Press release: Oyu Tolgoi announces production of first batch of copper concentrate

– Mining partnership with Government of Mongolia reaches major project milestone –

Ulaanbaatar, Mongolia – Oyu Tolgoi President and CEO Cameron McRae announced today that the Oyu Tolgoi Copper Concentrator produced its first batch of concentrate on schedule just one month after its commissioning. Mr.McRae noted “This is a big milestone for the project. We commissioned the concentrator, the largest and most technologically advanced machine ever built in Mongolia, on 27 December and have now produced the first concentrate.”

This initial batch of concentrate is a major indicator that Oyu Tolgoi is on track in its operational plan to ramp up production in the first half of 2013.

“Mongolia is expected to have the highest recorded growth in its economy this year, and most of this will be a direct result of Oyu Tolgoi concentrate production” he added. The ore for the concentrator is currently being harvested from Oyu Tolgoi’s Open Pit mine, which began producing raw ore earlier last year.

Future expansion of Oyu Tolgoi’s production capability will be driven primarily by the underground operations which will employ advanced ‘block-cave’ mining systems. Eighty percent of Oyu Tolgoi’s total value will come from the underground mine. Processing of ore harvested from underground efforts is scheduled for 2016. Two shafts and 12 kilometres of lateral tunnel are currently in development.

About Oyu Tolgoi LLC (http://ot.mn/en)

Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company and is a strategic partnership between the Government of Mongolia (34 per cent stake), Turquoise Hill Resources (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Turquoise Hill Resources and the manager of the Oyu Tolgoi project. In addition to dividends from its 34 per cent stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.

Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for phase 1 of more than US$6 billion.

Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$58 million dollars (78 billion MNT) in training and education and an additional US$27 million dollars (36 billion MNT) in the Workforce Employment Project designed to help address the general skills shortage in Mongolia

Oyu Tolgoi's key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project's shareholders and the people of Mongolia.

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