Ivanhoe Closes Private Placement

Ivanhoe Energy has closed the agent's option portion, of the company's previously announced Cdn$125 million Private Placement. The option consisted of the issuance of Cdn$25 million of Special Warrants. The closing of the option brings the total gross proceeds from the Private Placement to Cdn$150 million.

Each Special Warrant, pursuant to the option, was issued at a price of Cdn$3.00 and entitles the holder to receive, upon exercise, one Common Share and one quarter (0.25) of one Common Share Purchase Warrant. Each whole Purchase Warrant entitles the holder to acquire one Common Share of Ivanhoe Energy at an exercise price of Cdn$3.16 on or before January 26, 2011.