Mr. Stephen Scott reports

ENTREE RESOURCES ANNOUNCES PARTIAL DRILL RESULTS FOR HUGO NORTH EXTENSION AND PROVIDES UPDATE ON UNDERGROUND DEVELOPMENT WORK

Entree Resources Ltd. has provided partial diamond drill hole (DDH) results from the 2022 drilling program over the Hugo North Extension (HNE) deposit on the Entree/Oyu Tolgoi JV (joint venture) property in Mongolia. The vast majority of the analytical results from the 2022 program are still pending from the laboratory and will be reported as soon as they become available from the company's joint venture partner Oyu Tolgoi LLC (OTLLC). The company is also pleased to report that first underground development work on the Entree/Oyu Tolgoi JV property is scheduled to commence in the second half of 2024.

HIGHLIGHTS

• DDH UGD583A: 274 metres ("m") grading 2.79% copper equivalent* ("CuEq").
• DDH UGD586: 300 m grading 3.46% CuEq including, 144 m grading 4.12% CuEq.
• 22 underground holes and 4 surface holes drilled during 2022 targeting Lift 1 and/or Lift 2, with most holes still pending analytical results.

*Copper equivalent is defined in Table 1, where full details on the drill hole assay intervals are also found.

Stephen Scott, Entree's President and CEO said, "We are very pleased with these drill results from HNE, which are the first holes drilled into the HNE deposit since 2011. While the majority of the 2022 drill holes were designed to provide structural and geotechnical information to support the Lift 1 Panel 1 technical studies incorporated into the 2023 Oyu Tolgoi Feasibility Study as well as development by OTLLC, they also demonstrate the remarkable continuity of the significant copper and gold grades at HNE. The drilling program increases the drill hole density at HNE and these holes will be incorporated into the next updated resource estimate. I am also very excited that we are approaching the important milestone of first physical development activity on the Entree/Oyu Tolgoi JV Property. While the work planned to be completed in 2024 is entirely on support infrastructure outside of the orebody footprint, and it is still going to be some time before first concentrate production, it will certainly be a historical moment for the Company."

2022 DRILLING PROGRAM

The initial batches of underground diamond drill results have been received from the 2022 drilling program at the HNE deposit, with analytical results available for 6 of the 26 drill holes. It is the Company's understanding that OTLLC's primary objectives for the 2022 drilling was for structural and geotechnical studies, prior to initiating the core sampling and assaying process and that all core has been cut and submitted to the laboratory for analysis. The significant mineralized intervals received to date from the 2022 drilling are summarized in Table 1.

Drill holes UGD582A and UGD584A were both geotechnical holes, drilled towards the northeast, parallel to the eastern boundary of the HNE mineralized footprint and crossed an interbedded sequence of ignimbrite and augite basalt with varying amounts of advanced argillic and phyllic alteration. Mineralization consists of about 3% sulphides, comprised of a mix of pyrite and chalcopyrite.

Drill holes UGD583A and UGD586 were both drilled towards the north-northwest and crossed the majority of the mineralized footprint of HNE within proposed Lift 2. Each hole intersected predominantly phyllic altered quartz monzodiorite, cut by occasional intervals of unmineralized biotite-granodiorite dikes (ranging from span class="xn-money">1 m to 9 m in drilled width). Mineralization averages approximately 5% sulphide content, comprised mostly of chalcopyrite, along with lesser amounts of pyrite and occasional intervals with covellite and minor molybdenite.

Drill holes UGD590 and UGD614 were drilled towards the north and northwest, respectively and both crossed the Hugo North mineralized footprint on the Oyu Tolgoi mining licence before crossing onto the Entree/Oyu Tolgoi JV ground in unmineralized footwall (northwest side) lithologies comprised mainly of various andesitic tuff and hornblende-biotite granodiorite intrusive units.

2022 DRILLING INFORMATION

Underground and surface drilling at HNE was carried out from November 22, 2021 to January 8, 2023, during which time 4 surface holes totalling 3,900.7 m and 22 underground holes totalling 4,459.9m were drilled.

