Mr. Stephen Scott reports

ENTREE RESOURCES ANNOUNCES SECOND QUARTER 2023 RESULTS

Entree Resources Ltd. has filed its interim financial results for the second quarter ended June 30, 2023. All numbers are in U.S. dollars unless otherwise noted.

Entree's President and CEO Stephen Scott commented, "It's been an extremely exciting first half of 2023 with many Oyu Tolgoi Lift 1 underground project milestones achieved including the commencement and ramp-up of production from Panel 0, improved sinking rates for Shafts 3 and 4, and completion of the Panels 1 and 2 mine design and schedule optimization studies. Our joint venture partner has advised that first development on the Entree/Oyu Tolgoi JV Property is expected to commence in H1 2024 with production from Panel 1, which includes the Hugo North Extension deposit on the Entree/Oyu Tolgoi JV Property, now scheduled for H1 2027. It certainly feels that we are closer than ever to our first production. Entree also endorses ongoing Oyu Tolgoi project drilling designed to support an Order of Magnitude study for Hugo North/Hugo North Extension Lift 2, a significant portion of which is on the Entree/Oyu Tolgoi JV Property."

Q2 2023 HIGHLIGHTS

Oyu Tolgoi Underground Development Update

The Oyu Tolgoi project in Mongolia includes two separate land holdings: the Oyu Tolgoi mining licence, which is held by Entree's joint venture partner Oyu Tolgoi LLC ("OTLLC") and the Entree/Oyu Tolgoi joint venture property ("Entree/Oyu Tolgoi JV Property"), which is a partnership between Entree and OTLLC. Rio Tinto owns 66% of OTLLC and is the manager of operations at Oyu Tolgoi.

• In July 2023, Rio Tinto announced that ramp-up of the high-grade Oyu Tolgoi underground mine continues. Oyu Tolgoi is set to become the world's fourth largest copper mine by 2030 with the operation expected to deliver average mined copper production of ~500 kilo-tonnes per annum between 2028 and 2036.
• As at June 30, 2023, 54 Lift 1 Panel 0 draw bells have been opened, and the delivery of infrastructure for ramp-up to full capacity remains on target. Construction of conveyor to surface works was ~60% complete at the end of the second quarter. Construction works for the concentrator conversion also progressed during the period, with the main contractor mobilized and the commencement of major site works in May.
• Shaft sinking rates improved during the second quarter. At the end of June, Shafts 3 and 4 reached 639 metres and 752 metres below ground level, respectively. Final depths required for Shafts 3 and 4 are 1,148 metres and 1,149 metres below ground level, respectively. Rio Tinto now expects both shafts to be commissioned in the second half 2024.
• Technical studies for Panels 1 and 2 mine design and schedule optimization were completed by OTLLC during the second quarter. The Hugo North Extension deposit on the Entree/Oyu Tolgoi JV Property is located in the northern portion of Panel 1. According to Rio Tinto:
• • The technical studies have resulted in substantially de-risked, resilient mine designs that provide a pathway to ramp-up, flexibility to pursue value creating opportunities and react to future risks, and improved stability, constructability, and operability. The studies also provide a pathway to bring the panels into production faster and maximize the use of the ventilation system.
  • Identified risks associated with the previous Panel 1 mine design have been resolved by increasing drawpoint and rim drive spacing, relocating the central material handling system and return raises outside of the active caving area, and optimally orienting the extraction drives and drill drives.
  • Panel 1 production is anticipated to commence in ~2027.
  • The technical studies have been incorporated into an updated Oyu Tolgoi Feasibility Study ("OTFS23") to be submitted to and reviewed by applicable regulatory bodies in Mongolia.
• Although the Company does not anticipate any material changes to underground development cost or schedule for the Entree/Oyu Tolgoi JV Property, once OTLLC has provided Entree with a copy of OTFS23 (including the updated mine plan for Panel 1), Entree will assess the potential impact and update the market accordingly.
• Rio Tinto reported during its July 11, 2023 investor site visit that with the technical studies for Lift 1 Panels 1 and 2 completed, attention is shifting to the design of Lift 2. Drilling programs to support a Lift 2 Order of Magnitude Study are in progress. An updated resource model for Hugo North (including Hugo North Extension) is expected to be completed by mid-2024 and will include Lift 2. The updated resource model will incorporate the results from ongoing Hugo North Extension surface and underground drilling on the Entree/Oyu Tolgoi JV Property. The Company continues to request full results of the 2022 Hugo North Extension diamond drill program from OTLLC.
• Rio Tinto has reported the capital cost estimate for the underground project remains unchanged at $7.06 billion with $1.4 billion remaining to be spent at June 30, 2023. The Company continues to request full results of the 2022 Hugo North Extension diamond drill program from OTLLC.

