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 2015 include the following:

• Oyu Tolgoi achieved an excellent safety performance for 2015 with an All Injury Frequency Rate of 0.33 per 200,000 hours worked.

• In May 2015, the Oyu Tolgoi Underground Mine Development and Financing Plan was signed addressing key outstanding shareholder matters and setting out long-term funding of the project.

• In August 2015, Oyu Tolgoi filed revised schedules for the statutory feasibility study with the Mongolian Minerals Council.

• In December 2015, Oyu Tolgoi signed a $4.4 billion project financing facility provided by a syndicate of international financial institutions, export credit agencies and 15 commercial banks.

• Underground pre-start activities are underway in parallel with an update to the feasibility study capital estimate, which is expected to be complete in Q1'16.

• Turquoise Hill continues to expect approval of the updated 2016 feasibility study and notice to proceed decisions by the various boards for underground construction in Q2'16.

• Oyu Tolgoi recorded revenue of $1.6 billion in 2015 on record concentrate sales of 819,800 tonnes reflecting higher concentrate sales volumes partially offset by lower copper and gold prices.

• In Q4'15, Oyu Tolgoi recorded revenue of $355.6 million on concentrate sales of 236,200 tonnes reflecting lower copper and gold prices combined with lower sales of metal in concentrate.

• Turquoise Hill generated operating cash flow before interest and taxes of $650.5 million in 2015.

• In 2015, cash operating costs at Oyu Tolgoi were $962.6 million including $59.9 million in non-recurring charges for the May 18 underground agreement and underground early works expensed.

• For 2015, Oyu Tolgoi generated C11 costs of $0.57 per pound of copper and all-in sustaining costs1 of $1.37 per pound of copper, a decrease of 50.0% and 29.7% respectively over 2014.

• Capital expenditure on a cash basis for 2015 was $116.2 million, primarily attributed to sustaining activities.

• For 2015, Oyu Tolgoi's second full year of production, the mine operated at record levels.

• Productivity improvements in the concentrator implemented throughout 2015 led to throughput exceeding nameplate capacity by year end and increasing by 23.9% over 2014.

• For Q4'15, concentrator throughput increased 8.5% over Q3'15 reaching an all-time quarterly high.

• In 2015, copper production of 202,200 tonnes exceeded the Company's guidance and annual gold production of 653,000 ounces met guidance.

• Compared to 2014, 2015 mined production increased 19.3%, concentrate production increased 39.9%, copper production increased 36.3% and gold production increased 10.9%.

• Oyu Tolgoi is expected to produce 175,000 to 195,000 tonnes of copper and 210,000 to 260,000 ounces of gold in concentrates for 2016.

• Sales contracts have been signed for approximately 90% of Oyu Tolgoi's expected 2016 concentrate production.

• In September 2015, Oyu Tolgoi surpassed 1.5 million tonnes of concentrate shipped.

• Turquoise Hill's cash and cash equivalents at December 31, 2015 were approximately $1.3 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.