Ivanhoe Files Short-Form Prospectus Related to CA$88MM Placement

Ivanhoe Energy Inc. has filed its final short-form prospectus dated August 1, 2008, related to a CA$88 million private placement of special warrants completed on July 8, 2008. The Offering provided for the placement of 29,334,000 special warrants at CA$3.00 per special warrant.

Ivanhoe Energy now has obtained a receipt (the Receipt) dated August 5, 2008, for the Prospectus from the securities commissions in each of the provinces of British Columbia, Alberta, Ontario and Quebec. The Prospectus qualifies the distribution of 29,334,000 common shares of the Company issuable upon the conversion of the special warrants. As a result of the issuance of the Receipt, each of the special warrants, in accordance with its terms, automatically will convert into one common share of Ivanhoe Energy at 5:00 pm (Toronto time) on August 6, 2008. Ivanhoe Energy will mail certificates representing the common shares issuable upon the deemed conversion of the special warrants to the registered holders thereof no later than August 8, 2008.

CA$22.5 million of the net proceeds from the Offering was paid to Talisman Energy Canada as the down-payment under a CA$90 million agreement to acquire Talisman's interests in certain oilsand leases in Alberta's Athabasca region. The balance of the funds will be used to continue delineation drilling of the acquired leases, to initiate site-specific engineering related to full commercial deployment of Ivanhoe Energy's
proprietary HTL heavy-oil upgrading technology, and to order long-lead-time equipment.

Lease 10, the principal oilsand lease acquired from Talisman Energy Canada, is expected to be Ivanhoe Energy's first integrated HTL heavy-oil project.

The securities offered were not registered under the U.S. Securities Act of 1933 and could not be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.