Entree Resources Ltd. President and CEO Chris Adams Issues Letter to Shareholders

Entree Resources Ltd. (ETG) CEO Chris Adams has outlined the company’s strategic priorities following a recent leadership refresh. The company is targeting the first quarter of 2027 for the completion of an updated technical report on the Hugo North Extension Lifts 1 and 2.

Significant progress has been made in transferring joint venture mining licenses to Oyu Tolgoi LLC (OTLLC), which includes updated valuation calculations and tax payments made in June 2026. Entree Resources is currently engaging with the Mongolian tax authority to obtain the required tax payment certificate for license registration.

In September 2026, Rio Tinto CEO visited Mongolia to formalize an agreement that lowers management fees and shareholder loan interest rates. Rio Tinto has reaffirmed its commitment to working toward shareholder dividends in 2027. The strategic intent is to convert the joint venture interest into a simplified structure of equivalent economic value. Additionally, the company plans to increase investor relations activities following shareholder feedback.

Entree Resources Ltd. (ETG) has announced incremental progress in its long-running regulatory and licensing process, marked by tax valuation updates and a fee reduction from Rio Tinto. While these developments are positive, they do not constitute a sudden breakthrough. The company has committed to paying dividends in 2027, a notable catalyst that remains contingent on resolving the Mongolian government’s 34% state equity and royalty interest, as well as finalizing the license transfer.

Management’s focus on delivering a technical report in Q1 2027 aligns with prior guidance, indicating steady execution rather than accelerated timelines. The company also announced a routine leadership transition, with the retirement and death of Stephen Scott and the appointment of Chris Adams, who brings relevant mining finance experience. This release validates the long-delayed path to production but does not eliminate execution, regulatory, or geopolitical risks.

Entree Resources Ltd. (ETG) holds a carried participating interest in the Oyu Tolgoi joint venture in Mongolia. The company’s flagship projects include the Hugo North Extension (HNE) and Heruga deposits, located within the Shivee Tolgoi and Javkhlant mining licenses. Under the joint venture structure, Entree holds a 20% carried interest below 560m elevation and a 30% carried interest above 560m. OTLLC, which is owned 66% by Rio Tinto and 34% by the State of Mongolia, holds an 80% (or 70%) economic interest and manages all mining, processing, and development activities.

Currently, Lift 1 Panel 0 and Panel 2 North are in production. Development of Lift 1 Panel 1 (HNE) is paused pending license transfer, while Lift 2 remains conceptual. Heruga is considered a long-term option for the project. The commodities produced include copper, gold, silver, and molybdenum.