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MONTREAL–(BUSINESS WIRE)–
Turquoise Hill Assets Ltd. (TSX: TRQ) (NYSE: TRQ) (“Turquoise Hill” or the “Firm”) as we speak introduced third quarter 2022 manufacturing and offered an Oyu Tolgoi mine and funding replace.

Q3 2022 Highlights

• Q3’22 Copper manufacturing of 36.3 thousand tonnes of copper in focus, a lower of 13% vs Q3’21 and a rise of 19% vs Q2’22
• Q3’22 Gold manufacturing of 42.7 thousand ounces of gold in focus, a lower of 67% vs Q3’21 and a lower of 10% vs Q2’22
• Copper manufacturing steerage for 2022 stays throughout the vary of 110,000 to 150,000 tonnes
• Gold manufacturing steerage for 2022 has been revised from a spread of 150,000 – 170,000 ounces to 165,000 – 185,000 ounces. The upper gold steerage displays extra dependable grade efficiency from mining of Part 5 throughout Q3’22 with correlating larger recoveries. This builds on the upper gold manufacturing from completion of Part 4B in H1’22.
• Expenditures on property, plant and tools for 2022 stays throughout the steerage vary of $140 million to $170 million for floor operations.
• Capital expenditures on the underground project1 at the moment are anticipated to be $1.0 billion to $1.1 billion for 2022 in comparison with earlier steerage of $1.1 billion to $1.3 billion on account of enhancements to building productiveness and the slower ramp-up of on-site building assets that continued throughout Q3’22.
• Whole Working Money Costs2 for 2022 at the moment are anticipated to be within the vary of $855 million to $910 million in comparison with earlier steerage of $850 million to $925 million, which is essentially resulting from deferral of non-critical actions to comprise inflationary pressures for key inputs, together with gas and ammonium nitrate.
• Mill throughput of 10.68 million tonnes in Q3’22 was 14% larger than Q3’21 and 10% larger than Q2’22, which is according to expectations resulting from larger mill availability.
• Continued good progress in underground on-footprint building and blasting noticed firing of the seventh drawbell throughout Q3’23 and graduation of commissioning of the second truck chute.

Open Pit Operations, Underground Venture and Operations

Throughout Q3’22, the mixed open pit and underground operations produced 36.3 thousand tonnes of copper in focus and 42.7 thousand ounces of gold in focus. In line with expectations, copper manufacturing was larger and gold manufacturing was decrease in contrast with Q2’22. Mill feed for Q3’22 included roughly 543 thousand tonnes @ 0.82% Cu and 0.23g/t Au of underground improvement materials. The remaining 10.1 million tonnes of mill feed was sourced from Part 5, Part 6 and open pit stockpiles. Mill head grades will stay low by means of to the tip of the 12 months as direct mill feed will proceed to be supplemented by low grade stockpiles.

Shaft 3 and Shaft 4 cumulative sinking stage had been at 2883 metres and 4103 metres, respectively, under floor stage. The speed of progress in shafts improved throughout Q3’22 resulting from an optimisation program, which commenced in Q1’22, and continued progress on these initiatives is important to proceed to be aligned with the 2022 schedule replace. Shaft 3 and 4 commissioning is anticipated in mid-2024, remaining aligned with the Firm’s earlier disclosure. Building of the ultimate main stage of supplies dealing with infrastructure continues, together with civil and underground works for the conveyor to floor. Undercut blasting and on-footprint building work continued to progress. Commissioning of the second truck chute has commenced, and the eighth drawbell was fired on 13 October 2022, each forward of schedule. Sustainable manufacturing, which is anticipated as soon as between 16 to 21 drawbells have been blasted, is now anticipated in Q1’23.

Research work for Panels 1 and a pair of, that are required to assist the ramp-up to 95,000 tonnes of ore per day, stays on monitor from completion in H1’23.

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COVID-19

Security continues to be the Firm’s high precedence and COVID-19 controls stay in place at website to guard our folks. Throughout Q3’22, COVID-19 instances recognized at Oyu Tolgoi have continued at low ranges and the testing regime has been eased. Following the current rest of COVID-19 government-initiated restrictions in Mongolia, Oyu Tolgoi (“OT LLC”) has progressively restarted work on undertaking services with workforce numbers now at full capability.

