About Entrée Resources

Entree Resources Ltd. (Entree) operates as an exploration stage resource company with interests in exploration and advanced properties in Mongolia, Peru, and Australia. Entree's principal asset is its interest in the Entree/Oyu Tolgoi joint venture property (the Entree/Oyu Tolgoi JV Property) - a carried 20% participating interest in two of the Oyu Tolgoi project deposits, and a carried 20% or 30% interest (depending on the depth of mineralization) in the surrounding large, underexplored, highly prospective land package located in the South Gobi region of Mongolia. Entree's joint venture partner, Oyu Tolgoi LLC (OTLLC), holds the remaining interest. The Oyu Tolgoi project includes two separate land holdings: the Oyu Tolgoi mining licence, which is held by OTLLC (66% Rio Tinto International Holdings Limited (Rio Tinto) and 34% the Government of Mongolia through Erdenes Oyu Tolgoi LLC), and the Entree/Oyu Tolgoi JV Property, which is a partnership between Entree and OTLLC. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining licence, and all of the Javhlant mining licence, which mostly surround the Oyu Tolgoi mining licence. Both the Shivee Tolgoi and Javhlant mining licences are held by Entree. The terms of the joint venture between Entree and OTLLC (the Entree/Oyu Tolgoi JV) state that Entree has a 20% participating interest with respect to mineralization extracted from deeper than 560 metres (m) below surface and a 30% participating interest with respect to mineralization extracted from above 560 m depth. The Entree/Oyu Tolgoi JV Property includes the Hugo North Extension copper-gold deposit (also referred to as HNE) and the majority of the Heruga copper-gold-molybdenum deposit. In addition to the Hugo North Extension copper-gold deposit, the Entree/Oyu Tolgoi JV Property includes approximately 93% of the mineral resource tonnes outlined at the Heruga copper-gold-molybdenum deposit and a large exploration land package, which together form a significant component of the overall Oyu Tolgoi project. Entree's principal asset is its joint venture interest in the Entree/Oyu Tolgoi JV Property in Mongolia, which forms a significant portion of the overall Oyu Tolgoi project area. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining licence and all of the Javhlant mining licence, and hosts: The Hugo North Extension copper-gold porphyry deposit (Lift 1 and Lift 2): Lift 1 is the upper portion of the Hugo North Extension copper-gold porphyry deposit and forms the basis of the 2021 Reserve Case. It is the northern portion of the Hugo North Lift 1 underground block cave mine plan that is in development on the Oyu Tolgoi mining licence. Hugo North Extension Lift 1 Probable reserves include 40 million tonnes (Mt) grading 1.54% copper, 0.53 grams per tonne (g/t) gold, and 3.63 g/t silver. Lift 2 is directly below and extends north beyond Lift 1 and is the next potential phase of underground mining on the Entree/Oyu Tolgoi JV Property, once Lift 1 mining is complete. Mineral resources from Lift 2 form the basis of the 2021 PEA mine plan, which include 78 Mt (Indicated) and 88 Mt (Inferred). The Heruga copper-gold-molybdenum porphyry deposit is at the south end of the Oyu Tolgoi trend of porphyry deposits. Approximately 93% of the Heruga deposit occurs on the Entree/Oyu Tolgoi JV Property where Inferred mineral resources include: 1,400 Mt grading 0.41% copper, 0.40 g/t gold, 1.5 g/t silver, and 120 parts per million (ppm) molybdenum (0.68% CuEq). Entree has a 20% or 30% (depending on the depth of mineralization) participating interest in the Entree/Oyu Tolgoi JV with OTLLC holding the remaining 80% (or 70%) interest. OTLLC has a 100% interest in other Oyu Tolgoi project areas, including the Oyut open pit, which is in production, and the Hugo North and Hugo South deposits on the Oyu Tolgoi mining licence. Entree also has a 100% interest in the western portion of the Shivee Tolgoi mining licence, which is referred to as the Shivee West Property. The Shivee West Property is subject to a License Fees Agreement between Entree and OTLLC and may ultimately be included in the Entree/Oyu Tolgoi JV Property. Rio Tinto owns approximately 49% of the issued and outstanding shares of Turquoise Hill. Rio Tinto has, through its wholly owned subsidiary Turquoise Hill, a 66% interest in deposits on the Oyu Tolgoi mining licence and a 52.8% interest in the Hugo North Extension and Heruga deposits on the Entree/Oyu Tolgoi JV Property. Oyu Tolgoi Power Supply OTLLC sources power for the Oyu Tolgoi mine from China's Inner Mongolia Autonomous Region's (IMAR) Western grid, via overhead power line, pursuant to back-to-back power purchase agreements with Mongolia's National Power Transmission Grid (NPTG), the relevant Mongolian power authority, and Inner Mongolia Power International Cooperation Co., Ltd (IMPIC), the subsidiary of Inner Mongolia's power grid company. On January 26, 