#1PROJECT ASTERIX Discussion Materials August 2022 BMO Capital Markets#2BMO Capital Markets Disclaimer This Presentation has been provided to the Special Committee of the Board of Directors of Turquoise Hill Resources Ltd. (Turquoise Hill" or the "Company") (the "Special Committee"), in their capacity as the Special Committee, by BMO Nesbitt Burns Inc. ("BMO Capital Markets") pursuant to the engagement letter effective March 29, 2022 (the "Engagement Letter") and, except as contemplated by the Engagement Letter, may not be used or relied upon for any purpose without the written consent of BMO Capital Markets. The information contained herein (the "Information") is confidential. By accepting this Information, the Special Committee agrees that, except as contemplated by the Engagement Letter, it and its agents and representatives shall use it for informational purposes only and, except as set forth in the Engagement Letter, will not divulge any such Information to any other party. This presentation has not been prepared with a view toward public disclosure under federal, provincial or territorial securities laws or otherwise. This presentation and its contents are proprietary and a product of BMO Capital Markets. Except as contemplated by the Engagement Letter, reproduction, dissemination, quotation, summarization or reference to this Information, in whole or in part, is prohibited. The information contained in these materials is not intended to constitute a "report, statement or opinion of an expert" for purposes of the securities legislation of any province or territory of Canada. Moreover, the information contained in these materials summarizes certain background work completed by BMO Capital Markets in connection with the preparation of an opinion for the Special Committee and although we have undertaken financial analysis that we believe is appropriate in connection with the opinion that we intend to deliver to the Special Committee, we have not made or prepared any valuation (including, without limitation, a formal valuation of the Company, as such term is defined in the Canadian Securities Administrators' Multilateral Instrument 61-101 ("MI 61-101")) or appraisal of the securities, assets or liabilities (including any contingent, derivative or off-balance-sheet assets and liabilities) of the Company, nor have we been furnished with any such valuations or appraisals, and the information contained in these materials should not be construed as any such valuation or appraisal. Furthermore, the Company has informed us that there have not been any "prior valuations, as such term is defined in MI 61-101, of the Company, its material assets or its securities in the past twenty-four month period. In preparing this presentation, BMO Capital Markets has made certain assumptions regarding the information contained herein, and certain limitations apply to such information. For a detailed description of these assumptions and limitations, we refer you to the opinion we intend to deliver to the Special Committee. The information used in preparing these materials may have been obtained from or through the Company or the Company's representatives or from public sources as of the date hereof. BMO Capital Markets assumes no responsibility for independent investigation or verification of such information and has relied on such information being complete and accurate in all material respects. To the extent such information includes estimates and/or forecasts of future financial performance (including estimates of potential cost savings and synergies or estimates of future resource or