Entree/Oyu Tolgoi JV Property

• The Entree/Oyu Tolgoi joint venture ("Entree/Oyu Tolgoi JV") Management Committee approved a 2023 in-fill drill program for Hugo North Extension comprising both underground (12 holes totalling 3,889 metres) and surface (six holes totalling 9,082 metres) diamond drilling. The underground holes are collared from underground drill stations on the Oyu Tolgoi mining licence crossing onto the Entree/Oyu Tolgoi JV Property. The approved budget for the program is ~$4.5 million, 20% of which will be contributed by OTLLC on Entree's behalf as a loan in accordance with the joint venture agreement (the "Entree/Oyu Tolgoi JVA"). The principal purpose for the 2023 drilling is to support the Lift 2 Order of Magnitude Study and updated resource model.
• The Entree/Oyu Tolgoi JV Management Committee also approved a budget of ~$2.245 million for exploration on the Entree/Oyu Tolgoi JV Property, including three inclined diamond drill holes totalling 2,600 metres on the Heruga South and Railway targets (Javhlant licence) and four diamond drill holes totalling 2,600 metres on the Ulaan Khud South target (Shivee Tolgoi licence). 20% of the exploration expenditures will be contributed by OTLLC on Entree's behalf as a loan in accordance with the Entree/Oyu Tolgoi JVA.
• The Company recently received partial assay results from 2022 exploration drilling conducted on the Shivee Tolgoi licence at the North Ulaan Khud target (six reverse circulation drillholes totalling 1,506 metres and one 800 metre diamond drill hole) and the Airstrip target (three diamond drill holes totalling 2,200 metres). The Company is reviewing the results and will update the market in due course. The Company does not consider any of the results to be material.

Corporate

For the three and six month periods ended June 30, 2023, the Company's operating loss was $1.0 million and $1.9 million, respectively, compared to $0.7 million and $1.3 million, respectively, for the comparative periods in 2022. The increase in the three and six month periods ended June 30, 2023 was due to legal costs for both commercial negotiations with OTLLC and Rio Tinto and the arbitration proceedings.

• For the three and six month periods ended June 30, 2023, the Company's operating cash outflow before changes in non-cash working capital items was $0.9 million and $1.4 million, respectively, compared to $0.7 million and $1.1 million, respectively for the comparative periods in 2022.
• Share purchase warrants to purchase 2,847,000 common shares with an exercise price of C$0.60 were exercised resulting in gross proceeds of C$1,708,200 being received by the Company since January 1, 2023.
• As at June 30, 2023, the cash balance was $6.0 million and the working capital balance was $5.6 million.
• On May 9, 2023, 2,799,079 common shares were cancelled and returned to the Company's treasury for no consideration which was related to the Company's spin-out of its U.S. assets into Mason Resources Corp. on May 9, 2017.
• On July 17, 2023, the Company announced it has made good progress in its previously disclosed negotiations with OTLLC and Rio Tinto to amend or restructure the Entree/Oyu Tolgoi JVA and transfer the Shivee Tolgoi and Javhlant mining licences to OTLLC as contemplated in the Entree/Oyu Tolgoi JVA. However, several key items still need to be resolved before any definitive agreement could be finalized and executed, including with respect to the potential acquisition by the Government of Mongolia of 34% of the Company's economic interest in the Entree/Oyu Tolgoi JV Property.
• While the Company remains committed to achieving a commercial resolution with OTLLC and Rio Tinto, the binding arbitration proceedings commenced by the Company on May 26, 2022 also continued to progress. The Company is seeking declarations and orders for specific performance relating to certain provisions of the Equity Participation and Earn-in Agreement (the "Earn-in Agreement") with Turquoise Hill Resources Ltd. ("Turquoise Hill") dated October 15, 2004, as amended and subsequently assigned to OTLLC and the Entree/Oyu Tolgoi JVA. Both Turquoise Hill and OTLLC are respondents to the arbitration proceedings. A three-member Tribunal has been appointed and a merits hearing is set for April 2024.

