Robert Friedland, Executive Chairman and Chief Executive Officer of Ivanhoe Mines Ltd., Updates Status of His Ownership Interest in Ivanhoe Mines

Robert M. Friedland, of Singapore, announces that on December 8, 2010, he entered into an agreement with Rio Tinto International Holdings Limited (RTIH) pursuant to which he has agreed to sell to RTIH 10,000,000 common shares (the RMF Shares) of Ivanhoe Mines Ltd. (Ivanhoe) at a per share price of US$25.35, being the simple average of the closing price of the Ivanhoe common shares on the NYSE on the 20 trading days preceding December 8, 2010. Mr. Friedland is the Executive Chairman and Chief Executive Officer of Ivanhoe.

As at the date of this news release, Mr. Friedland owns, directly and indirectly, an aggregate 96,881,622 Ivanhoe common shares, representing approximately 18.2% of Ivanhoe’s issued common shares, and options entitling him to purchase an additional 1,750,000 common shares. Assuming exercise of the options, he will own a total of 98,631,622 common shares, or 18.5% of Ivanhoe’s issued and outstanding common shares on a post-conversion, beneficial ownership basis.Upon completion of this transaction Mr. Friedland will own, directly and indirectly, an aggregate 86,881,622 Ivanhoe common shares, representing approximately 16.3% of Ivanhoe’s issued common shares, and options entitling him to purchase 1,750,000 common shares of Ivanhoe. Assuming exercise of the options, he will own a total of 88,631,622 common shares, or 16.6% of Ivanhoe’s issued and outstanding common shares on a post-conversion beneficial ownership basis.

Mr. Friedland has previously announced that he will participate in Ivanhoe’s rights offering to the maximum extent permitted to maintain his level of ownership after completion of the rights offering.

In addition, Mr. Friedland also has announced that he may use proceeds that he receives from the sale of RMF Shares to RTIH to help him finance the potential acquisition of any rights that may become available in the secondary market during the rights offering subscription period.

A report respecting this matter will be electronically filed with the securities commission in each jurisdiction where Ivanhoe is reporting and will be available for viewing through the Internet at the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

(signed) Robert M. Friedland

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