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1. Background and basis of preparation:

Ivanhoe Electric Inc. (“Ivanhoe Electric” or “the Company”) is a United States based minerals exploration and development company with a focus on copper and other critical metals vital to electric transmission and generation, manufacturing, infrastructure development, technology, and national security. The Company’s mineral exploration efforts focus on copper as well as other metals including nickel, cobalt, platinum group elements, gold and silver. The Company’s projects include the Santa Cruz Copper Project in Arizona.

In addition to mineral projects in the United States, the Company also holds direct and indirect ownership interests, and in some cases controlling financial interests, in other non-U.S. mineral projects, and in proprietary mineral exploration and minerals-based technologies.

The Company holds a 50% interest in a joint venture with Saudi Arabian Mining Company (“Maaden”) to explore prospective land in Saudi Arabia.

The Company conducts the following business activities through certain subsidiaries:

•VRB Energy Inc. (“VRB”) is establishing a United States-based grid scale vanadium redox flow battery manufacturing business. Ivanhoe Electric had an ownership interest in VRB of 90.0% as at June 30, 2026 (December 31, 2025 — 90.0%). VRB also holds a 49% interest in VRB Energy System (Beijing) Co., Ltd. (“VRB China”) which operates in the same industry in China.

•Computational Geosciences Inc. (“CGI”), provides data analytics, geophysical modeling, software licensing and artificial intelligence services for the mineral, oil & gas and water exploration industries. Ivanhoe Electric had an ownership interest in CGI of 94.3% as at June 30, 2026 (December 31, 2025 — 94.3%).

•Cordoba Minerals Corp. (“Cordoba”) sold the Alacrán copper-gold project in northern Colombia in March 2026 (Note 13). Ivanhoe Electric had an ownership interest in Cordoba of 59.3% as at June 30, 2026 (December 31, 2025 — 60.8%).

The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States. Therefore, this information should be read in conjunction with the Company's consolidated financial statements and notes contained on its Form 10-K for the year ended December 31, 2025. The information furnished herein reflects all normal recurring entries, that are in the opinion of management, necessary for a fair statement of the results for the interim periods reported. Operating results for the six-month period ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

The unaudited condensed interim consolidated financial statements have been prepared on a going concern basis, which presumes the realization of assets and satisfaction of liabilities in the normal course of business.

References to “$” refer to United States dollars.

In a prior period, management identified an immaterial misclassification in the unaudited condensed interim consolidated statement of cash flows for the six-month period ended June 30, 2025. The misclassification related to proceeds of $9.7 million received from the disposal of a subsidiary which were incorrectly classified as a cash receipt from operating activities in those periods. The cash receipt has been appropriately reflected as an investing activity in the unaudited condensed interim consolidated statement of cash flows for the six months ended June 30, 2025. The reclassification has no impact on the prior period figures in the unaudited condensed interim consolidated balance sheets and the condensed interim consolidated statements of loss and comprehensive loss.

2. Significant accounting policies:

The Company discloses in its consolidated financial statements for the year ended December 31, 2025, those accounting policies that it considers significant in determining its results of operations and financial position. There

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have been no material changes to, or in the application of, the accounting policies previously identified and described in the Company’s consolidated financial statements for the year ended December 31, 2025.

Recently adopted accounting pronouncements:

The Company adopted ASU 2024-04 on January 1, 2026, which clarifies the accounting for certain induced conversions of convertible debt instruments. The adoption of ASU 2024-04 did not have a material impact.

Recent accounting pronouncements not yet adopted:

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update was issued to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The Company is required to adopt ASU 2024-03 on January 1, 2027, and is currently evaluating the expected impact on the consolidated financial statements.

3. Use of estimates:

The preparation of the unaudited condensed interim consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, the related disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from these estimates.

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2025.

4. Cash and cash equivalents:

Of the total cash and cash equivalents at June 30, 2026 and December 31, 2025, $23.5 million and $9.1 million, respectively, was not available for the general corporate purposes of the Company as it was held by non-wholly-owned subsidiaries.

5. Accounts and other receivables:

			June 30, 2026						December 31, 2025
Trade accounts receivable			$	2					$	14
Other receivables (Note a)			13,042						10,816
Provision for expected credit loss (Note a)			(5,304)						(10,304)
			$	7,740					$	526

(a) As at December 31, 2025, VRB was owed the remaining tranche of $10.3 million from its sale of 51% of the shares in VRB China to China Energy Storage Industry Co., Ltd. (“Red Sun”). At December 31, 2025, the Company recorded a provision for expected credit loss in the amount of the full second tranche payment as it was due on June 30, 2025 and had not been received.

