Ivanhoe Australia Receives $30.1 Million Distribution From Exco Resources' Asset Sale

Robert Friedland, Chairman, and Peter Reeve, Chief Executive Officer of Ivanhoe Australia Limited (TSX:IVA.TO - News)(ASX:IVA.TO - News), are pleased to announce the receipt of the $30.1 million distribution from Exco Resources Limited.

The distribution, comprised of a capital return and special dividend, follows the finalisation of the sale of Exco's Cloncurry Copper Project to Xstrata.

"This extra funding places us in a solid position in the lead-up to initial production of copper and gold from our Osborne operation this March, increasing our cash balance - including the Exco distribution - to $166 million as at 31 December 2011," Mr Reeve said.

In total, Ivanhoe Australia has invested approximately $31 million during the past four and a half years in Exco shares and exploration work on the Ivanhoe Australia/Exco joint venture tenements. This investment has resulted in Ivanhoe Australia's current holding of 22.6% of Exco, an 80% interest in the joint-venture tenements and the receipt of the distribution in December.

Ivanhoe Mines (TSX:IVN.TO - News)(NYSE:IVN.TO - News)(NASDAQ:IVN.TO - News) is Ivanhoe Australia's largest shareholder and currently owns, directly and indirectly, approximately 59% of Ivanhoe Australia's issued and outstanding shares.
Contact:
Peter Reeve
Ivanhoe Australia Limited
Managing Director & CEO
61 3 9090 8802
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www.ivanhoeaustralia.com