late September and on the Far Southwest Typhoon target in mid-October. Both targets are thought to be separated by faults from the Santa Cruz copper deposit and could represent fragments of a single large porphyry copper deposit.

A highlight of initial East Ridge drilling was discovered in hole SCC-096, which intersected 150 metres of visible oxide copper mineralization, including approximately 10 metres of intense copper mineralization. Assays are currently pending.

Drill rigs will return to the Texaco target in November. Ivanhoe Electric previously drilled five holes at Texaco, three of which intersected mineralized bedrock, with hole SCC-019 returning 73 metres grading 2.2 per cent copper, the highest-grade intersection recorded at Texaco. Notably, after encountering an initial zone of strong secondary copper mineralization, a long intercept of primary chalcopyrite mineralization was found, indicating the potential for high-grade hypogene mineralization.

A spectacular core sample was from drill hole SCC-090, a 100-metre stepout to the west of the Santa Cruz deposit. This core sample, taken from a 479-metre depth, shows exceptional chrysocolla, atacamite and cuprite mineralization, as well as hematite (iron oxide). This zone has the potential to expand the areas of soluble oxide copper mineralization to the west of the known Santa Cruz deposit.

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 1,300, 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 has prepared an independent technical report summary for the Santa Cruz project prepared under SEC Regulation S-K, Subpart 1,300, and an independent technical report prepared under Canadian National Instrument 43-101. The reports are available on the company's website, on EDGAR and on the company's SEDAR profile:

• "Technical report summary on the Santa Cruz project, Arizona, USA," prepared by Nordmin Engineering Ltd. with an effective date of June 7, 2022 (S-K 1,300 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.

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