Cover Mongolia: [BREAKING: TRQ unable to complete OT financing in '13, announces rights offering, extends RIO funding to Jan. 15]

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BREAKING NEWS: Thursday, November 14, 2013

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Turquoise Says Unable to Complete Oyu Tolgoi Financing in ’13

By Aoyon Ashraf

Nov. 14 (Bloomberg) -- Turquoise Hill Resources (TRQ:US, TRQ:CN) says it’s unable to complete project financing due to uncertainty surrounding timing of resolution of issues with Mongolia, according to MD&A filing.

* TRQ, Rio Tinto agreed to extend maturity date of interim funding facility, new bridge facility to no later than Jan. 15, 2014 (previously Dec. 31) to allow rights offering to close

* Says discussion with govt. of Mongolia continues, positive engagement between parties, progress is being made

* NOTE: Nov. 8, Turquoise to Restate Results for ’10,’11,’12, some ’13 Qtrs

(Bloomberg First Word)

Turquoise Hill Provides Update on Oyu Tolgoi, Announces Filing of Preliminary Prospectus for Rights Offering and an Extension of Interim Funding and New Bridge Facilities

Releases Financial Results and Review of Operations for the Third Quarter of 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 14, 2013) - Turquoise Hill Resources (TSX:TRQ)(NYSE:TRQ)(NASDAQ:TRQ) provided an update today on the status of its Oyu Tolgoi Project relating to discussions with the Government of Mongolia, as well as the timing and availability of project financing. The Company also announced it has filed today a preliminary prospectus with securities regulatory authorities in Canada and the United States in connection with a proposed rights offering and released its financial results for the quarter ended September 30, 2013. All figures are in US dollars unless otherwise stated.

HIGHLIGHTS

· Discussions with the Government of Mongolia continue in order to reach agreement on outstanding issues; there is positive engagement between the parties and progress is being made.

· Given uncertainties surrounding the timing of resolution of issues with the Government of Mongolia, including obtaining all required approvals and completion of the Oyu Tolgoi expansion feasibility study, Turquoise Hill is unable to complete project financing in 2013.

· Turquoise Hill remains committed to obtaining project finance to fund the development of the Oyu Tolgoi Project and is engaging with the Government of Mongolia to achieve this; work continues on the optimization of the underground mine design and construction plan and finalization of the feasibility study.

· In light of uncertainty of project financing timing and in accordance with the 2013 Memorandum of Agreement, Turquoise Hill has filed today a preliminary prospectus for a rights offering.

· Turquoise Hill and Rio Tinto have agreed to extend the maturity date of the Interim Funding Facility and the New Bridge Facility to no later than January 15, 2014 in order to allow for completion of the rights offering.

· The Oyu Tolgoi concentrator consistently achieved throughput capacity of above 95% of capacity during Q3'13 and is now operating at nameplate capacity of approximately 100,000 tonnes of ore processed per day.

· Oyu Tolgoi operations continue to progressively ramp up and are now expected to produce between 72,000 and 77,000 tonnes of copper in concentrates for 2013.

· Daily rates for shipments of concentrate are expected to be broadly aligned with production rates by the end of 2013 and the Oyu Tolgoi mine should reach full capacity by the end of 2013.

· Oyu Tolgoi customers have received the necessary approvals allowing them to collect purchased concentrate from the Chinese-border warehouse; as at November 12, 2013 approximately 5,000 tonnes had been collected.

· Funding and development of the Oyu Tolgoi mine's underground were delayed during Q3'13 until outstanding issues with the Government of Mongolia are concluded and a new timetable can be agreed.

· By the end of 2013, Oyu Tolgoi expects 90% of its employees will be Mongolian nationals in line with the Investment Agreement requirements.

· Exploration drilling results have confirmed potential Hugo West deposit in Oyu Tolgoi trend; first drill hole returned intersection of 502 metres at 0.54% copper and 0.32g/t gold.

· In Q3'13, SouthGobi produced approximately 1.1 million tonnes of raw coal with a strip ratio of 1.39.

· On November 1, 2013 Turquoise Hill announced that it had completed the divestment of its 56.1% stake in Inova Resources.

…

Link to TRQ release

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Munkhdul Badral Bontoi

Founder & CEO