Mr. Taylor Melvin reports

IVANHOE ELECTRIC TO ACQUIRE 6,205 ACRES OF PRIVATE LAND AT THE SANTA CRUZ COPPER PROJECT NEAR CASA GRANDE, ARIZONA

Ivanhoe Electric Inc.'s Robert Friedland, executive chairman, and Taylor Melvin, president and chief executive officer, have signed a binding purchase and sale agreement (PSA) with Wolff-Harvard Ventures LLC (the seller of the Legends property) for the acquisition of surface land at its Santa Cruz copper project in Casa Grande, Ariz. The acquisition totals 6,205 acres of surface title and associated water rights.

Ivanhoe Electric also holds the option to acquire all the mineral titles contiguous with the acquired surface lands. Those mineral rights will be formally acquired upon the completion of scheduled payments by Ivanhoe Electric to the current mineral title holder in August, 2023, and 2024. At that time, Ivanhoe Electric will have a unified land and mineral package encompassing the entire Santa Cruz project.

Mr. Friedland commented: "Acquiring the surface land at our Santa Cruz project is a significant step towards realizing our vision of developing a high-grade, low-carbon-dioxide footprint underground copper mine on private land. We are designing our Santa Cruz project to be a modern, responsible underground mining operation that will employ a skilled work force and provide an economic boost to Arizona's growing industrial economy while supporting supply chain independence in the United States for electric metals. The large area of flat land that we are acquiring is ideally suited for renewable solar energy, which we plan to utilize to power our Santa Cruz project. This important transaction is the culmination of our hard work to reunite the surface land with the subsurface mineral rights we already have the option to acquire, giving Ivanhoe Electric control of a large, high-grade copper project on private land in the copper state."

Mr. Melvin commented: "This agreement is a major milestone for our Santa Cruz project. Acquiring such a large area of private land and associated water rights, in the heart of a growing industrial area near Casa Grande with excellent access to infrastructure, including nearby rail, highways and electric transmission lines, is a tremendous advantage for Ivanhoe Electric. Acquiring this land gives our team the flexibility they need to design and develop a minimally disruptive, efficient and modern underground copper mining operation, and provides significant potential for on-site solar power. This land will be a valuable long-term asset for the future of the Santa Cruz project and our company."

Terms of the Legends land acquisition

Under the terms of the PSA, Ivanhoe Electric will acquire 6,205 acres for a total purchase price of $120.5-million to be paid in instalments over a 4.5-year period, as follows:

• $5-million deposit, paid upon signing of the PSA;
• $34.3-million payable at the time of closing, expected in May, inclusive of the $5-million deposit (the first closing payment);
• $34.3-million, plus accrued interest, payable on or before six months following the date of closing (the second closing payment);
• Four equal principal payments of $13-million on the first, second, third and fourth anniversaries of the second closing payment, plus applicable accrued interest.

Interest on future payments will accrue at a rate of prime plus 1 per cent. In the event that Ivanhoe Electric elects to begin mine construction prior to completing the final principal payment, the full outstanding balance shall be paid to seller prior to commencement of major mine construction activities.

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 metals 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 Inc., 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 metals 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, Nevada, 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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