Turquoise Hill Resources today (Dec 23) announced that Oyu Tolgoi LLC has received, and is evaluating, a Tax Act (“tax assessment”) for approximately US$228 million cash tax from the Mongolian Tax Authority (MTA) relating to an audit on taxes imposed and paid by Oyu Tolgoi LLC between 2016 and 2018. This tax assessment is being evaluated by Oyu Tolgoi LLC and a response will be issued within the timeframe required by Mongolian Law.

As previously announced by Turquoise Hill, on January 16, 2018, Oyu Tolgoi LLC had received and was evaluating a tax assessment for approximately US$155 million from the MTA relating to an audit on taxes imposed and paid by Oyu Tolgoi LLC between 2013 and 2015. On February 20, 2020, Turquoise Hill announced that Oyu Tolgoi LLC initiated formal international arbitration proceeding in accordance with the dispute resolution provisions within Chapter 14 of the Oyu Tolgoi Investment Agreement (Investment Agreement) entered into with the Government of Mongolia in 2009 and Chapter 8 of the Oyu Tolgoi Underground Mine Development and Financing Plan entered into with the Government of Mongolia in 2015. Most of the matters raised in respect of the current US$228m cash tax assessment for the 2016 to 2018 years are of a similar nature to the matters that have been referred to international arbitration for the 2013 to 2015 years.

The MTA has also made a US$1.5 billion adjustment to the balance of Oyu Tolgoi LLC’s carried forward tax losses. The adjustments are to disallow or defer certain tax deductions claimed in the

2016 to 2018 years. The relevant losses are not currently scheduled to be utilized in the near term.

This adjustment is also being evaluated by Oyu Tolgoi LLC and a response will be issued within the timeframe required by Mongolian Law.

Turquoise Hill remains of the opinion that Oyu Tolgoi LLC has paid all taxes and charges required under the Investment Agreement, the Amended and Restated Shareholder Agreement, the

Underground Mine Development and Financing Plan and Mongolian law.

News Release

December 23, 2020

Oyu Tolgoi receives Tax Act from Mongolian Tax Authority

Turquoise Hill Resources Ltd.

Suite 3680 1 Place Ville-Marie

Montreal, Quebec, Canada

H3B 3P2

Telephone + 1 514 848 1567

Toll Free + 1 877 589 4455

info@turquoisehill.com

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Forward-looking statements and forward-looking information

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company’s beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forwardlooking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements and information relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically

identified by words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “plan”, “estimate”, “will”, “believe” and similar expressions suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, statements and information regarding: the arbitration proceedings, including the potential benefits, timing and outcome of the arbitration proceedings; the expectations set out in the OTTR20; the timing and amount of future production and potential production delays; the timing of

commencement of the undercut, as well as the timing and achievement of other key milestones; statements in respect of the impacts of any delays on the Company’s cash flows; expected copper and gold grades; the merits of the class action complaint filed against the Company; liquidity, funding sources, funding requirements and planning and the status and nature of the Company’s ongoing discussions with Rio Tinto and its subsidiaries with respect to future funding plans and requirements (including as contemplated by the MOU); the

amount of any funding gap to complete the Oyu Tolgoi Project; the amount and potential sources of additional funding; the Company’s ability to re-profile its existing project debt in line with current cash flow projections; the amount by which a successful re-profiling of the Company’s existing debt would reduce the Company’s currently projected funding requirements; the Company’s and Rio Tinto’s

understanding regarding the raising of supplemental senior debt and the Company’s ability to raise supplemental senior debt; the

Company’s and Rio Tinto’s understanding regarding the process for identifying and considering other funding options; the Company’s and Rio Tinto’s understanding regarding the scope and timing for an equity offering by the Company to address any remaining funding gap; the Company’s intention to prioritise funding by way of debt and/or hybrid financing over equity funding; the Company’s expectation of the anticipated funding gap; the timing of studies, announcements and analyses; status of underground development; the mine design for

Panel 0 of Hugo North Lift 1 and the related cost and production schedule implications; the re-design studies for Panels 1 and 2 of Hugo North Lift 1 and the possible outcomes, content and timing thereof; expectations regarding the possible recovery of ore in the two structural pillars, to the north and south of Panel 0; the possible progression of SOPP and related amendments to the PSFA as well as power purchase agreements; the timing of construction and commissioning of the potential SOPP; sources of interim power; the potential impact

of COVID-19 on the Company’s business, operations and financial condition; capital and operating cost estimates, the content of the

definitive estimate ; mill and concentrator throughput; the outcome of formal international arbitration proceedings; anticipated business activities, planned expenditures, corporate strategies, and other statements that are not historical facts.

Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could

cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including the price

of copper, gold and silver; projected gold, copper and silver grades; anticipated capital and operating costs; anticipated future production and cash flows; the anticipated location of certain infrastructure in Hugo North Lift 1 and sequence of mining within and across panel boundaries; the availability and timing of required governmental and other approvals for the construction of the SOPP; the ability of the Government of Mongolia to finance and procure the SOPP within the timeframes anticipated in the PSFA, as amended; the willingness

of third parties to extend existing power arrangements; the status of the Company’s relationship and interaction with the Government of Mongolia on the continued operation and development of Oyu Tolgoi and Oyu Tolgoi LLC internal governance; the status and nature of the Company’s ongoing discussions with Rio Tinto and its subsidiaries with respect to future funding plans and requirements (including Contact

Investors and Media

Roy McDowall

+ 1 514-848-1506

roy.mcdowall@turquoisehill.com

Follow us on Twitter @TurquoiseHillRe

Turquoise Hill Resources Ltd.

Suite 3680 1 Place Ville-Marie

Montreal, Quebec, Canada

H3B 3P2

Telephone + 1 514 848 1567

Toll Free + 1 877 589 4455

info@turquoisehill.com

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as contemplated by the MoU) as well as the commencement and conclusion of the arbitration proceedings, including the potential benefits,

timing and outcome of the arbitration proceedings.

Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forwardlooking statements and information include, among others: copper, gold and silver price volatility; discrepancies between actual and

estimated production; mineral reserves and resources and metallurgical recoveries; development plans for processing resources; the

accuracy of the definitive estimate review; public health crises such as COVID-19; matters relating to proposed exploration or expansion;

mining operational and development risks, including geotechnical risks and ground conditions; litigation risks, including the outcome of

the class action complaint filed against the Company; regulatory restrictions (including environmental regulatory restrictions and liability);

Oyu Tolgoi LLC or the Government of Mongolia’s ability to deliver a domestic power source for the Oyu Tolgoi project within the required

contractual time frame; communications with local stakeholders and community relations; activities, actions or assessments, including tax

assessments, by governmental authorities; events or circumstances (including strikes, blockades or similar events outside of the

Company’s control) that may affect the Company’s ability to deliver its products in a timely manner; currency fluctuations; the speculative

nature of mineral exploration; the global economic climate; dilution; share price volatility; competition; loss of key employees; cyber security

incidents; additional funding requirements, including in respect of the development or construction of a long-term domestic power supply

for the Oyu Tolgoi project; capital and operating costs, including with respect to the development of additional deposits and processing

facilities; and defective title to mineral claims or property. Although the Company has attempted to identify important factors that could

cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may

be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All such forward-looking statements

and information are based on certain assumptions and analyses made by the Company’s management in light of their experience and

perception of historical trends, current conditions and expected future developments, as well as other factors management believes are

reasonable and appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other

factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information.

With respect to specific forward-looking information concerning the continued operation and development of Oyu Tolgoi, the Company

has based its assumptions and analyses on certain factors which are inherently uncertain. Uncertainties and assumptions include, among

others: the timing and cost of the construction and expansion of mining and processing facilities; the timing and availability of a long-term

domestic power source (or the availability of financing for the Company or the Government of Mongolia to construct such a source) for

Oyu Tolgoi; the ability to secure and draw down on the supplemental debt under the Oyu Tolgoi project financing facility and the availability

of additional financing on terms reasonably acceptable to Oyu Tolgoi LLC, Rio Tinto and the Company to further develop Oyu Tolgoi as

well as the status and nature of the Company’s ongoing discussions with Rio Tinto and its subsidiaries with respect to future funding plans

and requirements (including as contemplated by the MOU); the potential impact of COVID-19; the impact of changes in, changes in

interpretation to or changes in enforcement of, laws, regulations and government practices in Mongolia; the availability and cost of skilled

labour and transportation; the obtaining of (and the terms and timing of obtaining) necessary environmental and other government

approvals, consents and permits; delays, and the costs which would result from delays, in the development of the underground mine

(which could significantly exceed the costs projected in OTTR20 and the definitive estimate); projected copper, gold and silver prices and

their market demand; and production estimates and the anticipated yearly production of copper, gold and silver at Oyu Tolgoi.

The cost, timing and complexities of mine construction and development are increased by the remote location of a property such as Oyu

Tolgoi. It is common in mining operations and in the development or expansion of existing facilities to experience unexpected problems

and delays during development, construction and mine start-up. Additionally, although Oyu Tolgoi has achieved commercial production,

there is no assurance that future development activities will result in profitable mining operations.

Readers are cautioned not to place undue reliance on forward-looking information or statements. By their nature, forward-looking

statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility

that the predicted outcomes will not occur. Events or circumstances could cause the Company’s actual results to differ materially from

those estimated or projected and expressed in, or implied by, these forward-looking statements. Important factors that could cause actual

results to differ from these forward-looking statements are included in the “Risk Factors” section in the Company’s AIF, as supplemented

by the “Risks and Uncertainties” section of the Q3 2020 MD&A.

Readers are further cautioned that the list of factors enumerated in the “Risk Factors” section of the AIF and in the “Risks and

Uncertainties” section of the Q3 2020 MD&A that may affect future results is not exhaustive. When relying on the Company’s forwardlooking statements and information to make decisions with respect to the Company, investors and others should carefully consider the

foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements and information contained

herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the

included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required

by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.