ivanhoe statement

Ivanhoe clarifies its position on Exco Resources Limited?s
market release concerning the proposed sale of the
Cloncurry Copper Project to Xstrata Copper
MELBOURNE, AUSTRALIA ? Ivanhoe Australia Limited (Ivanhoe) (IVA:ASX,
IVA:TSX) notes the announcement today by Exco Resources Limited (Exco) in
relation to the proposed sale of the Cloncurry Copper Project to Xstrata Copper and
the intended capital distribution to shareholders of Exco.
Ivanhoe notes, as Exco?s largest shareholder, that the transaction proposed by Exco
requires shareholder approval.
Although the Managing Director & CEO of Ivanhoe is a non-executive director of
Exco, Mr Peter Reeve excused himself from Exco Board deliberations on this
transaction
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.
Accordingly, when Exco?s announcement refers to the views of the ?Exco Board? (in
particular, the statement on page 1 of Exco?s announcement that ?The Exco Board
believes the Proposal is in the best interests of all shareholders and recommends
that shareholders approve the Proposal.?) these statements do not necessarily
reflect the views and conclusions of Mr Reeve (Ivanhoe?s appointed nominee to the
Exco Board) nor Ivanhoe. No assumptions should be made as to how Ivanhoe will
vote its 22.8% shareholding in relation to Exco?s proposed transaction.

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Ivanhoe had previously proposed to both Exco and Xstrata Copper management an alternative
transaction, under which Ivanhoe would have acquired a direct interest in parts of Exco's exploration
portfolio. Notwithstanding that the value of the interest contemplated would not have been material in
the context of Ivanhoe's market capitalisation, Mr Reeve thought it appropriate to excuse himself from
the deliberations.
Market Release 20 April 2011Ivanhoe is unlikely to decide how it will vote in relation to the proposed sale until it
knows the size and timing of the proposed capital distribution. Ivanhoe has
communicated its view to Exco management that all after-tax proceeds from the sale
of the Cloncurry Copper Project to Xstrata Copper should be returned to Exco
shareholders and paid as soon as possible.
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