2022, OTLLC entered into an Electricity Supply Agreement (ESA) with, amongst others, Southern Region Electricity Distribution Network to provide OTLLC with power from the Mongolian grid. Delivery of power under the ESA will commence once certain conditions are satisfied, and the Mongolian grid becomes capable of providing electricity to meet OTLLC's total power requirements on a long-term basis and imported power agreements are terminated. The ESA has a term of 20 years and provides a pathway to meeting OTLLC's long-term power requirements from domestic power sources. The Project (collectively The Entree/Oyu Tolgoi JV Property and the Shivee West Property) consists of two contiguous mining licences, Shivee Tolgoi (ML 15226A) and Javhlant (ML 15225A), and completely surrounds the Oyu Tolgoi mining licence held by OTLLC. The Shivee Tolgoi mining licence hosts the Hugo North Extension copper-gold deposit, and the Javhlant mining licence hosts the majority of the Heruga copper-gold-molybdenum deposit. The Entree/Oyu Tolgoi JV Project is divided into two contiguous areas, referred to as properties. Entree is in joint venture with OTLLC over the eastern portion of the Shivee Tolgoi mining licence and all of the Javhlant mining licence (Entree/Oyu Tolgoi JV Property). The western portion of the Shivee Tolgoi mining licence forms the Shivee West Property, where Entree has a 100% interest. The Shivee West Property is the subject of a License Fees Agreement with OTLLC, and may ultimately become part of the Entree/Oyu Tolgoi JV Property. Entree's joint venture partner, OTLLC, is jointly owned by the Government of Mongolia and Turquoise Hill. Rio Tinto acquired a 100% interest in Turquoise Hill, is the operator for both the Oyu Tolgoi mining licence and the Entree/Oyu Tolgoi JV Property. OTLLC's Oyu Tolgoi mining licence contains the Oyut, Hugo North and Hugo South deposits, and the northern portion of the Heruga deposit. OTLLC is mining the Oyut deposit by open pit methods, and the first lift (Lift 1) of the Hugo North/Hugo North Extension deposits is under development to be mined from underground. The Oyu Tolgoi mining operation is being developed by OTLLC in two phases. The Shivee Tolgoi and Javhlant mining licences cover a total of about 62,920 hectares (ha) and completely surround the Oyu Tolgoi mining licence. The Shivee Tolgoi and Javhlant mining licences are valid until 2039. The Shivee Tolgoi and Javhlant mining licences are divided as follows: Entree/Oyu Tolgoi JV Property: 39,807 hectares consisting of the eastern portion of the Shivee Tolgoi mining licence and all of the Javhlant mining licence are subject to a joint venture between Entree and OTLLC. The Entree/Oyu Tolgoi JV Property is contiguous with, and on three sides (to the north, east, and south) surrounds OTLLC's Oyu Tolgoi mining licence. The Entree/Oyu Tolgoi JV Property hosts the Hugo North Extension deposit and the majority of the Heruga deposit, and several exploration targets. OTLLC is the manager of the Entree/Oyu Tolgoi JV. Exploration operations on behalf of OTLLC, including exploration on the Entree/Oyu Tolgoi JV Property, are conducted under the supervision of Rio Tinto. Shivee West Property: 23,114 hectares comprising the western portion of the Shivee Tolgoi mining licence. While the Shivee West Property is 100% owned by Entree, since 2015 it has been subject to a License Fees Agreement between Entree and OTLLC and may ultimately be included in the Entree/Oyu Tolgoi JV Property. OTLLC also has a first right of refusal with respect to any proposed disposition by Entree of an interest in the Shivee West Property. Non-Material Properties Blue Rose Joint Venture, Australia: Entree has a 56.53% interest in the Blue Rose joint venture (Blue Rose JV) to explore for minerals other than iron ore on Exploration Licence 6006 (EL 6006), with Giralia Resources Pty Ltd, a subsidiary of Atlas Iron Pty Ltd (part of the Hancock Group of Companies), retaining a 43.47% interest. EL 6006, totalling 240 square kilometres, is located in the Olary Region of South Australia, 300 kilometres northeast of Adelaide and 130 kilometres west-southwest of Broken Hill. The rights to explore for and develop iron ore on EL 6006 are held by Lodestone Mines Limited (Lodestone), which is also the licence holder. The rights to explore for and develop iron ore on EL 6006 are held by Lodestone Mines Limited (Lodestone) which is also the licence holder. Environmental Regulations OTLLC has completed a comprehensive Environmental and Social Impact Assessment (ESIA) for the Oyu Tolgoi project, including the Entree/Oyu Tolgoi JV Property. History The company was founded in 1995. It was incorporated in British Columbia in 1995. The company was formerly known as Timpete Mining Corporation and changed its name to Entree Resources Inc. in 2001. Further, the company changed its name to Entree Gold Inc. in 2002 and then to Entree Resources Ltd. in 2017.