Ivanhoe Energy subsidiary Sunwing Energy to develop Block XVI in central

Mongolia in a major expansion of Asia-focused interests

ULAANBAATAR, Mongolia, Nov. 30 /CNW/ - Ivanhoe Energy Inc. (TSX: IE;

NASDAQ: IVAN) announced today that the merger between PanAsian Petroleum Inc.

and an Ivanhoe Energy subsidiary has been completed. This merger, announced on

November 18, 2009, provides Ivanhoe Energy with the exclusive right to

explore, develop and produce oil or gas within Block XVI in Mongolia's Nyalga

Basin.

Ivanhoe Energy intends to combine the Block XVI development rights with

Sunwing Energy Ltd., Ivanhoe's 100%-owned subsidiary for oil and gas

operations in Asia.

Block XVI covers 16,839 square kilometres and is located approximately

100 kilometres southeast of the capital of Mongolia, Ulaanbaatar. The

Trans-Mongolian Railway, linking railway networks and markets in Russia, to

the north, and China, to the south, runs through the western end of Block XVI,

closely following Mongolia's main north-south highway. The target on Block XVI

is light oil, consistent with discoveries by Petrochina and Sinopec in

Mongolia and other similar discoveries in China's adjacent Inner Mongolia

region.

Block XVI was partially explored in the 1950s by Russian interests and

was included in a regional appraisal conducted by BP International for the

Mongolian Government in 1990. This work demonstrated that Nyalga has

hydrocarbons and the potential to become a significant oil producer. The

Russian drilling program reportedly encountered oil shows in 20 of

approximately 40 wells drilled to depths of 700 to 1,800 metres; one well

flowed oil. The 1990 BP appraisal of central Mongolia's hydrocarbon potential

concluded that the Nyalga Basin had the best potential for an active petroleum

system among the sites evaluated in the region. In addition, Block XVI

contains a large, visible, surface bitumen deposit that is evidence of

hydrocarbon generation and migration and requires further evaluation.

Exploration to date has established that the Nyalga Basin possesses many

of the characteristics of interior rift basins that produce light oil in

Mongolia, east and south of Nyalga, and in northern China. These include:

Petrochina's Tamsag project in eastern Mongolia; Sinopec's Zuunbayan project

in southeastern Mongolia; and a 980-million-barrel discovery of light, sweet

crude oil in the Bameng region of China's Inner Mongolia, announced by a

Sinopec subsidiary last August.

The transaction with PanAsian Petroleum resulted in Ivanhoe Energy

issuing 2,683,291 common shares in exchange for all of the issued and

outstanding common shares of PanAsian. In addition, existing stock-purchase

warrants in PanAsian were rolled-over into 735,449 Ivanhoe Energy purchase

warrants that entitle the holders to purchase Ivanhoe Energy common shares at

C$4.05 for a period of approximately 18 months.

Further details of the transaction are available in Ivanhoe Energy's

November 18 news release

(http://www.ivanhoe-energy.com/i/pdf/2009-11-18_NR.pdf) and November 19

conference call presentation available through the link posted on the home

page of the company's website (www.ivanhoe-energy.com/s/Home.asp).

Sunwing Energy Ltd.

Sunwing Energy is Ivanhoe's 100%-owned subsidiary for oil and gas

operations in Asia. Sunwing has a 15-year history of oil and gas exploration

and production in China and has signed three production-sharing agreements

with Petrochina. Sunwing currently produces approximately 1,800 barrels of

light oil per day in Dagang, in China's Hebei province, in a

production-sharing agreement with Petrochina in which Sunwing is the operator.

In addition, Sunwing is the operator in a 650,000-acre gas exploration block

in Zitong, Sichuan Province, with its 10% partner, Mitsubishi Gas Chemical

Company.

Sichuan is the oldest and one of the most prolific gas producing regions

of China. Sunwing plans to begin drilling in its Zitong Block in Sichuan

province in the first quarter of 2010, targeting the Xu2 formation in the Guan

structure, the largest structure on the block. This well will take up to six

months to drill and test, and will include a 750-metre horizontal section.

Sinopec and Petrochina have made significant discoveries of gas from the

Xu2 formation in blocks adjacent to Sunwing's Zitong Block. Any gas produced

in Zitong will be able to be fed directly into an existing regional gathering

and sales distribution system.

The addition of Block XVI in Mongolia to Sunwing's portfolio of projects

will build critical mass as Sunwing considers a listing on a major Asian stock

exchange.

Ivanhoe Energy Inc.

Ivanhoe Energy is an international oil and gas company focussed on a)

heavy-oil development and production opportunities worldwide; and b) oil and

gas exploration and development projects in Asia. Ivanhoe Energy uses

technologically innovative methods to significantly improve the development of

heavy oil and other oil and gas assets, including the application of its

patented HTL (heavy-to-light) heavy-oil upgrading process. Core operations are

in Canada, Ecuador, China and Mongolia. Ivanhoe Energy trades on the NASDAQ

Capital Market, with the ticker symbol IVAN, and on the Toronto Stock Exchange

with the symbol IE.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking

statements, including forward-looking statements within the meaning of the

Private Securities Litigation Reform Act of 1995. Forward-looking statements

include, but are not limited to, statements by Ivanhoe Energy and Sunwing

Energy concerning the potential for oil and gas production in Block XVI and

the Nyalga region of Mongolia, the potential benefits of Ivanhoe Energy's

heavy oil upgrading technology, the potential for commercialization and future

application of the heavy oil upgrading technology and other technologies,

statements relating to the continued advancement of Ivanhoe Energy's projects,

the potential for successful exploration and development drilling, dependence

on new product development and associated costs, statements relating to

anticipated capital expenditures, the necessity to seek additional funding,

statements relating to increases in production and other statements which are

not historical facts. When used in this document, the words such as "could,"

"plan," "estimate," "expect," "intend," "may," "potential," "should," and

similar expressions relating to matters that are not historical facts are

forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe

that its expectations reflected in these forward-looking statements are

reasonable, such statements involve risks and uncertainties and no assurance

can be given that actual results will be consistent with these forward-looking

statements. Important factors that could cause actual results to differ from

these forward-looking statements include the potential that Block XVI and the

Nyalga region of Mongolia may not have the oil and gas production potential

anticipated, that the company's projects will experience technological and

mechanical problems, new product development will not proceed as planned, the

HTL technology to upgrade bitumen and heavy oil may not be commercially

viable, geological conditions in reservoirs may not result in commercial

levels of oil and gas production, the availability of drilling rigs and other

support services, uncertainties about the estimates of reserves, the risk

associated with doing business in foreign countries, environmental risks,

changes in product prices, our ability to raise capital as and when required,

competition and other risks disclosed in Ivanhoe Energy's Annual Report on

Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and

the Canadian Securities Commissions on SEDAR.

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/For further information: Investors Contact: Ian Barnett, (647) 203-6588;

Bill Trenaman, (604) 688-8323; Media Contact: Bob Williamson, (604) 331-9880;

Website: www.ivanhoeenergy.com/