Entree Resources Announces Third Quarter 2025 Results

Executive Summary

• Entrée Resources filed its Q3 2025 interim financial results, reporting a reduced three‑month operating loss of $0.6 M and nine‑month loss of $1.9 M versus prior year periods.
• The Company highlighted ongoing legal and tax actions in Mongolia to obtain confirmation of licence valuations and transfer the Shivee Tolgoi and Javkhlant licences to OTLLC, a prerequisite for resuming Lift 1 Panel 1 underground development.
• A 2025 in‑fill diamond drilling program (≈17,400 m total) was approved for the Hugo North Extension deposit; an updated resource model is expected in H1 2026.

Key Details

• Financial Highlights
• Operating loss: $0.6 M (Q3) vs. $0.7 M (Q3 2024); $1.9 M (nine months) vs. $2.7 M (nine months 2024).
• Operating cash outflow before non‑cash changes: $0.9 M (Q3) vs. $0.6 M (Q3 2024); $1.9 M (nine months) vs. $2.5 M (nine months 2024).

• Cash and working capital balances as of Sept 30 2025: $4.9 M each.

• Legal/Tax Proceedings

• Claim filed with Mongolia’s Administrative Court (Aug 1 2025) seeking MTA review & confirmation of licence valuation methodology under Decree No. 302.
• Formal complaint lodged with MTA (May 19 2025); MTA declined to certify valuations pending State ownership determination (July 3 2025).

• License Transfer Agreements executed and lodged with MTA (Feb 2025); corporate income tax at 10% of licence value to be assessed once valuation confirmed.

• State Interest & Oversight

• Mongolia’s Parliament created a Temporary Oversight Committee (Resolution No. 62, July 2 2025) and Working Group (Order No. 73, Aug 22 2025) to negotiate State’s 34% economic benefit in the Oyu Tolgoi Strategic Deposit.

• Entrée has supplied “thousands of pages” of documentation and participated in numerous inspector meetings.

• Drilling Program – Hugo North Extension (HNE)

• Approved total program: ~8,329 m underground (19 holes) + ~9,050 m surface (5 holes).
• Completed to date (Sept 30 2025): 2,447 m underground (13 holes, 3 in progress) and 4,759 m surface (4 holes).

• Objective: fill geological model gaps; updated resource model for Hugo North Lifts 1‑2 slated for H1 2026.

• Oyu Tolgoi Underground Development

• Rio Tinto reported record Q3 2025 copper production and progress on concentrator conversion, fifth ball‑mill load commissioning, and primary crusher #2 construction (completed Sep 14 2025).

• Lift 1 Panel 1 development remains paused pending licence transfer; delays could materially affect development costs, schedule, cash flow, and share price.

• Strategic Outlook

• Transfer of licences is critical to enable Lift 1 Panel 1 lateral development and achieve target average production of ~500 kt Cu/yr (2028‑2036).

• Potential conversion of the Entrée/Oyu Tolgoi Joint Venture Agreement into a more effective arrangement, subject to TSX approval and MI 61‑101 requirements.

• Qualified Person

• Robert Cinits, P.Geo., NI 43‑101 Qualified Person, approved technical information in this release.

Notable Quotes

(No direct CEO/President quotes were included in the release.)