Ivanhoe Electric's Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Defines a High-Quality Underground Mining Operation with Strong Economics

2025-06-23

TSX - Toronto Stock Exchange · Gold · Canada

Advanced United States Copper Project on Private Land with an After-Tax Net Present Value8%of $1.9 Billion and a 24.0% Internal Rate of Return at Current COMEX Copper Price

Updated Reserves and Mine Plan Support 100% Heap Leach Process Producing 1.4 Million Tonnes of Copper Cathode Over 23 Year Mine Life

Low Initial Capital of $1.24 Billion and First Quartile Unit Cash Costs of $1.32 Per Pound of Copper

Highly Engineered Study Will Be Used to Secure Project Financing

Initial Construction Targeted for First Half 2026, with First Copper Cathode Production Projected in 2028

Significant Copper Resources Support Future Expansion Potential on Existing Land Package

Phoenix, Arizona--(Newsfile Corp. - June 23, 2025) - Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ("Ivanhoe Electric") Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce the completion of the Preliminary Feasibility Study (the "Study") for the Company's Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, a state known for its prolific mining history and its booming technology industry, the Santa Cruz Copper Project is poised to become one of the nation's next major domestic producers of refined copper. The highly engineered Study confirms the strong economics of a high-quality, high-grade underground copper mining operation and heap leach processing facility supported by modern technologies. The NI 43-101 Technical Report co-filed in Canada will include the Study as a Feasibility Study as defined by the Canadian Institute of Mining, Metallurgy and Petroleum.

The Preliminary Feasibility Study, as prepared under United States regulatory requirements, provides the requisite engineering studies needed to pursue long-term project financing. Project financing efforts are already underway. Ivanhoe Electric is pursuing multiple avenues of funding, including support from United States government agencies, commercial lending institutions, and potential strategic partners at the asset level. On April 15, 2025, Ivanhoe Electric received a Letter of Interest from the Export-Import Bank of the United States outlining the potential to provide up to $825 million in debt financing with a 15-year repayment tenor under the Make More in America initiative (refer to Ivanhoe Electric's April 15, 2025 news release).

Mr. Friedland commented: "Given global conflicts that concern us all, the United States is now awake to the urgent national security imperative to restore domestic American mineral production to the scale of the American economy. Our government, industry, and defense establishment clearly recognize the paramount importance of having a secure, domestic supply of all critical minerals in the 21st century, including copper. The skillsets and government support required to mine copper, the king of metals, are the same skillsets required to mine any and all elements on the periodic table. Our Santa Cruz Copper Project is at the leading edge of this resurgence - as one of the first new copper mines that will be opened in the United States in a generation…right in the heart of Arizona - "the Copper State", with its burgeoning automotive, defense, and technology industries…including the likes of Lucid Motors and Taiwan Semiconductor Manufacturing Company. A simple Google search will show anyone there are over 1,250 aerospace and defense-related companies in the state of Arizona alone.

Santa Cruz will mine the largest high-grade copper oxide orebody in America…which will be processed onsite by a new generation of skilled and highly paid American workers. Santa Cruz will produce an LME Grade A 99.99% pure copper cathode product that will be ready for immediate sale to American industry from our mine gate. Our project will not process concentrate in antiquated, expensive and polluting smelters or ship copper concentrate back and forth across international borders for downstream processing. We will produce pure American copper mined and processed in America, and directly shipped from Arizona for use in American homes, factories and our national defense industry. Santa Cruz is the right project, in the right place, at the right time. Our progress to date could not have been achieved without the support of our long-term supportive investors, such as Saudi Arabia's Maaden and BHP, the world's largest mining company, and several of the world's top institutional investors who understand the urgent need for domestic copper production. This is what the American mineral industry and resurgence must look like - clean, secure, strategic, and ready to support American national security."

Mr. Melvin commented: "I am proud of the extraordinary work by our Santa Cruz Project team to complete our Preliminary Feasibility Study on time and on budget. We have assembled a dedicated team of talented mine engineers and underground specialists who have been critical in getting us to this point. Working together with our expert industry consultants, our team's tireless efforts have resulted in a highly engineered underground mine plan and a simplified heap-leach process design with low initial capital, low unit operating costs, and high copper recoveries. Our advanced Santa Cruz Project will provide high-paying jobs in Arizona and be a significant long-term U.S. producer of copper cathode to help meet domestic demand. We are fortunate to have such a high-quality copper asset on private land with excellent infrastructure in Arizona, a state with a rich mining history and a bright mining future."