On April 1, 2026, VRB received $5.0 million of the second tranche payment, while the remainder is still outstanding. The Company reduced the provision for expected credit loss by $5.0 million and continues to carry a provision of $5.3 million due to prolonged delinquency, an absence of contractual modification and a high degree of risk and uncertainty with cross-border collection risk and contractual remedies.

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As of June 30, 2026, other receivables also include $6.5 million from the divestment of the Pinaya project (Note 14).

6. Investments subject to significant influence:

The Company’s principal investments subject to significant influence are its investment in Maaden Ivanhoe Electric Exploration and Development Limited Company ("Maaden Joint Venture") and VRB China. Others include its investments in Sama Resources Inc. (“Sama”).

			Equity Method																		Carried at fair value
			Maaden Joint Venture (Note a)						VRB China						Other						Sama						Total
Balance at December 31, 2025			$	8,227					$	47,156					$	827					$	2,189					$	58,399
Investment			6,250						—						—						—						6,250
Change in fair value			—						—						—						450						450
Share of loss			(5,234)						(2,916)						(51)						—						(8,201)
Foreign currency translation			—						(182)						(11)						—						(193)
Balance at June 30, 2026			$	9,243					$	44,058					$	765					$	2,639					$	56,705

(a) In July 2026, the Company provided funding to the Maaden Joint Venture in the amount of $6.3 million.

7. Exploration properties:

			Santa Cruz						Tintic						Alacrán						Other						Total
Balance at December 31, 2025			$	177,523					$	30,703					$	13,607					$	2,312					$	224,145
Acquisition costs			—						—						—						7,478						7,478
Divestment (Note 13)			—						—						(13,607)						—						(13,607)
Balance at June 30, 2026			$	177,523					$	30,703					$	—					$	9,790					$	218,016

8. Other non-current assets:

			June 30, 2026						December 31, 2025
Deposits (Note a)			$	25,242					$	4,373
Other			5,878						5,653
			$	31,120					$	10,026

(a) Deposits are amounts paid in advance for capital asset acquisitions that have not yet been received or placed in service.

In May 2026, the Company entered into an agreement to acquire a tunnel boring machine ("TBM") and material handling system for mine access development at the Santa Cruz Copper Project. The total purchase price is $64.7 million, payable in installments over a two-year period upon the achievement of specified contractual milestones. As of June 30, 2026, the Company had made an initial deposit of $13.8 million.

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															VRB Convertible Bond
Balance at December 31, 2025															$	33,738
Interest expense															1,448
Balance at June 30, 2026															$	35,186

On July 8, 2021, VRB issued a convertible bond for gross proceeds of $24.0 million. The bond had a five-year term and interest accrues at a rate of 8% per annum.

On July 1, 2026, VRB entered into an agreement to extend the maturity date of the convertible bond to December 31, 2026. All other terms and conditions of the convertible bond are unchanged.

Prior to the maturity date, the convertible bond is automatically converted into equity of VRB upon an equity financing or sale event, at a price per share equal to the lower of:

•the transaction price of the equity financing or sale event; and

•the valuation cap price of $158.0 million divided by the total shares outstanding at the time of the event.

If no equity financing or sale event occurs, VRB must repay the outstanding principal and interest on maturity.

The Company has accounted for the convertible bond, including its embedded features, as a debt instrument accounted at amortized cost, as it was determined the embedded features are not required to be bifurcated.

10. Equity:

(a) Common stock transactions:

As at December 31, 2025, the Company had 11.6 million warrants outstanding, exercisable to purchase one share of Ivanhoe Electric stock at $7.00 per share. In January and February 2026, all of the warrants were exercised for proceeds of $81.5 million.

(b) Stock-based compensation:

Stock-based payment compensation was allocated to operations as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
General and administrative expenses			$	2,450					$	2,636					$	4,557					$	5,196
Exploration expenses			703						739						1,178						1,152
			$	3,153					$	3,375					$	5,735					$	6,348

(i) Stock-settled restricted stock units ("RSU’s"):

On March 6, 2026, the Company granted 454,112 stock settled RSU's to certain officers and employees of the Company. The RSU’s vest in three equal tranches beginning one year from the grant date. The fair value of the stock-settled RSU’s is amortized over the vesting period. The total grant date fair value of these RSU's was $6.0 million based on a grant date share price of $13.13 per share.

