Oyu Tolgoi Site Visit, August 2015

Oyu Tolgoi – a world-class copper and gold mine

Analyst and Investor Mine Visit

AUGUST 25-27, 2015

Forward-looking statements

This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements and information, other than statements of historical fact, are forward-looking statements and information that involve various risks and uncertainties. There can be no assurances that such statements or information, including any statements relating to the status of the Company’s relationship and interaction with the Government of Mongolia on the continued development of the Oyu Tolgoi project and Oyu Tolgoi LLC internal governance, will prove accurate and actual results and future events could differ materially from those expressed or implied in such statements. Such statements and information contained herein represent the Company’s best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements or information or to conform these forward-looking statements or information to actual results, except as required by law. For a more detailed list of specific forward-looking statements and information applicable to the Company, refer to the “Forward-Looking Information and Forward-Looking Statements” section of the Annual Information Form dated as of March 20, 2015 in respect of the year ended December 31, 2014 and in the forward-looking statements contained in the Company’s press release dated May 18, 2015 announcing the agreement to develop the underground mine. All amounts are in U.S. dollars, unless otherwise stated.

2

Strong Q2’15 production; record concentrate production and throughput

Maintaining 2015 guidance

Robust operating cash flow in Q2’15; large cash position and debt-free balance sheet

Signing of underground agreement; progressing project finance and updating underground feasibility study

Oyu Tolgoi expected to be third largest copper mine globally at full production

Low-cost copper producer well positioned for long-term

Turquoise Hill overview

3

4

Production highlights

5,560

7,778 7,029

7,505 7,512

9,025

Q1'14 Q2'14 Q3'14 Q4'15 Q1'15 Q2'15

Concentrator throughput ('000 tonnes)

Throughput in 2H’15 expected to benefit from July shutdown

102.9

140.0 134.1

186.7

130.9

215.5

Q1'14 Q2'14 Q3'14 Q4'15 Q1'15 Q2'15

Concentrates produced ('000 tonnes)

Q2’15 production impacted by strong throughput and higher grades

Copper production in 2H’15 expected to be higher than 1H’15

25.3

36.2 36.6

50.3

33.6

55.3

0.52

0.53 0.59

0.74

0.52

0.69

0

0.2

0.4

0.6

0.8

0

20

40

60

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

% Grade ‘000 tonnes Cu in concentrates ('000 tonnes) and grades

Gold production in 2H’15 expected to moderate as grades decline beginning late in Q3’15

66

113 132

278

86

238

0.49

0.60 0.80

1.46

0.48

1.09

0.00

0.40

0.80

1.20

1.60

0

50

100

150

200

250

300

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

% Grade ‘000 oz Au in concentrates ('000 ounces) and grades

5

Financial highlights

$140.7 $201.2

$345.2

$862.8 $954.2

$1,166.9

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Cash position ($'000,000)

$(111.9)

$153.8

$259.2

$417.5

$105.3

$239.2

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Operating cash flow ($'000,000)

Cu: $2.97* Au: $1,292*

Cu: $3.06 Au: $1,289

Cu: $3.16 Au: $1,284

Cu: $2.97 Au: $1,200

Cu: $2.66 Au: $1,218

Cu: $2.74 Au: $1,205

$200.1

$245.5 $220.3

$292.4

$218.9

$284.6

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Cash operating costs ($'000,000)

39.5 30.6 31.6

20.0 27.0

33.9

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Expansion Capex Sustaining activities

$10.4

$14.2 $6.7

$8.1

$3.4

$2.5

Capital Expenditures ($’000,000)

$49.9

$44.8

$38.3

$28.1 $30.4

$36.4

Source: Average quarterly Comex copper price and average quarterly LME gold price.

