Rio Tinto To Exercise Remaining Ivanhoe Warrants

Rio Tinto PLC (RIO.LN), the international mining group headquartered in the U.K., Tuesday announced that it has given notice to Ivanhoe Mines Ltd that it is exercising its remaining warrants, which will increase its ownership of Ivanhoe shares from 42.0 per cent to 46.5 per cent.

MAIN FACTS:

-Under Rio Tinto's agreement with Ivanhoe in December 2010, Rio Tinto agreed to exercise its remaining warrants for the ongoing development of the Oyu Tolgoi project by no later than January 2012.

-The remaining warrants entitle Rio Tinto to acquire 55,122,253 shares at an average subscription price of approximately $9.10 per share, for total consideration of approximately $502 million.

-Rio Tinto's increased ownership will permit it to nominate an additional director to Ivanhoe's board which will increase Rio Tinto-nominated directors from six to seven out of a total of 14.

-Rio Tinto can increase its ownership in Ivanhoe to 49 per cent on or before January 18, 2012 including by the exercise of its subscription right to acquire shares from Ivanhoe, and the right to acquire additional Ivanhoe securities from Ivanhoe and Robert Friedland in certain circumstances.

-If Rio Tinto were to fully exercise its subscription right, it would own approximately 48.5 per cent of Ivanhoe's outstanding shares.

-Depending upon its assessment of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions, and other factors, Rio Tinto will consider availing itself of its rights to acquire additional securities of Ivanhoe.

-Shares at 1040 GMT up 1.65% at GBP41.63 valuing the company at GBP62.27 billion.

-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314; jana.weigand@dowjones.com

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