Ivanhoe Australia Limited
TSX : IVA
ASX : IVA
TSX : IVA.WT
ASX : IVAO

Ivanhoe Australia Limited

January 31, 2011 05:36 ET

Ivanhoe Australia's Quarterly & Cashflow Report for the Three Months Ending 31 December 2010

MELBOURNE, AUSTRALIA--(Marketwire - Jan. 31, 2011) - Ivanhoe Australia Limited (TSX:IVA)(TSX:IVA.WT)(ASX:IVA)(ASX:IVAO)

Key Achievements



-- Construction of the Merlin decline on schedule
-- Mount Elliott mineral resource increased by 20%
-- Copper-Gold Study for Osborne feed progressing well
-- Starra 222 results indicate potential expansion of existing mineral
resource
-- Houdini exploration identifies strong zone of copper gold mineralisation
-- Barnes Shaft prospect intercepts exceptionally high-grade copper, gold
and cobalt
-- Secondary listing on the Toronto Stock Exchange


Summary

Construction of the Merlin decline continued during the quarter. The box cut was completed and the first blast for the decline portal was taken on 6 December. At the end of December the decline face had progressed 110 metres. It is currently at 250 metres.

There was a 20% increase in the Mount Elliott Mineral Resource. This increase of 95 million tonnes since the previous 2008 estimate takes the total Mineral Resource to 570 million tonnes (including 210 million tonnes indicated resources and 360 million tonnes inferred resources).

An internal study into the viability of various sources of copper and gold ore at Osborne and the Starra Line was completed during the quarter. Work continues to confirm and validate the resource inventory.

The first drill program on the Starra Line intersected significant high-grade copper-gold mineralisation adjacent to the existing mineral resource at the Starra 222 ore body.

Continued drilling on the Barnes Shaft prospect has intersected exceptionally high-grade copper, gold and cobalt mineralisation at shallow depths.

Ivanhoe Australia completed its secondary listing on the Toronto Stock Exchange (TSX) with the company's ordinary shares commencing trading on November 12, 2010.

Subsequent to the end of the quarter, the Company announced new drill intersections at the Houdini prospect which identified a strong copper-gold mineralisation zone that extends at least 200 metres down-dip.

Overview

Ivanhoe Australia is exploring within the Eastern Succession of the Mount Isa Inlier, located in Queensland, Australia. Its key projects are the Merlin molybdenum and rhenium project (Merlin Project), the Osborne Complex, Mount Elliott and Starra Line copper-gold IOCG projects and the Mount Dore copper SXEW and polymetallic project. All these projects are on granted mining leases.

Ivanhoe Australia also holds significant equity stakes in Exco Resources Limited and Emmerson Resources Limited. Ivanhoe Australia holds joint venture agreements with both companies.

During the quarter, work focused on the progression of the Merlin Project decline, secondary listing on the Toronto Stock Exchange and preliminary assessment of the Copper and Gold Study.

Secondary listing on the Toronto Stock Exchange

On November 12, 2010, the Company's ordinary shares commenced trading on the Toronto Stock Exchange (TSX). There was no equity offering as part of the TSX listing.

On November 29, the Company's warrants commenced trading on the TSX under the symbol IVA.WT.

BMO Capital Markets and Macquarie Capital Markets Canada Ltd. acted as financial advisers to Ivanhoe Australia's TSX listing application.

Osborne Complex and Cloncurry Site Integration

Implementation of the Company's integration of the Osborne Complex and Cloncurry sites is progressing well with the following key initiatives undertaken during the quarter:



-- Appointment of General Manager Operations, Mr Neal Valk who was the ex-
Barrick General Manager Operations at the Osborne site. Mr Valk has over
25 years mining experience with 7 years dedicated at the Osborne mining
complex.
-- New organisation and management structure implemented unifying both the
Osborne and Mt Dore sites.
-- Mine inspections undertaken on all copper and gold sources identified at
Osborne and on the Starra Line for the purpose of establishing future
mining schedules as part of the Copper and Gold Study.


Project Exploration

Merlin Project Molybdenum and Rhenium Update

Drilling at the Merlin Project focused on mine engineering requirements with seven geotechnical holes being drilled. These holes targeted the planned stope blocks to evaluate hangingwall and footwall conditions. Assay results from the geotechnical holes are expected in February 2011.

Development

Overview

The key projects under consideration are:



-- Merlin molybdenum and rhenium project, including Little Wizard;
-- Copper and Gold study including the Osborne Complex and the Starra Line;
-- Mount Dore heap leach and SXEW; and
-- Mount Elliott SWAN High-Grade zone.


Project development this quarter focussed largely on the Merlin Project and the Copper and Gold Study.

The Merlin Project is now in pre-feasibility phase where a number of options will be considered to determine a preferred project option to take into feasibility. The prefeasibility study is expected to be completed during Q1 2011.

Merlin

Construction of the Merlin decline continued during the quarter (see Figure 1). The box cut was completed and the first blast for the decline portal was taken on 6 December. At the end of December, the decline face had progressed 110 metres and is currently at 250 metres (28 January 2011). It is expected that the decline will be adjacent to Little Wizard by Q4 2011. The work for the updated Merlin Mineral Resource and mine planning were completed in November. The prefeasibility study was not completed due to further work required to investigate a number of additional options relating to the molybdenum roaster design and physical location of plant infrastructure arising from the purchase of the Osborne Complex. The prefeasibility study and Canadian NI 43-101 report will be issued in Q1 2011.

