December 19, 2003

News Release: Ivanhoe Mines closes US$115 million financing

Ivanhoe Mines'Chairman Robert Friedland and Deputy Chairman Ed Flood announced today that the company has closed its bought-deal financing for gross proceeds totalling approximately US$115 million (approximately CDN$150 million).

The financing was arranged by a syndicate of underwriters to issue to the public, on a bought-deal basis, 12,500,000 units from treasury at a price of CDN$10.50 per unit - for gross proceeds of CDN$131,250,000. As well, the underwriters exercised their over-allotment option to acquire an additional 1,800,000 units at the offering price, for additional gross proceeds to Ivanhoe of CDN$18,900,000. Each unit consists of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for a period of two years, with an exercise price of CDN$12.00 per share during the first year and CDN$12.50 per share during the second year.

These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO.

Forward-Looking Statements: Statements in this release that are forward- looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading 'Risk Factors'and elsewhere in the corporation's periodic filings with Canadian and Australian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.

For further information: Investors: Bill Trenaman: (604) 688-5755; Media: Bob Williamson: (604) 688- 5755

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