Robert Friedland Files Early Warning Report
Singapore, September 19, 2018 - This news release is issued by Robert Friedland pursuant to the early warning requirements of Canada's National Instrument 62-104 and National Instrument 62-103 with respect to common shares of Ivanhoe Mines Ltd. ("Ivanhoe Mines").
Mr. Friedland's controlled affiliate, Newstar Advantage Ltd. ("Newstar"), had previously pledged as security 121,639,343 class A Ivanhoe Mines common shares (the "Pledged Shares"), which constitutes 12.0% of the 1,010,163,164 common shares of Ivanhoe Mines currently issued and outstanding. The Pledged Shares have now been released to Newstar and Newstar is now the registered and beneficial owner of 135,335,035 common shares. Additionally, Mr. Friedland directly owns 33,664,672 common shares, which, together with Newstar's common shares, total 168,999,707 common shares, representing approximately 16.7% of the common shares currently issued and outstanding. Mr. Friedland also may be deemed to own 3,800,000 common shares issuable on exercise of previously granted options, and as a result, may be deemed to own, in aggregate, 172,799,707 common shares, representing approximately 17.0% of the 1,013,963,164 common shares then issued and outstanding on a non-diluted basis.
The Pledged Shares were pledged as security for a limited recourse guarantee made by Newstar in favour of CITIC Metal Group Limited ("CITIC Metal"). The limited recourse guarantee was terminated on September 19, 2018 and the security over the Pledged Shares was released, with control returned to Newstar.
Mr. Friedland and CITIC Metal have entered into reciprocal standstill agreements that prevent either of them from increasing their ownership stake in Ivanhoe Mines to more than 19.9% until January 8, 2022. In addition, CITIC Metal and Mr. Friedland have entered into a reciprocal disposition and tag-along agreement by which each has agreed not to dispose of any common shares until January 8, 2022 without first offering the other party the right to find a buyer for the shares, except pursuant to Ivanhoe Mines' board-of-director-approved take-overs or arrangements, non-pre-arranged transfers over the Toronto Stock Exchange, and other limited exceptions.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder, please go to Ivanhoe Mines' profile on the SEDAR website (www.sedar.com), or contact Penny Schattenkirk at 604.689.8765. Ivanhoe Mines has an office c/o 654-999 Canada Place, Vancouver, British Columbia, Canada, V6C 3E1.