During the quarter, the following work was undertaken:



-- Design and tendering of the 53km long haul road between Mount Dore and
Osborne.
-- Tendering major equipment for the flotation and roasting plant to
improve the capital cost estimate and reduce the lead time to construct
and commission the processing plants.
-- Metallurgical variability testing and completion of the process
flowsheets for the flotation and roasting plants.
-- Continuation of flotation testwork in order to optimise the grade of
concentrate.
-- Study of power requirements for the sites and upgrade of the Osborne
power station to meet long term usage.
-- Discussions with Government authorities on accessing land for the
roasting plant and preliminary investigations into permitting
requirements.
-- Identifying potential locations offshore to process concentrates.
-- Drilling and hydrological testing to dewater the Mount Dore aquifer
prior to the decline reaching the watertable.


Copper and Gold Study

An internal study into the viability of various sources of copper and gold ore at Osborne and the Starra Line was completed during the quarter. The study focused on the potential production rate for near-term mining opportunities and the capital and operating costs that would be required to process ore through the Osborne Complex facilities.

The initial phase of the study focuses on the more advanced copper and gold ore sources within the Osborne and Cloncurry Mining Leases (MLs) with a view to them forming part of first production in Ivanhoe Australia's overall copper and gold ore development plans.

The potential copper and gold ore sources included resources at Osborne, Kulthor and the Starra Line (see Figure 2). Work continues to confirm and validate the resource inventory.

The evaluation included re-opening and inspecting the Starra 222 decline and Starra 276 decline with initial assessments indicating both in good working condition.

The next phase is to affirm costing estimates being achieved through a competitive tendering process which is underway.

An exploration assessment has also been undertaken as part of this study with strong indicators identified on targeted copper and gold sources to expand existing resources.

Mount Dore

A scoping study for the heap leach SXEW operation continued with finalisation of documentation expected by Q1 2011.

Mount Elliott

On October 21, 2010 the Company announced a 20% increase in the Mount Elliott Mineral Resource.

This increase of 95 million tonnes since the previous 2008 estimate takes the total Indicated and Inferred Mineral Resource to 570 million tonnes at 0.44% copper and 0.26 grams of gold per tonne.

The updated resource estimate (for a cut-off grade of 0.3% eCu) are:



-- 210 million tonnes @ 0.52% Cu and 0.32 g/t Au Indicated Mineral
Resource; and
-- 360 million tonnes @ 0.40% Cu and 0.26 g/t Au Inferred Mineral Resource.


The updated resource estimates (for a cut-off grade above 1.0% eCu) are:



-- 38 million tonnes @ 1.08% Cu and 0.61 g/t Au Indicated Mineral Resource;
and
-- 24 million tonnes @ 0.90% Cu and 0.53 g/t Au Inferred Mineral Resource.


(Note eCu is calculated at eCu = Cu % + 0.7 X Au g/t.)

The updated Independent resource estimate of the Mount Elliott area was completed by AMC Consultants.

The preparation of a detailed scoping study has commenced to evaluate the mining of both the higher grade portion of the SWAN zone from underground and the commencement of an open pit to mine the top of the SWAN zone and the remaining mineralisation around and beneath the old Mount Elliott mine.

The study is also evaluating the possibility of processing mined ore to the Osborne Complex. Metallurgical testing of the SWAN mineralisation has shown high recoveries to readily saleable concentrates for the sulphide fraction. Historic production up until 2003 shows that no metallurgical problems are to be expected from the Mount Elliott Mine zone and that historic metallurgical recoveries are in line with recent testwork.

Regional Exploration

Exploration on the Cloncurry Project (see Figure 2) continues to target Merlin style Mo-Re deposits and IOCG deposits (Mount Elliott and Starra Line styles). Work in Q4 focussed on drilling copper-gold targets, with significant results achieved at the Starra Line, Barnes Shaft, and Slate Ridge. This drilling comprised 3,568 m of reverse circulation drilling and 7,402 m of diamond drilling.

Ivanhoe Cloncurry Mines, 100% owned by Ivanhoe Australia, holds 17 Exploration Permits for Minerals (EPMs) and 20 Mining Leases (MLs) for a total of 2,102 km2 in the Cloncurry area. Ivanhoe Australia also has 23 EPM applications covering 3,393 km2.

The Osborne Complex includes one EPM covering 19 km2, one EPM in the Goldminco/Ivanhoe JV covering 16 km2 and eight MLs with an area of approximately 59.5 km2. Indicative approval has been obtained for the assignment of a second EPM from Barrick (PD) Australia covering 334 km2 and an application for assignment has been lodged.

Mount Dore and Starra Trend Exploration on IAL tenements

Exploration on IAL tenements along the Starra and Mount Dore trend during the quarter focused on diamond and RC drilling at Starra 222, and diamond drilling at Mount Cobalt and Midway. Mapping and sampling programs continued at prospects located along the Mount Dore belt and included Metal Ridge West, Victoria to North Stuart, Mount Cobalt, Groups 82, 84 85 and 87, Midway, Little Arch to North Gorge, Lady Ella West and Confucius.