reserve additions) prepared by or reviewed or discussed with the management of your company and/or other potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). BMO Capital Markets has no obligation (express or implied) to update any or all of the Information or to advise you of any changes; nor do we make any express or implied warranties or representations as to the completeness or accuracy of the information or accept responsibility for errors. These materials were designed for use by specific persons familiar with the business and affairs of the Company and are being furnished and should be considered only in connection with other information, oral or written, being provided by BMO Capital Markets in connection herewith. These materials are not intended to provide the sole basis for evaluating, and should not be considered a recommendation with respect to, any transaction or other matter. Prior to entering into any transaction the Company should determine, without reliance on BMO Capital Markets or its affiliates, the economic risks and merits as well as the legal, tax and accounting characterizations and consequences of any such transaction. BMO Capital Markets is not acting in any other capacity or as a fiduciary to the Company or the Special Committee. 1 PROJECT ASTERIX#3BMO Capital Markets Transaction Overview (Based on Term Sheet Seen August 31, 2022) KEY TERMS AND CONDITIONS Structure Consideration Conditions Transaction Timing Rio Tinto to acquire all of the issued and outstanding common shares of Turquoise Hill that it does not already own (Rio Tinto owns 102.2 mm shares of the Company, or 50.8% of shares outstanding) by way of a plan of arrangement, as agreed upon in principle and outlined in the term sheet that Turquoise Hill and Rio Tinto have proposed to enter into Each Turquoise Hill minority share to be exchanged for C$43 in cash from Rio Tinto Receipt of (1) 66 2/3% of votes cast by Turquoise Hill's common shareholders; and () a simple majority of votes cast by Turquoise Hill's minority shareholders In accordance with the rules set out in Canadian Multilateral Instrument 61-101, the transaction requires among other things, a formal valuation to be delivered Concurrently with entering into the arrangement agreement, the Heads of Agreement will be amended as follows: H Increase of the Rio Tinto US$400 mm early advance to US$650 mm, with potential for subsequent increase of up to US$100 mm 图 Extension of the date by which the minimum US$650 mm² initial equity offering must be conducted to March 31, 2023, subject to May 31, 2023 outside date; commitment from Rio Tinto for pro rata participation Rio Tinto making available US$362 mm, should it be needed, on the same terms as the early advance facility to satisfy Turquoise Hill's December 31, 2022 project finance principal repayment obligation The transaction is also subject to the receipt of court approval and other customary closing conditions for transactions of this nature Announcement Date: August [31], 2022 Target Closing: Q4 2022 (subject to receipt of regulatory approvals) SUMMARY OF PROPOSED TERMS Consideration Offer Price Implied Equity Value Premiums Premium to Unaffected Premium to HUSP Spot Premium Bid Bump P/NAV Model Street (3) Source: Company Rings, FactSet, stretch 1. Additional upsie it, on 14-Feb-23, it is anticipated that the funding shortfall for Turquoise Hill and its subsidiaries for March 2023 will exosed the amount remaining available under the Early Advance (based on a US$200 mm minimum cash balance), the parties shall in good faith discuss increasing the Early Advance by the