Rio Tinto Buys 40,083,206 Shares In Ivanhoe Mines

Rio Tinto PLC (RIO.LN), an international mining group, confirmed Monday that it has acquired 40,083,206 common shares of Ivanhoe Mines, increasing its ownership by 5.3% to 34.9% of Ivanhoe Mines' outstanding common shares.

MAIN FACTS:

-The common shares were acquired in accordance with the terms of the $350 million convertible credit facility Rio Tinto made available to Ivanhoe Mines Ltd. in 2007 which was fully drawn down by mid-2008 and which matured Monday.

-The outstanding principal and accrued interest ($400,832,056) under the credit facility automatically converted on maturity into common shares of Ivanhoe Mines at a price of $10.00 per share.

-Rio Tinto now owns 184,747,856 common shares of Ivanhoe Mines.

-If Rio Tinto were to exercise all of its share purchase warrants it would own 267,214,784 common shares of Ivanhoe Mines representing an interest in Ivanhoe of around 44%.

-Rio Tinto has the right at any time to exercise its remaining share purchase warrants into common shares of Ivanhoe.

-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.

-Rio Tinto shares at 1338 GMT up 75.0 pence, or 2.1%, at 3605.0 pence.

By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com

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