Better intercepts returned to date from completed holes at Starra 222 are included in the table below.



--------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t
--------------------------------------------------------------
STQ1036 390 446 56 0.60 0.16
--------------------------------------------------------------
and 550 608 58 1.04 1.76
--------------------------------------------------------------
inc 559 569 10 1.86 3.82
--------------------------------------------------------------
inc 591 608 17 1.64 1.03
--------------------------------------------------------------
and 645 674 29 0.42 1.00
--------------------------------------------------------------
STQ1037 54.4 56.88 2.48 0.00 9.39
--------------------------------------------------------------
STQ1041 339 357 18 0.53 0.12
--------------------------------------------------------------

--------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t
--------------------------------------------------------------
STQ1041 380 384 4 0.93 2.08
--------------------------------------------------------------
STQ1042 272 278 6 0.03 0.40
--------------------------------------------------------------
and 320 326 6 0.44 0.02
--------------------------------------------------------------
and 461 469.4 8.40 0.21 0.68
--------------------------------------------------------------


The four holes completed at Starra 222 targeted the along-strike projection of mineralisation away from the mine. Assay results returned from drilling at Starra 222 indicates potential for a large expansion of the mineralised zone at Starra 222 (see Figure 3).

Preliminary assay results from the Mount Cobalt drilling identified narrow cobalt mineralisation in MCD0007 with 4 m @ 647.9 ppm Co. Complete assays are pending for 3 diamond and 2 RC holes that were recently drilled at the prospect.

Eight diamond holes were completed at the Midway prospect. Several narrow sections of moderate to strong Cu-Mo were intersected in at least three holes. All assays for this prospect are pending.

Work for Q4 2010 included the handover of the Starra 222 and 276 areas to the development team. Exploration drilling is expected to continue at Starra 202, Starra 236, Starra 276NE, Starra 286, Belgium East, Midway, Mount Cobalt, Victoria, Metal Ridge and Confucius in Q1 2011.

Greenfield Exploration on Ivanhoe Cloncurry Mines tenements

Exploration in Q4 2010 on Ivanhoe Cloncurry Mines tenements involved the continuation of diamond and RC drilling at the Barnes Shaft prospect, diamond drilling at Lanham's Shaft and mapping and diamond drilling at the Slate Ridge Prospect. All three prospects returned significant intercepts.

Eleven diamond drill holes and six RC holes were collared at the Barnes Shaft Prospect. Drilling is targeting the extent of Cu-Au-Co mineralisation identified in a vertical RC drill-hole completed in 2009. Significant mineralisation was intersected in sixteen holes. The best intersections from assays returned to date are tabulated below.



------------------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t Co ppm
------------------------------------------------------------------------
BAD0012 235 243 8 0.58 0.37 77
------------------------------------------------------------------------
BAD0013 147 161 14 0.84 0.72 235
------------------------------------------------------------------------
BAD0015 21 54 33 0.56 0.20 300
------------------------------------------------------------------------
BAR0006 146 162 16 1.88 0.45 412
------------------------------------------------------------------------
BAR0007 22 32 10 0.48 0.02 130
------------------------------------------------------------------------
BAR0010 14 20 6 0.79 0.04 661
------------------------------------------------------------------------
BAR0011 232 252 20 0.28 0.02 376
------------------------------------------------------------------------
BAR0012 74 80 6 0.43 0.01 56
------------------------------------------------------------------------
BAD0017 284 292 8 0.79 0.51 178
------------------------------------------------------------------------
BAR0018 210 286 76 0.60 0.08 483
------------------------------------------------------------------------
inc 230 246 16 0.89 0.18 719
------------------------------------------------------------------------
BAR0019 90 102 12 0.35 0.04 201
------------------------------------------------------------------------


Assays are still outstanding for a considerable number of holes (BAD0021 through to BAD0028). Moderate, strong and very strong copper mineralisation were noted in BAD0024 (25 m northeast of BAD0018), BAD0026 and BAD0027. BAD0021 intersected moderate copper and very weak molybdenum mineralisation while moderate copper intercepts were observed in BAD0022 and BAD0025 (assays pending).

The mineralisation observed in the recent holes indicates several parallel bodies dipping at approximately 60 degrees to the southeast. Mineralisation is associated with brecciated, feldspar-altered and quartz-carbonate veined carbonaceous metapelite. Inferred parallel mineral zones appear to be fault controlled. Drilling to date has been completed on nine sections and mineralisation appears to be continuous between these sections, along a strike length of 420m.

