Ivanhoe Electric (IE) Status update summary

Acquisition and deployment of tunnel boring machine

• Intends to acquire a purpose-built Robbins Crossover XRE TBM and material handling system for mine access at the Santa Cruz Copper Project, enhancing safety and efficiency through mechanized tunneling.

• The TBM, previously used at the Grosvenor coal mine, is suited for variable ground conditions and will be overhauled and upgraded for the project.

• Ownership of the TBM enables future expansion, including access to the nearby Texaco Deposit, which has significant inferred copper resources.

Technical and operational benefits

• The TBM can handle hard rock, wet, and mixed-face ground, reducing cost, schedule, and safety risks by eliminating the need for machine swaps.

• Features include earth pressure balance, bi-directional cutterhead, and a high-torque drive system for challenging geology.

• Installs a continuous, steel-reinforced concrete lining and integrates a permanent conveyor system for efficient material handling.

Project timeline and capital impact

• Acquisition and refurbishment cost is approximately $64.7 million, with a net capital impact of less than $20 million compared to previous plans.

• TBM arrival and assembly expected in Q1 2027, decline development to start Q3 2027, and first copper cathode production anticipated in Q2 2029.

• Permitting requirements are reduced, and all necessary permits for initial construction are in place.