Singapore, 31 march 2010

Finalisation of the landmark Investment Agreement between the Mongolian Government, Rio Tinto and Oyu Tolgoi LLC, the Mongolian subsidiary of Ivanhoe Mines Ltd. Rio Tinto announces satisfaction of Conditions Precedent to the Investment Agreement with the Government of Mongolia for the development of Oyu Tolgoi.

Rio Tinto confirmed today the satisfaction of the conditions precedent to the Investment Agreement with the Government of Mongolia for the development of the Oyu Tolgoi copper-gold complex in Mongolia's South Gobi region. The Investment Agreement has now taken full and binding effect.

Under the terms of the Investment Agreement and associated Shareholders' Agreement, the Government of Mongolia will own 34% of OT LLC, the license holder of the Oyu Tolgoi project. Key terms include a stable operational and tax environment, provisions dealing with the Government's equity participation and financing arrangements.

Rio Tinto and Ivanhoe Mines Ltd, the development partners for the project, will now move forward with the Government of Mongolia to commence the development phase of the project. Production is expected to commence in 2013, with a five year ramp up to full expected production of 450,000 tonnes of copper per year with significant gold by-products. While projections remain to be confirmed in an updated development plan, Ivanhoe estimates total investment over the next four years to build and commission the initial mining complex will be approximately US$4 billion (100% basis). Building a coal-powered electricity generating plant for Oyu Tolgoi would require an additional capital commitment.

Andrew Harding, chief executive, Copper, Rio Tinto said "The completion of the Investment Agreement with the Government of Mongolia underlines a key milestone for the Oyu Tolgoi deposit. We plan to be a partner in Mongolia for decades to come and are looking forward to moving into the development phase of the project."

Rio Tinto currently owns 98.6 million shares of Ivanhoe Mines representing 22.4 per cent of Ivanhoe Mines. Pursuant to certain existing contractual arrangements between Rio Tinto and Ivanhoe Mines, Rio Tinto has the right at any time to exercise its share purchase warrants and/or convert its convertible loan into shares of Ivanhoe Mines. Rio Tinto also has, among other things, the right to acquire additional securities so as to maintain its proportional equity interest in Ivanhoe Mines, and the right to acquire additional Ivanhoe Mines securities in certain other circumstances and subject to certain limits.

Greg Crowe, President and CEO of Entrée Gold stated: “This historic agreement marks the beginning of a new era in Mongolia.  The construction and operations for the Oyu Tolgoi mining complex, which includes the Entrée-Ivanhoe Joint Venture Property, are important to the future economic development of the country.  A project of this magnitude will create thousands of jobs, both directly and indirectly, for the Mongolian people and provide stability for years to come.  Settling this agreement is the next step necessary to access the riches of this exceptional copper-gold deposit for the benefit of Mongolia and the stakeholders that have been long term supporters of this project.”

Entrée is expected to benefit from the stability provided by this agreement, which has a term of 30 years with a possible 20 year extension, throughout the construction and development of this world class project in conjunction with its partners, Rio Tinto and Ivanhoe Mines.

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