At Lanham's Shaft one diamond drill hole (LAD0010) was drilled to the southeast of the previous line of three holes. LAD0010 intersected significant copper and very minor molybdenite mineralisation. Assay results for LAD0010 are yet to be received. Significant assay results returned to date (from holes drilled in the previous quarter) include:



------------------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t Co ppm
------------------------------------------------------------------------
LAD0008 161 179 18 1.10 0.93 317
------------------------------------------------------------------------
LAD0009 248 257 9 1.76 1.42 157
------------------------------------------------------------------------


Drilling at Slate Ridge targeted copper-gold-cobalt mineralised quartz veins hosted within strongly sheared graphitic phyllite. Three holes were completed during the quarter. These holes intersected narrow intervals of moderate to very strong oxide and supergene copper mineralisation (chrysocolla-malachite-chalcocite) and minor chalcopyrite. Significant intercepts of copper and gold mineralisation include:



--------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t
--------------------------------------------------------------
SRD0047 48 59.3 11.3 1.19 0.64
--------------------------------------------------------------
and 71 80 9 0.96 1.03
--------------------------------------------------------------
SRD0048 70 81.7 11.7 0.54 0.32
--------------------------------------------------------------
and 127.8 134 6.2 0.84 0.22
--------------------------------------------------------------
SRD0049 53 59.6 6.6 2.51 0.57
--------------------------------------------------------------
SRD0050 171 178 7 2.13 2.27
--------------------------------------------------------------


Work in early 2011 at Barnes Shaft will include the resumption of downhole EM survey on selected holes, with drilling to recommence after the wet season.

Osborne Exploration

Ivanhoe Australia is conducting a comprehensive review of the exploration potential within the Osborne tenements in order to expand the existing copper-gold resource base and to identify new discoveries.

Houdini and Brumby remain as key exploration targets.

Eleven diamond and six RC drill holes were drilled at Houdini during Q4 2010. These holes tested a coincident conductivity and geochemical anomaly associated with a shear zone. Drilling intercepted wide zones of moderate copper mineralisation (up to 23 m) with narrow zones of strong to very strong chalcocite and chalcopyrite. Assay results received during the quarter included 14 m @ 0.39% Cu (from 76 m) in hole HOR0043.

On January 21, 2011, the Company announced the results of drilling undertaken on the Houdini prospect during the quarter. The new drill intersections have identified a zone of strong copper-gold mineralisation that extends at least 200 metres down-dip (see Figure 4).

The best intersections from assays returned are tabulated below.



--------------------------------------------------------------
Hole ID From To Inter (m) Cu % Au g/t
--------------------------------------------------------------
HOD0036 144 150 6 5.07 0.23
--------------------------------------------------------------
HOD0037A 123 137 14 0.68 0.10
--------------------------------------------------------------
inc 133 137 4 1.55 0.28
--------------------------------------------------------------
and 239 262 23 1.51 0.25
--------------------------------------------------------------
HOD0038A 340 366 26 1.15 0.17
--------------------------------------------------------------
inc 353.5 366 12.5 1.95 0.31
--------------------------------------------------------------
inc 353.8 356 2.2 3.47 0.47
--------------------------------------------------------------


As soon as the wet season ends, three drill rigs will continue drilling 100-metre-spaced sections north and south of the current section.

Regional exploration within the Exco JV

Ivanhoe Australia manages exploration on 12 granted EPMs (563 km2) in a joint venture with Exco Resources.

A ground gravity survey was initiated on 2 August but was suspended due to the rainy weather in December. This activity will resume once weather improves. A total of 350 out of the proposed 627 km line have been completed to date. Inversion modelling of geophysical data and review of historical data began in Q4 2010, the results of which will be used for drill targets in 2011.

A mapping and sampling program was also conducted on EPM 16177.

Queensland Weather Conditions

The weather conditions experienced in Queensland during the quarter has had minimal impact on the company's operations. North-western Queensland was not affected by the widely catastrophic flooding that took place in coastal Queensland. The company implements wet season plans on an annual basis with the focus in 2010 to ensure the Merlin construction decline continued in line with the development schedule.

To view "Figure 1: Merlin Long Section", please visit the following link:

http://media3.marketwire.com/docs/ivhfig1.pdf

To view "Figure 2: Key Prospects on the Cloncurry Site", please visit the following link:

http://media3.marketwire.com/docs/ivhfig2.pdf

To view "Figure 3: Starra 222 - Mine section 8050N", please visit the following link:

http://media3.marketwire.com/docs/ivhfig3.pdf

To view "Figure 4: Houdini Cross Section N7573250mN looking North", please visit the following link:

