Vancouver, B.C., April 9, 2021 – Entrée Resources Ltd. (TSX:ETG; OTCQB:ERLFF – the “Company” or “Entrée”) reports that on April 9, 2021, Turquoise Hill Resources Ltd. (“Turquoise Hill”), announced they have reached a binding agreement (“Heads of Agreement”) with Rio Tinto on a funding plan to complete the construction of Lift 1 of the Oyu Tolgoi underground project (“Oyu Tolgoi”) in Mongolia.

The Hugo North Extension deposit on the Entrée/Oyu Tolgoi JV Property is an integral part of the Lift 1 mine plan.

Stephen Scott, Entrée’s President & CEO commented, “This is great news for all Oyu Tolgoi project stakeholders, including Entrée. Ensuring remaining necessary capital funding is in place eliminates a key Oyu Tolgoi underground project execution risk. Achievement of this very important milestone moves the project one step closer to completion.”

Highlights of the Heads of Agreement include:

Addresses the estimated remaining funding required of approximately US$2.3 billion1 and replaces the previous non-binding Memorandum of Understanding entered on September 2, 2020.
Pursue re-profiling of existing project debt to better align with the revised mine plan, project timing and cash flows to reduce the currently projected funding requirements of Oyu Tolgoi LLC (“OTLLC”) by up to US$1.4 billion.
Seek to raise up to US$500 million in senior supplemental debt (“SSD”) under the existing project financing arrangements from selected international financial institutions.
Rio Tinto is committed to address any potential shortfalls from the re-profiling and additional SSD of up to US$750 million by providing a senior co-lending facility (the “Co-Lending Facility”) on the same terms as OTLLC’s project financing.
Turquoise Hill has committed to complete an equity offering of common shares for up to US$500 million in the form of, and at Turquoise Hill’s discretion, either (i) a rights offering of common shares or (ii) a public offering or private placement of common shares, in either case sufficient to satisfy any remaining funding shortfall of up to US$500 million within six months of the Co-Lending Facility becoming available.
The Heads of Agreement is subject to securing approval by OTLLC and any required support from the Government of Mongolia.
1 The estimated remaining funding requirement is based on the terms of the Heads of Agreement and current anticipated copper prices, among other factors, and does not include funding, if any, which may become required for a power plant.

Oyu Tolgoi 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 joint venture property (“Entrée/Oyu Tolgoi JV Property”), which is a partnership between Entrée and OTLLC.

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. Entrée has a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi JV, depending on the depth of mineralization. Sandstorm, Rio Tinto and Turquoise Hill are major shareholders of Entrée, holding approximately 23%, 9% and 8% of the shares of the Company, respectively. More information about Entrée can be found at www.EntreeResourcesLtd.com.

FURTHER INFORMATION
David Jan
Investor Relations
Entrée Resources Ltd.