The Turquoise Hill Resources Board of Directors today announced the appointment of Ulf Quellmann as Chief Executive Officer effective August 1, 2018.
Mr. Quellmann is a seasoned executive with extensive knowledge of Oyu Tolgoi and more than 20 years’ experience in corporate finance, strategy, treasury and investor relations at General Motors, Alcan and Rio Tinto. Mr. Quellmann was appointed to the Turquoise Hill Board of Directors in May 2017 and will continue to serve as a member of the Board, as well as continuing to be part of the Turquoise Hill-Rio Tinto negotiating team working with the Government of Mongolia primarily to conclude the sourcing of domestic power.
Most recently, Mr. Quellmann served as Vice President, Strategic Projects of Rio Tinto’s Copper and Diamonds product group and prior to this was the Chief Financial Officer of the same group, which has gross annual revenues of nearly $5 billion and investments in three of the world’s Tier 1 copper mines, including Oyu Tolgoi. From 2008 to 2016, Mr. Quellmann was Group Treasurer at Rio Tinto and led the arrangement of the $4.4 billion project finance facility for Oyu Tolgoi, a major milestone for the project and one of the largest of its type in the mining industry.
“The combination of Ulf’s experience, project knowledge, leadership capabilities and relationships will enable us to
continue making progress towards achieving Oyu Tolgoi’s full potential as one of the world’s largest copper mines,” said Peter Gillin, Chairman of Turquoise Hill. “Ulf is very familiar with our project and has important relationships with the operator, the Government of Mongolia and other key stakeholders. He is an ideal leader who can bring both an independent perspective and continuity to the CEO role.”
“I welcome the opportunity to lead Turquoise Hill’s strong management team and to continue to work with our partners in the Government of Mongolia and Rio Tinto. My priorities will be to drive continued progress at Oyu Tolgoi, build
sustainable and respectful relationships with our partners and work to create superior value for all Turquoise Hill shareholders,” said Mr. Quellmann.
Mr. Quellmann’s appointment follows a comprehensive CEO search process undertaken by the Board with the assistance of a leading independent executive search firm. The search included full consideration of several outstanding candidates drawn from across the global mining sector.
The terms and conditions of Mr. Quellmann’s appointment are designed to further align management’s interests with the interests of all Turquoise Hill shareholders. Specifically:
? Turquoise Hill’s CEO will have a direct employment agreement with Turquoise Hill Resources;
? The CEO will continue to serve at the direction of, and will be accountable exclusively to, the Turquoise Hill
Board of Directors, a majority of whom are independent;
? The CEO’s long-term incentive compensation is to be issued exclusively and entirely in Turquoise Hill

Performance Share Units;
? The CEO will receive a sign-on bonus to be solely invested in Turquoise Hill common shares. With the appointment of a new CEO, Turquoise Hill will now engage independent technical advisors to assist with the
Board’s ongoing review of critical elements of Oyu Tolgoi’s development.