Mr. Taylor Melvin reports

IVANHOE ELECTRIC CLOSES ACQUISITION OF PRIVATE LAND AT THE SANTA CRUZ COPPER PROJECT IN ARIZONA

Ivanhoe Electric Inc. has closed its previously disclosed private land acquisition at its Santa Cruz copper project in Casa Grande, Ariz. The terms of the purchase and sale agreement (PSA) for the acquisition of surface title and associated water rights are described in Ivanhoe Electric's May 11, 2023, news release.

Taylor Melvin, Ivanhoe Electric's president and chief executive officer, commented: "We are excited to close our previously announced land acquisition at our Santa Cruz copper project in Arizona. Acquiring this land is a major milestone in the advancement of our Santa Cruz project, where we already have agreements in place to control all the mineral rights associated with the acquired surface land. The land acquisition puts us in excellent position to finalize our initial economic assessment, which we expect to release in the third quarter of this year."

The final purchase price has been reduced by $3.63-million compared with the amount previously disclosed to reflect an adjustment to the final acreage being acquired. The adjustment to the total acreage acquired of 5,975 acres is a result of final land surveys completed in the normal course of confirmatory due diligence.

At closing, Ivanhoe Electric paid a total of $34.3-million to the seller, which includes $5.1-million of previously paid deposits. Ivanhoe Electric has also issued a secured promissory note to the seller in the principal amount of approximately $82.6-million over a period of 4.5 years. The promissory note includes an annual interest rate of prime plus 1 per cent.

Ivanhoe Electric 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 titleholder in August, 2023, and 2024. At that time, Ivanhoe Electric will have a unified land and mineral package encompassing the entire Santa Cruz project.

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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