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(ii) Performance share units ("PSU's"):

On March 6, 2026, the Company granted PSU's to certain officers and employees of the Company. The PSU's vest on December 31, 2028, with the number of units to vest determined by Ivanhoe Electric’s share price performance against constituents from a Base Metals Index. The number of units to vest ranges between zero times to two times the target number of PSU's. The total target number of PSU's is 405,360, which is one times the target. The grant date fair value of these PSU's was $7.1 million.

Monte Carlo valuation methodology was used to determine the fair value of the PSU's, which required the input of the following assumptions.

			Grant date: March 6, 2026
Expected volatility			69.0		%
Expected life of PSU's (in years)			2.8
USA risk-free interest rate			3.4		%
Canada risk-free interest rate			2.6		%
Weighted average grant-date fair value (per unit)			$	17.56

11. Revenue:

The Company recognized revenue from the following sources:

						Three Months Ended June 30,												Six Months Ended June 30,
Revenue type						2026						2025						2026						2025
Data processing services						$	724					$	1,068					$	1,582					$	1,803
Total						$	724					$	1,068					$	1,582					$	1,803

12. Exploration expense:

						Three months ended June 30,												Six Months Ended June 30,
Project						2026						2025						2026						2025
Santa Cruz, USA						$	10,537					$	5,425					$	20,037					$	11,929
Gleeson, USA						3,985						180						6,615						276
Hog Heaven, USA						1,161						394						4,364						1,267
Alacrán, Colombia						—						4,354						3,334						7,691
Ivory Coast Project, Ivory Coast						739						331						1,093						656
Chile Exploration Collaboration, Chile						—						—						664						—
Tintic, USA						193						474						427						1,185
Project generation and other						4,793						2,920						8,080						6,859
Total						$	21,408					$	14,078					$	44,614					$	29,863

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13. Divestment of the Alacrán project:

On May 8, 2025, Cordoba entered into a framework agreement to sell its remaining 50% interest in the Alacrán Project to JCHX Mining Management Co., Ltd ("JCHX"), through the divestment of Cordoba's wholly owned Colombian subsidiaries, Minerales Cordoba S.A.S. and Exploradora Cordoba S.A.S.

On February 10, 2026, Cordoba and JCHX agreed to amend various terms of the agreement. The purchase price was increased to $128.0 million in cash and paid in a lump sum on closing of the transaction. In addition, certain conditions to closing were waived including the approval of the Environmental Impact Assessment for the Alacrán project. The transaction closed on March 5, 2026.

Net proceeds from the divestment, after settling outstanding liabilities and amounts held for future corporate activities, were distributed to shareholders of Cordoba. On March 25, 2026, Cordoba distributed $40.1 million in cash to non-controlling shareholders of Cordoba.

On the closing date, the carrying value of net assets and non-controlling interest associated with the divested subsidiaries were derecognized, and the cumulative currency translation adjustments previously recognized in other comprehensive income was recognized as profit or loss.

The net gain on the Alacrán divestment was calculated as follows:

Gross proceeds received on closing			$	128,000
Less: transaction costs			(2,465)
Net proceeds			125,535
Net assets of disposed subsidiaries			(538)
Reclassification of historical currency translation			(274)
Gain on divestment of Alacrán			$	124,723

The carrying amount of net assets related to the disposed of subsidiaries on the closing date were as follows:

Assets			March 5, 2026
Cash			$	731
Prepaid expenses and deposits			815
Exploration properties			13,608
Property, plant and equipment			2,455
Liabilities
Accounts payable and accrued liabilities			(3,285)
Due to related parties			(4,074)
Lease liability			(1,065)
Deferred income taxes			(4,751)
Net carrying amount			4,434
Non-controlling interest			(3,896)
Net assets attributable to common shareholders			$	538

14. Divestment of the Pinaya project:

On April 27, 2026, the Company sold its interest in the Pinaya Gold-Copper Project to Panam Copper Corp., (“Panam Copper”), for $11.0 million in consideration, consisting of:

(i) $8.0 million in cash, of which $1.5 million was paid on closing, and the remainder is payable in installments of $1.5 million after six months, $2.5 million after one year and $2.5 million after eighteen months;

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(ii) $3.0 million in Panam Copper shares, with a deemed value per share using the 10-day volume weighted average price immediately prior to the issuance date or financing price for the initial issuance, with $1.5 million issuable on the date of Panam Copper’s listing on a recognized exchange and $1.5 million issuable 12 months thereafter; and,

(iii) the grant at closing of a one percent net smelter return royalty on all minerals produced from the Pinaya Gold-Copper Project. Panam Copper may repurchase 50% of the royalty for $1.0 million prior to the commencement of commercial production.

