Entree Resources commences underground development on Entree/Oyu Tolgoi

Entree Resources (ERLFF) announcde first Oyu Tolgoi Lift 1 Panel 1 underground development work on the Entree/Oyu Tolgoi joint venture property has commenced. The work is included in the 2024 Oyu Tolgoi Mine Plan previously submitted to and approved by the Mineral Resources and Petroleum Authority of Mongolia. The work is limited as to scope, and the timing of any future development work in the Hugo North Extension deposit footprint is contingent upon the resolution of certain outstanding issues, including the transfer of the Shivee Tolgoi license to the Company’s joint venture partner Oyu Tolgoi. The joint venture Management Committee approved a maximum of 212 metres of lateral development work in the southwest corner of HNE in line with the 2024 Oyu Tolgoi Mine Plan. The 2024 Development Work will be performed in accordance with the terms and conditions of the joint venture agreement appended to the amended 2004 Equity Participation and Earn-in Agreement. The 2024 Development Work is part of the initial Panel 1 western ore handling truck chute design which, when completed, will include extraction level tipple development, which connects the truck chute chamber on the haulage level, and the supporting ventilation loop with the return air level. As the 2024 Development Work is in rock classified as waste, no saleable minerals, concentrates, metals or other saleable mineral end product is expected to be produced. The joint venture Management Committee approved a US$4.4 million direct capital budget for the 2024 Development Work and confirmed OTLLC will charge Entree a sum equal to 2% of actual costs allocated to Entree in lieu of general and administrative expenses. OTLLC will contribute Entree’s 20% share of actual costs and charges when they are incurred, with such contribution to be treated as a loan in accordance with Article 10 of the JV Agreement.