Vancouver, B.C., July 6, 2020 – Entrée Resources Ltd. (TSX: ETG; OTCQB: ERLFF – the “Company” or “Entrée”) reports that on July 2, 2020, Turquoise Hill Resources Ltd. (“Turquoise Hill”) announced the completion of an updated Oyu Tolgoi Feasibility Study (“OTFS20”) that incorporates the new mine design for Hugo North Lift 1 Panel 0. The Company’s joint venture partner Oyu Tolgoi LLC (“OTLLC”) is in the process of submitting OTFS20 with the Government of Mongolia in order to comply with local regulatory requirements.

Stephen Scott, Entrée’s President & CEO commented, “We look forward to reviewing OTFS20 and to completion of the previously announced definitive estimate review and Panel 1 design optimization studies by OTLLC, Turquoise Hill and Rio Tinto. While Turquoise Hill has reported a reduction in its mineral reserve estimate for the overall Hugo North underground mine due to the inclusion of two structural pillars, it is encouraging to see that the ore tonnes and contained copper, gold and silver for the Probable mineral reserve that Turquoise Hill reported for the Entrée/Oyu Tolgoi joint venture property have all increased. In addition, we are excited to hear that drilling is underway at Panel 1 and look forward to seeing the results. We are pleased with our partners’ efforts to remain within the guidance ranges on cost and schedule previously announced by Turquoise Hill and believe that the steps that our partners are taking to optimize the mine plan for Panels 1 and 2 will be of great benefit to all stakeholders, including Entrée.”

In its July 2, 2020 news release, Turquoise Hill noted the Hugo North (including Hugo North Extension) Lift 1 mine plan incorporates the development of three panels and in order to reach the full sustainable production rate of 95,000 tonnes per day from the underground operations, all three panels need to be in production. The Hugo North Extension deposit on the Entrée/Oyu Tolgoi joint venture property (“Entrée/Oyu Tolgoi JV Property”) is located at the northern portion of Panel 1.

According to Turquoise Hill, the block cave design incorporated in OTFS20 provides for 120 metre structural pillars included to the north and south of Panel 0, protecting ore handling infrastructure (which will be moved into the structural pillars) and increasing the optionality of sequencing Panel 1 and Panel 2. The structural pillars are planned to be located on the Oyu Tolgoi mining licence. Turquoise Hill believes the existing feasibility study designs for Panel 1 and Panel 2 remain executable based on the current orebody understanding. However, with the introduction of structural pillars, Panels 1 and 2 become independent, allowing for much greater operational flexibility. According to Turquoise Hill this provides opportunities to:

Optimise the extraction level elevation for each panel independently;
Evaluate the potential to convert Measured and Indicated mineral resources below the current Lift 1 extraction level to Probable mineral reserves;
Complete additional confirmatory drilling and data collection in support of potential Panel 1 and Panel 2 design refinements; and
Include structural pillar recovery level(s) in the integrated Hugo North Lift 1 mine design.
Turquoise Hill noted that Panel 1 and Panel 2 design optimization studies have been initiated to explore these opportunities. The studies are not expected to delay the ramp up of Panel 1 or Panel 2. Drilling work is underway and the resulting updates to geotechnical modelling and mine design review are expected by Turquoise Hill to continue into 2021.

Turquoise Hill also announced its updated Mineral Resources and Mineral Reserves prepared in accordance with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and CIM definition standards for Mineral Resources and Mineral Reserves (2014). Turquoise Hill noted that OTFS20 does not reflect the impacts of the COVID-19 pandemic, which are ongoing and continue to be assessed. A number of work fronts are directly impacted including Shafts 3 and 4 being put on care and maintenance and work on Primary crusher 1 being slowed due to the lack of availability of critical resources and restrictions on site workforce numbers.

Entrée’s 2018 Technical Report completed on its interest in the Entrée/Oyu Tolgoi JV Property discusses two development scenarios, a reserve case (the “2018 Reserve Case”) and a Life-of-Mine Preliminary Economic Assessment (the “2018 PEA”). The 2018 Reserve Case is based only on mineral reserves attributable to the Entrée/Oyu Tolgoi JV from Lift 1 of the Hugo North Extension underground block cave. Both the 2018 Reserve Case and the 2018 PEA are based on information reported within the 2016 Oyu Tolgoi Feasibility Study (“OTFS16”).

Rio Tinto is managing the construction and eventual operation of Lift 1 as well as any future development of deposits included in the 2018 PEA. In 2019, subsequent to the completion of OTFS16 and the 2018 Technical Report, Rio Tinto advised that more detailed geotechnical information and different ground conditions have required a review of the mine design and the development schedule reflected in OTFS16 and the 2018 Technical Report. Once the definitive estimate of cost and schedule and the Panel 1 optimization studies have been completed and delivered to Entrée with OTFS20, the Company will be able to assess the potential impact on Entrée/Oyu Tolgoi JV Property production and financial assumptions and outputs from the two alternative cases, the 2018 Reserve Case and the 2018 PEA.

Readers are cautioned that the Company has not yet been provided with OTFS20 or any of the data or assumptions underlying OTFS20, the block cave designs in OTFS20 or Turquoise Hill’s updated Mineral Resources and Reserves and the Company is therefore unable to verify such data or the scientific and technical disclosures made by Turquoise Hill at this time. For information on the Company’s interest in Entrée/Oyu Tolgoi JV Property, see the Company’s current Technical Report, titled “Entrée/Oyu Tolgoi Joint Venture Project, Mongolia, NI 43-101 Technical Report”, with an effective date of January 15, 2018, available on SEDAR at www.sedar.com.

QUALIFIED PERSON

Robert Cinits, P.Geo., consultant to Entrée 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.

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 joint venture, depending on the depth of mineralization. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill are major shareholders of Entrée, holding approximately 21%, 9% and 8% of the shares of the Company, respectively. More information about Entrée can be found at www.EntreeResourcesLtd.com