Turquoise Hill Resources Announces Short-Term Bridge Funding Agreement with Rio Tinto and Provides Oyu Tolgoi Update

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jun 28, 2013) –
Turquoise Hill Resources
(TSX:TRQ)(NYSE:TRQ)(NASDAQ:TRQ) today announced that it has entered
into an agreement with majority shareholder Rio Tinto for a
non-revolving bridge facility for up to US$225 million (the “Bridge
Facility”) maturing on August 12, 2013. Advances made under the
Bridge Facility will be used by Turquoise Hill to fund operations
and current underground development of the Oyu Tolgoi mine. The
previous bridge funding facility, agreed on April 17, 2012, expired
undrawn on May 23, 2013. Turquoise Hill expects to make an initial
drawdown under the Bridge Facility in order to fund a cash call
obligation for Oyu Tolgoi, which is due on July 2, 2013.

In the event the Bridge Facility is not repaid in full at the
maturity date or in case of an event of default under the terms of
the Bridge Facility, Rio Tinto may convert any outstanding amounts
into common shares at a price per share equal to 85% of the then
prevailing five-day volume weighted average trading price of the
shares on the New York Stock Exchange. The full agreement will be
filed on SEDAR at
www.sedar.com.

The Company continues to explore various financing alternatives
which would allow it to repay the Bridge Facility in full prior to
maturity and fund the operations at Oyu Tolgoi pending receipt of
$300 million in proceeds from the sale of its 50% interest in
Altynalmas Gold Ltd. and completion of project financing.

Oyu Tolgoi Update

Commissioning of the Oyu Tolgoi concentrator continues to
progress. The concentrator has recently achieved daily run rates in
excess of 80% of nameplate capacity. To date, more than 40,000
tonnes of concentrate have been produced.

All necessary permits have been received and the mine is ready
to commence concentrate shipments. Shipping will begin as soon as
the Mongolian Government indicates its support for Oyu Tolgoi to do
so.

Turquoise Hill and Rio Tinto continue to engage with lenders to
finalize the project financing plan with the aim of raising
approximately $4 billion. On April 17, 2013 Rio Tinto signed
commitment letters with 15 global banks that locked in pricing and
terms. Project financing requires the support of the Government of
Mongolia and is subject to the approval of the Oyu Tolgoi Board of
Directors, which includes representatives from the Mongolian
Government. Turquoise Hill continues to work with Rio Tinto and the
Government of Mongolia to obtain this approval.

About Turquoise Hill Resources

Turquoise Hill Resources (TSX:TRQ)(NYSE:TRQ)(NASDAQ:TRQ),
formerly Ivanhoe Mines, is an international mining company focused
on copper, gold and coal mines in the Asia Pacific region. The
company’s primary operation is its 66% interest in the Oyu Tolgoi
copper-gold-silver mine in southern Mongolia. Other assets include
a 58% interest in Mongolian coal miner SouthGobi Resources
(TSX:SGQ)(HK:1878); a 57% interest in copper-gold miner Ivanhoe
Australia (ASX:IVA)(TSX:IVA); and a 50% interest in Altynalmas
Gold, a private company developing the Kyzyl Gold Project in
Kazakhstan, which is in the process of being sold.

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Forward-looking
statements

Certain statements made herein, including statements relating to
matters that are not historical facts and statements of Turquoise
Hill’s beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute “forward-looking 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 information and statements 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.

Forward-looking statements and information are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of the
Company to be materially different from future results,
performances or achievements expressed or implied by such
statements or information. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in
the future, including the price of copper and gold, anticipated
costs and ability to achieve goals, including the timing of the
disposition of certain of its non-core assets, such as the
Company’s 50% interest in Altynalmas Gold Ltd. Certain important
factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements and information include, among others, copper and gold
price volatility, discrepancies between actual and estimated
production, mineral reserves and resources and metallurgical
recoveries, mining operational and development risks, litigation
risks, regulatory restrictions (including environmental regulatory
restrictions and liability), activities by governmental
authorities, currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements 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 information and statements are based on
certain assumptions and analyses made by Turquoise Hill’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
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 information or statements.
Such factors include, among other things, the political risks
associated with Turquoise Hill’s principal operations in Mongolia;
the impact of changes in, changes in interpretation to or changes
in enforcement of, laws, regulations and government practices in
the jurisdictions in which Turquoise Hill operates; and changes in
the attitudes of the Mongolian government.

Important factors that could cause actual results to differ from
these forward-looking statements include those described under the
heading “Risks Factors” included in the issuer’s Annual Information
Form, both filed on SEDAR and EDGAR. These risk factors may be
generally stated as the risk that the assumptions and estimates
expressed above do not occur, including the assumption in many
forward-looking information or statements that other such
information or statements will be correct. The reader is cautioned
not to place undue reliance on forward-looking information or
statements. All forward-looking information and statements herein
are made as of the date hereof. Turquoise Hill does not intend or
undertake to update or revise forward-looking statements or
information, whether written or oral or whether as a result of new
information, future events or otherwise, that may be made by
Turquoise Hill or on its behalf, except as required by law.