Mr. Robert Friedland reports

IVANHOE ELECTRIC AND SQM ENTER INTO TYPHOON DRIVEN MINERAL EXPLORATION AND COLLABORATION AGREEMENT IN CHILE TO EXPLORE FOR NEW COPPER DEPOSITS BENEATH ELECTRICALLY RESISTIVE CALICHE

Ivanhoe Electric Inc. has executed a definitive collaboration and exploration agreement with Sociedad Quimica y Minera de Chile (SQM) to explore for copper in northern Chile. SQM is one of Chile's largest and oldest mining companies, with a market capitalization of approximately $24-billion. SQM is a world leader in the production of lithium, potassium nitrate and iodine from its mining operations in Chile, with one of the largest portfolios of mining concessions in the country. SQM produces its potassium nitrate and iodine through the exploitation of vast areas of caliche cover in the Atacama Desert. Caliche is a surface deposit of sediments cemented by salts, making it highly electrically resistive and impeding the penetration of low-power geophysical transmitters and their ability to detect underlying sulphide mineralization. Typhoon generates a powerful, clean electrical charge that can penetrate the highly resistive caliche cover to detect potential copper deposits at depth.

The collaboration establishes the framework for Ivanhoe Electric and SQM to explore certain of SQM's mining concessions, comprising a total of 2,002 square kilometres. Through a jointly run technical committee, the collaboration will use Ivanhoe Electric's Typhoon geophysical surveying system and Computational Geosciences Inc.'s (CGI) data inversion software to search for qualifying copper deposits during an initial three-year term. A qualifying copper deposit is defined in the collaboration as any deposit with the potential for at least one million tonnes of contained copper or copper equivalent, as determined by an independent geologist.

The collaboration will be financed by SQM with an initial commitment of $9-million. Upon identifying a qualifying copper deposit, Ivanhoe Electric will have the option to acquire a 50-per-cent interest in the deposit and form a 50/50 joint venture with SQM by paying a price equal to twice of SQM's exploration expenditures to date. The exercise price will be paid to a new joint venture company and used for further exploration and other related activities. Upon the formation of a joint venture, SQM will contribute the relevant mining concessions and associated exploration data. Thereafter, the joint venture will be financed pro rata by each of Ivanhoe Electric and SQM.

Ivanhoe Electric executive chairman Robert Friedland commented: "We are proud to partner with SQM, one of Chile's great mining champions, to deploy our disruptive Typhoon and CGI technologies across northern Chile, one of the world's most prolific copper regions. Vast areas of electrically resistive caliche conceal enormous geological potential beneath the surface. Our Typhoon and CGI platform is uniquely capable of seeing through that cover to illuminate what other technologies cannot. Chile has supplied the world with copper for generations, and, as demand accelerates, we believe the next wave of world-class copper discoveries will be found hidden beneath these large areas of caliche."

Ivanhoe Electric president and chief executive officer Taylor Melvin commented: "SQM's highly prospective mineral concessions and Ivanhoe Electric's powerful exploration technologies are a perfect combination to search for large-scale copper discoveries in Chile. Working with SQM to deploy our Typhoon and CGI technologies in one of the world's most important copper-producing regions underscores the confidence in our exploration platform and the capabilities of our team. We are excited to work together with SQM to define our initial exploration programs and begin the systematic search for new copper discoveries in Chile."

Pablo Altimiras, chief executive officer of SQM's iodine and plant nutrition division, said: "This collaboration with Ivanhoe Electric provides SQM with the technology platform to allow the exploration of caliche-covered mining areas, which, by their nature, are tough to explore using traditional exploration methods. Our exceptional location for copper deposits, exploration expertise, logistics network and operational footprint provide the perfect foundation to deploy these advanced geophysical capabilities. We are confident that this synergy will allow us to unlock the immense potential of our mining concessions and accelerate the discovery of the critical minerals essential for the global energy transition."

The Ivanhoe Electric and SQM collaboration will explore for copper deposits through the challenging caliche cover of the Atacama desert

The collaboration will use Ivanhoe Electric's Typhoon surveying and CGI software technologies to advance exploration on mining concessions largely concealed beneath postmineral caliche and sedimentary cover. These caliche-covered concessions are located on major porphyry copper and polymetallic manto belts in the Atacama desert and near some of the largest copper mines in the world.

