Oyu Tolgoi LLC The proposed project (the Project) is a $12 billion investment to develop a copper and gold mine at Oyu Tolgoi in the Southern Gobi region, Mongolia. The Project owner and developer is a Mongolian company, Oyu Tolgoi LLC (the Company) indirectly owned 66% by Ivanhoe Mines Ltd  (Ivanhoe),  a Canadian public company listed on the Toronto Stock Exchange and 34% by Erdenes Oyu Tolgoi LLC, a Mongolian State owned company. The deposit, which was acquired by Ivanhoe from BHP Billiton in 2000, consists of a near surface (Southern Oyu) copper/gold orebody together with a high grade deposit (Hugo North) suitable for underground mining discovered in 2002. With resources of almost 80 billion pounds of copper and 45 million ounces of gold, Oyu Tolgoi is one of the worlds largest known copper/gold deposits.   The Project is being developed in phases starting with construction of a copper concentrator and associated infrastructure to support production of 100,000 tonnes per day of ore, to be sourced predominantly from the Southern Oyu open pit mine development. In parallel underground infrastructure and mine development is ongoing for the Hugo North deposit. Commercial operations from the initial open pit mining development are expected to start in mid-2013. Underground production from Hugo North is expected to commence in 2016. A potential expansion of concentrator capacity (subject to required regulatory approvals and the identification and permitting of additional water resources) to 160,000 tonnes per day of ore, is currently being studied.  Mine output, in the form of copper concentrate, will be trucked along a dedicated new road to the China border, to reach the Companys primary target market of Chinese copper smelters.  Power for the initial years of operations will be sourced from China, to be replaced by an on-site captive coal fired plant, which is currently in the advanced planning phase, with initial earth site work expected to start in Spring 2013. Macro-economic impacts:  The Oyu Tolgoi project is expected to make a significant contribution to Mongolia''s economic growth, increasing GDP by more than 30% at full production and providing a catalyst for additional private sector investment in Mongolia''s fast growing mining sector.   Fiscal impact: The Project is expected to generate significant revenue streams to the Mongolian Government. In addition to a 34% equity stake, the Government will receive: (i) a royalty of 5% of sales for the life of the mine; (ii) taxes on profits; (iii) other taxes and duties, including customs duties, value added, excise and immovable property/real estate taxes and payments for mining licenses; (iv) dividends on its equity ownership stake.    Employment: At peak construction the Project employs 14,800 workers, of whom 10,000 are Mongolians.  During operations the Company is expected to have 3,500 direct employees, of whom 90% will be Mongolian. The Project is also expected to generate significant indirect employment in the supply chain including service companies, construction, mining equipment contractors, transport and maintenance operations.  Regional impacts: The Project is expected to be a catalyst for investment in infrastructure including housing for company employees, utilities and services in the the Khanbogd soum and regional cities. The Project will also develop the road, air transport and and electric grid in the South Gobi region and will provide investment and support for university education and vocational training for mining and technical graduates across Mongolia.