http://media3.marketwire.com/docs/ivhfig4.pdf



Table 1: Exploration Copper Intersections at 0.25% and 1.00% eCu Cut-offs

----------------------------------------------------------------------------
Exploration Copper Intersections at 0.25% and 1.00% Cu Cut- Collar
offs - 31 December 2010 Coordinates
----------------------------------------------------------------------------
In-
ter-
From To val eCu Cu Au
HoleID (m) (m) (m) (%) (%) (g/t) East North RL Azi Dip
----------------------------------------------------------------------------
BAD0012 235 243 8 0.83 0.58 0.37 460441 7652129 395 270 -60
----------------------------------------------------------------------------
inc 235 239 4 1.19 0.79 0.58 460441 7652129 395 270 -60
----------------------------------------------------------------------------
BAD0013 147 161 14 1.34 0.84 0.72 460390 7652127 392 270 -60
----------------------------------------------------------------------------
inc 150 152 2 4.57 2.17 3.43 460390 7652127 392 270 -60
----------------------------------------------------------------------------
inc 158 160 2 1.29 1.16 0.19 460390 7652127 392 270 -60
----------------------------------------------------------------------------
BAD0015 21 54 33 0.71 0.56 0.20 460341 7652127 400 270 -60
----------------------------------------------------------------------------
inc 34 38 4 0.80 0.63 0.24 460341 7652127 400 270 -60
----------------------------------------------------------------------------
inc 40 54 14 0.93 0.77 0.22 460341 7652127 400 270 -60
----------------------------------------------------------------------------
BAD0017 284 292 8 1.14 0.79 0.51 460448 7652039 396 270 -70
----------------------------------------------------------------------------
inc 284 288 4 1.59 1.12 0.68 460448 7652039 396 270 -70
----------------------------------------------------------------------------
and 312 318 6 0.48 0.46 0.02 460448 7652039 396 270 -70
----------------------------------------------------------------------------
BAD0018 101 103 2 2.83 2.42 0.58 460420 7651958 392 270 -70
----------------------------------------------------------------------------
and 210 239 29 5.56 3.21 3.37 460420 7651958 392 270 -70
----------------------------------------------------------------------------
BAD0019 30 40 10 0.48 0.41 0.10 460316 7652184 412 270 -60
----------------------------------------------------------------------------
BAR0006 20 26 6 0.33 0.32 0.01 460420 7651956 392 240 -60
----------------------------------------------------------------------------
and 146 162 16 2.20 1.88 0.45 460420 7651956 392 240 -60
----------------------------------------------------------------------------
inc 154 160 6 4.54 3.86 0.98 460420 7651956 392 240 -60
----------------------------------------------------------------------------
BAR0007 22 32 10 0.49 0.48 0.02 460399 7651931 392 220 -60
----------------------------------------------------------------------------
BAR0010 14 20 6 0.81 0.79 0.04 460304 7651887 403 240 -60
----------------------------------------------------------------------------
inc 16 18 2 1.21 1.17 0.05 460304 7651887 403 240 -60
----------------------------------------------------------------------------
and 128 130 2 1.43 1.43 0.01 460304 7651887 403 240 -60
----------------------------------------------------------------------------
BAR0011 204 210 6 0.50 0.49 0.02 460282 7651867 404 240 -60
----------------------------------------------------------------------------
and 232 252 20 0.30 0.28 0.02 460282 7651867 404 240 -60
----------------------------------------------------------------------------
and 302 310 8 0.50 0.48 0.02 460282 7651867 404 240 -60
----------------------------------------------------------------------------
BAR0012 74 80 6 0.43 0.43 0.01 460435 7651857 395 240 -60
----------------------------------------------------------------------------
BAR0014 12 20 8 0.30 0.30 0.01 460376 7651826 393 240 -60
----------------------------------------------------------------------------
and 112 118 6 0.40 0.39 0.02 460376 7651826 393 240 -60
----------------------------------------------------------------------------
BAR0018 152 158 6 0.58 0.55 0.04 460251 7651851 405 240 -60
----------------------------------------------------------------------------
and 210 286 76 0.66 0.60 0.08 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 230 246 16 1.01 0.89 0.18 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 260 270 10 0.96 0.91 0.07 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 282 284 2 2.96 2.89 0.10 460251 7651851 405 240 -60
----------------------------------------------------------------------------
BAR0019 90 102 12 0.38 0.35 0.04 460254 7651758 408 240 -60
----------------------------------------------------------------------------
and 108 118 10 0.53 0.48 0.07 460254 7651758 408 240 -60
----------------------------------------------------------------------------
inc 112 116 4 0.81 0.74 0.11 460254 7651758 408 240 -60
----------------------------------------------------------------------------
and 222 244 22 0.37 0.36 0.01 460254 7651758 408 240 -60
----------------------------------------------------------------------------
HOD0036 144 151 7 4.59 4.44 0.22 443101 7573249 239 270 -60
----------------------------------------------------------------------------
HOD0037A 123 137 14 0.75 0.68 0.10 443202 7373250 287 270 -60
----------------------------------------------------------------------------
inc 133 137 4 1.75 1.55 0.28 443202 7373250 287 270 -60
----------------------------------------------------------------------------
and 239 276 37 1.21 1.08 0.18 443202 7373250 287 270 -60
----------------------------------------------------------------------------
HOR0043 76 90 14 0.45 0.39 0.09 443995 7573246 287 270 -60
----------------------------------------------------------------------------
IRD0011a 89.4 98.2 8.8 0.57 0.52 0.06 428726 7615079 350 269 -60
----------------------------------------------------------------------------
inc 89.4 94 4.6 0.70 0.66 0.06 428726 7615079 350 269 -60
----------------------------------------------------------------------------
LAD0008 161 179 18 1.75 1.10 0.93 459977 7653582 374 225 -60
----------------------------------------------------------------------------
inc 171 177 6 2.84 1.65 1.70 459977 7653582 374 225 -60
----------------------------------------------------------------------------
and 181 183 2 2.19 1.66 0.77 459977 7653582 374 225 -60
----------------------------------------------------------------------------
SRD0047 48 59.3 11.3 1.64 1.19 0.64 432664 7605722 328 240 -60
----------------------------------------------------------------------------
inc 50 53 3 3.12 2.44 0.98 432664 7605722 328 240 -60
----------------------------------------------------------------------------
and 71 80 9 1.68 0.96 1.03 432664 7605722 328 240 -60
----------------------------------------------------------------------------
inc 71 73.15 2.15 5.80 3.10 3.85 432664 7605722 328 240 -60
----------------------------------------------------------------------------
SRD0048 70 81.7 11.7 0.76 0.54 0.32 432655 7605785 318 240 -60
----------------------------------------------------------------------------
and 127.84 134.05 6.21 0.99 0.84 0.22 432655 7605785 318 240 -60
----------------------------------------------------------------------------
SRD0049 53 59.6 6.6 2.92 2.52 0.57 432726 7605686 319 240 -60
----------------------------------------------------------------------------
SRD0050 171 178 7 3.72 2.13 2.27 432690 7605875 300 240 -60
----------------------------------------------------------------------------
inc 175 177 2 5.60 3.32 3.25 432690 7605875 300 240 -60
----------------------------------------------------------------------------
STQ1041 339 356 17 0.63 0.55 0.12 445198 7599269 363 301 -67
----------------------------------------------------------------------------
and 380 384 4 2.39 0.93 2.08 445198 7599269 363 301 -67
----------------------------------------------------------------------------
STQ1042 320 326 6 0.46 0.44 0.02 445160 7599283 364 294 -65
----------------------------------------------------------------------------
WDQ013 20 31 11 1.04 0.32 1.03 446755 7601920 402 270 -90
----------------------------------------------------------------------------
WDQ016 0 11 11 1.01 0.82 0.28 448222 7617684 394 270 -90
----------------------------------------------------------------------------
inc 0 2 2 1.68 1.52 0.23 448222 7617684 394 270 -90
----------------------------------------------------------------------------
WDQ020 0 11 11 0.89 0.62 0.38 447538 7613486 401 270 -90
----------------------------------------------------------------------------
inc 8 10 2 1.74 1.19 0.80 447538 7613486 401 270 -90
----------------------------------------------------------------------------
WDQ024 1 3 2 2.77 1.53 1.79 446094 7602112 365 270 -90
----------------------------------------------------------------------------