lesser of such funding shortfall and US$100 mm. 2 Offering subject to increase to the amount drawn under the Early Advance, should that be greater than US$650 mm. (CS/share) 11-Mar-22 (Initial Bid (C5 mm) 23-Aug-22 (%) (Revised Bid) * (ratio) (ratio) Turquoise Hill Benchmark (C$) $25.68 $16.42 $27.97 $36.12 $34.00 $60.49 2441 $55.12 3. Hypothetical Unaffected Share Prics, TRO's hypothetical share price based on median peer performance, Peers include Capstone, Ero, Filo, First Quantum, Hudbay. Ivanhoe, Los Andes, Lundin Mining, NGEL Solaris. SolGold, and Western Copper. Median excluding restricted brokers Rio Tinto Proposal $43.00 Minority/ 100% $4,258 / $8,653 67% 162% 54% 19% 26% 0.71x 0.78x PROJECT ASTERIX#4BMO Capital Markets Turquoise Hill Trading Since Rio Tinto Offer Share Price (CS) $45 $40 $35 $20 $15 $10 11-Mar Announced Premium: 32% -TRQ Share Price Im Rio Tinto Offer при 25-Mar 08-Apr 25-Apr 09-May 23-May 06-Jun 20-Jun 04-Jul Source: Company Fings, FactSet Note: Shown in CS 1. Peers include Capstone, Ero, Filo, Find Quantum, Hudbay, Ivanhoe, Los Andes, Lundin Mining, NGEX, Solaris, Soldold, and Westem Copper. in -HUSP 18-Jul тим Current Premium to HUSP: 162% 01-Aug 15-Aug 29-Aug $43.00 $36.12 $16.42 PROJECT ASTERIX#5BMO Capital Markets Overview of Oyu Tolgoi OT PRODUCTION BENCHMARKING (2021A, KT CU) Escondida 1,011 C1 Cash Costs (US$/lb Cu) 4 Collahuasi $3.00 $2.00 630 606 $1.00 Grasberg 1 Oyu Tolgoi 506 460 445 423 398 359 331 328 OT C1 BY-PRODUCT CASH COST BENCHMARKING (US$/LB) $4.00 OT 2026E-2030E average production El Teniente First Quartile Antamina Buenavista Second Quartile Morenci Cerro Verde OT average 2026E- 2030E cash costs Los Bronces Cobre Panama Third Quartile Fourth Quartile COUNTRY RISK PREMIUM BENCHMARKING 1.0% 1.6% 1.6% 1.8% Canada 1 United States 1 Poland China Colombia Peru 3.2% Kazakhstan 3.6%3.7% epul ($1.00) Cumulative Production Source: Duff and Phelps 2021 International Guide To Cost of Capital, S&P Market Intelligence, Turquoise Hill Internal Model at street consensus pricing. Wood Mackenzie Note: Country risk premium quoted in relation to the United States 3.9%3.9% Philippines South Africa Mexico 4.7% Brazil 5.0% Indonesia 5.2% Bobuow 6,7% Congo, DR Zambia PROJECT ASTERIX#6BMO Capital Markets Levered Cash Flow Profile to Turquoise Hill and Government of Mongolia CASH FLOW TO OYU TOLGOI SHAREHOLDERS AT STREET CONSENSUS PRICING (US$ BN) Cash flows are shown net of debt, GoM royalties, and GoM taxes ($1.3) ($0.1) $0.7 US$1.25 bn of debt funding in 2023 $0.8 $1.3 $1.1 $4.00 $4.00 $4.00 $3.75 $3.75 $3.67 Copper Price (US$/lb) $2.1 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2000E Source: Street research, Turquoise Hill Iemal LT Model at street consensus pricing Note: 2022E based on full year. 1. Based on realed pricing to July and current spot price from July onwards. Cash flows include management fees $2.9 $2.3 $1.9 2001E 2002E $1.8 $1.8 $0.1 $0.2 $1.5 $1.4 $0.5 50.9 GoM Dividends $3.50 (Long-term) $1.2 $0.8 2033E 2004E 2035E 2036E $1.3 50.4 $0.8 Cash Flows to TROPI 2037E $1.5 $0.5 SHL & Prepays Dividends $1.5 $0.5 $1.0 $1.0 $1.5 $0.5 $1.0 Under the current resource mine plan, operations continue until 2101; reserve case mine plan ends in 2051 2038E 2009E 2040E PROJECT ASTERIX#7BMO Capital Markets Precedent Copper Transactions Includes Copper Transactions Greater than US$1.0 bn since 2010 Announcement 2011 2011 2016 2011 2020 2016 2016 2014 2015 2010 2021 2022 2022 2014 2017 2011 2018 2012 2015 2022 2021 2022 2011 RT Offer at C$43 Mitsubishi-24.5% AA Sur (Anglo American) Jinchuan - Metorex Sumitomo - 13% Morenci (Freeport) Barrick