To: Pluvia who wrote (1 ) 11/9/2003 11:39:02 AM From: Wolff Respond to of 167 10-17-03 Mr. Friedland also said that Ivanhoe (Mines)has applied to list its stock on the Nasdaq Stock Market Ivanhoe CEO confirms company could sell assets Says firm also may issue new shares By ALLAN ROBINSON INVESTMENT REPORTER Friday, October 17, 2003 - Page B13 Ivanhoe Mines Ltd. chief executive officer Robert Friedland confirmed yesterday what mining analysts had been speculating on for weeks -- that Ivanhoe could raise cash by selling its remaining non-core assets and issuing more shares. On a visit to New York yesterday, Mr. Friedland told Bloomberg News that the company might sell its stake in a cash-generating copper mine in Myanmar, a holding that has been the focus of much political controversy because of the human rights record in that country after control was seized by a military regime. Myanmar was formerly known as Burma. Mr. Friedland also told the news agency that the company was in the process of negotiating the sale of about $50-million of shares to raise cash for its gigantic copper exploration project in Mongolia, which has attracted a lot of speculative interest. The equity sale could be made within two days to an institutional investor, whom Mr. Friedland declined to name, Bloomberg said. The shares of Vancouver-based Ivanhoe fell 60 cents to $10.65 yesterday on the Toronto Stock Exchange, giving the company a market capitalization of $2.6-billion. The shares have risen from a 52-week low of $2.45 on Nov. 21, 2002. Mr. Friedland said Ivanhoe has retained HSBC Holdings PLC and Canadian Imperial Bank of Commerce to provide advice on the sale of its 50-per-cent-owned Monywa mine. The mine is jointly owned with the government of Myanmar. Mr. Friedland also said that Ivanhoe has applied to list its stock on the Nasdaq Stock Market. The possible sale of the debt-burdened Monywa mine was not a surprise, nor was the decision to sell shares in the company given the current strong price for the stock, said one mining analyst. Ivanhoe had indicated that its non-core assets could be put up for sale, the analyst said. Ivanhoe is trading at a share price "which we believe is too high given the stage of the [Mongolian] project and its development and infrastructure hurdles," BMO Nesbitt Burns Inc. warned in a report on Wednesday. "However, we await the results of a scoping study including capital and operating costs, due early in November." Mining analysts speculate that Ivanhoe could develop certain high-grade mineral zones on its massive Mongolian property holdings in the remote Gobi desert, the most prominent of which is known as Turquoise Hill (also called Oyu Tolgoi by the Mongolians). Analysts have said that the valuation being placed by investors on Ivanhoe is based almost entirely on the Mongolian project. Investors have had little interest in the Monywa copper mine or an iron ore mine in Australia, analysts said. Ivanhoe has recently spun off interests in two small gold mines in Fiji and South Korea. It continues to own a gold mine in Kazakhstan.