Table 1: Exploration Copper Intersections at 0.25% and 1.00% eCu Cut-offs

----------------------------------------------------------------------------
Exploration Copper Intersections at 0.25% and 1.00% Cu Cut-offs Collar
- 31 December 2010 Coordinates
----------------------------------------------------------------------------
In-
ter-
From To val Ag U Co
HoleID (m) (m) (m) (ppm) (ppm) (ppm) East North RL Azi Dip
----------------------------------------------------------------------------
BAD0012 235 243 8 0.76 19.38 77.25 460441 7652129 395 270 -60
----------------------------------------------------------------------------
inc 235 239 4 1.03 8.75 20.00 460441 7652129 395 270 -60
----------------------------------------------------------------------------
BAD0013 147 161 14 1.51 17.86 235.29 460390 7652127 392 270 -60
----------------------------------------------------------------------------
inc 150 152 2 2.80 5.00 219.00 460390 7652127 392 270 -60
----------------------------------------------------------------------------
inc 158 160 2 2.25 25.00 658.50 460390 7652127 392 270 -60
----------------------------------------------------------------------------
BAD0015 21 54 33 0.49 15.91 299.58 460341 7652127 400 270 -60
----------------------------------------------------------------------------
inc 34 38 4 0.63 5.00 134.75 460341 7652127 400 270 -60
----------------------------------------------------------------------------
inc 40 54 14 0.56 27.50 509.36 460341 7652127 400 270 -60
----------------------------------------------------------------------------
BAD0017 284 292 8 0.35 5.00 178.38 460448 7652039 396 270 -70
----------------------------------------------------------------------------
inc 284 288 4 0.43 5.00 118.50 460448 7652039 396 270 -70
----------------------------------------------------------------------------
and 312 318 6 0.95 141.67 658.67 460448 7652039 396 270 -70
----------------------------------------------------------------------------
BAD0018 101 103 2 1.10 80.00 1080.00 460420 7651958 392 270 -70
----------------------------------------------------------------------------
and 210 239 29 1.64 15.69 383.21 460420 7651958 392 270 -70
----------------------------------------------------------------------------
BAD0019 30 40 10 0.78 100.00 538.80 460316 7652184 412 270 -60
----------------------------------------------------------------------------
BAR0006 20 26 6 0.13 5.00 57.33 460420 7651956 392 240 -60
----------------------------------------------------------------------------
and 146 162 16 1.03 72.50 411.88 460420 7651956 392 240 -60
----------------------------------------------------------------------------
inc 154 160 6 1.87 116.67 415.00 460420 7651956 392 240 -60
----------------------------------------------------------------------------
BAR0007 22 32 10 0.46 5.00 130.40 460399 7651931 392 220 -60
----------------------------------------------------------------------------
BAR0010 14 20 6 0.63 96.67 661.00 460304 7651887 403 240 -60
----------------------------------------------------------------------------
inc 16 18 2 0.70 80.00 636.00 460304 7651887 403 240 -60
----------------------------------------------------------------------------
and 128 130 2 1.70 20.00 454.00 460304 7651887 403 240 -60
----------------------------------------------------------------------------
BAR0011 204 210 6 0.80 20.00 424.67 460282 7651867 404 240 -60
----------------------------------------------------------------------------
and 232 252 20 0.51 86.00 375.60 460282 7651867 404 240 -60
----------------------------------------------------------------------------
and 302 310 8 1.25 197.50 694.25 460282 7651867 404 240 -60
----------------------------------------------------------------------------
BAR0012 74 80 6 0.10 5.00 56.33 460435 7651857 395 240 -60
----------------------------------------------------------------------------
BAR0014 12 20 8 0.50 5.00 109.00 460376 7651826 393 240 -60
----------------------------------------------------------------------------
and 112 118 6 0.50 26.67 422.33 460376 7651826 393 240 -60
----------------------------------------------------------------------------
BAR0018 152 158 6 0.60 6.67 655.67 460251 7651851 405 240 -60
----------------------------------------------------------------------------
and 210 286 76 0.45 6.84 483.21 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 230 246 16 0.73 8.13 719.13 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 260 270 10 0.68 7.00 489.80 460251 7651851 405 240 -60