Gold - Equinox Minerals Nova Resources - KAZ Minerals BHR Partners - 24% Tenke Fungurume (Lundin) China Moly - 56% Tenke Fungurume (Freeport) Lundin - 80% Candelaria (Freeport) Antofagasta 50% Zaldivar (Barrick) Equinox Minerals - Citadel Sandfire - MATSA (Mubadala & Trafigura) BHP- OZ Minerals Metals Acquisition Corp CSA Copper Mine (Glencore) MMG-led Consortium - Las Bambas (Glencore) Glencore - Mutanda Mining Minmetals Resources - Anvill Rio Tinto Turquoise Hil (Street, incl. Restricted Brokers) Zin Resources - Nevsun Resources First Quantum - Inmet Guangdong Rising - PanAust Rio Tinto Turquoise Hill (Street) South32 - Sierra Gorda (Sumitomo) Rio Tinto Turquoise Hill (Model) KGHM Polska - Quadra FNX Source: Company Rings, FactSet, stretch Note: Excludes merger of equals transactions Note: Medianexclude Rio Tinto-Turquoise Hill and BHP-02 Minerals. Producer Transactions Developer Producer Median 1.04x Median 1.17x 0.81x Developer Transactions 0.89x 0.78x 0.78x 0,71x 0.70x 1.04x 0.99x 0.99x 1.21x 1.21x 1.18x 1.17x 1.14x 1.13x 1.09x 1.07x 1.36x 1.33x 1.29x 1.76x Implied TRO Share Price Based on Model NAV (CS) $106.47 $86.03 $82.29 580.45 $78.20 $73.22 $73.20 $71.17 $70.90 $68.77 $68.13 $65.94 $64.75 $62.63 $59.97 $59.66 $55.98 $53.65 $49.00 $46.94 $42.36 PROJECT ASTERIX#8BMO Capital Markets Precedent Base Metal Transaction Premiums 7 1-Week Premium 240% 120% 60% 30% 15% 15% Centerra/ Thompson Creek (Nov-16) Lundin/ Josemaria (Dec-21) Glencore/ Volcan (Mar-18) 30% Sandfire/ MOD (Jun-19) South32/ Ariz Mining (Jun-18) CO- Rio Tinto / Turquoise Hill (Initial Rio Tinto Offer) (Mar-22) Nova/ KAZ (Jan-21) Zijin/ Nevsun (Mar-19) OZ/ Cassini (Jun-20) IGO / Western Areas (Mar-22) 60% 1-Day Premium Rio Tinto / Turquoise Hill (HUSP) (Aug-22) OZI Avanco (Sep-18) 120% Source: Bloomberg, company filings, FactSet 1. Based on median peer performance since unaffected date of 11-Mar 22 to Rio Tinto's initial offer, peers include Capstone. Ero, Filo, First Quantum, Hudbay, Ivanhoe, Los Andes, Lundin Mining, NGEX, Solaris, SolGold, and Western Copper Nevsun/ Reservoir (Apr-16) 240% PROJECT ASTERIX#9BMO Capital Markets Copper Transactions Summary 8 Copper Price (US$/lb) $5,00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 Empresas Copec / 40% Mina Justa (Minsur) Jan-17 OZI Avanco Glencore / Mutanda Producers Newmont / 50% Galore Creek (NOVAGOLD) KAZ/ Baimskaya Jan-18 Mitsubishi/ 22% Quellaveco (Anglo American) Developers Zijin / Nevsun Sumitomo / 30% QB2 (Teck) Pembridge / Minto (Capstone) Newcrest / 70% Red Chris (Imperial) Jan-19 Covid-19 Pandemic Lundin / Chapada (Yamana) Sandfire / MOD Zijin / 46% Timok Lower Zone (Freeport) Jan-20 South32/ Sierra Gorda (Sumitomo) Evolution / Emest Henry (Glencore) Sandfire / MATSA (Mubadala & Trafigura) Capstone / 30% Santo Domingo (KORES) Source: Companyings, FactSet 1. Significant development component. 2. BHP announced non-binding indicative proposal to acquire 02 Minerals on 07-Aug-22; 02 Minerals publicly rejected the proposal on 08-Aug-32 Nova / KAZ Mitsubishi/ 30% Mantoverde (Mantos) Jan-21 Metals Acquisition Corp / CSA (Glencore) Lundin / Josemaria Capstone / Mantos (1) (61% / 39% PF Ownership) ZCCM / 90% Mopani (Glencore) Jan-22 BHP / OZ Minerals PROJECT ASTERIX#10BMO Capital Markets Comparison to Future Share Price Analysis FUTURE SHARE PRICES (31-DEC-24) BASED ON EQUITY RAISE PRICE AND SETTLED P/ NAV TRADING MULTIPLES Illustrative Equity Raise Price (C$) $20.00 $22.50 $25.00 $27.50 $16.42 (Disc.) / Prem. to HUSP (Initial Proposal) 22% 37% 52% 68% $27.97 (Disc.) / Prem. to HUSP (Revised Proposal) Illustrative Settled Future