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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