Entrée Resources Ltd. (TSX:ETG) (OTCQB:ERLFF)  is pleased to provide additional diamond drill hole results from the 2022 and 2023 drilling programs over the Hugo North Extension deposit on the Entrée/Oyu Tolgoi JV Property in Mongolia. All drill results from the 2022 program are now reported. A portion of the analytical results from the 2023 drilling program, and all of the results from the 2024 drilling program are still pending and will be reported as soon as they become available from the Company’s joint venture partner Oyu Tolgoi LLC.

The Company is also pleased to report that underground development work on OTLLC’s Oyu Tolgoi mining licence continues to advance and that Shafts 3 and 4 have now reached their final depths of 1,130 metres and 1,176 m, respectively, with final commissioning expected in H2 2024. Initial underground development work on the JV Property remains on schedule to start in Q4 2024.

The Company has also received analytical results from diamond drilling at the Railway and Ulaan Khud regional exploration targets, with both targets returning anomalous results.

DRILL HOLE HIGHLIGHTS

HNE Surface Drill Holes

• EGD 161: 398 m grading 2.07% copper equivalent*, including 214 m grading 2.79% CuEq.
• EGD 173: 400 m grading 1.41% CuEq, including 80 m grading 2.61% CuEq.

HNE Underground Drill Holes

• UGD 579: 124 m grading 3.67% CuEq, including 78 m grading 5.43% CuEq.
• UGD 713: 114 m grading 3.67% CuEq, including 86 m grading 4.61% CuEq.
• UGD 735: 574.3 m grading 1.89% CuEq, including 234 m grading 3.73% CuEq.
• UGD 753: 364.8 m grading 2.50% CuEq, including 222 m grading 3.30% CuEq.

*Copper equivalent is defined below Table 2, where full details on the drill hole assay intervals are also found.

Stephen Scott, Entrée’s President and CEO said, “I am very pleased to see more exceptional drilling results from the HNE deposit including some holes which end in potentially ore grade mineralization below the currently proposed bottom limits of the Oyu Tolgoi Lift 2 Panel 1 block cave. It is also encouraging that most of the geotechnical holes drilled east of, and outside of the Lift 2 cave shape are continually mineralized with copper grades. These results confirm HNE is a world class deposit capable of supporting mining from the JV Property for several future generations. It is truly an exciting time for Entrée with first underground development on the JV Property scheduled to start later this year. Initial work will be on necessary infrastructure outside of the ore footprint with mining expected to commence thereafter.

We are also encouraged by some of the early-stage drill results at the Ulaan Khud and Railway regional targets, where drill holes have intercepted several intervals of anomalous copper and gold values, at relatively shallow depths.”

2022 and 2023 HNE DRILLING RESULTS

The Company has now received all analytical results from the 2022 HNE drilling program on the JV Property and partial drill results from the 2023 program. Both the 2022 and 2023 HNE drilling programs include surface drill holes that were drilled entirely on the JV Property and underground drill holes that were collared on the Oyu Tolgoi mining licence and drilled onto the JV Property.

Recently received drilling results include three holes collared from surface (EGD161, EGD173 and EGD177A), each crossing through more than 1,300 m of barren, sedimentary and volcanic tuff units before intersecting the porphyry deposit and crossing between 175 m and 400 m of significant copper and gold mineralization. The mineralization persists until the end of each drill hole, at depths ranging between 50 m and 190 m below the base of the potential Lift 2 Panel 1 block cave and remains open at depth.

Recently received significant mineralized intervals from the 2022 and 2023 HNE drilling programs are summarized in Tables 1 and 2, and are shown on Figures 1 and 2. OTLLC has informed Entrée that seven of the 2022 underground drill holes (UGD578, UGD585, UGD650, UGD650B, UGD730, UGD731 and UGD731A) that were noted by Entrée on February 28, 2024 as having pending analytical results will not be assayed since they were used purely for geotechnical and metallurgical purposes. In addition, five previously reported underground drill hole intervals have been adjusted by OTLLC due to a data clipping issue at the JV Property boundary. As a result, the drilled lengths of these intercepts on the JV Property have been slightly increased by approximately 8 m to 28 m (Table 2).

Details of the 2023 HNE drilling program are summarized further below and Tables 3 and 4 include the drill hole collar and downhole information. Details for the 2022 HNE drilling were previously provided by the Company on February 28, 2024.