P/NAV Trading Multiple (29%) $33.60 $36.96 $40.32 $43.68 $47.04 0.50x 0.55x 0.60x 0.65x 0.70x (20%) $34.58 $38.04 $41.50 $44.95 $48.41 (2%) (11%) $35.40 $38.94 $42.49 $46.03 $49.57 Source: Turquoise Hill Internal LT Model at street consensus pricing Note: Assumes US$1.050 mm of equity financing $36.11 $39.72 $43.33 $46.94 $50.55 ANNUALIZED IRR BASED ON RIO TINTO OFFER AND FUTURE SHARE PRICES (9.4%) (5.9%) (2.5%) 0.6% 3.7 (8.3%) (4.8%) (1.4%) 1.8% 4.9% (7.5%) (3.9%) (0.5%) 2.8% 5.8% (6.7%) (3.1%) 0.3% 3.6% 6.7% PROJECT ASTERIX#11BMO Capital Markets Turquoise Hill Financial Perspectives (C$ per share) HUSP Range with 47% Premium $29.74 Driver 10 $20.77 2 3 $40.84 HUSP Since HUSP Since Initial Offer Revised Offer Selected Range 47% Premium to 47% Premium to $14- $20 HUSP $28-$29 HUSP 0.95x-1.15x (2) (3) Range Range C$30.9 Precedent Precedent Transactions Transactions (Developers) (Producers) $69.57 $57.47 CORE METHODOLOGIES P/NAV (Model) (4) $57.68 $44.37 (5) 1.00x 1.30x Low Relative Capital Requirement Developers AUS$1050 of equity financing at CS37, 17; model NAVPS discounted to 31-Dec-24 8.5% and subsequently decounted to present at real cost of yo21.4% HUSP range based on a 21-45% (25 to 75 percentile of per share price performance) discount to C$25.08 $42.35 Trading Multiples $27.22 0.45x -0.70x P/NAV Range A A 7 B P/NAV (Model) Developer Group (5) $24.20 $9.07 0.15x -0.40x P/NAV Range (7) DCF at WACC $33.97 $29.70 Street Consensus Commodity Prices $32.16 17.1% -19.1% Discount Rate $27.91 Spot Commodity Prices Based on 3575 percent of the developer PINAV range, excluding TRO Based on producer PVNAV range,excluding TQ and perhigh and low Low to high and off the developer precedent transaction FINAW range Based on 2575 percent of the producer precedent transaction PINAY Low to high end of the developer PNAV range among low relative capital requirement pers uding TR INFORMATIONAL PURPOSES Equity Research Target Prices $38.77 $32.30 1-Year Target Prices Disc. to Current Discounted In- Production Rio Tinto Revised Offer: $43 Current Broker Range with Trading Multiples (¹) $31.06 $22.19 P/NAV (Model) (3) 0.50x -0.70x PROJECT ASTERIX#12BMO Capital Markets Strategic Counterparty Discussions • Investigated potential for a transaction with strategic counterparties interested in Oyu Tolgoi ■ Idea was shared with numerous global companies with copper operations (13 parties in total) - Potential transaction structures were raised / discussed: Acquisition of full 49% minority stake ■ Strategic investment . While some counterparties expressed interest, none were willing to sign a CA given complexities around Rio Tinto's involvement and broader market weakness at the time of discussions 11 PROJECT ASTERIX#13BMO Capital Markets Board Supported MI 61-101 Transactions Transactions Over the Last 10 Years 12 3% Below % of Transactions Supported by the Target Board Relative to the Formal Valuation Range 13% 4th Quartile Source: Companyings, FactSet Note: Includes all cash transactions with explot value per share valuation ranges 33% 3rd Quartile 20% 2nd Quartile 18% 1st Quartile 12% Above PROJECT ASTERIX#14BMO Capital Markets Appendix Appendix 13 APPENDIX PROJECT ASTERIX#15BMO Capital Markets TRQ Management Model NAVPS Buildup NAVPS Based on Management Model (Resource Case) at Street Consensus Pricing Oyu Tolgoi Net Asset Value Build Oyu Tolgoi NPV of Unlevered Free Cash Flows (100%) Less: Net Debt at Oyu Tolgoi (100%) Less: Shareholder Loans Payable (100%) Oyu Tolgoi Net Asset Value (100%) TRQ's Ownership Stake in Oyu Tolgoi (66%) TRQ Net Asset Value Build Add: Shareholder Loans Receivable