----------------------------------------------------------------------------
inc 282 284 2 2.40 5.00 1990.00 460251 7651851 405 240 -60
----------------------------------------------------------------------------
BAR0019 90 102 12 0.60 20.00 200.50 460254 7651758 408 240 -60
----------------------------------------------------------------------------
and 108 118 10 0.48 19.00 377.20 460254 7651758 408 240 -60
----------------------------------------------------------------------------
inc 112 116 4 0.55 20.00 557.00 460254 7651758 408 240 -60
----------------------------------------------------------------------------
and 222 244 22 0.44 89.09 395.73 460254 7651758 408 240 -60
----------------------------------------------------------------------------
HOD0036 144 151 7 1.03 74.29 126.29 443101 7573249 239 270 -60
----------------------------------------------------------------------------
HOD0037A 123 137 14 0.41 5.00 14.36 443202 7373250 287 270 -60
----------------------------------------------------------------------------
inc 133 137 4 0.93 5.00 19.75 443202 7373250 287 270 -60
----------------------------------------------------------------------------
and 239 276 37 0.35 11.35 88.68 443202 7373250 287 270 -60
----------------------------------------------------------------------------
HOR0043 76 90 14 0.41 5.71 25.86 443995 7573246 287 270 -60
----------------------------------------------------------------------------
IRD0011a 89.4 98.2 8.8 5.78 4.66 900.97 428726 7615079 350 269 -60
----------------------------------------------------------------------------
inc 89.4 94 4.6 5.48 5.00 1300.00 428726 7615079 350 269 -60
----------------------------------------------------------------------------
LAD0008 161 179 18 1.21 45.56 316.89 459977 7653582 374 225 -60
----------------------------------------------------------------------------
inc 171 177 6 1.60 81.67 762.50 459977 7653582 374 225 -60
----------------------------------------------------------------------------
and 181 183 2 2.55 35.00 258.00 459977 7653582 374 225 -60
----------------------------------------------------------------------------
SRD0047 48 59.3 11.3 0.27 7.29 8.84 432664 7605722 328 240 -60
----------------------------------------------------------------------------
inc 50 53 3 0.20 10.00 3.00 432664 7605722 328 240 -60
----------------------------------------------------------------------------
and 71 80 9 0.93 6.28 62.17 432664 7605722 328 240 -60
----------------------------------------------------------------------------
inc 71 73.15 2.15 3.20 10.37 153.78 432664 7605722 328 240 -60
----------------------------------------------------------------------------
SRD0048 70 81.7 11.7 0.40 5.00 79.37 432655 7605785 318 240 -60
----------------------------------------------------------------------------
and 127.84 134.05 6.21 1.13 4.19 202.97 432655 7605785 318 240 -60
----------------------------------------------------------------------------
SRD0049 53 59.6 6.6 1.99 5.00 8.79 432726 7605686 319 240 -60
----------------------------------------------------------------------------
SRD0050 171 178 7 1.23 5.00 153.43 432690 7605875 300 240 -60
----------------------------------------------------------------------------
inc 175 177 2 2.10 5.00 350.50 432690 7605875 300 240 -60
----------------------------------------------------------------------------
STQ1041 339 356 17 0.24 5.29 27.41 445198 7599269 363 301 -67
----------------------------------------------------------------------------
and 380 384 4 0.90 5.00 2.50 445198 7599269 363 301 -67
----------------------------------------------------------------------------
STQ1042 320 326 6 0.29 7.50 12.50 445160 7599283 364 294 -65
----------------------------------------------------------------------------
WDQ013 20 31 11 0.17 7.73 19.91 446755 7601920 402 270 -90
----------------------------------------------------------------------------
WDQ016 0 11 11 0.30 6.59 43.45 448222 7617684 394 270 -90
----------------------------------------------------------------------------
inc 0 2 2 0.60 12.50 69.00 448222 7617684 394 270 -90
----------------------------------------------------------------------------
WDQ020 0 11 11 0.37 4.32 34.41 447538 7613486 401 270 -90
----------------------------------------------------------------------------
inc 8 10 2 0.50 5.00 36.00 447538 7613486 401 270 -90
----------------------------------------------------------------------------
WDQ024 1 3 2 0.30 7.50 70.50 446094 7602112 365 270 -90
----------------------------------------------------------------------------




