Ivanhoe Mines Mongolia furious about article

Ivanhoe mines have published a statement in regards to a Globe and Mail article titled "For Ivanhoe, new questions in Mongolia". The article mentioned a statement of Minister Jargalsaikhan. where he announced to want to have a government share in the sites Ivanhoe mines is exploiting. But according to the mining company was the articles information not complete:
"The reporter knew, and failed to report, that Ivanhoe had held cordial
and productive meetings with Minister Jargalsaikhan in recent weeks. "

A complete report can be found below.


ULAANBAATAR, MONGOLIA, March 13 /PRNewswire-FirstCall/ - A story
published today in the Toronto Globe and Mail newspaper's Report on Business
section, headlined, "For Ivanhoe, new questions in Mongolia," follows a
disturbing pattern of inaccurate and misleading accounts by the newspaper and
its reporter, Geoffrey York, during the past 18 months about Ivanhoe Mines'
business interests in Mongolia.

The latest story is based almost entirely on comments made more than
three weeks ago by Mongolia's recently appointed Minister of Industry and
Trade, B. Jargalsaikhan, expressing some personal views about possible state
participation in major mineral deposits in Mongolia. However, the Globe and
Mail and its reporter knew about and ignored an important series of subsequent
statements by senior government representatives reaffirming the position of
the government and outlining the official, democratic decision-making process
now underway.

The reporter knew, and failed to report, that Mongolia's President N.
Enkhbayar, Prime Minister M. Enkhbold and other members of parliament have
made public statements in recent weeks about the importance of maintaining
foreign investment in Mongolia's rapidly growing mineral sector.

The reporter knew, and failed to report, that Ivanhoe had held cordial
and productive meetings with Minister Jargalsaikhan in recent weeks. The story
misleadingly implied that Minister Jargalsaikhan was member of a government
committee appointed to negotiate a state interest in Ivanhoe's Oyu Tolgoi
project. In fact, the reporter knew and failed to report that the government
committee had been instructed by the Prime Minister to arrange the completion
of a stability agreement covering Ivanhoe's planned development of the Oyu
Tolgoi copper-gold deposits.

A story more complete and diligent in its handling of the facts would
have cast events in Mongolia in a very different light to the narrow, alarmist
tone created by the story published today. Ivanhoe advised the reporter on
Thursday and Friday last week of the importance of understanding and
presenting a fair and balanced report of developments, and presented him with
specific facts and references in answer to his questions. However, the
newspaper instead proceeded to publish yet another sensation-mongering account
without verifying or presenting important facts that are on the record and
that would have given readers and investors a more thorough and accurate
understanding of current events concerning Ivanhoe's interests in Mongolia.

The truth about Mongolian government support for
foreign investment in Mongolia's mining sector ignored again by Globe
and Mail newspaper
Monday March 13, 9:47 am ET

Ivanhoe Mines Ltd. issued the following statement today (March 13, 2006)

For example:

- The Globe knew and failed to report that the President of Mongolia,
N. Enkhbayar, said on national television on February 23 that the
Mongolian National Security Council (comprised of the President, the
Prime Minister and Speaker of the Parliament) ultimately will lead the
formation of state policy on future mining industry development. The
President stressed that nothing should be done to jeopardize foreign

- The Globe knew, and failed to report, that Prime Minister Enkhbold
said in a major address January 26 that protecting and enhancing a
favourable environment for foreign investment was one of the top
priorities for the new government. "We will attach utmost importance
to this issue in pursuit of the country's development goals," he said.

- The Globe knew and failed to report that the Mongolian cabinet met
last week and agreed that it should be a priority to resolve urgent
issues concerning the Mongolian mining sector.

- The Globe knew and failed to report that Prime Minister Enkhbold last
week assigned the Deputy Prime Minister, M. Enkhsaikhan, to take
charge of the preparation of a policy document governing the future
development of the mineral sector. Mr. Enkhsaikhan said that there is
a need to finalize the Oyu Tolgoi stability agreement, and no need to
delay it, and that he plans to have his policy report ready by
March 25.

- The Globe knew and failed to report that Finance Minister
N. Bayartsaikhan is a member of the special government committee
formed last week to complete negotiations for a stability agreement
with Ivanhoe for the development of Oyu Tolgoi. Under Mongolian law,
it is the Finance Minister who signs stability agreements on behalf of
the government.

- The Globe knew and failed to report that Minister Jargalsaikhan, in
expressing his views about state participation in mineral projects,
has clearly distinguished between major projects that have been
discovered with state funds, and Oyu Tolgoi, which has been discovered
entirely by Ivanhoe with private funds.

- The Globe knew and failed to report that Minister Jargalsaikhan has
directly acknowledged that he cannot forcibly take away any interest
in Oyu Tolgoi from Ivanhoe, which he has said would damage Mongolia's
reputation and stifle foreign investment. The Minister also has said
that he would like the government to buy a participating interest in
Oyu Tolgoi in a business deal with Ivanhoe Mines.

- The Globe knew and failed to report that Ivanhoe is content at this
time with the progress that is being made in its discussions with
representatives of the Mongolian government over the scheduled
development of Oyu Tolgoi. The discussions have led Ivanhoe to believe
that a fair and reasonable agreement will be achieved. Ivanhoe has
stated on several occasions that it intends to direct the development
of Oyu Tolgoi; but since September, 2003, Ivanhoe has consistently
allowed for the possibility of one or more minority investments in Oyu
Tolgoi by state agencies "whose involvement could be profoundly
beneficial for the project's long-term success."

- Finally, Ivanhoe Mines' Chairman Robert Friedland said today that the
company feels obliged to speak out to protect Mongolia's hard-earned
reputation as an excellent recipient for foreign investment in the
country's mining sector and to protect the interests of the Mongolian
people and their government, as well as all of Ivanhoe's stakeholders.
"Ivanhoe has decided to take the extraordinary step of publishing the
reporter's questions and the detailed responses and references that
were provided to him last week. This will show interested parties
throughout the world the extent of the truth that was known by the
reporter and the newspaper, who instead chose to produce a narrow and
alarmist article and headline that was lacking in journalistic
integrity. Copies of Ivanhoe's detailed correspondence with The Globe
reporter will be posted on the "Truth and Lies" section of the
company's website, www.ivanhoemines.com, as soon as technically
possible later today."

Ivanhoe's shares are listed on the New York, Toronto and Nasdaq stock
exchanges under the symbol IVN.

Ivanhoe information contacts in North America

Investors: Bill Trenaman (604) 688-5755

Media: Bob Williamson (604) 688-5755

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