Replace of Funding Initiatives underneath third A&R HOA

As offered for within the Third Amended and Restated Heads of Settlement dated as of September 5, 2022 (the “third A&R HoA”) between the Firm and Rio Tinto Worldwide Holdings Restricted (“RTIHL” and, along with Rio Tinto plc, “Rio Tinto”) referring to the funding of the Oyu Tolgoi undertaking, the Firm and Rio Tinto have continued to advance discussions with the undertaking finance lenders underneath the Oyu Tolgoi undertaking financing (the “OT Venture Financing”) with a view to rescheduling the principal repayments of the prevailing Oyu Tolgoi undertaking debt (the “Re-profiling”) in order to doubtlessly cut back the Firm’s base case funding requirement (estimated as at August 4, 2022 to be roughly US$3.6 billion) by as much as roughly US$1.7 billion and higher align the servicing of such debt with the up to date Oyu Tolgoi undertaking mine plan and to boost as much as $500 million of further senior supplemental debt (“SSD”). Rio Tinto, by means of its subsidiary that acts as supervisor of the Oyu Tolgoi undertaking, is liable for main the method and negotiations for the Re-profiling and SSD with assist from and session with TRQ and OT LLC. To develop into efficient, the Re-profiling requires the unanimous consent of the prevailing lenders underneath the OT Venture Financing or the substitute of any lenders that withhold their consent; it would additionally require the approval of the board of administrators of OT LLC (the “OT LLC Board”). The Firm and Rio Tinto have been working in the direction of finishing the Re-profiling previous to the scheduled reimbursement of US$362 million due on December 15, 2022 underneath the prevailing OT Venture Financing.

Substantial progress has been made on reaching settlement on the industrial phrases and situations of the Re-profiling, with the industrial phrases and situations now considerably agreed. Sure current industrial financial institution lenders underneath the OT Venture Financing have indicated that they’re unable or unwilling to take part within the Re-profiling. Consequently, Rio Tinto and the Firm are pursuing a number of potential options, together with however not restricted to: partaking current lenders which are at the moment taking part within the Re-profiling with a view to growing their present participation ranges, and fascinating with new potential industrial financial institution lenders who might substitute any banks that finally resolve to exit.

If Rio Tinto and the Firm will not be profitable of their efforts to safe the Re-profiling on or earlier than December 15, 2022, the Firm would, to be able to tackle near-term liquidity wants, be required to attract on the US$362 million bridge financing that RTIHL has dedicated to supply underneath the third A&R HoA to be able to fund the principal reimbursement of that very same quantity underneath the OT Venture Financing due on December 15, 2022. The third A&R HoA contemplates that the US$362 million bridge facility will likely be made on the identical phrases because the US$650 million “Early Advance” dedication thereunder and can be repaid by means of an fairness elevate.

If the Re-profiling and SSD funding contemplated by the third A&R HoA will not be wholly profitable, or the principal reimbursement of US$362 million underneath the OT Venture Financing is required to be made on December 15, 2022 the Firm would require further fairness financing which might be incremental to estimated fairness elevating of US$1.05 billion beforehand disclosed in Q2’22.

The Firm’s incremental funding requirement, and quantum and timing of any incremental fairness raises, proceed to be impacted by numerous elements, lots of that are exterior of its management and, because of this, their precise quantum and/or timing may very well be completely different from the estimates offered and such variance could also be vital. See the sections “Funding of OT LLC by Turquoise Hill”, “Dangers and Uncertainties” and “Ahead-Wanting Statements and Ahead-Wanting Info” within the Firm’s Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations for the three and 6 months ended June 30, 2022 (the “Q2 2022 MD&A”).

Oyu Tolgoi Manufacturing Information

All information represents full manufacturing and gross sales on a 100% foundation

Non-GAAP Monetary Measures and Different Monetary Measures

This press launch accommodates sure non-GAAP (Typically Accepted Accounting Ideas) monetary measures equivalent to whole working money prices and supplementary monetary measures equivalent to capital expenditures on the underground undertaking. Non-GAAP monetary measures have non-standardized that means underneath Worldwide Monetary Reporting Requirements (“IFRS”). As such, these monetary measures is probably not corresponding to related measures utilized by different issuers. These monetary measures are offered to be able to present buyers and different stakeholders with further understanding of efficiency and operations on the Oyu Tolgoi mine and will not be supposed for use in isolation from, or as a substitute for, measures ready in accordance with IFRS. Administration believes that, along with typical measures ready in accordance with IFRS, these non-GAAP monetary measures and supplementary monetary measures present further perception into the Firm’s working efficiency and monetary place and sure buyers might use this data to judge the Firm’s efficiency from interval to interval. Nonetheless, these non-GAAP monetary measures and supplementary monetary measures have limitations and shouldn’t be thought-about in isolation or as an alternative to measures of efficiency ready in accordance with IFRS. Further particulars and data for this non-GAAP monetary measure and these monetary measures will be discovered within the part titled “Non-GAAP and Different Monetary Measures” between pages 28 and 31 of Firm’s Q2 2022 MD&A filed with the securities regulatory authorities in Canada, which part and pages are included by reference into this press launch. The Q2 2022 MD&A is obtainable underneath the Firm’s profile on SEDAR at www.sedar.com.

