Announcement • Apr 10
Entrée Resources Ltd Provides Update on Joint Venture Licenses and Reports Drill and Regional Exploration Results
Entrée Resources Ltd. provided an update on matters related to the Entrée/Oyu Tolgoi joint venture mining licenses as well as drill and regional exploration results received from the Company’s joint venture partner Oyu Tolgoi LLC. The Company continues to focus its efforts on the transfer of the Shivee Tolgoi and Javkhlant mining licenses from the Company’s Mongolian subsidiary Entrée LLC to OT LLC. Transfer of the JV Licenses is necessary to enable Lift 1 Panel 1 underground development work on the Shivee Tolgoi mining license area to proceed. On March 25, 2026, the Company delivered a non-binding proposal to the Minister of Industry and Mineral Resources of Mongolia as head of the Government Working Group established to negotiate the State’s interest in the area of the JV Licenses. The proposal contemplates, among other things, the transfer of the JV Licenses to OT LLC as required under the Oyu Tolgoi Investment Agreement and the Entrée/Oyu Tolgoi JV Agreement and payment of a negotiated royalty on the gross sales value of the Company’s concentrate as contemplated under the Minerals Law of Mongolia in lieu of the State being a 34% equity participant. The proposal is intended to form the basis for further discussions and negotiations with the Government of Mongolia. On March 31, 2026, following the resignation of Prime Minister Zandanshatar, N. Uchral was sworn in as the 35th Prime Minster of Mongolia. On April 3, 2026, Prime Minister Uchral introduced his new cabinet, reappointing G. Damdinnyam as the Minister of Industry and Mineral Resources. The Company will continue to monitor the situation, including any potential changes to the Government Working Group, and provide further updates as considered necessary. Analytical results for one surface diamond drill hole and 4 underground DDHs, which were part of the 2024 and 2025 in-fill drilling programs at the Hugo North Extension deposit on the Entrée/Oyu Tolgoi joint venture property in Mongolia, are provided. Regional exploration results are also provided, including analytical results for nine DDHs from the 2025 regional drilling campaign testing several targets on the Shivee Tolgoi and Javkhlant mining licences. All work was completed by the Company’s joint venture partner OT LLC, with expenditures borne by OT LLC and Entrée in proportion to their participating interests in the Entrée/Oyu Tolgoi JV. Significant HNE Underground Drill Holes: UGD951: 124 metres grading 3.41% copper equivalent, including 62 metres grading 4.36% copper equivalent. UGD952A: 42.4 metres grading 1.32% copper equivalent. Significant Regional Exploration Drill Holes (Ulaan Khud Target): EGD198: 308 metres grading 0.29% copper, 107 ppm molybdenum, including 50.75 metres grading 0.47% copper, 118 ppm molybdenum. EGD199: 420 metres grading 0.30% copper, 139 ppm molybdenum, including 150.46 metres grading 0.44% copper, 295 ppm molybdenum. The new drill hole analytical results received from OT LLC include one underground DDH from the 2024 drilling program and one surface DDH and 3 underground DDHs from the 2025 drilling program on the HNE deposit. The surface DDH was collared on the Entrée/Oyu Tolgoi JV Property, and the underground DDHs were all collared from existing infrastructure on the Oyu Tolgoi mining licence and drilled towards the northwest or northeast onto the Entrée/Oyu Tolgoi JV Property. The DDHs targeted mineralization within or surrounding the existing footprint of the HNE deposit in the proposed Lift 2 block cave. Analytical results from the surface and underground DDH data provided by OT LLC are summarized in Table 1 and Table 2, respectively. Collar and drilling information for 5 DDHs which were part of the 2024 drilling program but completed in 2025 (3 surface drill holes and 2 underground drill holes), as well as details for 28 DDHs from the approved 2025 drilling program (6 surface drill holes and 22 underground drill holes) are provided in Table 3 and Table 4. Analytical results for 3 surface DDHs and 4 underground DDHs from the 2024 drilling program and 19 underground DDHs from the 2025 drilling program at HNE are still pending. These results will be reported as they become available from OT LLC. Surface drill hole EGD191 was collared above the centre of the surface projection of the HNE mineralized footprint and drilled very steeply towards the north. After crossing through approximately 1,078 metres of barren granodiorite, sedimentary and volcanic units, the final 29 metres intersected weakly mineralized volcanics averaging 0.23% copper, near the top of the porphyry deposit, at which point the DDH was terminated. Underground DDH UGD927B was drilled at a moderate dip towards the northeast, parallel to the trend of the porphyry deposit. The DDH remained in low grade copper mineralization east of the main mineralized porphyry and was drilled primarily for geotechnical purposes. Underground DDH UGD951 was collared on the Oyu Tolgoi mining licence and drilled at a gentle dip towards the west-northwest. After crossing onto the Entrée/Oyu Tolgoi JV Property at 218 metres it immediately entered into the western portion of the HNE deposit in heavily phyllic and potassic altered quartz monzodiorite, cut by occasional intervals of unmineralized biotite-granodiorite dikes. The quartz monzodiorite is mineralized with significant amounts of chalcopyrite and bornite, along with minor pyrite and returned high grades of copper and gold as shown in Table 2. The last 7 metres of the drill hole crossed into the footwall of the deposit where copper and gold grades drop off significantly. Underground DDH UGD952A was collared from the same drill pad as UGD951 but drilled at a moderate dip towards the northwest. The drill hole crossed through phyllic altered quartz monzodiorite cut by occasional biotite-granodiorite dikes, and is mineralized with moderate amounts of chalcopyrite, bornite and pyrite. The drill hole returned significant values of copper and gold as shown in Table 2 and was terminated in strong mineralization at a depth of 262.4 metres. The final underground drill hole with analytical results is UGD987, which was collared from an underground drill pad on the Oyu Tolgoi mining licence, west of the HNE deposit. The drill hole was drilled northeast at a moderate dip, remaining parallel to, and west of the edge of the HNE deposit and was designed primarily for geotechnical purposes. The drill hole crossed a mix of lightly potassic and feldspar altered quartz monzodiorite, biotite-granodiorite and hornblende-biotite granodiorite. Analytical results between 480 and 558 metres were anomalous, averaging 0.30% copper equivalent over 78 metres. Beyond this the analytical results are insignificant to the end of the hole at 600 metres. OT LLC has provided Entrée with results of the 2025 regional exploration program covering portions of both the Shivee Tolgoi and Javkhlant mining licences.
