OYU TOLGOI RELEASES Q4 2022 PERFORMANCE RESULTS

• Prioritised the safety and well-being of employees, contractors and local communities
• Maintained the highest water use efficiency per tonne of ore production compared to similar global operations
• Paid US$314 million in taxes, fees and other payments in 2022
• Completed the firing of 19 drawbells in the Underground mine
• Awarded the Best Enterprise of the year – Grand Prix
• Met the annual production guidance for copper and gold in concentrate
• Accelerated the preparation for the underground mine production

Ulaanbaatar, Mongolia – Oyu Tolgoi released its latest performance scorecard, highlighting key performance metrics for the fourth quarter of 2022 and providing an update on the underground development.

In 2022, Oyu Tolgoi continued to make a significant contribution to the Mongolian economy, delivering superior results from our surface operations and progressing the underground mine development following the undercut commencement in January 2022.

At the end of the year, the Mongolian National Chamber of Commerce and Industry announced the outstanding companies, organisations and entrepreneurs contributing to Mongolia’s social and economic development during the annual Entrepreneur-2022 award ceremony, naming Oyu Tolgoi as The Best enterprise of the year – Grand Prix. We have contributed US$15 billion or MNT34 trillion of in-country spend since 2010, of which 75% was on domestic procurement with Mongolian suppliers at the end of 2022.

Oyu Tolgoi’s acting CEO Jacques van Tonder said, “ I am proud of our miners who are building a world-class mining operation in Mongolia’s South Gobi and what we have achieved during this unprecedented time. Our teams performed safely and sustainably with strong numbers achieved every month.

As the nation moved to the new norm in early 2022, we commenced our underground mine in January. This was truly a remarkable experience and a magnificent milestone to achieve. We continued making substantial progress and fired our first drawbell in June. Since then, we have fired 19 drawbells to date and to think back and reflect how we achieved this is nothing short of a miracle. We also strongly supported the Billion Tree Project initiated by the President of Mongolia and planted around 50,000 thousand trees in UB, Umnugovi and at site. We also made significant progress on the “Khanbogd Soum Development Plan 2040”. Part of that was the newly built apartment complex in Khabogd soum.”

Operational Excellence

• Prioritised safety above all else and achieved an All Injury Frequency Rate (AIFR) of 0.19 per 200,000 people/hours worked.
• Oyu Tolgoi is recognised as one of the most efficient copper operations with regard to water use, averaging 0.4m3 per tonne of ore processed. The mining and processing operation is designed to have zero discharge and recycles as much water as possible, maintaining greater than 85% recycling rates. We will be consulting with local, national and other stakeholders as we develop a strategy designed to improve our operational water use, as well as working with the local and national stakeholders to deal with water issues through partnership and in a sustainable way.
• 97% of Oyu Tolgoi’s workforce are Mongolian citizens.
• Paid US$314 million or MNT980 billion in the form of taxes, fees and other payments to the Government of Mongolia. Since 2010, Oyu Tolgoi has paid US$4 billion or MNT8.8 trillion in taxes, fees and other payments, including VAT to Mongolian suppliers.
• Partnered with 863 suppliers, including 567 national businesses, accounting for 75% of the total operations procurement spend.
• Q4 2022 Performance Scorecard can be viewed here.

Production update

Mined copper production from the open pit was 17% lower than the fourth quarter of 2021 due to lower copper grades and recoveries as a result of planned mine sequencing. Gold grades were significantly lower than the fourth quarter of the prior year (0.21g/t vs 0.38g/t), due to the mine sequence.

Oyu Tolgoi Production Data

All data represents full production and sales on a 100% basis

Technical progress