An anonymous director reports

ENTREE RESOURCES PROVIDES UPDATE ON ENTREE/OYU TOLGOI JV NEGOTIATIONS

Entree Resources Ltd. is responding to comments made by its joint venture partner Oyu Tolgoi LLC (OT LLC) and Rio Tinto at an investor site visit to the Oyu Tolgoi copper mine in Mongolia on July 11, 2023. During the question-and-answer session when asked about the Entree/Oyu Tolgoi joint venture, representatives of OT LLC and Rio Tinto stated that the parties were "nearing the close of the negotiations," and "finalizing the final touches on the definitive agreement." The transcript of the Q&A session has been made available to the markets via Rio Tinto's website.

As previously disclosed, Entree has been engaged in negotiations with OT LLC and Rio Tinto to amend or restructure the joint venture agreement that has governed the relationship between the parties since 2008 and transfer the Shivee Tolgoi and Javhlant mining licences to OT LLC as contemplated in the Entree/Oyu Tolgoi JVA. The company believes that amending or restructuring the Entree/Oyu Tolgoi JVA to align the interests of all stakeholders would be in the best interests of the company and its shareholders, provided there is no material net erosion of value to Entree.

While the parties have made good progress, several key items still need to be resolved before any definitive agreement could be finalized or signed, including with respect to the potential acquisition by the government of Mongolia of 34 per cent of the company's economic interest in the Entree/Oyu Tolgoi joint venture property. The minerals law of Mongolia provides the state may share in up to 34 per cent of the economic benefit derived from exploitation of a mineral deposit of strategic importance where proven reserves were determined through financing sources other than the state budget. The Hugo North Extension copper-gold deposit on the Shivee Tolgoi mining licence and the Heruga copper-gold-molybdenum deposit on the Javhlant mining licence are mineral deposits of strategic importance.

The company will provide further updates on negotiations as developments warrant. Any amendment to or restructuring of the Entree/Oyu Tolgoi JVA would be subject to Toronto Stock Exchange acceptance and the requirements of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions applicable to a related party transaction. There are no assurances that a definitive agreement will be signed, or if signed, that a transaction would close.

About Entree Resources Ltd.

Entree Resources is a well-financed Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world's largest copper-gold projects -- the Oyu Tolgoi project in Mongolia. Entree has a 20-per-cent or 30-per-cent carried participating interest in the Entree/Oyu Tolgoi joint venture, depending on the depth of mineralization. Horizon Copper Corp. and Rio Tinto are major shareholders of Entree, beneficially holding approximately 25 per cent and 16 per cent of the shares of the company, respectively.

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