Ivanhoe Electric Subsidiary Cordoba Minerals Announces Closing of Milestone Agreement with JCHX for Joint Development of the Alacran Copper Project in Colombia

JCHX Acquires 50% of Cordoba's Alacran Project for US$100 Million

Cordoba to Repay US$17.3 Million in Short-Term Loans to Ivanhoe Electric

PHOENIX, AZ / ACCESSWIRE / May 8, 2023 / Ivanhoe Electric (NYSE American:IE)(TSX:IE) Executive Chairman, Robert Friedland and President and Chief Executive Officer, Taylor Melvin are pleased to announce that Ivanhoe Electric's subsidiary, Cordoba Minerals Corp. (TSXV:CDB)(OTCQB:CDBMF) ("Cordoba") and JCHX Mining Management Co., Ltd. ("JCHX") have closed their strategic arrangement as previously described in Ivanhoe Electric's December 8, 2022 news release for the joint development of Cordoba's flagship Alacran Project in Colombia. Ivanhoe Electric currently owns 63.3% of Cordoba.

With a portion of the cash proceeds from the initial installment paid by JCHX, Cordoba will immediately repay all outstanding short-term loans previously provided by Ivanhoe Electric. The total repayment is approximately US$17.3 million including accrued interest. Ivanhoe Electric intends to use a portion of the loan repayment proceeds to fund the initial exploration drilling program at its Tintic Copper-Gold-Silver Project in Utah, which is expected to commence in May.

Cordoba plans to use the balance of cash proceeds from the JCHX acquisition to advance the technical work program associated with the Feasibility Study for the Alacran Copper Project. Additional details are provided in Cordoba's news release.

JCHX Payment Schedule

JCHX has acquired a 50% ownership in the Alacran Project for US$100 million payable in three installments. The initial cash installment of US$40 million has been paid by JCHX upon closing.

The second installment of US$40 million is payable in cash by JCHX at the earliest date upon completion of a Feasibility Study for the Alacran Project and the submission of the Environmental Impact Assessment ("EIA") or, at the latest, by the second anniversary of the closing of the transaction.

The third and final installment of US$20 million is payable in cash by JCHX once the approval of the EIA is obtained, which must be within two years of the transaction's closing date. Should the EIA not be approved by the second anniversary of the closing date, JCHX will have the option to elect not to complete this third and final installment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority of 60% ownership of the Alacran Project.

About Ivanhoe Electric

Ivanhoe Electric is an American technology and mineral exploration company that is re-inventing 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 de-risk 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.

Contact Information

Investors: Valerie Kimball, Director, Investor Relations 720-933-1150

Forward-looking statements

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance and results and speak only as of the date of this release.

Such statements include without limitation, statements with respect to the transactions with JCHX, the use of proceeds by Cordoba from the transactions, timing of repayment of the short term loans owing to Ivanhoe Electric, Ivanhoe Electric's use of the loan repayment from Cordoba, and the benefits of the transactions.

Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management, including those provided to it by the management of Cordoba. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including changes in the prices of gold, copper or silver or other metals that Ivanhoe Electric or Cordoba is exploring for; assumptions with respect to the status of community relations and the security situation on site and in Colombia; general business and economic conditions; continuity of drilling programs; the supply and demand for, inventories of, and the level and volatility of the prices of metals; relationships with strategic partners and significant shareholders including JCHX; the timing and receipt of governmental permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political factors; the accuracy of Ivanhoe Electric's interpretation of Cordoba's drill results; the geology, grade and continuity of Cordoba's mineral deposits; the availability of equipment, skilled labor and services needed for the exploration and development of mineral properties; currency fluctuations; and impact of the COVID-19 pandemic and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements described in Ivanhoe Electric's registration statement on Form S-1, as amended, filed with the U.S. Securities and Exchange Commission and base PREP prospectus filed with Canadian securities commissions.

No assurance can be given that such future results will be achieved by Ivanhoe Electric or Cordoba. Forward-looking statements speak only as of the date of this press release. Ivanhoe Electric cautions you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release, and Ivanhoe Electric expressly disclaims any requirement to do so.

SOURCE: Ivanhoe Electric Inc.