Singapore, Singapore--(Newsfile Corp. - August 9, 2018) - This news release is issued by Robert Friedland pursuant to the early warning requirements of Canada's National Instrument 62-104 and National Instrument 62-103 with respect to common shares of Ivanhoe Mines Ltd. ("Ivanhoe Mines").
Mr. Friedland's controlled affiliate, Newstar Advantage Ltd. ("Newstar"), has pledged as security 121,639,343 class A Ivanhoe Mines common shares ("common shares"), which constitutes 15.4% of the 791,808,589 common shares currently issued and outstanding of Ivanhoe Mines. Newstar continues to be the registered owner of 135,335,035 common shares (which includes the pledged common shares) and Mr. Friedland continues to directly own 33,664,672 common shares, which in aggregate total 168,999,707 common shares, representing in aggregate approximately 21.3% of the common shares currently issued and outstanding. Mr. Friedland also may be deemed to own 3,800,000 common shares issuable on exercise of previously granted options, and as a result may be deemed to own, in aggregate, 172,799,707 common shares, representing approximately 21.7% of the 795,608,589 common shares then issued and outstanding on a non-diluted basis.
The 121,639,343 common shares have been pledged as security for a limited recourse guarantee made by Newstar in favour of CITIC Metal Group Limited ("CITIC Metal"). The limited recourse guarantee provides a guarantee of the obligations of Ivanhoe Mines under a Term Loan Facility Agreement dated July 12, 2018 between Ivanhoe Mines and CITIC Metal, pursuant to which Ivanhoe Mines has drawn the full US$100 million available and received the funds on August 8, 2018. The shares have been pledged pursuant to a Share Pledge Agreement dated August 6, 2018 between Newstar and CITIC Metal. CITIC Metal exercises control over the pledged shares to the extent permitted by that agreement. CITIC Metal has no rights to vote or dispose of any of the pledged common shares until such time as the pledge has been realized following a default under the Term Loan Facility Agreement.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder, please go to Ivanhoe Mines' profile on the SEDAR website (www.sedar.com), or contact Penny Schattenkirk at (604) 689-8765. Ivanhoe Mines has an office c/o 654-999 Canada Place, Vancouver, British Columbia, Canada, V6C 3E1.