Name and Location
Oyu Tolgoi copper/silver/gold complex, Southern Gobi region, Mongolia.

Client
Turquoise Hill/Rio Tinto (66%) and Erdenes Oyu Tolgoi (34%).

Project Description
Oyu Tolgoi has the mineral resources to become one of the world’s top three copper/gold producers. The project entails the construction and operation of an initial concentrator facility that will process 100 000 t/d of ore (36.5-million tons a year). By the end of the fifth year of operation, the concentrator ‘s capacity will be expanded to 160 000 t/d (58-million tons a year).

Under the common start-up plan, ore will initially be sourced from the openpit mine on the Southern Oyu deposits, while the adjacent higher-grade underground mine on the Hugo North deposit will be developed to full production of 85 000 t/d.

The mine is expected to produce more than 1.2-billion pounds (544 000 t) of copper, three-million ounces of silver and 650 000 oz/y of gold in the first ten years of operation. Seven years later, at its peak, it is expected to produce about 1.7-billion pounds of copper and one-million ounces of gold.

Value
The final cost of the Phase 1 capital project is expected to be about $6-billion, within 3% of the initial budget, excluding foreign-exchange exposures.

First ore was processed through the concentrator on January 2, 2013, and the production of first copper/gold concentrate followed on January 31, 2013.

Duration
Commercial production from the openpit operation is planned for the first half of 2013, while initial production from the underground mine is expected in 2016.

Latest Developments
Construction of Oyo Tolgoi’s first phase of development reached 99% completion at the end of 2012.

Total capital investment in the construction of the first phase of the mine to the end of 2012 was about $6-billion.

Meanwhile, several substantive issues have recently been raised by the government of Mongolia relating to the implementation of the investment agreement, the companion shareholders’ agreement and project finance. Turquoise Hill continues to engage the government and other stakeholders to ensure the continued implementation of the relevant agreements in their current form and to support the ongoing development of Oyu Tolgoi for the benefit of all parties.

Subject to the resolution of these issues, first commercial production at Oyu Tolgoi is scheduled to start by the end of June 2013.

The feasibility study for the expansion of operations at the mine is ongoing and is currently expected to be completed in the first half of 2014, as the company continues to pursue value engineering and optimisation.

Key Contracts and Suppliers
Fluor Corporation (project management), Amec (feasibility study for Lift 1 of the Hugo North underground block-cave operation), RSV Enco Consulting (shaft engineering); AC-Tek (dynamic simulation of underground conveyors) and Analytical Laboratory Consultants (laboratory service design on the project).

On Budget and on Time?
The project is on track to begin commercial production in the first half of 2013.

Contact Details for Project Information
Oyu Tolgoi, tel +976 11 331880, fax +976 11 331890 or email OTLLCinfo@ot.mn.
Turquoise Hill Resources media contact Tony Shaffer, tel +1 604 648 3934 or email tony.shaffer@turquoisehill.com.
SGS manager on-site laboratories Pierrette Prince, tel +1 416 445 5755, fax +1 416 445 4152 or email pierrette.prince@sgs.