IVANHOE CAPITAL CORPORATION ANNOUNCES SUCCESSFUL BID TO ACQUIRE ZAMBIA'S CHAMBISHI COPPER MINE SINGAPORE, Nov. 10 /CNW-AsiaNet/ - Robert M. Friedland, Chairman and President of Ivanhoe Capital Corporation, announced today that Ivanhoe intends to form a partnership with Zambia Consolidated Copper Mines Ltd. (ZCCM) to reopen and develop the Chambishi copper mine. The ZCCM Privatisation Negotiating Team, representing the government of the Republic of Zambia, advised Ivanhoe Capital Corporation on November 7th that Ivanhoe had been selected as the winning bidder of a competitive, international tender process for the Chambishi Mine. The transaction is subject to the negotiation of a definitive contract. Ivanhoe Capital Corporation's formal offer to purchase the mine contained an undertaking that Ivanhoe will establish a Zambian company to acquire the mine and concentrator, mining licence and surface rights. Ivanhoe will hold 85% of the company and ZCCM will hold 15%. Ivanhoe will finance a feasibility study of the mine and its planned resumption of production. "Zambia's privatisation program has attracted the attention of major mining companies everywhere," Mr. Friedland said. "Ivanhoe now has a unique opportunity to participate in the revitalization of the world-famous Zambian copper belt. We are committed to completing a bankable feasibility study of revitalizing and reopening the mine, establishing Chambishi as a world-class, low-cost producer of copper, with a gold by-product. "Chambishi is one of the world's major copper mines. I'm confident that with capital investment and new technology we can drive production expenses down to the lower end of the international cost curve and return the mine to operation at an initial annual target rate of approximately 40,000 tonnes of copper. The mine has important potential for additional stages of production expansion." Chambishi, about 20 kilometres north of Kitwe, was producing 2.5 million tonnes of ore a year before it was closed in 1987 in a difficult economic environment. In 1994, a ZCCM feasibility study indicated that the mine, with an existing production shaft to the 1,006-metre level, could be profitably reopened and operated at a rate of about two million tonnes a year, grading 2.25% copper. The mine's main ore body has stated reserves of 33.5 million tonnes at a grade of 2.55% total copper. An additional resource of 47 million tonnes, grading 2.27% copper, has been identified to the west of the main ore body; a further 69.7 million tonnes, grading 2.59% copper and 0.13% cobalt, has been identified to the southeast, within the Chambishi licence area. Ivanhoe Capital Corporation arranges venture capital and project financing. Ivanhoe has particular expertise in initiating and advancing projects that are based on mineral and energy resources, housing and communications in developed and emerging nations. FOR FURTHER INFORMATION: Jonathan Challis, Director, African Affairs, London, England, 44-171-823-3888, or Bob Williamson,Vancouver, Canada, (604) 688-7166.