Corporate Information



Board Members

Robert Friedland Chairman & Non Executive Director
Peter Reeve CEO & Managing Director
Sam Riggall Executive Director
John Macken Non Executive Director
Peter Meredith Non Executive Director
Douglas Kirwin Non Executive Director
Ian Plimer Independent Non Executive Director (Lead)
Kyle Wightman Independent Non Executive Director

Registered & Principal Office
Level 9, 479 St Kilda Road
Melbourne, Victoria, Australia 3004
Telephone: +61 3 9090 8800
Facsimile: +61 3 9090 8899
Email: infoaustralia@ivancorp.net
Website: www.ivanhoeaustralia.com

Issued Share Capital
At issued capital was 418.4 million ordinary shares
and at quarter close had a market capitalisation of
$1.5 billion.
ASX Stock Codes: IVA / IVAO
TSX Stock Codes: IVA / IVAO.WT

Quarterly Share Price Activity
High Low Last
$ $ $
Oct-Dec 3.70 2.82 3.57

Ivanhoe Australia's parent company
Ivanhoe Mines trades
on the NYSE, NASDAQ & TSX: Code: IVN

Forward Shareholder Enquiries to
Computershare Investor Services
Yarra Falls
452 Johnston Street
Abbotsford, Victoria, Australia 3067
Telephone: +61 3 9415 4000
Facsimile: +61 3 9473 2500
Email: web.queries@computershare.com.au
Website: www.computershare.com


Competent Persons Statement

The information in this Report that relates to Ivanhoe Australia's exploration results for prospects other than Mount Elliott, is based on information compiled by Paul Carter, General Manager Exploration, who is a full time employee of Ivanhoe Australia and a member of The South African Council for Natural Scientific Professions, a 'Recognised Overseas Professional Organisation' included in the current list of such organisations promulgated by ASX. Paul Carter has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2004 edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Paul Carter consents to the inclusion in the Report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Ivanhoe Australia's mineral resource estimates for the "SWAN and surrounding areas" of the Mount Elliott project is based on information compiled by Mr Rodney L Webster, who is a full time employee of AMC Consultants Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy. Mr Webster has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the JORC Code. Mr Webster consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

The information in this announcement that relates to exploration results for the Mount Elliott project, and to resource estimates of the "SWAN Zone", is based on information compiled by Barry J. Goss, who is a full time employee of Ivanhoe Australia and a Fellow of the Australasian Institute of Mining and Metallurgy. Barry J. Goss has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the JORC Code. Barry J. Goss consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

Quality Control and Qualified Person Statement

Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101. The exploration programs are overseen by Paul Carter, BSc(Hons), the General Manager Exploration of the Company and a Qualified Person as defined under National Instrument 43-101. Mr Carter has overseen the exploration programs and supervised the scientific and technical information contained in this report.

QAQC Statement

Ivanhoe Australia's core sampling within mineralised zones is generally taken on continuous one-metre intervals down each drill hole, or on smaller lengths over narrow geological units, for large disseminated or weakly mineralised zones sample lengths may increase to a maximum of two metres. The core is marked with a continuous cutting line along the middle, parallel to the long axis for the purpose of preventing a sampling bias during splitting. Core is cut with a rock saw flushed continually with fresh water and one-half of NQ/HQ core or one-quarter of PQ core is taken for analysis. Reverse circulation (RC) samples are taken on continuous one- or two-metre intervals down each drill hole and collected from a rig-based cone splitter.

Sample dispatches include Certified Reference Materials (CRMs), Field Blanks, Field Duplicates, Crushed Duplicates, and Pulp Duplicates. The CRMs, Field Duplicates, and Field Blanks are randomly inserted during sampling, whereas the Crushed and Pulp Duplicates are inserted at the laboratory. CRMs are certified for gold, copper, molybdenum, and/or rhenium.

Samples are placed in plastic bags, sealed, and collected in large, labelled shipping bags that are secured and sealed with numbered tamper-proof security tags. Samples are shipped to ALS Laboratory Group's Mineral Division at Mount Isa for preparation. Gold, copper, molybdenum, and rhenium assays, and multi-element geochemical analyses are conducted at ALS Mount Isa, Townsville, and Brisbane laboratories. ALS operates in accordance with ISO/IEC 17025.

Reference material assay values are tabulated and compared to those from established Round Robin programs. Values outside of pre-set tolerance limits are rejected and samples subject to re-assay. A reference material assay fails when the value is beyond the 3SD limit and any two consecutive assays fail when the values are beyond the 2SD limit on the same side of the mean. A Field Blank fails if the assay is over a pre-set limit.

Ivanhoe Australia also performs check assays on a regular basis at an independent third party laboratory. Ivanhoe Mines Ltd regularly conducts onsite reviews, internal audits, and laboratory audits to ensure procedural compliance for maintaining industry standard best practices.

Forward-looking statements

Certain statements made herein, including statements relating to matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information and statements are typically identified by words such as "anticipate," "could," "should," "expect," "seek," "may," "intend," "likely," "plan," "estimate," "will," "believe" and similar expressions suggesting future outcomes or statements regarding an outlook.

All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Australia's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. The reader is cautioned not to place undue reliance on forward-looking information or statements.

To view "Appendix 5B - Mining Exploration Entity Quarterly Report", please visit the following link:

http://media3.marketwire.com/docs/ivhappendixb.pdf









Contact Information