Tamarack

Reservoir

Tamarack is considered to contain high-quality McMurray sands, with clean and continuous average net pay of approximately 20 meters, without significant top- or bottom-water or top-gas issues. The average porosity is 34%, average bitumen saturation is 79% and permeabilities are between one and 10 Darcies, all of which are considered excellent reservoir characteristics. The high quality of the asset is expected to provide for favorable projected operating costs, including attractive steam-oil ratios (SOR) and recovery efficiencies using steam assisted gravity drainage (SAGD) development techniques.

Tamarack's reservoir characteristics are similar to those at Petro-Canada's 30,000-barrels-per-day MacKay River project, located nearby, across the Athabasca River. MacKay River is acknowledged to be one of the most successful and longest-producing SAGD projects in the Athabasca oil sands.

Schedule

Ivanhoe Energy expects to file a regulatory application for Tamarack in mid-2010, after final delineation drilling in January and February 2010. The Company's plan, subject to financing, is to file an application for a multi-phase project ultimately capable of producing approximately 50,000 barrels-per-day (bitumen basis), with an initial Phase 1 capable of producing 20,000 barrels-per-day.

In addition, Ivanhoe's integrated HTL operations will achieve a best-in-class environmental footprint compared to conventional SAGD and upgrading operations. The environmental benefits of integrated HTL field upgrading include reduced lifecycle greenhouse gas emissions, as well as benefits accruing from the elimination, or virtual elimination, of the need for diluents and natural gas.