Growing cash position, debt-free balance sheet Five consecutive quarters of positive operating cash flow

2015 CAPEX guidance: ~$230 million, ~$185 million sustaining 2015 cash operating cost guidance: ~$1 billion

Concludes outstanding shareholder matters

Resolves initial development costs

Maintains Investment Agreement tax stability principles

Tax settlement of $30 million

Clarifies sales royalty calculation

Eliminates 2% net smelter royalty

Provides path forward for restarting underground development

Acknowledges definition of feasibility study as an estimate

Management Services Payment: 3% for underground construction

Outlines comprehensive funding plan

Overall NPV impact to Turquoise Hill is ~2% of total reserve case value

Summary of Underground Development Plan

6

Unlocking the next phase of development

7

• Completed with signing of agreement • Tax matters, 2% NSR, sales royalty calculation, MSP

Resolution of shareholder

matters

• Advancing discussions with IFIs and IMLAs • Expect to sign project financing by end of 2015 • Drawdown expected Q1’16/Q2’16 following approval of the updated

feasibility study by the Turquoise Hill, Rio Tinto and Oyu Tolgoi boards

Project financing

• 2015 feasibility study tentatively approved by MMC pending update of schedules and alignment with underground agreement

• Updated feasibility study to be resubmitted to MMC in September 2015 • Ahead of final board approvals, capital estimate completed

Underground feasibility study

• Work on-going to secure all necessary permits Permits

Restart milestones

Q3’15 Q4’15 Q1’16 Q2’16

Project Readiness

Project Approval

(Turquoise Hill, Rio Tinto, Oyu Tolgoi boards)

• Update CAPEX estimate • Complete critical and remedial works • Enable schedule to de-risk and financing

processes • Minimize cost and exposure without unduly

delaying project

Estimate update, readiness works, early mobilization July underground restart

1

Feasibility Study (Mongolian Minerals Council)

Submitted

• Legally required – to update planned schedule and for underground agreement

• OTFS 2015 approved and registered with order to update

• Comply with law/underground agreement • Reschedule of 2014/2015 • Now final checks and translation

To confirm

Turquoise Hill Technical

Report Feasibility study update

Re-submit As approved for

notice to proceed

Project Financing

Sign Drawdown (incur fees) (~$4B, repay shareholders)

• Complete financing • Enable Mongolian Government to action security • Avoid drawdown until project approved

Preparation, project financing approvals

Conditions precedent , security, project approvals

Readiness execution plan

• Mobilize and ramp up Owner’s and EPCM’s respective teams

• Complete full project re-estimate, re-schedule and update project scope for OTFS 2015

• Develop project systems, procedures, processes and finalize the PEP

• Deliver the detailed engineering and early procurement for plant, equipment and materials critical to project restart

• Execute necessary critical works that are key enablers for recommencement of lateral development mining activity

• Obtain necessary project permits for commencing project execution

The aim is to ramp-up project team and project readiness to restart without delay, while not committing to any long-term obligations

Project financing – flow of funds

Today1

Receivable from Oyu Tolgoi*

Shareholder loan: $6.8 billion

Payable to Turquoise Hill*

Shareholder loan: $6.8 billion

1. In accordance with the ARSHA, Turquoise Hill funded the common share investments in Oyu Tolgoi on behalf of Erdenes Oyu Tolgoi LLC; at June 30, 2015 the balance is approximately $950 million * Balances as of June 30, 2015 | Interest rate LIBOR + 6.5%

At project financing drawdown

Proceeds: $4.2 billion2 $4.2 billion $4.2 billion

Payable to Turquoise Hill*

Shareholder loan: $6.8 billion to $3.0 billion3

2. Project finance facility made directly with Oyu Tolgoi 3. At drawdown, Turquoise Hill will provide Oyu Tolgoi with $400 million for fees and taxes * Calculated on balances as of June 30, 2015 | Interest rate LIBOR + 6.5% ** When guarantee fee paid, Oyu Tolgoi pays 1.9% and Turquoise Hill pays 0.6%


Shareholder loan: $6.8 billion to $3.0 billion

Deposit from Turquoise Hill

Investment: $4.2 billion Waive 2.5%** guarantee fee while $4.2 billion on deposit