Typhoon is the brand name for Ivanhoe Electric's proprietary electrical geophysical surveying transmitter. Typhoon achieves its results through its unique specifications, which include a current output of up to 200 amps and a voltage output of up to 10,000 volts. The transmitter uses switches and capacitance systems, which generate an exceptionally pure and stable transmitted signal, resulting in an extremely high signal-to-noise ratio.

Typhoon was originally developed by Ivanhoe Electric's former parent, I-Pulse Inc., to unlock exploration in areas where potential sulphide mineral deposits are hidden by cover and where target depths exceed the range of conventional geophysical surveying systems and in environments that have highly resistive surface conditions (such as caliche).

Key terms of the collaboration

The collaboration and exploration agreement signed today includes the following key terms:

• SQM will commit $9-million to finance joint exploration during an initial three-year term.
• A joint technical committee will collaboratively develop work programs and budgets over the collaboration's 2,002 square kilometres of available mining concessions.
• Ivanhoe Electric will operate all mutually approved Typhoon surveying across the available mining concessions, with each surveyed area becoming a designated Typhoon exploration area.
• All data inversions will be performed by CGI.
• SQM will operate mutually approved drill programs within a designated Typhoon exploration area, leveraging its local expertise and resources, once drill targets have been identified.
• If a designated Typhoon exploration area demonstrates the potential for more than one million tonnes of copper (or copper equivalent) as determined by an independent geologist, then Ivanhoe Electric has the option to form a 50/50 joint venture over the designated Typhoon exploration area.
• In order to exercise its option, Ivanhoe Electric will be required to pay twice the total exploration expenditures financed by SQM to the date of the option exercise. The option exercise price will be paid to the joint venture to further exploration activities.
• The collaboration will be governed by a management committee and technical committee, composed of an equal number of members from Ivanhoe Electric and SQM.
• Ivanhoe Electric is not required to provide any financing prior to the formation of a 50/50 joint venture.
• At the end of the collaboration, all mining concessions and exploration data not contributed to a new joint venture will remain the property of SQM.

If a joint venture is formed, it will be initially governed by a board of directors with equal representation from Ivanhoe Electric and SQM. The joint venture will continue exploration activities on the designated Typhoon exploration area transferred to the joint venture with the goal of advancing the project through to a development decision and future commercial production.

The joint venture will be financed on a pro rata basis, and subject to a customary dilution formula. Both parties have agreed not to transfer their shares in the joint venture before the earlier of a first mineral resource estimate and the fifth anniversary of the establishment of the joint venture company. Each of Ivanhoe Electric and SQM will be entitled to its proportional share of any future production from the project. Following any future development decisions, SQM will also have the option to operate the joint venture provided it holds at least 50 per cent of the equity in the joint venture. SQM is also entitled to appoint the general manager of the joint venture.

About Ivanhoe Electric Inc.

Ivanhoe Electric is a U.S.-domiciled minerals exploration company with a focus on developing mines from mineral deposits principally located in the United States. Ivanhoe Electric seeks to support American supply chain independence by finding and delivering copper and other critical metals vital to advanced manufacturing, infrastructure development, technology and national security. Ivanhoe Electric uses its powerful Typhoon geophysical surveying system, together with advanced data analytics provided by the company's 94.3-per-cent-owned subsidiary, Computational Geosciences (CGI), to accelerate and derisk the mineral exploration process as Ivanhoe Electric seeks to discover new deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. Ivanhoe Electric believes the United States is significantly underexplored and has the potential to yield major new discoveries of critical metals. Ivanhoe Electric's mineral exploration efforts focus on copper as well as other metals, including nickel, cobalt, platinum group elements, gold and silver. Through the advancement of Ivanhoe Electric's portfolio of critical metals exploration projects, headlined by the Santa Cruz copper project in Arizona, the company intends to contribute to domestic supply by developing resources that support industrial and strategic sectors. Ivanhoe Electric also operates a 50/50 joint venture with Saudi Arabian Mining Company (Maaden) to explore for minerals on approximately 48,500 square kilometres of underexplored Arabian Shield in Saudi Arabia. In 2024, Ivanhoe Electric established an exploration alliance with BHP Mineral Resources Inc., a subsidiary of BHP Group Ltd. , to search for critical minerals in the United States.

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