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Press release

Oyu Tolgoi announces Q3 2016 production update

Ulaanbaatar, Mongolia,

Oyu Tolgoi today announced an update on its production for the third quarter of 2016.

Oyu Tolgoi continued to deliver solid safety performance over the past quarter, achieving record material mined over the quarter crossing 25 million tonnes and delivering continuing progress with underground development - including award of critical contracts.

Safety continues to be a major focus throughout Oyu Tolgoi’s operations and the mine’s management is committed to reducing risk and injury. Oyu Tolgoi achieved an excellent safety performance with an All Injury Frequency Rate of 0.13 per 200,000 hours worked for the nine months ended September 30, 2016.

Oyu Tolgoi set an all-time high in Q3’16 for quarterly material movement of more than 25 million tonnes. This record includes stripping for Phase 4, which is the next area of high-grade ore. In Q3’16, concentrator throughput declined 4.0 per cent over Q2’16 due to planned maintenance and conveyor belt repairs. Copper production in Q3’16 declined 9.9 per cent over Q2’16, as a result of lower recovery from Phase 6 ore. As expected, gold production in Q3’16 declined 47.1 per cent over Q2’16 due to lower grades from the completion of mining Phase 2.

Good progress continues with underground development. During Q3’16, work began for Shaft 5 sinking and the convey-to-surface box cut excavation while construction of critical on-site facilities continued. Oyu Tolgoi recently signed an additional underground mining and support services contract with Dayan Contract Mining, a joint venture between Hasu Megawatt and Redpath, for the sinking of Shafts 2 and 5. At the end of Q3’16, the underground workforce was approximately 1,600 people and is expected to reach 2,400 people by the end of 2016.

Turquoise Hill Resources continues to expect Oyu Tolgoi to produce 175,000 to 195,000 tonnes of copper in concentrates and 255,000 to 285,000 ounces of gold in concentrates for 2016.

Oyu Tolgoi Production Data

All data represents full production and sales on a 100 per cent basis

3Q

2015

4Q

2015

1Q

2016

2Q

2016

3Q

2016

9 months

2015

9 months

2016

Full Year

2015

Open pit material mined (‘000 tonnes)

23,969

23,708

22,867

22,716

25,739

68,063

71,322

91,771

Ore treated (‘000 tonnes)

8,632

9,369

9,662

9,525

9,146

25,168

28,333

34,537

Average mill head grades:

Copper (%)

0.75

0.69

0.70

0.64

0.66

0.66

0.67

0.67

Gold (g/t)

0.56

0.92

0.63

0.33

0.21

0.73

0.39

0.78

Silver (g/t)

1.90

1.67

1.92

1.92

1.99

1.52

1.95

1.56

Concentrates produced (‘000 tonnes)

210.3

231.8

229.5

207.1

203.2

556.7

639.8

788.5

Average concentrate grade (% Cu)

26.6

24.7

25.1

24.9

22.9

26.0

24.4

25.6

Production of metals in concentrates:

Copper (‘000 tonnes)

56.0

57.3

57.6

51.7

46.6

144.9

155.9

202.2

Gold (‘000 ounces)

123

207

144

70

37

446

251

653

Silver (‘000 ounces)

388

355

395

391

361

869

1,147

1,223

Concentrate sold (‘000 tonnes)

226.0

236.2

213.1

227.4

206.2

583.5

646.6

819.8

Sales of metals in concentrates:

Copper (‘000 tonnes)

58.2

54.7

51.2

54.4

45.7

146.5

151.3

201.3

Gold (‘000 ounces)

200

160

175

95

38

577

307

737

Silver (‘000 ounces)

334

360

305

395

341

798

1,041

1,158

Metal recovery (%)

Copper

86.4

88.4

85.6

83.3

78.0

87.3

82.4

87.6

Gold

76.4

74.2

72.2

69.3

62.0

74.4

69.7

74.4

Silver

73.0

70.8

66.4

65.9

61.7

69.6

64.7

69.9


About Oyu Tolgoi LLC (www.ot.mn)

Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.

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