Priority of funding used for development

Oyu Tolgoi operating cash flow Project financing funds Turquoise Hill cash

Oyu Tolgoi cash call

Funding

Reduction in deposit from Turquoise Hill* Deposit: ↓

* Indicative, does not show the withholding tax implications | original shareholder loan interest rate LIBOR + 6.5% | new amounts subject to interest rate no more than LIBOR + 6.5% ** Guarantee fee - Oyu Tolgoi pays 1.9% and Turquoise Hill pays 0.6%

Funding


Shareholder loan: ↑ Equity loan: ↑

Funding

Payable to Turquoise Hill (2.5%** guarantee fee on funds used) Shareholder loan: ↑ Equity loan: ↑

10

Medium-term timeline

2015 – 2016 2016 – 2021 2021 – 2026 2026 ++

• Sign project finance

• Complete feasibility study

• Board approvals

• Drawdown project finance

• Hugo North Lift 1 Construction

• First draw bell production

• Ramp-up to full production

• Hugo North Lift 2 drilling

• Hugo North Lift 2

• Hugo South

11

Additional Exploration

Evaluate Concentrator Options

2014 Technical Report

12

Plant

Open Pit and Hugo North (L1) Open Pit, Hugo N (L1, L2), Hugo S, Heruga

Reserve Case (Feasibility Study):

Life of Mine Case:

*Life of Mine Case includes inferred, so not included in economic evaluation

Proposes next sensible step in development, delivering significant value and initiating access to future development

Economics based on Reserve case production

Large Resource base provides optionality (long life and expansion)

Mine and processing design considers expansion probability

Highly attractive project economics

13

Notes: US$ amounts presented in real 2015 terms (1) Expansion capital includes only direct project costs

Units 2014 Reserve Case

Total Processed Bt 1.5

Cu Grade % 0.85

Au Grade g/t 0.32

Ag Grade g/t 1.94 Copper Recoverable B lb 24.9 Gold Recoverable Moz 11.9

Silver Recoverable Moz 78.0

Life Years 41

Expansion Capital US$B 4.9

NPV (8.0%) After Tax US$B 7.43

IRR After Tax % 29%

Payback Period Years 9

Multiple development options

14

Production creep targeted along with expansion

Actual operating performance will inform choice of expansion path

A decision to expand the concentrator is not required for a couple years

Copper industry overview

15

Source: Wood Mackenzie (Q1 2015 update) Normal C1 cost + sustaining capex, range capped at -100/lb & 400/lb 2020 base, highly probable and probable mines only 1. Oyu Tolgoi’s 10-year average peak production including underground 2. Metals Economics Group and 2014 Oyu Tolgoi Technical Report (2020-2024 average costs)

Post-2020 copper mine C1+sustaining cost curve (c/lb, 2015$)

300

200

100

0

-100

20,000 18,000 16,000 8,000 6,000 4,000 2,000

400

0 12,000 10,000 14,000

kt

Other Mines

Oyu Tolgoi

Cumulative production (kt)

Third largest copper mine after planned expansion1

Top 10 copper deposit by contained reserves and resource2

One of the largest gold deposits by contained reserves and resources2

Long-term copper fundamentals strong

16

0

5

10

15

20

25

30

2000 2005 2010 2015 2020 2025

Base Highly Probable Primary Demand

Forecast

Copper supply/demand outlook (mt)

Small surplus likely over

next few years

Ongoing attrition at existing mines driven by declining grade

Continued demand growth requires new capacity in the medium-term

Market anticipates deficit towards end of decade

China now largest buyer of gold and continues to be largest consumer of copper

Source: Wood Mackenzie (Q1 2015 update)

Turquoise Hill – a long-term growth opportunity

Pure copper and gold exposure

Positive operating cash flow and focusing on asset optimization

Agreed path forward for development of the high-grade underground mine

Significant growth, development and expansion opportunities

Resources located near China with further prospectivity

17

Appendix

Probable Development Schedule

19

Processing

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Project Start 1st Draw Bell Firing