Add: TRQ Management Fees Receivable Add: TRQ Balance Sheet Adjustments Less: TRQ G&A TRQ Not Asset Value Shares Outstanding NAVPS NAVPS Source: Company Fings, FactSet, street research, Turquoise Hill Internal Model at street consensus pricing (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (US$ mm) (mm) (US$/sh) (C$/sh) $12,941 ($4,178) ($8,600) $164 $108 $8,600 $426 $455 ($294) $9,295 201.2 $46.19 $60.49 Unfinanced NAVPS APPENDIX PROJECT ASTERIX#16BMO Capital Markets Analyst Target Prices Analyst Target Prices (C$ / share) 15 Recommendation Target Price Date Source: Bloomberg Not: Excludes restricted brokers (GMO and RBC). $48.00 $30.00 Eight Buy 24-Aug-22 T $42.00 $31.00 Canaccord Buy 15-Aug-22 $42.00 $30.00 Scotia Buy 24-Aug-22 $42.00 1 $30.30 10 Macquarie Buy 25-Aug-22 Denotes target price before RT's initial proposal APPENDIX Rio Tinto Offer: $43.00 Post-Proposal Median: $42.00 $40.00 $32.00 Pre-Proposal Median: $30.30 TD Hold 25-Aug-22 PROJECT ASTERIX#17BMO Capital Markets Relative Share Price Performance Since Rio Tinto's Initial Offer Filo 16 NGEX Ivanhoe Los Andes Ero Westem Copper Median SolGold First Quantum Lundin Mining Hudbay Solaris Capstone Source: FactSet (59%) Producers (45%) (46%) (47%) Developers (34%) (35%) (36%) (37%) (40%) Producer / Developer (21%) (21%) (4%) APPENDIX Implied TRQ Share Price (CS/sh.) $25.79 $24.69 $20.20 $20.19 $16.90 $16.62 $16.42 $16.21 $15.53 $14.18 $13.88 $13.67 $10.65 PROJECT ASTERIX#18BMO Capital Markets Relative Share Price Performance Since Rio Tinto's Revised Offer NGEX 17 Hudbay Solaris Ivanhoe Westem Copper Filo Median Lundin Mining SolGold Los Andes First Quantum Source: Fact Ero Capstone (9%) (10%) (10%) (7%) (7%) (7%) (8%) Producers (6%) (6%) (3%) Developers Producer / Developer (1%) 7% APPENDIX Implied TRQ Share Price (C$/sh.) $32.19 $29.93 $29.41 $28.44 $28.40 $28.01 $27.97 $27.94 $27.93 $27.86 $27.34 $27.14 $27.07 PROJECT ASTERIX#19BMO Capital Markets Relative Developer P/NAV Multiples P/NAV (RATIO) Turquoise Hill (Model)(¹.2) 18 Ivanhoe 1, 2 Filo 1 NGEX Los Andes Solaris SolGold Western Copper 0.17x 0.17x 0.14x 0.29x 0.44x 0.41x Source: Company Rings, FactSet, Turquoise Hill Internal LT Model at street consensus pricing, street research Note: Median calculations exclude Turquoise Hill 0.50x Median: 0.29x Median Discount Rate: 10.0% Based on unaffected share price to Rio Tinto's revised proposal of C$30.19 (closing share price as of 23-Aug-22) Based on undanced NAVIPS. Underground ramping up to sustainable production 0.70x Discount Rate(%) 9.1% 10.0% 10.0% 12.0% 10.0% 10.0% 8.0% 9.8% APPENDIX Stage Production /FS Production /FS) PFS Resource Resource PEA PFS FS PROJECT ASTERIX#20BMO Capital Markets Relative Developer Trading Multiples and Capital Intensity P/NAV (ratio) 19 1.0x 0.8x 0.6x 0.4x 0.2x Base Metal Intermediate Producer Median P/NAV: 0.7x Trinida Base Metal Junior Producer Median P/ NAV: 0.4x 0.1¢ Northern Dynasty ((4) Panoro Cornerstone Western SolGold CO 1.0¢ Trilogy Polymet Source: Company Fings, FactSet, Turquoise Hill Internal LT Model at street consensus pricing, street research Intermediate producers include Bolden, Capstone, Ivanhoe. Lundin, and Nexa 2. Junior producers include Atalaya, CAML Copper Mountan, Ero, Hudbay, Imperial, and Taseko ****** Los Andes EV/Resource (US¢/lb Cu Eq.) Turquoise Hill Marimaca (Model) Adventus Ivanhoe Intalcapex based on median street broker estimates. 