Turquoise Hill Board of Directors issues letter to shareholders

VANCOUVER, BC--(Marketwired - March 14, 2018) - The Board of Directors of Turquoise Hill Resources Ltd. (NYSE: TRQ) (NASDAQ: TRQ) (TSX: TRQ) ("Turquoise Hill") today issued a letter to shareholders regarding a recent meeting between members of Turquoise Hill's board of directors and representatives of SailingStone Capital Partners. The full text of the letter is below.

March 14, 2018

Dear Turquoise Hill Shareholders,

Members of our Board recently met with SailingStone Capital Partners, a shareholder in Turquoise Hill, to discuss the corporate governance concerns that they raised in a publicly-filed letter dated February 1, 2018.

The purpose of this letter is to assure our shareholders that the Board and senior management of Turquoise Hill fully recognize our responsibility to serve the interests of the company and all of its shareholders. In particular, we are committed to the principles of transparency and good governance and welcome constructive dialogue with our shareholders. For several years, we have had an ongoing dialogue with SailingStone and have also engaged with other shareholders.

Whilst the strategic partnership between Turquoise Hill and Rio Tinto is complex, it provides Turquoise Hill shareholders with a unique opportunity to participate in a world-class mining project that is being developed with the commercial and technical expertise, and financial support, of a leading global mining firm. Turquoise Hill and Rio Tinto have a mutual interest in maximizing the potential of Oyu Tolgoi.

Our Board, a majority of whose members are unaffiliated with Rio Tinto, is committed to robust and effective corporate governance that appropriately mitigates any conflicts that may arise between Turquoise Hill and Rio Tinto. In recent years, through modifications to the compensation structure, we have improved the alignment of Turquoise Hill's senior management with the interests of our shareholders. The Board is always open to additional recommendations, which can enhance transparency and the effectiveness of our governance within our complex structure. We will work with our shareholders including, but not limited to, Rio Tinto and consider sensible enhancements to Turquoise Hill's governance that are consistent with the existing contractual framework.