Mr. David Jan reports

ENTRÉE RESOURCES PROVIDES UPDATE ON ENTRÉE/OYU TOLGOI JOINT VENTURE LICENCE MATTERS

Entree Resources Ltd. has provided an update on matters pertaining to the Shivee Tolgoi and Javkhlant mining licences (the joint venture licences) held by Entree LLC on behalf of the Entree/Oyu Tolgoi joint venture participants in Mongolia.

Parliamentary temporary oversight committee

As previously disclosed by the company, on July 2, 2025, the Parliament of Mongolia approved Resolution No. 62 to establish a temporary oversight committee to conduct a special investigation related to the protection of Mongolia's interests and the enhancement of benefits derived from the exploitation of the Oyu Tolgoi strategic group of deposits. The scope of the special investigation includes conducting oversight and inspection in connection with determining the state's ownership interest and percentage, based on the established reserves and valuation of the JV licence areas, as well as other relevant documents. The company supported the activities of the temporary oversight committee by submitting thousands of pages of requested documents in a timely manner and participating in numerous inspector meetings and discussions.

The temporary oversight committee held a three-day public hearing in the first half of December. Approximately 300 witnesses received summons, including former Mongolian prime ministers, presidents and ministers, as well as current and former representatives of Rio Tinto and the company's joint venture partner Oyu Tolgoi LLC (OT LLC). Stephen Scott, the company's president and chief executive officer, attended the Dec. 8 hearing on matters related to the JV licences to answer questions on behalf of Entree. The Dec. 10 and 12 hearings focused on OT LLC's 2011 amended and restated shareholders' agreement. The company understands from media reports that on Dec. 19, 2025, the temporary oversight committee reported its findings and submitted a draft resolution to Parliament. The draft resolution was returned to the Parliamentary Standing Committee on Economics for further consideration before it is resubmitted to Parliament for debate.

Government working group

As previously reported by the company, the Prime Minister of Mongolia by Order No. 73 dated Aug. 22, 2025, established a renewed working group (the government working group) led by the Minister of Industry and Mineral Resources to negotiate the state's interest in the area of the JV licences. The company received official notice of the formation of the working group on Sept. 18, 2025, and on Oct. 17, 2025, the company responded to a request from the Minister of Industry and Mineral Resources to advise the working group of the composition of the company's negotiating team. A preliminary meeting between the company and the government working group was held in Ulaanbaatar on Dec. 10, 2025, and negotiations are expected to commence shortly. The company will work closely with its joint venture partner OT LLC and the government working group to ensure state participation in the area of the JV licences is resolved in a mutually beneficial manner in accordance with applicable laws. OT LLC has an 80 per cent (or 70 per cent depending on the depth of mineralization) economic interest in the area of the JV licences and has the exclusive right under the Entree/Oyu Tolgoi joint venture agreement and the Oyu Tolgoi investment agreement to construct and operate infrastructure, conduct mineral exploration, and conduct the operations of mining and processing in the area of the JV licences.

Administrative court claim

During the third quarter 2025, Entree LLC filed a claim with the Administrative Court of Mongolia seeking an order for the Mongolian tax authority to review and confirm the calculations of values of the JV licences in accordance with applicable laws of Mongolia. Taxes must be paid before the documentation necessary to affect the transfer of the JV licences to OT LLC may be submitted to the Mineral Resources and Petroleum Authority of Mongolia for registration. The court hearing is expected to be scheduled shortly.

About Entree Resources Ltd.

Entree Resources is a 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. Royal Gold Inc. (through its subsidiary International Royalty Corp.) and Rio Tinto are major shareholders of Entree, holding approximately 24 per cent and 16 per cent of the shares of the company, respectively.

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