TURQUOISE HILL ANNOUNCES FINANCIAL RESULTS AND REVIEW OF OPERATIONS FOR 2013

Ulaanbaatar /MONTSAME/ Turquoise Hill Resources announced on Wednesday its financial results for the quarter ended December 31 of 2013. According to the report, published at the company’s website, Turquoise Hill, in 2013, recorded a net loss of $112.0 million ($0.09 per share), compared to a net loss of $412.1 million ($0.37 per share) in 2012, which was a decrease of $300.1 million. Results for 2013 included $110.2 million in revenue; $228.7 million in other income; $14.8 million in interest income; an $87.7 million gain from the change in the fair value of the rights offering derivative liabilities; a $5.5 million gain from the change in the fair value of SouthGobi's embedded derivatives; and $335.6 million of net loss attributable to non-controlling interests. These amounts were offset by $178.2 million in cost of sales; $27.5 million in exploration and evaluation expenses; $233.2 million in other operating expenses; $61.3 million in general and administrative expenses; $30.4 million write-down of accounts receivable and other current assets; $29.8 million write-down of carrying value of materials and supplies inventory; $73.6 million write-down of carrying value of property, plant and equipment; $62.4 million in interest expense; $5.6 million in foreign exchange losses; a $3.1 million share of loss of significantly influenced investees; a $99.9 million provision for income and other taxes; and a $80.6 million loss from discontinued operations. Turquoise Hill's cash position, on a consolidated basis at December 31, 2013, was approximately $78.1 million. As at March 26, 2014, Turquoise Hill's consolidated cash position was approximately $147.0 million. The report also highlighted followings: Oyu Tolgoi achieved a strong safety performance for 2013 with no fatalities and an All Injury Frequency Rate of 0.43 per 200,000 hours worked. Oyu Tolgoi produced approximately 290,000 tonnes of concentrate for 2013 and 76,700 tonnes of copper in concentrates. In 2013, Oyu Tolgoi recorded net revenue of $51.6 million on 26,400 tonnes of concentrate. In March 2014, sales volumes at Oyu Tolgoi began accelerating and approaching production; as at March 24, 2014, approximately 43,000 tonnes of concentrate has been sold in 2014. During Q4'13, open-pit production increased approximately 81% over Q3'13 as the mine returned to more normal operating levels. Concentrator production rates progressively increased during 2013, including periods where throughput rates exceeded design. Production at Oyu Tolgoi during Q1'14 has been impacted by various post-commissioning issues, including failure of the rake blades in the tailings thickeners, which have been repaired and full production recommenced on March 24, 2014. In addition, certain post-commissioning debottlenecking projects have been deferred in order to preserve cash. Oyu Tolgoi is now expected to produce 135,000 to 160,000 tonnes of copper in concentrates and 600,000 to 700,000 ounces of gold in concentrates for 2014. Sales contracts have now been signed for 74% and 84% of Oyu Tolgoi's 2014 and 2015 concentrate production respectively, while 40% of concentrate production is contracted for eight years (subject to renewals); discussions are ongoing with potential customers to place the remaining tonnage under long-term agreements at international terms. During Q4'13 and Q1'14, constructive engagement with the Government of Mongolia continued with the aim of resolving a number of outstanding shareholder issues and progressing project financing. At the end of 2013, approximately 92% of Oyu Tolgoi's employees were Mongolian nationals in line with the Investment Agreement requirements. During Q4'13, Oyu Tolgoi signed a two-year collective agreement with the Oyu Tolgoi Trade Union - a departure from typical 12-month Mongolian labor agreements. Following a Q4'13 launch, Turquoise Hill successfully closed an approximate $2.4 billion rights offering in January 2014 and repaid all outstanding Rio Tinto funding facilities. In 2013, SouthGobi produced approximately 3.1 million tonnes of coal compared to production of approximately 1.3 million tonnes of coal in 2012. In 2013, SouthGobi sold 3.26 million tonnes of coal at an average realized selling price of $24.25 per tonne compared to sales of 1.98 million tonnes of coal at an average realized selling price of $47.49 per tonne in 2012. The detailed financial results and review of operations for 2013 can be further read at the company’s website.