Sustainable Underground Production

Complete Convey to Surface

Complete Ramp-up

Excavation (Lateral / Mass / Vertical)

Undercutting

Material Handling (CTS + Crushers + Shafts)

Concentrator Upgrade

Extraction Level Access

Set-Up

Surface Infrastructure

Complete Concentrator Upgrade

Underground Ore Production

20

Oyu Tolgoi at China’s doorstep

Mongolians now occupy 95% of Oyu Tolgoi roles

Since 2010, in-country spend of $4.6 billion (Mongolian suppliers, salaries, taxes and other Government payments)

Partnered with nearly 800 local suppliers in 2014, accounting for over 50% of procurement spend

In April 2015, Oyu Tolgoi signed a Cooperation Agreement with local governments for community development

Oyu Tolgoi recognized by Mongolian National Chamber of Trade and Industry as leading jobs creator for 2013

Mongolian Mining Journal awarded ‘Oyu Tolgoi Best Responsible Mine of the Year’ in 2014

Oyu Tolgoi expected to represent about 30% of country’s GDP when fully developed

Made in Mongolia

21

Oyu Tolgoi Operations Update

2 БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2014, ОЮУ ТОЛГОЙ ХХК COPYRIGHT © 2014 OYU TOLGOI , ALL RIGHTS RESERVED

Forward Looking Statements This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements and information, other than statements of historical fact, are forward-looking statements and information that involve various risks and uncertainties. There can be no assurances that such statements or information, including any statements relating to the status of Turquoise Hill’s relationship and interaction with the Government of Mongolia on the continued development of the Oyu Tolgoi project and Oyu Tolgoi LLC internal governance, will prove accurate and actual results and future events could differ materially from those expressed or implied in such statements. Such statements and information contained herein represent Turquoise Hill’s best judgment as of the date hereof based on information currently available. Turquoise Hill does not assume any obligation to update any forward-looking statements or information or to conform these forward-looking statements or information to actual results, except as required by law. For a more detailed list of specific forward-looking statements and information applicable to Turquoise Hill, refer to the “Forward-Looking Information and Forward-Looking Statements” section of the Annual Information Form dated as of March 20, 2015 in respect of the year ended December 31, 2014 and in the forward-looking statements contained in Turquoise Hill’s press release dated May 18, 2015 announcing the agreement to develop the underground mine. All amounts are in U.S. dollars, unless otherwise stated.


Summary

Significant number of improvement initiatives across all aspects of business HSE (Critical risk management, leaders toolkit, water recycling) Production (Value chain throughput improvements) Maintenance (Tactics, condition monitoring, critical spares, rotables process) Production planning (Geomet, sequence optimization) Costs (National/Chinese procurement, contractor/expat reductions)

Bulk of the work on base systems and processes Low hanging fruit, adopt/adapt from other businesses

Some limited examples of leading practice Value chain throughput initiatives Mine operations equipment utilization Mine operations training

Key challenge is not identifying opportunities, it’s prioritization


Our Vision – Our Future


Safety

• Significant focus on safety in business

• Injury rates reducing

• A continuing significant exposure to critical risks with inexperienced workforce


Lifting Operations

Confined Spaces

Contact with

Electricity

Entanglement and Crushing

Exposure to Hazardous Substances

Fall from Height

Falling Objects

Underground Fire

Underground Inrush

Slope Failure

Uncontrolled Release of

Energy

Underground Rock Fall

Unplanned Initiation of Explosives

Vehicle Collision or

Rollover

Vehicle Impact on

Person

Exposure to Thermal

Extremes

Underground Hoisting

Critical Risk Management Our first priority


Productivity Improvement Program

• 24 month program – transitioning to ongoing improvement

• Stabilizing current processes through process control

• Mine-to-market process integration and optimization methodology (including debottlenecking)

