Entrée Resources Ltd. provided partial diamond drill hole ("DDH") results from the 2022 drilling program over the Hugo North Extension ("HNE") deposit on the Entrée/Oyu Tolgoi JV 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 also reported that first underground development work on the Entrée/Oyu Tolgoi JV Property is scheduled to commence in second half 2024.

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. 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 <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 Entrée/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 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 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. 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 Entrée/Oyu Tolgoi JV Property is scheduled to commence in second half 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.