Highlights of the Preliminary Feasibility Study

High-grade Mineral Reserves

Probable Mineral Reserves of 136 million tonnes at a grade of 1.08% copper totaling 1.5 million tonnes of contained copper supports a 23-year mine life

Large, Modern Underground Mining Operation with Simple Process Flowsheet

20,000 tonnes per day mining operation utilizing modern mining technology Conventional on/off heap leaching lowers operating costs and initial surface capital while yielding high copper recoveries of 92.2% over the life of mine and allowing spent ore to be utilized underground as paste backfill Average annual production of 72,000 tonnes of copper cathode during the first 15 years of mining

Low Project Capital Intensity and Unit Operating Costs Underpin Strong Economic Results

Initial project capital of $1.24 billion and a capital intensity of approximately $17,000 per tonne of copper1 Global first quartile2C1 cash costs of $1.32 per pound of copper over the life of mine, and lowest cost in America At the current COMEX copper price of $4.83 per pound, the after-tax net present value at an 8% discount rate is $1.9 billion with an internal rate of return of 24% At a base case of $4.25 per pound of copper, the after-tax net present value at an 8% discount rate is $1.4 billion with an internal rate of return of 20%

Clear Path to Development

This is the final technical study to support ongoing project financing discussions Private land and mineral rights enable streamlined permitting process Indicative development plan targets initial construction in first half of 2026 and first copper cathode production in 2028

High copper grades, high copper recoveries, low initial capital, and low operating costs give the Santa Cruz Copper Project attractive economics at prices well below today's COMEX copper price (Table 1).

Table 1. Life of mine copper price sensitivity

| Copper Price ($/pound) | Pre-tax | After-tax | | | | | | Life of Mine Free Cashflow ($ billon) | Net Present Value8% ($ billion) | Internal Rate of Return (%) | Life of Mine Free Cashflow ($ billion) | Net Present Value8% ($ billion) | Internal Rate of Return (%) | | | 3.75 | 4.73 | 1.29 | 17.8% | 3.85 | 0.91 | 16.3% | | 4.00 | 5.44 | 1.59 | 20.0% | 4.41 | 1.14 | 18.2% | | 4.25 (Base) | 6.15 | 1.88 | 22.0% | 4.96 | 1.38 | 20.0% | | 4.50 | 6.86 | 2.17 | 24.0% | 5.52 | 1.61 | 21.8% | | 4.75 | 7.56 | 2.47 | 26.0% | 6.07 | 1.84 | 23.5% | | 4.83 (COMEX Spot*) | 7.79 | 2.56 | 26.6% | 6.25 | 1.91 | 24.0% | | 5.00 | 8.27 | 2.76 | 27.9% | 6.63 | 2.07 | 25.2% |

*COMEX spot price of $4.83 per pound of copper as of June 20, 2025.

Details of the Preliminary Feasibility Study

The Preliminary Feasibility Study is a Highly Engineered Study Supported by Extensive Drilling, Metallurgical and Hydrogeological Testwork, and Trade-off Studies Involving Global Leaders in Mine Engineering

Since the 2023 Initial Assessment Study, Ivanhoe Electric has invested more than $100 million in new drilling, advanced testwork, and extensive engineering studies to produce the Preliminary Feasibility Study. The Study incorporates data gathered from an additional 149 drill holes totaling nearly 120,000 meters, more than 250 trade-off studies, and hundreds of hydrogeological and metallurgical tests. Since commencement of exploration at the Santa Cruz Copper Project in 2021, Ivanhoe Electric has completed 329 drill holes totaling 279,000 meters.

Fluor Canada Ltd. served as Project Lead for the Study and was also responsible for surface infrastructure and heap leach pads, working in close collaboration with Ivanhoe Electric's Project team of more than 40 engineers, geologists, and technicians. Other industry-leading consultants involved in major workstreams of the Study include BBA USA Inc. for resources, reserves, underground mine planning and economic analysis, KCB Consultants Ltd. for heap leaching, Paterson & Cooke USA, Ltd. for paste backfill, Met Engineering, LLC for metallurgical testing, and INTERA Incorporated for hydrogeology.