• Combine leading practices across Rio Tinto and external partners

• Strategic production planning by optimizing mine planning /sequencing for faster milling and higher grades)

Increase free cash flow

Operational excellence

Increased labour productivity

Improved utilization of the assets

Increased and optimized payable metal from resource to customer

Maximized value from operations while optimizing free cash flows

Increase free cash flow over the next five years

Optimized supply chain and integration with customers

Objective: step change in productivity (Aspiration - 25% increase from current demonstrated performance)

Outcomes Key projects/activities


Concentrator Throughput Improvements


Process Control Improvements 1. SAG Circuit

• Load Control & Constraint √ • Maximum Speed Control √ • Auto Direction balance √ • Acoustic Retrofit (Audiomill & Hydrophone) In progress - 80% • Auto Grind Out, Controlled Stop/Start √

2. Ball Mill Circuit • Regulatory Control √ • Feed Density Control √ • Constraint back to SAG √

3. Pebble Circuit • PLC – DCS Migration √ • Cavity Level Control √ • Crusher Inventory Balancing √ • Auto Gap Adjustment √

4. Auxiliary Circuit • Tailing Thickener Constraint Control √

5. Monitoring Tool • Process Control Online KPI √ • Processbook Trend & Control Monitoring √ • Constraint Tool √ • Online documentation In progress – 70%


Additional Concentrator Magnets

SAG Throughput Increase - Pebble Crusher Utilization


SAG Grinding Media Improvements

Jan 2014: S-Series 0.85%C, Surface 60-63HRC 1% round balls

SAG Throughput Increase – SAG Grinding Media • Changed from S-Series to T-Series to P60 series, lowering hardness. • Modified SAG operating philosophy to reduce ball impacts on liners

Jan 2015: T-Series 0.74%C, Surface 58-60 HRC 60% round balls

July 2015: P60 Series 0.55%C, Surface 55-56HRC 100% round balls


Thickener Distribution Improvements Tailings Throughput Increase

BEFORE

AFTER

13БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2014, ОЮУ ТОЛГОЙ ХХКCOPYRIGHT © 2014 OYU TOLGOI , ALL RIGHTS RESERVED

Phase1

Phase2

Phase3

Phase4

Phase5

Phase6

Phase7

Phase8

Phase9

Phase10

B

A

Phase Ore (Mt)

Waste (Mt)

Cu(%)

Au(g/t)

As in Con(ppm)

Tput(t/hr)

Phase 01 10 0 0.72 1.71 40 4080Phase 02 40 10 0.55 0.81 80 4290Phase 03 40 50 0.56 0.16 490 4860Phase 04 100 150 0.42 0.42 190 4070Phase 05 150 260 0.38 0.27 380 4090Phase 06 50 70 0.60 0.08 5550 7420Phase 07 90 90 0.54 0.12 5700 6260Phase 08 60 230 0.45 0.05 2110 4660Phase 09 30 200 0.33 0.30 220 3350Phase 10 420 800 0.44 0.33 1630 4400

Phase 6a 40 40 0.66 0.07 7210 7370Hugo West 30 70 0.33 0.25 ‐ 4,290

Overspill risks from outer phases

Includes revised TSF strategy to simplify design and balance mine and mill requirements

Medium‐Term Production Plan Optimization


Cost Reduction Improvements

Contractor reductions Maintenance labour insourcing

Maintenance labour efficiency

Reduced site services

Procurement savings Logistics, Fuel, Grinding Media

National and Chinese supply

Expat reductions Development of Mongolian leaders

More than 50% expat reduction target to end 2016


• Mine design risks • Mining rate – in particular vertical

development – Hydraulic shovel reliability, wall control, D&B performance

• Major component maintenance risks (some plant moving out of component honeymoon period)

• Potential catastrophic failure of critical piece of equipment (thickener rakes, crusher motor, etc.)