Table 1: Surface Drill Results from 2022/2023 Drilling at HNE Deposit¹

Table 2: Underground Drill Results from 2022/2023 Drilling at HNE Deposit¹

1. All of the analytical results shown above are length weighted averages and are only for the portions of the drill holes on the JV Property.
2. Lengths reported are drilled lengths. Approximate true widths are variable depending on the orientation of the drill hole. Several of the holes are geotechnical holes drilled subparallel to the trend of the porphyry. Other holes were drilled across the trend of the porphyry at varying orientations with estimated true widths ranging between approximately 20% and 70% of the drilled lengths.
3. CuEq is calculated by the formula CuEq = Cu + ((Au * 35.7175) + (Ag * 0.5773)) / 67.9023, taking into account differentials between metallurgical performance and price for copper, gold and silver. Metal prices used are US$3.08/lb copper, US$1,292.00/oz gold, and US$19.00/oz silver. Metallurgical recoveries used are 82% for copper, 73% for gold and 78% for silver.
4. Drill hole intervals previously reported on February 28, 2024 were adjusted due to a data clipping issue by OTLLC at the Shivee Tolgoi mining licence boundary. As a result, the lengths of the drill hole intervals on the JV Property have been slightly increased.

Figure 1: Plan View of 2022 and 2023 Drilling at the HNE Deposit

Figure 2: 3D Image of 2022 and 2023 Drilling at the HNE Deposit

UNDERGROUND DEVELOPMENT UPDATE

The Company is pleased to report that underground development work on OTLLC’s Oyu Tolgoi mining licence continues to advance and that Shafts 3 and 4 have now reached their final depths of 1,130 m and 1,176 m, respectively, with final commissioning expected in H2 2024. Completion of these shafts is significant since they are a key piece of the infrastructure and are required to provide ventilation to support production from Panels 1 and 2 during ramp up. The HNE deposit is located in the northern portion of Panel 1.

OTLLC continues to advise the Company that Lift 1 Panel 1 underground infrastructure development work on the JV Property is scheduled to commence in Q4 2024. Development work will start in the southwest corner of the HNE deposit on the Shivee Tolgoi mining licence and 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 planned approximately 212 equivalent metres of development on the JV Property in 2024. This includes 15 eqm on the extraction level, 117 eqm on the haulage level, and 181 eqm on 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.

2023 DRILLING INFORMATION

Underground and surface drilling at HNE was carried out by OTLLC from December 30, 2022, to December 21, 2023, during which time seven surface holes totalling 8,063.9 m and 25 underground holes totalling 7,307.8 m were drilled on the JV Property.

The 2023 underground holes were all collared from existing infrastructure on the Oyu Tolgoi mining licence and crossed onto the Entrée/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 designed to achieve multiple objectives; as in-fill holes within the mineralized footprint of Lift 2 to support the next mineral resource estimate update; for geotechnical purposes with many holes drilled subparallel to, but outside of the mineralized footprint; and for metallurgical purposes.

Five of the seven 2023 surface holes were collared east of HNE and drilled steeply, either towards the northwest targeting Lift 2, or the area to the east of Lift 2 for geotechnical purposes. Two additional surface holes were also geotechnical holes collared west of the HNE footprint and drilled steeply towards the southeast or southwest, outside of the mineralized footprint. Except for daughter hole EGD177A, all analytical results from the surface holes are still pending. Although no new holes have been drilled north of the current Lift 2 block cave shape, many holes, especially the surface holes, were drilled upwards of 190 m below the base of Lift 2 and remained in significant copper and gold mineralization providing continuity for deeper, potential future lifts.

Holes drilled into the mineralized porphyry intersected predominantly phyllic and potassic altered quartz monzodiorite, cut by occasional intervals of unmineralized biotite-granodiorite dikes (generally less than 10 m in drilled width). Total sulphide content is variable but averages around 5% and comprised of a mix of chalcopyrite, bornite and pyrite hosted in quartz stockworks and disseminated form. Some of the highest-grade individual assays (grading around 5% to 10% CuEq) are often hosted within hydrothermal breccias, containing up to 10% disseminated and coarse bornite and chalcopyrite.

Drill holes outside of the HNE mineralized footprint generally crossed an interbedded sequence of ignimbrite and augite basalt with varying amounts of advanced argillic and phyllic alteration. Mineralization is variable, but consists of about 3% sulphides, comprised of a mix of pyrite and chalcopyrite.

Drill hole sample lengths generally averaged 2.0 m. Tables 3 and 4 summarize the drill hole details and Figures 1 and 2 shows the locations of the 2023 HNE drill holes and assay intervals discussed in this press release.

Table 3: HNE 2023 Surface Drilling

Table 4: HNE 2023 Underground Drilling

* Holes drilled as “daughter” holes (wedges) from a “parent” drill hole; Coordinates are WGS UTM Zone 48N, Local OT GRID system.

2024 HNE DRILLING UPDATE

OTLLC is continuing to drill at HNE throughout 2024 and as of late April have reported the completion of one surface diamond drill hole, with 3 more planned and 13 underground diamond drill holes with 12 additional holes planned. In addition, 5 diamond drill holes are planned for Heruga, which will be the first holes drilled at the deposit since 2012. Once the complete database is received and reviewed by the Company the 2024 drill results will be released. It is the Company’s understanding that similar to the 2022 and 2023 drilling programs, all of the 2024 drill holes will be drilled within the current mineralized footprint or within the hanging and/or footwall rocks, with the objective to update the HNE mineral resource estimate and to conduct geological and geotechnical characterization.