The Study summary results are presented below in Table 2. The Santa Cruz Copper Project compares favorably on a global scale in terms of C1 cash cost, and in terms of capital intensity when compared to North and South American greenfield copper projects (Figure 1 and Figure 2, respectively).

Table 2. Summary results

| Description | Units | Life of Mine | First 15 Years | | Production Data | | | | | Mine Life | Year | 23 | 15 | | Reserve Tonnes | Million tonnes | 136 | 106 | | Copper Grade | % | 1.08 | 1.10 | | Daily Throughput | Tonnes per day | 15,000 | 20,000 | | Annual Copper Production | Tonnes per year | 56,685 | 72,186 | | Total Copper Cathode Produced | Thousand tonnes | 1,360 | 1,083 | | Recovery | % | 92.2 | 92.4 | | Capital Costs | | | | | Initial Capital | $ million | 1,236 | - | | Sustaining Capital | $ million | 1,281 | 1,176 | | Unit Costs | | | | | Mining Cost | $ per tonne processed | 19.07 | 19.55 | | Processing Cost | $ per tonne processed | 7.31 | 7.02 | | General and Administrative Cost1 | $ per tonne processed | 3.04 | 3.03 | | Royalties | $ per tonne processed | 5.26 | 5.56 | | Total Operating Cost | $ per tonne processed | 34.68 | 35.16 | | Operating + Sustaining Cost | $ per tonne processed | 43.98 | 46.23 | | C1 Cash Cost | $ per pound of copper | 1.32 | 1.29 | | All-in-sustaining Cost | $ per pound of copper | 2.01 | 1.99 | | Financial Analysis | | | | | Copper Price | $ per pound | 4.25 | 4.25 | | Domestic Cathode Premium | $ per pound | 0.14 | 0.14 | | Pre-tax Free Cashflow | $ million | 6,148 | 4,501 | | Pre-tax Net Present Value8% | $ million | 1,880 | - | | Pre-tax Internal Rate of Return | % | 22.0 | - | | After-tax Free Cashflow | $ million | 4,961 | 3,637 | | After-tax Net Present Value8% | $ million | 1,376 | - | | After-tax Internal Rate of Return | % | 20.0 | - | | After-tax Payback Period2 | Year | 4.4 | - |

1. General and Administrative Cost inclusive of property tax. 2. After-tax payback period from the start of operations in 2029.

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Figure 1. Cash cost curve of global copper mines, highlighting United States operating mines

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Figure 2. Initial capital intensity compared to North and South American greenfield copper projects

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The Santa Cruz Copper Project is Located on 100%-owned Private Land in the Heart of America's Copper State

The Santa Cruz Copper Project is located approximately 40 miles southeast of Phoenix, Arizona in Casa Grande on nearly 6,000 acres of 100%-owned private land, including surface, mineral, and associated water rights necessary for the mining operation (Figure 3). Casa Grande is at the heart of a rapidly growing industrial corridor with readily available power and transportation infrastructure and a skilled local industrial workforce.

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Figure 3. Santa Cruz Copper Project location

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The planned site layout provides for a compact surface footprint of less than 2,600 acres, representing approximately 40% of the nearly 6,000 acres of private land 100% owned by Ivanhoe Electric at the Santa Cruz Copper Project.

The site layout provides sufficient space for future expansion opportunities.

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Figure 4. Planned site layout

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High-Grade Oxide and Chalcocite Mineral Reserves Amenable to Heap Leaching Support a 23-Year Mine Life

The Study includes an initial Mineral Reserve Estimate for the Santa Cruz Copper Project, including Probable Reserves for the Santa Cruz and East Ridge Deposits. Stope shapes were created based on mineralized zone geometry and optimized based on economic prospectivity and geotechnical parameters specific to the rock type, the orebody orientation, and the mining sequence. Recovery and dilution factors were applied to calculate the final tonnes and grade of the reserve.

Probable Reserves of 136 million tonnes at a 1.08% total copper grade, totaling 1.5 million tonnes of contained copper were calculated (Figure 5). Only high-grade copper mineralization from the Oxide and Chalcocite domains of the Santa Cruz and East Ridge Deposits, highly amenable to the heap leaching flowsheet, comprises the current Mineral Reserves.