• Inexperienced workforce (safety culture, peak maintenance challenges, increased operating demands). Continued expat reductions (350 in 2013 to 175 current)

• Revised mining sequence on track

• Improvement projects in place, mining rates are tracking to plan and pit slope issues are being managed

• Truck engine replacement program is ongoing

• Reliability issues and forward planning in the concentrator are receiving significant focus

• All critical roles are filled, with ongoing leadership toolkit rollout.

• Continued reduction in expat support and promotion of national employees to leadership roles

Other Key Risks

Oyu Tolgoi Site Visit AUGUST, 2015

Oyu Tolgoi – Underground Mine Discussion

Forward-Looking Statements

2

This presentation includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements and information, other than statements of historical fact, are forward-looking statements and information that involve various risks and uncertainties. There can be no assurances that such statements or information, including any statements relating to the status of Turquoise Hill’s relationship and interaction with the Government of Mongolia on the continued development of the Oyu Tolgoi project and Oyu Tolgoi LLC internal governance, will prove accurate and actual results and future events could differ materially from those expressed or implied in such statements. Such statements and information contained herein represent Turquoise Hill’s best judgment as of the date hereof based on information currently available. Turquoise Hill does not assume any obligation to update any forward-looking statements or information or to conform these forward-looking statements or information to actual results, except as required by law. For a more detailed list of specific forward-looking statements and information applicable to Turquoise Hill, refer to the “Forward-Looking Information and Forward-Looking Statements” section of the Annual Information Form dated as of March 20, 2015 in respect of the year ended December 31, 2014 and in the forward-looking statements contained in Turquoise Hill’s press release dated May 18, 2015 announcing the agreement to develop the underground mine. All amounts are in U.S. dollars, unless otherwise stated.

Execution

3

Hugo North - Underground Mine

Physical Infrastructure • Underground mine able to

produce 95ktpd. • 5 shafts (personnel & equipment

access and ventilation). • Material handling system

(crushers and underground conveyors to transport ore to the surface overland conveyor).

• Concentrator upgrade to handle higher copper content of underground ore.

• Associated surface infrastructure (Underground Mining offices, control room & associated facilities).

Operational Capability • Underground Operations team

(production + ongoing construction + maintenance + technical services).

• Mongolian workforce with appropriate expatriate support).

• Safety systems and supporting safe work procedures.

• Training systems and capability • Cave Management system,

including appropriate technical oversight.

• Asset Management systems • Support & logistics (major supply

contracts and contractors).

+

Expansion Scope

4

Key Aspects

• Development of HNL1, by panel cave mining method

• A high grade ore body ~2km long and 280m wide, containing 499Mt ore at 1.66% Cu, 0.34g/t Au

• >200km of underground lateral development

• Five vertical shafts and a decline incorporating conveyor to surface

• Concentrator throughput of 100ktpd is not expanded, but there is an upgrade to enable processing of higher grade feed

• Associated surface infrastructure

5 БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2012, ОЮУ ТОЛГОЙ ХХК

COPYRIGHT © 2012 OYU TOLGOI , ALL RIGHTS RESERVED

Site Actuals

• Shaft 1 sink to 1385m in 2008

• 16km off-shaft lateral development 2008 – Aug 2013

• Shaft 2 sink to 1167m and has ~100m to go

• Shaft 5 sink to 208m and has ~ 1,000m to go

• Extensive geotechnical data collection program

• Demonstrated performance and quality

Oyu Tolgoi Underground

5

Ore Flow

6

Probable Development Schedule

7

Processing

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Project Start 1st Draw Bell Firing

Sustainable Underground Production

Complete Convey to Surface

Complete Ramp-up

Excavation (Lateral / Mass / Vertical)

Undercutting

Material Handling (CTS + Crushers + Shafts)

