Mr. Taylor Melvin reports

IVANHOE ELECTRIC'S VRB ENERGY SUBSIDIARY AND RED SUN SIGN DEFINITIVE AGREEMENTS FOR FORMATION OF NEW GRID SCALE BATTERY JOINT VENTURE

Ivanhoe Electric Inc.'s 90-per-cent-owned subsidiary, VRB Energy Inc.; a subsidiary of privately held Shanxi Red Sun Co. Ltd.; and certain other affiliates have signed definitive agreements finalizing the terms of the transaction announced on Sept. 23, 2024 (refer to Ivanhoe Electric's Sept. 23, 2024, news release).

The joint venture, which will receive a $35-million capital increase from Red Sun, is being formed to expand manufacturing and sales of vanadium redox flow battery systems. In addition to the formation of the joint venture, Ivanhoe Electric and VRB Energy, using $20-million of the transaction proceeds, will establish a separate U.S.-based vanadium redox battery business, to be located in Arizona.

Ivanhoe Electric president and chief executive officer Taylor Melvin commented: "Today's signing of the definitive agreements between our VRB Energy subsidiary and Red Sun allows Ivanhoe Electric to retain exposure to growing grid-scale battery markets through the creation of our joint venture. This transaction also provides us with $20-million that we will invest in the establishment of a domestic battery assembly facility in Arizona, capable of producing 50 megawatts per year of VRB-ESS vanadium flow batteries."

The agreements were signed on Oct. 15, 2024. The establishment of the 51-per-cent/49-per-cent joint venture is expected to occur by the end of the month, pending certain other conditions precedent, with several posttransfer matters to be subsequently completed following certain Chinese regulatory filings. Ivanhoe Electric has completed an 8-K filing of the agreement with the U.S. Securities and Exchange Commission.

About Shanxi Red Sun Co. Ltd.

Shanxi Red Sun is a prominent Asian investment firm specializing in new energy and advanced technologies, with several publicly listed companies under its umbrella. Red Sun's diverse portfolio spans industries such as new energy, new materials, high-end manufacturing, advanced equipment, biopharmaceuticals, modern agriculture and cultural communication. Guided by a philosophy of sustained financial backing, comprehensive resource allocation and targeted industrial development, Red Sun has recently expanded its focus to include mineral resources, critical materials and key technologies in the energy storage supply chain. Moving forward, the group is committed to deepening its investments in new energy storage, positioning itself as a future leader in this rapidly growing sector.

About VRB Energy Inc.

VRB Energy is a clean technology innovator that has commercialized the largest vanadium flow battery on the market, the VRB-ESS, certified to UL1973 product safety standards. VRB-ESS is best suited for solar photovoltaic integration onto utility grids and industrial sites, as well as backup for electric vehicle charging stations. Vanadium flow battery systems are ideally suited to stabilize isolated microgrids, integrating solar and wind power in a safe, reliable, low-maintenance and environmentally friendly manner. VRB Energy grid-scale energy storage systems allow for flexible, long-duration energy with proven high performance. VRB Energy is a subsidiary of Ivanhoe Electric.

About Ivanhoe Electric Inc.

Ivanhoe Electric is a U.S. company that combines advanced mineral exploration technologies with electric metal exploration projects predominantly located in the United States. Ivanhoe Electric uses its accurate and powerful Typhoon geophysical surveying system, together with advanced data analytics provided by its subsidiary, Computational Geosciences Inc., 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, vanadium, cobalt, platinum group elements, gold and silver. Through the advancement of the company's portfolio of electric metals exploration projects, headlined by the Santa Cruz copper project in Arizona and the Tintic copper-gold project in Utah as well as other exploration projects in the United States, Ivanhoe Electric intends to support U.S. supply chain independence by finding and delivering the critical metals necessary for the electrification of the economy. Ivanhoe Electric also operates a 50/50 joint venture with Saudi Arabian mining company Ma'aden to explore for minerals on approximately 48,500 square kilometres of underexplored Arabian Shield in the Kingdom of Saudi Arabia.

We seek Safe Harbor.