Oyu Tolgoi Project website

Oyu Tolgoi is one of the world's largest new copper-gold mines and is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border.

The comprehensive Oyu Tolgoi Investment Agreement took effect March 31, 2010, following confirmation by the Government of Mongolia that procedural and administrative conditions contained in the Investment Agreement had been satisfied within the allocated six-month period that has followed the agreement's official signing in October 2009. The comprehensive Investment Agreement now has taken full legal effect.

On October 6, 2009, Turquoise Hill Resources and Rio Tinto signed a long-term, comprehensive Investment Agreement with the Government of Mongolia for the construction and operation of the Oyu Tolgoi copper-gold mining complex. The agreement creates a partnership between the Mongolian Government -- which acquired a 34% interest in the project -- and Turquoise Hill Resources, which retained a controlling 66% interest in Oyu Tolgoi. Global miner Rio Tinto, which joined Turquoise Hill Resources as a strategic partner in October 2006, is managing the development of Oyu Tolgoi.

Oyu Tolgoi has been producing and exporting copper and gold concentrate since 2013.

Major highlights for the first quarter of 2016 include the following:

• Oyu Tolgoi achieved an excellent safety performance with an All Injury Frequency Rate of 0.21 per 200,000 hours worked for the three months ended March 31, 2016.

• Oyu Tolgoi recorded revenue of $422.7 million in Q1'16, an increase of 18.9% over Q4'15, reflecting higher gold prices partially offset by lower volumes of concentrate sales.

• Turquoise Hill generated operating cash flow before interest and taxes of $195.4 million during Q1'16.

• For Q1'16, Turquoise Hill reported income from continuing operations attributable to shareholders of $118.9 million.

• In Q1'16, concentrator throughput increased 3.1% over Q4'15 resulting in average throughput of approximately 106,000 tonnes per day for the quarter.

• Concentrate production in Q1'16 was consistent with Q4'15 resulting from increased throughput and strong copper grades.

• Copper production in Q1'16 reached a quarterly high increasing 0.5% over Q4'15.

• As expected, gold production in Q1'16 declined approximately 30% over Q4'15 due to lower grades and the near-completion of mining in phase 2 of the open pit.

• For Q1'16, Oyu Tolgoi's C1 costs were $0.02 per pound of copper and all-in sustaining costs were $0.62 per pound of copper.

• Given stronger-than-expected Q1'16 gold production Turquoise Hill has increased 2016 gold in concentrates guidance to 255,000 to 285,000 ounces from 210,000 to 260,000 ounces.

• Sales contracts have been signed for approximately 95% of Oyu Tolgoi's expected 2016 concentrate production.

• In Q1'16, the capital estimate of the 2016 feasibility study was completed.

• Turquoise Hill expects the notice to proceed decision for underground construction in Q2'16.

• In March 2016, Oyu Tolgoi surpassed 2.0 million tonnes of concentrate shipped.

• Turquoise Hill's cash and cash equivalents at March 31, 2016 were approximately $1.5 billion.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 40-F which may be secured from us, or from the SEC's website at www.sec.gov/edgar.shtml.