Concentrator Upgrade

Extraction Level Access

Set-Up

Surface Infrastructure

Complete Concentrator Upgrade

Underground Ore Production

8 БҮХ ЭРХ ХУУЛИАР ХАМГААЛАГДСАН © 2012, ОЮУ ТОЛГОЙ ХХК

COPYRIGHT © 2012 OYU TOLGOI , ALL RIGHTS RESERVED

Reserve Case: Southern Oyu Open Pit / Hugo North Lift 1 Panels 0 to 2

Final year of processing in 2055

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2013201420152016201720182019202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049205020512052205320542055

Co

nce

ntr

ato

r fe

ed (

kt/y

)

Hugo North

Central Chalcopyrite

Central Covellite

Central Chalcocite

South West

Production – Reserve Case

Note: Based on 2014 Oyu Tolgoi Technical Report

8

Geotechnical

9

• Hugo North orebody is

– Highly faulted

– Fair rock mass strength

– Relatively high insitu (horizontal) stresses and abutment stresses

• This is good for promoting caving and minimising secondary breaking

• The challenge and key focus for the Oyu Tolgoi design and operating plan is around

– Maintaining stability of orebody development drives

– Managing draw interaction and draw control

9

Cave Support

10

Ground Support

Major faults and weak rock mass support pressure

>180kN/m2

A high stress environment, support resistance =

100kN/m2

Fair to good rockmass, static conditions ,support resistance

=80kN/m2

Major faults and strain burst prone rockmass ground support regime

Minimum 2.4m bolt and shotcrete

Add mesh. Cables and strapping @ 2m

Add Cables and strapping @ 1m

Add yieldable support

10

Cave Monitoring

11

• Cave Growth & Flow monitoring systems will be in place before start up of the undercut:

– Seismic system

– TDR & open holes

– Smart/network markers

– Cave Tracker

• Regular surface subsidence monitoring will be carried out

Cave Management

12

Single data repository

Real-time hazard recognition

Pillar stability

Integrated system; reduces the process of collecting, analysing and reporting significantly

CaveCad

Collecting, Validating, Processing, Analysing and Reporting data

automatically

Standardised cave management systems

Convergence High

Medium Low

HO

D

3D analysis and reporting Reports

© 2011 Rio Tinto Technology & Innovation

Undercut

13

• Undercut blasted in advance of drawpoint and drawbell excavation • Undercut face length < 350m and retreats at > 80m per year • Undercut lead / lag is 10m • Undercut face orientation + drives favourable to stress and structure

Undercut

Undercut

14

28m 28m

28m

17m

17m

To Drill

Drilling Blasting APEX

UNDERCUT

EXTRACTION

The ‘Wide W’ has significant benefits over traditional ‘Small W’ • Improved stability • Improved operability

14

Extraction

Vent Raise

Ore Pass

Drawbell blast 12 m

IDZ 10 m

28m

15m

Mine Spacing Fragmentation

Andina 26m x 13m Very Fine

New Afton 28m x 15m Fine

Oyu Tolgoi

28m x 15m Fine (Expected)

DOZ 30m x 18m Mid

Palabora 34m x 17m Coarse

Extraction Drift

Drawbell

Steel Set

Drawpoint

15

Drawbell Construction

16

Production

At full production:

Production LHD • 23 x 14 tonne LHD

machines

Secondary Breaking: Hang-ups • 2 water cannons • 3 “medium reach” drill and

blast rigs

Secondary Breaking: Oversize • 6 “oversize” drill and blast • 2 mobile rockbreakers

Smaller extraction drives are under review as risk reduction measure

17

Production

Trucking • 9 x 160 tonne haul trucks • One way flat haul loop • Engineered roadbase • Requires same profile as 80t

truck Crushing • 2 of 1,600mm x 2,400mm

gyratory • 4,000tphr each • Direct truck tip • 650t fine ore bin

18

Ore Handling

Ore Handling

30kt/d

Shaft #2 • 10m dia service and production

shaft • 2 x 60t skips • 1,630tphr (~19hr/d)