15. Related party transactions:

Related parties include entities with common direct or indirect shareholders and/or directors. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions.

The following table summarizes transactions between the Company and significant related parties.

			Balance outstanding as at												Transactions for the three months ended June 30,												Transactions for the six months ended June 30,
			June 30, 2026						December 31, 2025						2026						2025						2026						2025
Total Expenses
Global Mining (Note a)			$	—					$	649					$	—					$	447					$	—					$	1,218
Ivanhoe Capital Aviation (Note b)			—						—						—						250						—						500
High Water Holding Company (Note b)			—						250						250						—						500						—
I-Pulse (Note c)			2,002						—						2,002						—						2,002						—
JCHX Mining Management Co., Ltd (Note e)			—						1,500						—						—						—						—
Total			$	2,002					$	2,399					$	2,252					$	697					$	2,502					$	1,718
Revenue and accounts receivable
Maaden Joint Venture (Note d)			$	200					$	—					$	643					$	560					$	1,172					$	1,160
Advances
Global Mining (Note a)			283						422						—						—						—						—
Maaden Joint Venture (Note d)			206						141						—						—						—						—
Deposit
I-Pulse (Note c)			$	1,573					$	1,573					$	—					$	—					$	—					$	—

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			Transactions for the three months ended June 30,												Transactions for the six months ended June 30,
			2026						2025						2026						2025
Expense classification
Exploration expenses			$	2,002					$	66					$	2,002					$	355
General and administrative expenses			250						631						500						1,363
Research and development expenses			—						—						—						—
			$	2,252					$	697					$	2,502					$	1,718

(a)Global Mining Management Corp. (“Global Mining”) is a private company based in Vancouver, Canada, that provided administration, accounting, and other office services to the Company on a cost-recovery basis. Effective October 31, 2025, the Company ended its service relationship with Global Mining and is no longer a shareholder.

(b)Ivanhoe Capital Aviation (“ICA”) and High Water Holding Company (“High Water”) are entities beneficially owned by the Company’s Executive Chairman. ICA and High Water provided use of an aircraft to the Company.

(c)The Company's Executive Chairman is the Chief Executive Officer and a principal owner of I-Pulse. On October 24, 2022, the Company entered into an agreement with I-Pulse, to purchase six Typhoon™ transmitters. The total purchase price for the six Typhoon™ transmitters is $12.4 million. In October 2022, the Company made deposit payments totaling $7.1 million, The remaining payments will be made as each Typhoon™ transmitter system is delivered. As at June 30, 2026, the Company has received four of the Typhoon™ transmitters that are deliverable under the agreement.

(d)The Company's majority owned subsidiary, CGI, provides geophysical data processing services to the Maaden joint venture.

As at June 30, 2026, the Maaden Joint Venture owes the Company $0.2 million for costs that the Company incurred on behalf of the Maaden Joint Venture related to exploration work in Saudi Arabia.

(e)JCHX held 18.2% of Cordoba’s issued and outstanding common stock as at June 30, 2026 (December 31, 2025 - 19.2%). In February 2026, JCHX provided bridge loans to CMH Colombia S.A.S (“CMH”), a subsidiary of Cordoba, totalling $2.5 million. The loan was derecognized upon the Alacrán divestment (Note 13).

16. Fair value measurement:

The following table provides the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the consolidated balance sheets:

			June 30, 2026																		December 31, 2025
			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Financial assets:
Investments subject to significant influence			$	2,639					$	—					$	—					$	2,189					$	—					$	—
Other investments			1,096						267						—						954						267						—
Total financial assets			$	3,735					$	267					$	—					$	3,143					$	267					$	—
Financial liabilities:
Total financial liabilities			$	—					$	—					$	—					$	—					$	—					$	—

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17. Segment reporting:

The Company’s President & Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) of the Company. The CODM evaluates how the Company allocates resources, assesses performance and makes strategic and operational decisions. Based upon such evaluation, the Company has determined that it has four reportable segments. The Company’s reportable segments are the Santa Cruz Copper Project, critical metals, data processing and energy storage.

The Santa Cruz Copper Project and critical metals segments are focused on mineral exploration and developing mines from mineral deposits principally located in the United States. The Santa Cruz Copper Project is at a more advanced stage relative to most of the Company’s other mineral exploration projects and its discrete financial information and operating results are regularly reviewed by the CODM in order to make decisions about resource allocation and assess performance.

The data processing segment provides data analytics, geophysical modeling and artificial intelligence services for the mineral, oil & gas and water exploration industries. The energy storage segment develops, manufactures and installs vanadium flow batteries for grid-scale energy storage.