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Figure 5. Santa Cruz Copper Project Mineral Reserves and mine infrastructure

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Table 3. Santa Cruz Copper Project Mineral Reserves summary

| Deposit | Classification | Tonnes (thousand tonnes) | Total Copper (%) | Contained Copper (thousand tonnes) | | Santa Cruz | Probable | 132,061 | 1.08 | 1,430 | | East Ridge | Probable | 4,112 | 1.03 | 42 | | Total | Probable | 136,173 | 1.08 | 1,472 |

Notes: 1. The mineral reserves in this estimate are current to June 23, 2025 and were independently prepared, including estimation and classification, by BBA USA Inc. They are reported in accordance with the definitions for mineral reserves in S-K 1300. 2.The point of reference for the estimate is the point of delivery to the process facilities. 3.The mineral reserves for the Santa Cruz and East Ridge deposits were completed using Deswik mining software. Mineral reserves are defined within stope designs that are prescribed by rock mechanics, considering the specific characteristics of deposits, mineral domains, mining methods, and the mining sequence. Transverse longhole stoping is the optimal mining method with uppers and cut & fill methods used where appropriate. Mining will occur in blocks, extracting ore from the bottom upwards, with paste backfill providing ground support to sustain a production rate of 20,000 tonnes per day for the first 15 years of operation. 4.Mineral reserves are estimated at an NSR cutoff value of $43.95/t for longhole stoping and $60/t for longitudinal retreat stopes and drift and fill. The NSR values reflect the discrete metallurgical responses for each mineral reserve block using metallurgical recoveries for heap leach of 96% for acid soluble copper, 83% for cyanide soluble copper, 22% for residual copper. Underground mineable shapes optimization parameters include a long-term copper price of US$4.00/lb. 5.Mineral reserves account for mining loss and dilution. 6.Mineral reserves are a subset of the indicated mineral resource and do not include the inferred mineral resource. 7. Rounding, as required by the guidelines, may result in apparent summation differences between tonnes, grade, and contained metal content.

Simplified Design and the Use of Modern Mining Technologies Contribute to a Faster Development Timeline, Targeting First Copper Cathode Production in 2028 and Ramp-up to Full Production From 2029

The Project's Mineral Reserves will be accessed by conventional twin decline drifts. The Study design includes the use of roadheader technology to construct the declines, measuring approximately 8 kilometers in combined length. Main intake and exhaust raises will be developed using blindbore shaft sinking to supply ventilation to the mine workings (Figure 6 and Figure 7).

The underground mine will utilize the latest mining equipment, including a tele-remote-operated electric fleet, mine telemetry, and grade control technologies. Underground mining will primarily use longhole stoping and local drift-and-fill, totaling approximately 201 kilometers of stope cuts completed across 16 main levels. Hydrogeological mitigation strategies during decline development and mining include grouting, hydrostatic lining, and silica gel injection. Groundwater modelling and mitigation result in residual passive inflow rates ranging from approximately 6,000 to 8,000 gallons per minute during peak mining periods.

Throughput will steadily increase from the start of production onward to achieve an average of 20,000 tonnes per day, producing an annual average of 72,000 tonnes of copper cathode over the first 15 years of the mine life (Figure 8).

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Figure 6. Santa Cruz Copper Project underground mine design, orthogonal view

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Figure 7. Santa Cruz Copper Project underground mine design, long-section

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Figure 8. Santa Cruz Copper Project production profile

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Study Supports High-Grade Heap Leach Operation that will Produce Pure Copper Cathode for United States' Consumption

Data analysis and trade-off studies related to the extensive drilling and associated metallurgical, hydrogeological, and geotechnical studies identified the material benefits of using a conventional chloride-assisted on/off heap leaching flowsheet to produce copper cathode. A simple leaching operation reduces surface processing and ramp-up complexities while maintaining the ability to balance mine feed. Heap leaching also lowers surface initial and sustaining capital and lowers operating costs, which in turn enhances Mineral Reserves.

Mined ore will be brought to the surface and processed through a conventional chloride-assisted on/off-heap leach process to produce copper cathode through solvent extraction and electrowinning (Figure 9). The high-grade nature of the Santa Cruz and East Ridge orebodies enables high copper recoveries averaging 92.2% over the life of mine, with low sulfuric acid consumption of 6 kilograms per tonne of treated ore. Up to 50% of the spent ore will be converted into paste and used as backfill underground.