OUTLOOK AND STRATEGY

Entree's primary objective is to confirm the transfer of the Shivee Tolgoi and Javhlant mining licences to OTLLC as contemplated by the Entree/Oyu Tolgoi JVA, either in conjunction with finalization and execution of a restructured or amended agreement with OTLLC, or enforcement of certain provisions of the Earn-in Agreement and Entree/Oyu Tolgoi JVA pursuant to binding arbitration proceedings. The Company currently is registered in Mongolia as the 100% ultimate holder of the licences. The Company is also advancing discussions with Erdenes Oyu Tolgoi LLC regarding a potential acquisition by the Government of Mongolia of 34% of the Company's economic interest in the Entree/Oyu Tolgoi JV Property. The Minerals Law of Mongolia provides the State may share in up to 34% of the economic benefit derived from exploitation of a mineral deposit of strategic importance where proven reserves were determined through funding 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.

As previously disclosed by the Company, the contract area defined in the 2009 Oyu Tolgoi Investment Agreement among the Government of Mongolia, OTLLC, Rio Tinto and Turquoise Hill (the "Oyu Tolgoi Investment Agreement") includes the Javhlant and Shivee Tolgoi mining licences. However, at the time of negotiation of the Oyu Tolgoi Investment Agreement, the Company was not made a party to the Oyu Tolgoi Investment Agreement, and as such does not have any direct rights or benefits under the Oyu Tolgoi Investment Agreement.

Entree has been engaged in discussions with stakeholders of the Oyu Tolgoi project, including the Government of Mongolia, OTLLC, Erdenes Oyu Tolgoi LLC, Turquoise Hill and Rio Tinto, since February 2013. The discussions to date have focused on issues arising from Entree's exclusion from the Oyu Tolgoi Investment Agreement, including the fact that the Government of Mongolia does not have a full 34% interest in the Entree/Oyu Tolgoi JV Property; the fact that the mining licences integral to future underground operations are held by more than one corporate entity; and the fact that Entree does not directly benefit from the stability that it would otherwise have if it were a party to the Oyu Tolgoi Investment Agreement.

The Company believes that amending or restructuring the Entree/Oyu Tolgoi JVA to align the interests of all stakeholders, transferring the licences to OTLLC as contemplated by the Entree/Oyu Tolgoi JVA, and resolving outstanding issues arising from Entree's exclusion from the Oyu Tolgoi Investment Agreement would be in the best interests of all stakeholders. No agreements have been finalized and executed and there are no assurances agreements may be finalized and executed in the future.

The Company's interim financial statements and Management's Discussion and Analysis ("MD&A") for the second quarter ended June 30, 2023 are available on the Company's website at www.EntreeResourcesLtd.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov.

QUALIFIED PERSON

Robert Cinits, P.Geo., consultant to Entree and the Company's former Vice President, Corporate Development, and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has approved the technical information in this release. For further information on the Entree/Oyu Tolgoi JV Property, see the Company's Technical Report, titled "Entree/Oyu Tolgoi Joint Venture Project, Mongolia, NI 43-101 Technical Report", with an effective date of October 8, 2021, available on the Company's website at www.EntreeResourcesLtd.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov.

ABOUT ENTREE RESOURCES LTD.

Entree Resources Ltd. is a well-funded 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% or 30% carried participating interest in the Entree/Oyu Tolgoi JV, depending on the depth of mineralization. Horizon Copper Corp. and Rio Tinto are major shareholders of Entree, beneficially holding approximately 25% and 16% of the shares of the Company, respectively. More information about Entree can be found at www.EntreeResourcesLtd.com.

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