Turquoise Hill today announced fourth quarter 2019 production for Oyu Tolgoi as well as operational and financial guidance
for 2020.

Highlights:
• Full year copper production of 146,346 tonnes vs original guidance range of 125,000 – 155,000 tonnes
• Full year gold production of 241,840 ounces vs original guidance range of 180,000 – 220,000 ounces
• Another strong Safety performance at Oyu Tolgoi in 2019 with an All Injury Frequency Rate of 0.16
• Full year mill throughput of 40,777,225 tonnes, an increase of 5% over 2018

Copper production in Q4’19 of 32,905 tonnes was lower compared to Q4’18 due to decreased head grade driven by the
transition from Phase 4a and Phase 6a, to Phase 4b, Phase 6b and lower grade stockpiles. Equally, gold production in
Q4’19 of 24,343 ounces was also lower compared to Q4’18 due to the transition from Phase 4a to low grade sources of
Phase 4b and stockpiles.

2020 Guidance

Oyu Tolgoi is expected to produce 140,000 to 170,000 tonnes of copper and 120,000 to 150,000 ounces of gold in
concentrates in 2020 from both the open pit and the beginning of the underground development material being processed.
Although the mid-point copper production range guidance is higher in 2020 versus the 2019 guidance, a lower gold
production year is expected for 2020. This is due to the need to mine through lower grade material on the periphery of the
South West pit as Phase 4b sinks towards the highest gold and copper grades in the bottom of the pit. It is anticipated that
the higher grade ore will be accessed in 2021, resulting in a significant increase in gold production in 2021. Mill throughput
for 2020 is expected to be approximately 40 million tonnes.
Operating cash costs for 2020 are expected to be $800 million to $850 million.
Capital expenditure for 2020 on a cash-basis is expected to be approximately $80 million to $120 million for open-pit
operations and $1.2 billion to $1.3 billion for the underground development exclusive of any expenditure on power.
Open-pit capital is mainly comprised of deferred stripping, equipment purchases, tailings storage facility construction and
maintenance componentization. Underground development capital includes both expansion capital and VAT.
C1 cash costs is expected to be in the range of $1.80 to $2.20 per pound of copper produced, up from 2019 guidance
largely reflecting the reduced gold production estimate. Unit cost guidance assumes the midpoint of expected 2020 copper
and gold production ranges and commodity assumptions of $2.71 per pound copper and $1,362 per ounce gold.

2021 Outlook

Production in 2021 is expected to increase to a range of 170,000 to 200,000 tonnes of copper, and 450,000 to 500,000
ounces of gold, as we transition to the higher grade ore in the bottom of the pit and continue to increase the amount of
underground development material processed.

Underground Development Update

Construction of shaft 2 was completed in October 2019 allowing for the movement of 300 people per cage cycle versus a
maximum of 60 people per cage cycle through shaft 1. Underground development material is also being lifted to surface
via the Shaft 2 production hoist.
Productivity improvements resulted in increased underground lateral development rates during the fourth quarter, with an
average rate of 1,607 equivalent meters (eqm) compared to 1,214 eqm in the third quarter, with December seeing a record
1,809 eqm.
Construction is progressing on shafts 3 and 4 with both collars now installed. Final preparations are now underway to
enable commencement of main sinking operations for both shafts during the second quarter of 2020
Detailed analysis work on the mine design is still anticipated to be completed during the first half of 2020, and the Definitive
Estimate, which will include the estimate of cost and schedule for the underground project based on the updated design
of Panel 0, is still expected to be delivered in the second half of 2020.