The underground holes were all collared from existing infrastructure on the Oyu Tolgoi mining licence and crossed onto the Entree/OTLLC JV Property. Several of the holes were drilled as "daughter holes" (wedges) from a "parent hole" at varying distances along the hole. Underground holes were primarily drilled for geotechnical purposes and many targeted the base of Lift 1, or in the areas northeast and southwest of the current mineralized footprint, where key infrastructure for the development of the Lift 1 block cave will be excavated starting in 2024. Several of the holes also crossed the mineralized footprint of Lift 1. Additional underground holes were drilled deeper, targeting the current mineralized footprint of Lift 2, and for geotechnical purposes.

The four surface holes were all collared near the north end of HNE and drilled steeply towards the northwest, targeting Lift 2. Only two of the surface holes successfully reached their target depth of 1,750 m and 1,800 m, respectively, while two holes were aborted at shallow depths and were not assayed. Analytical results from the two surface holes are still pending.

Drill hole sample lengths generally averaged 2.0 m. Table 2 summarizes the drill hole details and Figure 1 shows the locations of the 2022 HNE drill holes and assay intervals discussed in this press release.

The QP is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in this disclosure.

2023 DRILLING UPDATE

OTLLC continued to drill at HNE throughout 2023 and has reported the completion of 7 surface holes totaling 6,752.6 m and 25 underground holes (including several daughter holes) totaling 6,576.58 m. The Company has only received a partial supporting database from OTLLC with the majority of the drill holes still pending analytical results. Once the full database is received and reviewed by the Company the 2023 drill results will be released. It is the Company's understanding that similar to the 2022 drilling program, all of the 2023 drill holes are drilled within the current mineralized footprint or within the hanging and/or footwall rocks. The objective of the 2023 drilling is to update the HNE mineral resource estimate, to conduct geological and geotechnical characterization and to identify long-term infrastructure targets within the footprint (related to geology and geotechnical aspects).

UNDERGROUND DEVELOPMENT UPDATE

OTLLC has advised the Company that Lift 1 Panel 1 underground infrastructure development work on the Entree/Oyu Tolgoi JV Property is scheduled to commence in H2 2024. Development work will start in the southwest corner of the HNE deposit on the Shivee Tolgoi mining licence. The work will establish the initial Panel 1 western ore handling truck chute, including extraction level tipple development, the truck chute chamber on the haulage level, and the supporting ventilation loop with the return air level. OTLLC has advised the Company all 2024 development materials will be waste which will be stockpiled separately and sampled in accordance with OTLLC's standard sampling protocols and procedures.

Shafts 3 and 4, which are required to provide ventilation to support production from Panels 1 and 2 during ramp up to full Lift 1 production, are expected to be commissioned in the second half 2024. Panel 1 production on the Oyu Tolgoi mining licence is anticipated to commence in ~2027.

QAQC AND QUALIFIED PERSON

All drill core from the 2022 HNE drilling program was geologically and geotechnically logged at site by or under the supervision of OTLLC. Core was saw-cut on site before being bagged and shipped to SGS Laboratory ("SGS") in Ulaanbaatar, Mongolia, which is independent of OTLLC, Rio Tinto and Entree. At SGS the samples were crushed and pulverized then analysed for gold by 30-gram fire assay with an AA finish, and for copper, silver and molybdenum, along with 8 additional elements by 4-acid digestion ICP multi-element analysis. Additional analysis was done for carbon/sulphur by Leco furnace and fluorine by specific ion electrode. OTLLC follows a rigorous quality assurance/quality control (QAQC) program for the sampling programs that includes the regular insertion of standards, blanks and duplicates into the sample stream.

The scientific and technical information that forms the basis for parts of this press release was reviewed and approved by Robert Cinits (P.Geo.), who is a Qualified Person ("QP") as defined by National Instrument 43-101. 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 and on SEDAR+.

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. The Oyu Tolgoi project includes two separate land holdings: the Oyu Tolgoi mining licence, which is held by Entree's joint venture partner OTLLC and the 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. 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 24% and 16% of the shares of the Company, respectively.

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