2023 REGIONAL PROSPECTS DRILLING UPDATE

Regional exploration continued during 2023 with IP/resistivity, 3D modelling, and diamond drilling focused at the Railway and Ulaan Khud prospects. Other prospects, inducing Airstrip, Ductile Shear, East Bumbat Ulaan, Castle Rock, Southeast IP and West Mag had 3D modeling and data integration completed over them. Seven diamond drill holes were completed at the Ulaan Khud and Railway Prospects, totaling 5,143.5 m, as shown on Table 5 with anomalous assay results reported on Table 6.

Table 5: 2023 Entrée/Oyu Tolgoi JV Regional Drilling

Coordinates are WGS UTM Zone 48N, Local OT GRID system.

Table 6: JV Property Regional Targets – 2023 Anomalous Drill Results¹

1. All of the analytical results shown above are length weighted averages.
2. Lengths reported are drilled lengths. Insufficient drilling has been done to determine the orientation of mineralized zones.
3. CuEq is calculated by the formula CuEq = Cu + ((Au * 35.7175) + (Ag * 0.5773)) / 67.9023, taking into account differentials between metallurgical performance and price for copper, gold and silver. Metal prices used are US$3.08/lb copper, US$1,292.00/oz gold, and US$19.00/oz silver. Metallurgical recoveries used are 82% for copper, 73% for gold and 78% for silver.

The drill results at Ulaan Khud are encouraging as all three holes intersected the target quartz monzodiorite host unit and each returned anomalous gold and copper results, with some intervals at relatively shallow depths. OTLLC is planning to review these results and undertake additional drilling during 2024.

One of the Railway prospect drill holes (EJD0095) returned several intervals of anomalous copper and gold results over moderate drill lengths at relatively shallow depths. This hole is the furthest south of the three that OTLLC drilled during 2023 and the target of augite basalt coinciding with Zeuss IP anomaly remains open at depth. OTLLC will review the results before they plan any follow-on work at Railway.

During 2024, OTLLC will complete additional exploration on the JV Property, including 4 diamond drill holes at Bumbat Ulaan; gravity and CSAMT geophysical surveys, followed by 2 diamond drill holes at Heruga West and South; one deep diamond drill hole at Ulaan Khud; soil sampling at Airstrip; and gravity and CSAMT geophysical surveys followed by one deep drill hole to the north of Hugo North Extension.

SAMPLE PREPARATION AND ANALYSES, QAQC AND QUALIFIED PERSON

All drill core from the 2022 and 2023 HNE drilling programs and the regional drilling programs was geologically and geotechnically logged at site by OTLLC. Surface drill holes were generally collared with PQ diameter core (123 mm) and reduced to HQ (96 mm) and occasionally NQ (76 mm) core diameters at depth. Underground holes were collared using HQ diameter and occasionally reduced to NQ at depth. Core from HNE and regional drilling was saw-cut on site before being bagged and shipped to the laboratory for analyses. A few core samples from HNE were shipped to SGS Laboratory in Ulaanbaatar, Mongolia for sample preparation and analysis. Most core samples from HNE and all regional drilling samples were shipped to ALS in Ulaanbaatar, Mongolia for sample preparation with pulp samples sent to ALS in Perth, Australia for geochemical analysis. Both SGS and ALS are independent of OTLLC, Rio Tinto and Entrée. At SGS the samples were crushed to <2mm and pulverized to 75μm, then analysed for gold by 30-gram fire assay with an AAS finish, and for copper, silver and molybdenum, along with 8 additional elements by 4-acid digestion ICP-OES and ICP-MS multi-element analysis. Additional analysis was done for carbon/sulphur by Leco furnace and fluorine by specific ion electrode. At ALS the samples were crushed to <2mm and pulverized to 75μm then analysed for gold and multiple elements with an ICP-MS method. Gold was further analysed for gold by 30 g fire assay with an ICP finish.

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 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.

The scientific and technical information that forms the basis for this press release was reviewed and approved by Robert Cinits (P.Geo.), who is a Qualified Person as defined by National Instrument 43-101. For further information on the JV Property, see the Company’s Technical Report, titled “Entrée/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, and on SEDAR+ at www.sedarplus.ca.

ABOUT ENTRÉE RESOURCES LTD.

Entrée 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 Entrée’s joint venture partner OTLLC and the Entrée/Oyu Tolgoi JV Property, which is a partnership between Entrée and OTLLC. Rio Tinto owns 66% of OTLLC and is the manager of operations at Oyu Tolgoi. Entrée has a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi JV, depending on the depth of mineralization. Horizon Copper Corp. and Rio Tinto are major shareholders of Entrée, beneficially holding approximately 24% and 16% of the shares of the Company, respectively.