Technical Info included on this Press Launch

Disclosure of knowledge of a scientific or technical nature on this press launch in respect of the Oyu Tolgoi mine was accredited by Jo-Anne Dudley (FAusIMM(CP)), Chief Working Officer of the Firm. Ms. Dudley is a “certified individual” as that time period is outlined in Nationwide Instrument 43-101—Requirements of Disclosure for Mineral Tasks.

Ahead-looking statements and forward-looking data

Sure statements made herein, together with statements referring to issues that aren’t historic information and statements of the Firm’s beliefs, intentions and expectations about developments, outcomes and occasions which can or might happen sooner or later, represent “forward-looking data” throughout the that means of relevant Canadian securities laws and “forward-looking statements” throughout the that means of the “protected harbour” provisions of america Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements and data relate to future occasions or future efficiency, mirror present expectations or beliefs relating to future occasions and are sometimes recognized by phrases equivalent to “anticipate”, “consider”, “might”, “estimate”, “anticipate”, “intend”, “doubtless”, “might”, “plan”, “search”, “ought to”, “will” and related expressions suggesting future outcomes or statements relating to an outlook. These embrace, however will not be restricted to, statements and data relating to: the character of the Firm’s ongoing relationship and interplay with the Authorities of Mongolia with respect to the continued operation and improvement of Oyu Tolgoi as and when the important thing agreements entered into with the Authorities of Mongolia introduced on January 24, 2022 (the “GoM Agreements”) are carried out together with the implementation of Decision 103, the decision handed by the Parliament of Mongolia in December 2021 to resolve the excellent points among the many Firm, Rio Tinto and the Authorities of Mongolia in relation to the implementation of Decision 92, the decision handed by the Parliament of Mongolia in November 2019 mandating the Authorities of Mongolia to take needed measures to make sure the advantages to Mongolia of Oyu Tolgoi; the continuation of undercutting in accordance with the mine plan and design; the precise timing of first sustainable manufacturing in addition to the lifting of restrictions by the Authorities of Mongolia on the flexibility of OT LLC to incur any further indebtedness; the implementation and profitable execution of the third A&R HoA, as such settlement could also be additional amended or restated, and the quantity of any further future funding hole to finish the Oyu Tolgoi undertaking and the provision and quantity of potential sources of further funding required therefor, all as contemplated by the third A&R HoA, in addition to potential delays within the means of the Firm and OT LLC to proceed with the funding components contemplated by the third A&R HoA; liquidity, funding sources and funding necessities on the whole, specifically till sustainable first manufacturing is achieved, together with the Firm’s means to succeed in settlement with undertaking finance lenders on the Re-profiling previous to the scheduled reimbursement due underneath the prevailing OT Venture Financing, in addition to the Firm (or a wholly-owned subsidiary) and OT LLC coming into right into a pre-paid copper focus sale association; the provision and quantity of potential sources of further funding, together with the short-term secured advance to be offered by RTIHL to the Firm underneath the third A&R HoA; the quantity by which a profitable Re-profiling of the Firm’s current debt would cut back the Firm’s at the moment projected funding necessities; the Firm’s means to conduct a number of fairness choices as contemplated by the third A&R HoA in gentle of future after which prevailing market situations; the expectations set out within the 2020 Oyu Tolgoi Technical Report (the “2020 OTTR”); the timing and quantity of future manufacturing and potential manufacturing delays; statements in respect of the impacts of any delays on attaining first sustainable manufacturing and on the Firm’s money flows; anticipated copper and gold grades; the deserves of the category motion grievance filed in opposition to the Firm in January 2021, respectively; the deserves of the defence and counterclaim filed by the Authorities of Mongolia within the worldwide tax arbitration introduced by OT LLC and the probability of the events having the ability to amicably resolve the continuing tax points; the timing of research, bulletins and analyses; the standing of underground improvement, together with any slowdown of labor; the causes of the rise in prices and schedule extension of the underground improvement; the mine design for Panel 0 of Hugo North Carry 1 and the associated value and manufacturing schedule implications; the re-design research for Panels 1 and a pair of of Hugo North Carry 1 and the potential outcomes, content material and timing thereof; the timing and progress of the sinking of Shafts 3 and 4 and any delays in that regard along with beforehand introduced delays; expectations relating to the potential restoration of ore within the two structural pillars, to the north and south of Panel 0; the potential development of a state-owned energy plant (“SOPP”) and associated amendments to the Energy Supply Framework Settlement (“PSFA”), as amended, in addition to energy buy agreements and extensions thereto; the finalisation of an settlement with Internal Mongolia Energy Worldwide Cooperation Co.