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Segment information for the periods presented is as follows:

			As at and for the three months ended June 30, 2026
			Santa Cruz Copper Project						Critical Metals						Data Processing						Energy Storage						Total
Revenue			$	—					$	—					$	724					$	—					$	724
Exploration Expenses			10,537						10,871						—						—						21,408
General and administrative expenses			—						7,578						154						534						8,266
Other segment items1			—						(8,003)						415						118						(7,470)
Total segment operating expenses			10,537						10,446						569						652						22,204
Loss (income) from operations			10,537						10,446						(155)						652						21,480
Depreciation and amortization			44						447						12						—						459
Segment assets			208,981						319,646						2,656						53,537						584,820
Expenditures for segment assets			19,800						1,644						—						196						21,640
Investments subject to significant influence			—						11,882						765						44,058						56,705
			As at and for the six months ended June 30, 2026
			Santa Cruz Copper Project						Critical Metals						Data Processing						Energy Storage						Total
Revenue			$	—					$	—					$	1,582					$	—					$	1,582
Exploration Expenses			20,037						24,577						—						—						44,614
General and administrative expenses			—						16,607						422						1,099						18,128
Other segment items1			—						(132,722)						1,109						(4,823)						(136,436)
Total segment operating expenses			20,037						(91,538)						1,531						(3,724)						(73,694)
Loss (income) from operations			20,037						(91,538)						(51)						(3,724)						(75,276)
Depreciation and amortization			74						970						23						—						1,067
Segment assets			208,981						319,646						2,656						53,537						584,820
Expenditures for segment assets			20,991						3,138						—						702						24,831
Investments subject to significant influence			—						11,882						765						44,058						56,705

1The composition of ‘Other segment items’ varies by segment. For the six months ended June 30, 2026 it consists primarily of gains from the divestment of the Alacrán and Pinaya projects in critical metals, cost of sales in data processing and provision for expected credit loss in energy storage. For the three months ended June 30, 2026 it consists primarily of gains from the divestment of the Pinaya project in critical metals and cost of sales in data processing.

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			As at and for the three months ended June 30, 2025
			Santa Cruz Copper Project						Critical Metals						Data Processing						Energy Storage						Total
Revenue from external customers			$	—					$	—					$	1,068					$	—					$	1,068
Intersegment revenues			—						—						—						—						—
Elimination of intersegment revenue			—						—						—						—						—
Revenue			—						—						1,068						—						1,068
Exploration Expenses			5,425						8,653						—						—						14,078
General and administrative expenses			—						8,853						162						706						9,721
Other segment items1			—						2,555						348						1						2,904
Total segment operating expenses			5,425						20,061						510						707						26,703
Loss (income) from operations			5,425						20,061						(558)						707						25,635
Depreciation and amortization			38						690						12						—						702
Segment assets			179,264						161,856						2,351						57,000						400,471
Expenditures for segment assets			731						661						—						—						661
Investments subject to significant influence			—						15,988						844						39,921						56,753
			As at and for the six months ended June 30, 2025
			Santa Cruz Copper Project						Critical Metals						Data Processing						Energy Storage						Total
Revenue from external customers			$	—					$	—					$	1,803					$	—					$	1,803
Intersegment revenues			—						—						10						—						10
Elimination of intersegment revenue			—						—						(10)						—						(10)
Revenue			—						—						1,803						—						1,803
Exploration Expenses			11,929						17,934						—						—						29,863
General and administrative expenses			—						19,143						335						1,829						21,307
Other segment items1			—						2,555						693						24						3,272
Total segment operating expenses			11,929						39,632						1,028						1,853						54,442
Loss (income) from operations			11,929						39,632						(775)						1,853						52,639
Depreciation and amortization			76						1,262						24						—						1,362
Segment assets			179,264						161,856						2,351						57,000						400,471
Expenditures for segment assets			731						1,258						—						—						1,989
Investments subject to significant influence			—						15,988						844						39,921						56,753

18. Commitments and contingencies:

In October 2022, the Company entered into a contractual arrangement to purchase six Typhoon™ transmitters from I-Pulse (Note 15).

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In May 2026, the Company entered into a contractual agreement to acquire a TBM for mine access development at the Santa Cruz Copper Project (Note 8).

In the ordinary course of business, the Company may be involved in various legal proceedings and subject to claims that arise. Although the results of litigation and claims are inherently unpredictable and uncertain, the Company is not currently a party to any legal proceedings the outcome of which, if determined adversely to it, are believed to, either individually or taken together, have a material adverse effect on the Company’s business, financial condition or results of operations.

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