19

Ore Handling

30kt/d

95kt/d

Ore Handling Conveyor to Surface • 3 x 2.2km legs • 1,600mm wide belt @ 6m/s • 6,500 tphr • 2 x 6 MW Gearless drives each leg • Commission 6 mths before 30kt/d

20

Exploration Update August 27, 2015

Petroglyph from Javkhlant Mountain

Oyu Tolgoi Mine Site from Javkhlant Mountain

^ _ ^ _ ^ _ ^ _ ^ _ ̂ _ ^ _ ^ _

Exploration Service Agreement Oyu Tolgoi Orbit

2014 TRQ-RTX Service Agreement executed in Dec. Integration of TRQ, RTX & public domain data

& transfer into managed systems Rock and stream geochemistry interpretations

2015 Litho-structural & tectonic mapping 3D petro-physical data modelling Prioritise areas for tenement application Definitive test of Teregt licence targets

2016 • Continued Target Generation & Target Testing

pending successful tenement acquisition

2014

2015

2017

2016

Target Generation, securing tenement &

definitive test of the Teregt Licence

TRQ – RTX data compilation & integration Target Testing

Litho-structural & tectonic map of the service agreement area

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Integration of data and exploration knowledge Geology/Remote sensing • Field observation data points, • Structural and tectonic interpretations. • Landsat, SPOT and Aster imagery with

geological and alteration interpretation/analysis. • Validated geochronology and mineral occurrence

database Geochemistry • Surface Rock – 4,800 samples/ 8 elements. • Stream – 210 samples, 36 elements. • Litho-chemistry ->150 samples, >45 elements. Geophysics • FALCON gravity and magnetics – ~16,000 line

km @800m line spacing / 80m elevation. • GETECH gravity and magnetic compilation • Ground magnetics ~10,000lkm • Ground gravity – >10,000 data points. • IP – Zeus gradient array, VIP, DDIP Drilling • 71,816m / 297 drill holes including 285 with

geology logs, 193 holes with 12,712 analyses (Au, Cu, Mo only)

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Regional 3D data modelling and interpretation

Interpreted Palaeozoic Basement topography using magnetic and gravity depth to source modelling, constrained by 311 drill holes

Interpolation of 3D petro-physical data model based on inversion of FALCON and ground gravity and airborne magnetics, constrained by the basement topography

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Service Agreement - Oyu Tolgoi Orbit

Released for Application (4335 km2)

Released for Tender (3750 km2)

Mining Licenses

Exploration Licenses

Reserved Area

Protected Area

Cu Deposit ^ _ ^ _ ^ _ ^ _ ^ _ ̂ _ ^ _ ^ _

Teregt

Ulaan Khud

Oyu Tolgoi Mine Licences

• Eastern Mongolia including the agreement area open for direct application of exploration licences as of August 24, 2015.

• Turquoise Hill local subsidiaries will apply for licenses following the MRAM process and guidelines.

• New exploration licences issued via online direct application system for Western Mongolia initiated on 26th Jan 2015. 900+ companies registered to apply, 54% of applied licences granted.

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Mineralized trend of ~26km

Teregt Licence – Exploration

IVN gradient array IP survey - chargeability

Teregt

Javkhlant South

TRQ-RTX exploration: •geochemical interpretation, •mapping, •zircon geochronology & fertility, •Greenrock fertility •DDIP & MT geophysical surveys

10 km

Oyu Tolgoi

Teregt

Histogram of single zircon ages from the three Teregt U-Pb dating samples 7

Teregt : Zircon and Greenrock Analysis

Teregt SE (Cu-Zn geochem)

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327

254 306

321.9

344.1

318.7

321.1

353.4

311.9

350.9

Green rock Age dating

Kharmagtai Oyu Tolgoi

Teregt Zircon U/Pb ages

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• Epidote, chlorite and zircon chemistries suggest sampled propylitic alteration not to be porphyry associated and intrusive phases to have low Cu fertility potential

Documents

Oyu Tolgoi Site Visit, August 2015