Rio Tinto completes second tranche of its investment in Ivanhoe Mines

LONDON, Oct. 27 /CNW/ - Rio Tinto confirmed today it has completed the second tranche of its private placement investment in Ivanhoe Mines Ltd, increasing its ownership by 9.8 per cent to 19.7 per cent of Ivanhoe's common shares. The second tranche consists of 46,304,473 common shares at a subscription price of US$8.38 per share for a total consideration of US$388,031,483.74.

If Rio Tinto were to exercise and convert all of its remaining warrants and securities of Ivanhoe, it would own approximately 257,931,578 common shares of Ivanhoe representing 43.1 per cent of Ivanhoe's common shares.

Rio Tinto has no present intention of acquiring other securities of Ivanhoe, except as regards its right to acquire additional securities so as to maintain its proportional equity interest in the future, or of disposing of any of the securities of Ivanhoe which it holds. Depending upon its evaluation of Ivanhoe's business, prospects and financial condition, the market for Ivanhoe's securities, general economic and tax conditions and other factors, Rio Tinto may acquire additional securities of Ivanhoe or sell some or all of the securities it holds.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

SOURCE Rio Tinto PLC

For further information: For further information: Media Relations, London: Nick Cobban, Office: +44 (0) 20 7781 1138, Mobile: +44 (0) 7920 041 003; Christina Mills, Office: +44 (0) 20 7781 1154, Mobile: +44 (0) 7825 275 605; Media Relations, Australia: Tony Shaffer, Office: +61 (0) 3 9283 3612, Mobile: +1 202 256 3667; Media Relations, Americas: Tony Shaffer, Office: +61 (0) 3 9283 3612, Mobile: +1 202 256 3667; Media Relations, Canada: Stefano Bertolli, Office: +1 (0) 514 848 8151, Mobile: +1 (0) 514 945 1800; Investor Relations, London: Mark Shannon, Office: +44 (0) 20 7781 1178, Mobile: +44 (0) 7917 576597; David Ovington, Office: +44 (0) 20 7781 2051, Mobile: +44 (0) 7920 010 978; Investor Relations, North America: Jason Combes, Office: +1 (0) 801 204 2919, Mobile: +1 (0) 801 558 2645; Investor Relations, Australia: Dave Skinner, Office: +61 (0) 3 9283 3628, Mobile: +61 (0) 408 335 309; Simon Ellinor, Office: +61 (0) 7 3361 4365, Mobile: +61 (0) 439 102 811; Email: questions@riotinto.com; Website: www.riotinto.com; High resolution photographs and media pack available at: http://www.riotinto.com/media/press_kit.asp

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