Preliminary Feasibility Study For Santa Cruz Copper Project

PHOENIX, AZ - Ivanhoe Electric Inc. announced the completion of the Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, the Santa Cruz Copper Project is poised to become a major domestic producer of refined copper. The 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.

Highlights of the Preliminary Feasibility Study: 1) High-grade Mineral Reserves. 2) 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. 3) Large, Modern Underground Mining Operation with Simple Process Flowsheet. 4) 20,000 tonnes per day mining operation utilizing modern mining technology. 5) 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. 6) 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: 1) Initial project capital of $1.24 billion and a capital intensity of approximately $17,000 per tonne of copper. 2) Global first quartile2 C1 cash costs of $1.32 per pound of copper over the life of mine, and lowest cost in America. 3) 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%. 4) 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: 1) This is the final technical study to support ongoing project financing discussions. 2) Private land and mineral rights enable streamlined permitting process. 3) Indicative development plan targets initial construction in first half of 2026 and first copper cathode production in 2028.