Oyu Tolgoi marks early development milestone with completion of Shaft 2 sinking


VANCOUVER, BC--(Marketwired - January 22, 2018) - Turquoise Hill today announced that Oyu Tolgoi has completed the sinking of Shaft 2, including reaching final depth, shaft bottom mass excavation and concrete floor installation, marking an early milestone in the development progress of Hugo North Lift 1. The fit out of Shaft 2 will take place throughout 2018.

Jeff Tygesen, Turquoise Hill Chief Executive Officer, said, "The completion of Shaft 2 sinking is the first of a number of key milestones that will lead to production of copper and gold from Hugo North Lift 1. At peak production around 2025, Oyu Tolgoi is expected to be the world's third largest copper mine."

Shaft 2 is 1,284 metres in depth, 10 metres in diameter and will be used for access, production and ventilation.

Despite the recent declaration of force majeure at Oyu Tolgoi, there has been no disruption to goods and services arriving for underground development.

Update on force majeure

Force majeure for Oyu Tolgoi concentrate delivery customer contracts remains in place. On Friday, January 19, trucks, including Oyu Tolgoi concentrate convoys, recommenced crossing the Ganqimaodu Border Zone. A consistent period of convoy crossing in order to determine a stable concentrate supply chain is required before force majeure can be lifted. Turquoise Hill will update the market in due course.

Safe and normal mine operations have been maintained and no production impact is expected.

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Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including the price of copper, gold and silver, anticipated capital and operating costs, anticipated future production and cash flows, and the status of the Company's relationship and interaction with the Government of Mongolia on the continued development of Oyu Tolgoi and Oyu Tolgoi LLC internal governance. Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements and information include, among others, copper, gold and silver price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; development plans for processing resources; matters relating to proposed exploration or expansion; mining operational and development risks; litigation risks; regulatory restrictions (including environmental regulatory restrictions and liability); communications with local stakeholders and community relations; activities, actions or assessments by governmental authorities; events or circumstances that may affect the Company's ability to deliver its products in a timely manner; currency fluctuations; the speculative nature of mineral exploration; the global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; capital and operating costs, including with respect to the development of additional deposits and processing facilities; and defective title to mineral claims or property. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All such forward-looking statements and information are based on certain assumptions and analyses made by the Company'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 statements or information.

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Contact Information:

Contact
Investors and Media
Tony Shaffer
+ 1 604 648 3934
tony.shaffer@turquoisehill.com