4. No NAVPS estimates: P/NAV placed on line of best Based on unaffected share price to Rio Tinto's revised proposal of C$30.19 (closing share price as of 23-Aug-22) and unfinanced NAVPS Solaris) Filo APPENDIX Bubble sizes represent Market Cap 10.0¢ Initial Capex / Market Cap. 22.0x Initial Capex / Market Cap. < 2.0x PROJECT ASTERIX#21BMO Capital Markets Relative Producer P/NAV Multiples P/NAV (RATIO) First Quantum Ivanhoe Lundin Mining Ero Hudbay Turquoise Hill (Model) Capstone 0.34x 0.50x Source: BMO Equity Research models, company lings, FactSet, Turquoise Hill Internal LT 3 Model at street consensus pricing, street research Note: Median calculations exclude Turquoise Hil 1. Based on unaffected share price to Rio Tinto's revised proposal of C530.19 folosing share price as of 23-Aug-221 Based on unfinanced NAVIPS 0.51x 4 5. 6. 0.64x 0.60x Median: 0.62x Median Discount Rate: 8.7% 0.75x 0.70x Discount Rate (%) 9.1% 9.1% 8.6% 8.0% 8.0% 10.0% 8.8% Reserves from producing assets divided by 2022E copper equivalent production, unless otherwise stated. Based on actual Kamoa-Kakula expected mine le Based on Turquoise Hill Internal Model mine Me Based on 2024 copper equivalent production, post Mantos and Mantoverde ramp up Mine Life Index (years) 28 36 21 6 16 80 18 (5) APPENDIX PROJECT ASTERIX#22BMO Capital Markets Turquoise Hill Weighted Average Cost of Capital - Producers and Developers (USS mm Unless Otherwise Stated) COMPARABLE BETA ANALYSIS SELECT PEERS Company First Quantum Ivanhoe Lundin Mining Filo Capstone Hudbay Ero Solaris SolGold Los Andes NGEX Western Copper Mean (R² > 0.2) Selected Beta - Low Selected Beta - High Turquoise Hill 18.1% 21 Beta Levered 2.10 1.97 1.69 1.87 2.01 1,94 2.40 2.20 0.92 1.45 2.04 2.12 1.62 R² 2.0% 18.1% 0.29 0.32 0.32 0.11 0.25 0.29 0.35 0.12 0.04 0.14 0.17 0.31 0.18 Total Debt 2.5% 17.5% $7,164 $626 $28 $569 $1,357 $117 $4 50 $1,455 $4.240 Equity Value (2) 16.9% $12,584 $7.964 $4,075 $1,608 $1,584 $1,171 $896 $853 $531 $309 $287 $203 $4,068 $5.550 Debt Ratio 36.3% 7.3% 0.7% 26.4% 53.7% 33.1% 0.0% 18.1% 1.2% 0.2% 22.5% Source: Bloomberg, BMO CM estimates, CME Group. Facet, publicis Note: Levered Bets are Bloomberg 5-year monthly raw Botas, unless otherwise noted. selbs 1. Total Debatface value; includes 2. Equity value as of 31-Aug-22 3. Bu=BL/(1+(1-x)Dete Equity 4. Bet prior to merger with Mantos 53-Month Term SOFR plus 0.15 bps credit adjustment 6. BMC CMate of the borrowing spread at the optimal capital structure 15.8% Tax Rate 27.0% 27,0% 26,5% IMPLIED REAL WACC SENSITIVITY TO LONG-TERM INFLATION RATES(13) 3.5% 27.0% 27,0% 26.4% 27.0% 27,0% 30.0% 27.0% 27.0% 27.0% pi Beta Unlevered 4.6% 15.3% 1.86 1,68 1.87 1.59 1.04 1.76 2.20 0.80 1.44 2.04 2.74 1.74 1.60 1.90 1.04 5.0% ILLUSTRATIVE COST OF CAPITAL Selected Betas Cost of Debt 3-Month Term SOFR Borrowing Spread Pre-tax Cost of Debt Tax Rate After-Tax Cost of Debt Cost of Equity Nominal Risk Free Rate Equity Risk Premium Country Risk Premium Selected Unlevered Beta Optimal Debt in Capital Structure Levered Beta Cost of Equity Implied Nominal WACC Implied Real WACC Bu = 1.60 Bu = 1.75 Bu = 1.90 3.12% 6.40% 9.52% 7.0% 3.18% 7.46% 5.20% 1.60 20 0% 1.89 22.5% 17.1% 7. Yield on 10 year United States Government bond 8. Based on Duff & Phelps Valuation Handbook-Quide to Cost of Capital 3.12% 6.40% 9.52% 26.5% 7.0% 3.18% 7.46% 5.20% 1.75 20.0% 2.07 23.8% APPENDIX 20.5% 18.1% 3.12% 9.52% 26.5% 3.18% 7.48% 5.20% 20,0% 2.25 25.1% 21.5% 19.1% 9. Assets and operations mainly located in Mongolia 10 Cost of equity nsk free ratexmarket risk premium size premium + country risk premium 11. WACC= debujdebt equity)(1-tax rata) x cost of debt)equity(debt equity) x cost of equity. 12. Adjusted for inflation: (+WACC)(1+inflationary rate) 1. Assumed 2% inflation rate. 13. Based on mid-point. PROJECT ASTERIX